August 24, 2009

Are You an Educator With a Student Loan?

Any time you have a debt that can just go away or be reduced, it is important to take advantage of it. For some educators, that could be a possibility with their school loans.

The office of Federal Student Aid, an office of the U.S. Department of Education, "plays a central and essential role in America's postsecondary education community." This office is also in charge of the Cancellation and Deferment Options for Teachers. Depending on several factors, an educator could conceivably be able to have their student loan(s) completely wiped out after five years.

Unfortunately, there is no easy way to know if you qualified without doing a bit of legwork, but the payoff would easily be worth the time and effort. The main items you need to know are what kind of loan you have, if you are considered a "teacher," and if your school is considered low-income school. This website - Cancellation/Deferment Options for Teachers - will start spelling it all out for you, but the equally important Teacher Cancellation Low Income Directory is a good place to start. If your school does not make the list, there is not much sense in going much further at this time. Check to make sure though it has not been listed at all during your five years.

Good luck to everyone in your hunt for information and reducing your debt. It's the first step in being able to get control of your finances and putting away even more money for your retirement.

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