You might not have to wait for these programs to be absolved of debt. Other forgiveness programs exist.
Work 10 years in public service while repaying your loans, and any remaining balance can be wiped out. This applies to payments made as of October 2007 and later. Eligible workers include police officers, social workers and government and nonprofit employees. This program is designed for those who make small payments under income-contingent or income-based repayment plans.
The Stafford Loan Forgiveness Program for Teachers forgives debt for full-time educators who have five years of service in low-income schools. Elementary and high-school teachers can have up to $5,000 forgiven. As much as $17,500 can be erased if you're rated a highly qualified special-education teacher or a highly qualified high school math or science teacher.
Last year, 26,565 teachers had nearly $161 million in loan debt forgiven, or an average of $6,057 each, according to government figures.
States, too, offer loan relief for residents working in certain fields or underserved areas.
In Maryland, the Janet L. Hoffman Loan Assistance Repayment Program awards up to $10,000 to repay student loans. The award can be renewed twice, for a total of $30,000. You must be employed by the state or local government, or by a Maryland nonprofit organization. Income can't exceed $60,000 for singles; $130,000 for married couples. Eligible workers include lawyers, nurses, physical and occupational therapists, social workers, speech pathologists and teachers in underperforming schools.
The state also awards tens of thousands of dollars of loan relief to dentists serving Maryland's neediest patients and primary care physicians working in underserved areas. Contact the Maryland Higher Education Commission in Annapolis for details at 410-260-4500.
