Many college students are struggling to pay back student loan debt due to lower paying jobs and difficulty in finding a job in this economy. The average college student graduates with over $20,000 in student loan debt and many also have credit card debt. It can take an entire lifetime to pay back student loan and credit card debt if you just send in the minimum monthly payment. Some common solutions are to live below your means, work multiple jobs, work overtime or live at home with your parents for as long as possible. However, there is another alternative, student loan forgiveness programs. Here are 4 ways to pay off student loans.
High school math and science teachers, and elementary and high school special education teachers who agree to work in low-economic areas for five years can get up to $17,500 forgiven in Stafford loans. The teachers have to teach full time for five consecutive years. Visit the U.S. Department of Education website at studentaid.ed.gov and complete the Cancellation and Deferment Option for Teachers form to see if you qualify.
The Office of Personnel Management (OPM) offers a Federal Student Loan Repayment Program the allows any federal agency to forgive up to $10,000 annually for your federal student loans up to a maximum amount of $60,000. For further details call OPM at 202-606-1800 or visit their website at opm.gov/oca/pay/StudentLoan.
You can do volunteer work by joining the AmeriCorps, Peacecorps, or Vista. You can also get a job in a public service industry such as military service, public health, social work, emergency management, government, public safety, law enforcement, public interest law services, or child care. Visit studentaid.ed.gov for more information.
If you have a Perkins loan you can have the loans discharged if you served in the U.S. Armed Forces. If you served in a hostile area or war area you can get fifty percent of your Perkins loans forgiven. More information about student loan forgiveness programs can be found at the FinAid website at finaid.org.
By: Harrine Freeman
Posts Tagged ‘Student Loan Repayment’
4 Student Loan Forgiveness Tips
May 23rd, 2010Student Loan Repayment Plan
May 11th, 2010
Individuals who are unemployed, have low-income jobs, or have very large student loan payments may qualify for this new repayment plan. This plan says that individuals whose income is 150% less than that of the poverty level for their family size would not need to make any student loan payments. If they make more than the 150% of the poverty level, then their student loan payments are only 15% of the amount of income that exceeds that threshold.
This repayment plan is available for subsidized and unsubsidized loans, Graduate PLUS loans, and certain consolidated Stafford and Graduate PLUS loans. A Grad PLUS loan is a low, fixed interest rate student loan guaranteed by the U.S. Government. The loans can be new or old, and they can be for any type of education (undergrad, graduate, etc.).
For 2009, 150% of the poverty level for a single person is $16,245. So, if you make less than that amount you would qualify for zero payments. After 25 years, your loan is considered paid off. However, there is no income limit for this repayment program. If anyone owes more than they earn in year they can qualify.
If you work in public service and have qualified for this repayment plan, your remaining balance after ten years is cancelled if you made payments every month for those ten years. For purposes of the Public Service Loan Forgiveness Program, the term “public service organization” means a job such as Emergency management, Military Service, Public Safety, Law Enforcement, Public Education, Public Library Services, etc.
The only stipulation is that you have direct loans and you make the 120 monthly payments under the Direct Loan Program. These direct loans can be a:
- Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
- Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)
- Federal Direct PLUS Loans (Direct PLUS Loans) – for parents and graduate or professional students
- Federal Direct Consolidation Loans (Direct Consolidation Loans)
If you have FFEL (Federal Family Education Loan) then you can consolidate them into the Direct Loan Program to take advantage of this Public Service Loan forgiveness. If your monthly payment does not cover the monthly interest that is accruing on your loan, then the government will pay your unpaid interest for up to three consecutive years after you first enter this repayment program on a Direct Loan or FFEL.
By: Stephanie Hastings
Student Loan Repayment Help – Federal Loan Consolidation
May 6th, 2010
Student loan consolidation is a fine repayment tool that will practically refinance your school loans into one loan and most importantly, reduce your monthly payments. If you are able to find a student loan consolidation plan that fits your needs, then you can save a remarkable amount each month.
On your search, you can find excellent services that will offer you interest rate reductions for regular, on time payments and for further simple styles of payments without any pre payment penalties. Generally, there are lot of companies that offer loan facilities to the student with different terms and rate of interest. Among them Federal Student Loan Consolidation is one of the finest programs that will give a fixed rate refinancing program. In addition, this will combine all of your existing federal student loans into one new loan with lower rate of interests.
Student loan consolidation is really a great tool for every person to manage their student debt repayments. By making use of it, a student or graduate will get immediate relief from their financial crisis and also they will find long term benefits. By getting reduced payments, a secure, fixed rate and flexible payment plan, you can have very benefit able repayments. By making a single payment, your accounting will become simpler and easier to track your payment advancements. Eligibility for attaining this loan is also very simple. You do not need to give any credit check or income verification.
There are many benefits you can attain by consolidating your student loans. You can cut your monthly loan payment by as much as 50%. You can simplify all your loan payments with one monthly single payment. You do not need to provide a credit check in advance and you do not need to pay fees or even application charges separately. You will have a chance to reduce your interest rate 0.6% on consolidation in your grace period.
The main advantage of consolidating your student loan is payment relief. If you have combined all your previous loans in to a single consolidated loan, automatically your repayment term period will be lengthened from minimum 10 years to maximum 30 years. Your longer term period will be decided by your amount of education debts. If you are paying a lower monthly payment, you will not be getting any kind of financial crisis to meet all other living expenses, car payments, housing expenses etc, during your term period. Besides, for over payments, you no need to pay any penalties and you can make larger payments and also you can reduce your repayment term when you are affordable.
There are loan counselors available in all lending institutions and they will help with and educate you on the benefits of federal student loan consolidation and help you to decide if consolidating is the right choice or not.
Student Loan Consolidation’s procedures are can be very fast. Since they are simple procedures, you can do it effortless and conveniently. There are many customer service and friendly services available to help the student or graduate for filling applications and for further debt management. You should always use the Federal student loan program sensibly. By consolidating, you will make more on-time payments throughout the period of your student loan repayment term.
By: Jason Witts