Will Loan Forgiveness Benefit You?

• Loan forgiveness is a great way to give back to the public good while the government pays back your student loans. But it isn't for everyone.

1. Remember that loan forgiveness will not necessarily cancel your entire loan. It isn't a get out of jail free card. Different programs offer different amounts of loan forgiveness, so read the fine print carefully.
2. Doing community service work in an impoverished West African village or teaching in an overcrowded school with few resources isn't easy. If you hadn't already thought seriously about doing the kind of work that does offer loan forgiveness, you shouldn't switch course just to pay off your debt.
3. If, however, you aren't sure exactly what you want to do next, a stint in Americorps or the Peace Corps could be an excellent opportunity for you.
4. If reducing student loan debt is your only motivation for seeking out loan forgiveness, you might want to consider your other options first: switching your repayment plan or consolidating student loans(grouping them together under one fixed rate) to lower your monthly payment.
5. Also see Mahalo's guide to How to Reduce Student Loan Debt to assess all your options for surviving your student loans.
6. And remember that almost no loan forgiveness program we've seen will accept you if you are indefault on your loans, meaning you haven't paid in over 180 days.