Suppose you could borrow money for college, graduate, find a job in your chosen field and have your loans disappear? Sound like a good deal, huh?
Service cancelable loans can be a great way to finance your education. Unfortunately, they don’t apply to everyone.
“A lot of service cancelable loans are for a specific program or state, and you have to meet the individual criteria to qualify,” said Jonathan Stroble, senior manager, external affairs, student and school services, with the Georgia Student Finance Commission. “Also, due to budget reductions, there aren’t as many as there used to be.
“These types of loans are a great opportunity for students who are sure of their college major or their willingness to serve in the military. If you’re not sure, they could be dangerous, because you will have to repay on the lender’s terms. Our advice is to understand all the obligations and regulations before entering into any agreement.”
Here are three service cancelable loans specific to Georgia:
1. Scholarship for Engineering Education
Mercer University wants to educate and keep more engineers working in Georgia with this program. Mercer’s School of Engineering (Macon campus) prides itself on academic excellence, personal attention, practical experience and employability. Students may specialize in industrial management, technical communication or biomedical, computer, electrical, environmental, industrial and mechanical engineering.
Applicants must be legal residents of Georgia for at least 12 months prior to enrollment, be a U.S. citizen or permanent resident alien, be admitted to a baccalaureate engineering program at a private, accredited engineering university in Georgia, and meet other requirements.
Qualified engineering students may borrow up to $3,500 per academic year, with a maximum cap of $17,500. In return for the scholarship loan, students who work in an engineering-related field in Georgia after graduation may reduce their loan by $3,000 per year worked.
Those who don't fulfill the service obligation must repay the loan in cash installments with interest accruing daily at a fixed rate of 10 percent.
2. Georgia Military College State Service Scholarship Loan
Funded by the state of Georgia and administered through the Georgia Student Finance Commission, the purpose of this scholarship loan is to attract outstanding students to serve in the Georgia National Guard. To be eligible, students must attend Georgia Military College in Milledgeville or one of its five satellite centers.
Students must meet Georgia residency, college admission and federal Title IV Selective Service registration requirements. They also are required to have a cumulative GPA of 2.5 or better in high school and have made a minimum score of 800 on the SAT or 17 on the ACT.
Qualified students receive full two-year scholarships that cover tuition, fees, room, meals, books and uniforms, minus any state or federal grants. To achieve loan forgiveness, students must serve four years in the Georgia National Guard, two years while in college and two after graduation.
Those who fail to complete the service obligation must repay the total amount received (plus interest) within five years.
3. University of North Georgia Scholarship Loan program
The program provides full scholarships to outstanding Georgia students who are interested in pursuing a military career. To be eligible, students must attend the University of North Georgia, which was formed when North Georgia College & State University in Dahlonega and Gainesville State College were consolidated earlier this year.
Applicants must meet U.S. and Georgia residency requirements. They also must have demonstrated academic excellence in high school and meet the Title IV Selective Service and other requirements.
The program pays for a four-year scholarship to the University of North Georgia, covering tuition, fees, room, meals, books and uniforms.
To have loans forgiven, recipients must serve in Georgia’s Army National Guard during their four years in college and for four years after graduation. Those who don’t meet their obligation must repay the total amount received (plus interest) within five years.
Service cancelable loans are compatible with Georgia’s HOPE and other scholarships.
For more information, go to www.GAcollege411.org. For information about federal loan forgiveness, go to www.studentaid.ed.gov.
