About Loan Forgiveness and Forbearance

Loan Forgiveness

The Association of American Medical Colleges provides information on loan forgiveness programs in most states. For example, in some places it may be possible for social workers working full time in an underserved area at a community health center to be eligible for a repayment per year of service of $12,500.

Loan forgiveness programs not specific to social workers, but still possibly applicable, can be found at: www.finaid.org/loans/forgiveness.phtml

Programs at this website include Americorps, Peace Corps, and National Health Service Corps, as well as other paths to forgiveness.

Employment Agencies and Forbearance of Loans

For graduates whose student loan deferments are coming to an end and who do not yet have jobs, forbearance agreements are possible for many loans. Forbearance means that you are currently unable to pay the loan but agree to do so as soon as you are able. You can arrange to pay the interest only or you can allow the interest to capitalize and be added to the loan. If you choose to arrange for forbearance, you will be asked to register with an employment agency.