Hello everyone, I have a quick question...

I've heard that if you work for an "inner city" school or hospital that there is some program that will assist in paying your student loans. Has anybody heard of it? If so, can you please provide info. Thanks

http://studentaid.ed.gov/PORTALSWebApp/stu...sp?tab=repaying

Check out that link.

Yep. Direct & FFELP loans for "new borrowers" as of 10/01/1998 can be forgiven for qualified teachers at Title I (poverty) schools in certain subjects. Requires 5 years of teaching before it can be granted. $5,000 to $17,500 depending on subject area.

There are many other programs especially for public service that involve a government agency or private foundation paying on your student loans for you. Health & Human Services, VISTA, PeaceCorpse, Americorpse, DOD are some examples.

Perkins loans have additional cancellation options.

For more info on loan forgiveness:

http://www.finaid.org/loans/forgiveness.phtml

As a Special Ed teacher in a Title One school, I have had 17,500 forgiven. I believe you have to teach for 5 years and it took them about 8 months to process everything but that whole time, they put the loans in deferment. I thought that when I read that they would forgive up to 17,500 that there I would get some forgiven but was happy that they gave the whole amount. Now I need to find out about the tax liability but at least that is a one time thing to deal with.

You will get a 1099-C for 17.5k.

It's not income, IMO, because you meet all three of the following:
-You agreed that all or part of your loans could be canceled by performing the 5 years of service before the cancellation happened.
-You performed the service before the loans were canceled.
-The loans were made or insured by the Federal Government.