Ditch school debt

Q. Are there programs that offer recent grads loan forgiveness?

The Veterinary Medical Service Act was signed into law in 2003 as a loan repayment program for veterinarians working in underserved urban and rural areas, but there's still no federal funding to support this act. However, some states, such as Pennsylvania, offer a loan forgiveness program for eligible agriculture and veterinary medicine graduates. So check with your state to see whether such a program exists.

As a new grad, you may qualify for total or partial loan forgiveness, says Veterinary Economics Personal Finance Editor Fritz Wood, CPA, CFP, if:

• You didn't receive a refund that was due to you.

• Your signature was forged.

• You become totally and permanently disabled.

• You or the dependent borrowing the loan dies.

• Your loan is discharged due to bankruptcy. (Typically though, student loans can't be discharged due to bankruptcy. Wood recommends checking with your legal counsel in this situation.)

Wood says some other circumstances in which the federal government will forgive your loan are if you:

• Volunteer with an organization like AmeriCorps, Peace Corps, or Volunteers in Service to America.

• Serve in the military.

Fritz Wood