Student Loan Relief Tips
Almost a quarter of graduating students have around $19,000 worth of student loan debt. While the best way to get out of repayment is to not get a loan in the first place, this is not a feasible option for many. But there are many ways to reduce the amount you owe, and maybe eliminate it altogether.
Depending on your career path, you can get some or all of your Perkins or Stafford Loans discharged. For teachers, there are many options. Stafford loans can be forgiven by up to $5,000 for teachers working in low income schools. Perkins loans can receive up to one hundred percent forgiveness for working in low income schools, or for teaching in such areas as special education, mathematics, or science. Fifteen percent of the loan can be discharged for one or two years of teaching, twenty percent for three or four years, and an additional thirty percent for a fifth year.
The Equal Justice Works can give law students information on loan forgiveness for working in non-profit organizations after graduation. Medical students can receive help with their loans after working in areas that are economically depressed or have inadequate health care facilities. The American Physical Therapy Association, The National Institute of Health, and the American Academy of Family Physicians Foundation can also help medical students with repayment programs provided they meet certain work criteria.
The government is a good source of loan aid through the military. The Army National Guard offers $10,000 towards loan repayment, and other branches of the military have programs to help students pay for their education. Also, if you or one of your parents is a veteran, you may qualify for additional aid. If you wish to work for the federal government, you can receive additional money above your salary to pay off your loans, provided you work at least three years with the agency.
Volunteer work can also help you pay off your loans. The Peace Corps can offer you deferment of Stafford and Perkins loans or partial forgiveness of a Perkins loan when you volunteer two years of your time in a developing country. The AmeriCorps can give you $4,750 for twelve months of volunteer service, plus over $7,000 in stipends.
The lender who provided you with your loan may also be able to help you reduce your costs. Some lenders, such as EdFinancial, can reduce your interest rate for qualified professions such as teaching and nursing. They can also reduce your principal balances after you’ve made several, usually around 30, on time payments. You can also consider consolidating your loans, which allows you to put all of your loans under one payment at a reduced interest rate. However, subsidized and unsubsidized loans cannot be consolidated together.
If the cost of your loans is too much for you, contact your lender. They may be able to offer you a forbearance or deferment, which can reduce or stop your payment for a certain amount of time. Keep in mind, though, that you will still be responsible for any interest that accrues during this time. Try your best not to default on your loan. If this happens, you will not be eligible for deferments or forbearances. Your debt will be turned over to a collection agency, incurring additional costs. If you are due a tax refund, it will probably be put toward your repayment instead of coming to you, and your Social Security benefits could be affected. You could also have your wages garnished at which point your credit score and rating will be tarnished, making it difficult for you to get another loan. Also, student loan debt cannot generally be discharged during bankruptcy.
There are many ways to reduce the amount of student loan debt that you owe. Do some research and get creative. It is possible to get out from under your loan.
Student Loan Relief Tips
Almost a quarter of graduating students have around $19,000 worth of student loan debt. While the best way to get out of repayment is to not get a loan in the first place, this is not a feasible option for many. But there are many ways to reduce the amount you owe, and maybe eliminate it altogether.
Depending on your career path, you can get some or all of your Perkins or Stafford Loans discharged. For teachers, there are many options. Stafford loans can be forgiven by up to $5,000 for teachers working in low income schools. Perkins loans can receive up to one hundred percent forgiveness for working in low income schools, or for teaching in such areas as special education, mathematics, or science. Fifteen percent of the loan can be discharged for one or two years of teaching, twenty percent for three or four years, and an additional thirty percent for a fifth year.
The Equal Justice Works can give law students information on loan forgiveness for working in non-profit organizations after graduation. Medical students can receive help with their loans after working in areas that are economically depressed or have inadequate health care facilities. The American Physical Therapy Association, The National Institute of Health, and the American Academy of Family Physicians Foundation can also help medical students with repayment programs provided they meet certain work criteria.
The government is a good source of loan aid through the military. The Army National Guard offers $10,000 towards loan repayment, and other branches of the military have programs to help students pay for their education. Also, if you or one of your parents is a veteran, you may qualify for additional aid. If you wish to work for the federal government, you can receive additional money above your salary to pay off your loans, provided you work at least three years with the agency.
Volunteer work can also help you pay off your loans. The Peace Corps can offer you deferment of Stafford and Perkins loans or partial forgiveness of a Perkins loan when you volunteer two years of your time in a developing country. The AmeriCorps can give you $4,750 for twelve months of volunteer service, plus over $7,000 in stipends.
The lender who provided you with your loan may also be able to help you reduce your costs. Some lenders, such as EdFinancial, can reduce your interest rate for qualified professions such as teaching and nursing. They can also reduce your principal balances after you’ve made several, usually around 30, on time payments. You can also consider consolidating your loans, which allows you to put all of your loans under one payment at a reduced interest rate. However, subsidized and unsubsidized loans cannot be consolidated together.
If the cost of your loans is too much for you, contact your lender. They may be able to offer you a forbearance or deferment, which can reduce or stop your payment for a certain amount of time. Keep in mind, though, that you will still be responsible for any interest that accrues during this time. Try your best not to default on your loan. If this happens, you will not be eligible for deferments or forbearances. Your debt will be turned over to a collection agency, incurring additional costs. If you are due a tax refund, it will probably be put toward your repayment instead of coming to you, and your Social Security benefits could be affected. You could also have your wages garnished at which point your credit score and rating will be tarnished, making it difficult for you to get another loan. Also, student loan debt cannot generally be discharged during bankruptcy.
There are many ways to reduce the amount of student loan debt that you owe. Do some research and get creative. It is possible to get out from under your loan.
