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Did you know that there is student loan forgiveness for engineers? This is true!
If you're an engineer, you may not have to wait that long. You have some additional options that other students don't have.
In order to retain more engineering students in the field, foundations, states and companies offer debt repayment as an incentive.
This means engineering graduates have access to various debt relief options and programs not available to other students. In this article we will explore what options there are.
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Student loan forgiveness for engineers
STEM (science, technology, engineering, mathematics) students have access to various types of debt relief programs through foundations, governments, and corporations.
Alfond Leaders Program in Maine
Starting with foundations, there is the Harold Alfond Foundation, which targets STEM students in Maine. The program, called “Alfond Leaders,” was launched in February 2017. They have already paid off $685,000 in debt for 20 Maine students.
Alfond Leaders' goal is to retain more STEM students in Maine. By working with companies that hire STEM employees, the foundation offers to pay student loans of up to $60,000 per recipient.
SEMA loan forgiveness
Although not directly related to engineering, SEMA (Specialty Equipment Market Association) offers bonuses worth up to $5,000. To participate in this loan forgiveness program, graduates must:
- Employee of a SEMA member company.
- Possess a degree or certificate from a college, university, or technical vocational school in the United States.
- Graduate with a minimum 2.5 GPA.
- Show your passion for automobiles.
Given the breadth of degrees and the fact that some engineers go into the automotive industry, this can be a good way to get additional loan forgiveness.
Higher Education Opportunity Act of 2008
Another loan forgiveness program for engineers is the Higher Education Opportunity Act of 2008. This program allows debt forgiveness of up to $2,000 per year, up to a maximum of $10,000.
The website acec.org states: “Under the law, an individual is entitled to student loan forgiveness of up to $2,000 for each of the five years that he or she worked in engineering or another specified field .”
The maximum loan forgiveness amount available to an individual is $10,000. Only years of work completed after August 14, 2008 will count toward student loan forgiveness requirements.”
Public Service Loan Forgiveness
If you are an engineer who works in the public sector, you could qualify for public service loan forgiveness. This program offers full loan forgiveness after 120 qualifying payments (10 years).
What type of employment counts? Public service – but that is very broad. You may be employed by the federal government, military, state government, or local government. Non-profit organizations also qualify.
Many engineers are employed by qualified public organizations, so check them out!
Assistance with repayment of student loans by the employer
While there are foundations and government debt relief programs, don't rule out employers paying all or part of your student loans.
These employers do not work with foundations or government debt relief programs. They essentially put together their own program, which can make it easier to qualify.
Employers have certain restrictions that you must meet before debt relief goes into effect. The most common is that the employee must work for a certain number of years before their loans are paid off.
Another approach is that certain amounts are paid every year and can start as early as the first year. Both incentives are intended to keep employees in the company longer.
In some cases, a company may provide a lump sum immediately or after the first year that can be used to pay off student loan debt. However, if the employee leaves before a certain number of years, he or she must pay back a percentage of the bonus.
Check out this list of companies that offer student loan repayment assistance.
Federal student loan forgiveness programs
If you don't qualify for any of the programs listed above, there are still options that can help you.
First, there are “secret” student loan forgiveness programs that come with income-driven repayment plans. These programs not only lower your monthly payment, but also offer loan forgiveness for the remaining balance at the end of your loan term. This also includes repayments under the new SAVE student loan repayment plan.
Second, if you are employed in public service (such as a government job), you may be able to qualify for public service loan forgiveness. This program allows for student loan forgiveness after 120 payments (or 10 years). While that may seem like a long time, if you start at 22, you can be debt-free by 32!
Plan your studies in advance
Many debt relief programs require certain degrees and may require schools and employers to be eligible.
Although you may not know where you will be after graduation, planning ahead can increase your chances of success in obtaining funds for debt relief. Here are a few tips on how to do it.
Start by researching engineering and STEM debt relief programs available in some states you may want to move to after you graduate.
Don’t just focus on “engineering courses.” Many courses are STEM-oriented, which also includes engineering. It's important to look for both types of programs.
Enter your school in the search. The schools you target can be a great resource when it comes to helping you find debt relief programs. Keep in mind that they are likely biased toward programs in their state.
After identifying a large number of programs, look for the companies in your target states that participate. Debt relief programs are often associated with businesses. It is important that the program and the company are linked.
Otherwise, you may find a great debt relief program that you're eligible for, only to find that your employer doesn't participate.
Final thoughts
Engineers have some great options when it comes to student loan debt relief. While it is unlikely that a single program will pay off all of your student loan debt, the programs mentioned in this article can certainly help pay off your debt load.
Remember, you want to make sure your degree and employer match for whatever program you choose.
However, it is not uncommon for employees to have their own student loan forgiveness program. Just be aware of their limitations.
Considering student loan forgiveness if you qualify?
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