Repaying Student Loans: Three Ways to Clear the Debt From Your Life
After 4 or 5 years in college, the pressures associated with repaying student loans can seem daunting. But there are several ways to clear such high debts, so the pressure can be productively alleviated.
There are federal and private loans available to students to help with paying tuition fees and living expenses. But clearing college debts can be done through a number of ways, with loan consolidation, military service and charity or socially beneficial service all solutions to the problem.
The upshot is that, no matter how high the debt from student loans might be, there is always a way to alleviate the pressure or clear the debt completely.
With the cost of college tuition and living expenses, the size of the debt that can be accrued over the course of college life can be quite a lot. So, the task of repaying student loans can be quite a challenge, especially when still in college or just beginning a professional career. What makes it somewhat easier is the availability of the loan consolidation option.
Consolidation involves grouping all of the existing loans together and buying them out with a single loan. The result is that there is only one payment due each month, just one applicable interest rate, and a repayment structure designed to alleviate the pressure normally associated with clearing college debts.
In fact, the loan term is hugely significant, stretching a single sum over a longer period of time. Thus, the share of the student loan being repaid each month is reduced. For example, a loan of $50,000 costs more each month when repaid over 5 years than if it is repaid over 20 years.
One of the best-known options to repaying student loans is to serve in the military for a specific period of time. Just signing up can see $20,000 wiped off the total owed, meaning that as much as 50% of the debt can be cleared off in one fell swoop. However, even more benefits can be enjoyed than that.
Those who accept a posting in a high-risk area, or even in a war zone, can see even more of the balance waived. In some cases, the debt is completely wiped out. It may take 2 or 3 years, but it is a highly effective way of handling the issue, clearing college debts in a very short period of time.
However, there is also no denying that it is a risky route towards paying off any student loans and, in that regard, is not the most popular. But remember that military action is not necessary so it would be worth inquiring at your local military recruitment office.
Socially Beneficial Services
Another option is to join voluntary organizations, like Americorps, and see a significant percentage of the debts owed waived - if not the total amount. This means that repaying student loans can be mixed with a good cause. But there are other socially beneficial ways to repay too.
Teach for America is an education program that sees graduates of teaching courses commit some time to teaching in low income communities. Normally, this can see as much as $5,000 wiped off the total each year, making it another practical way of clearing college debts.
Law graduates, meanwhile, are encouraged to serve with non-profit organizations in return for loan forgiveness. This is offered by the Federal Government to ensure that lower income communities are given adequate legal services, and for the time spent working there, the student loan balance can be wiped out.
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ABOUT THE AUTHOR
Devora Witts is a certified loan consultant who helps people get approved for Loans for People with Bad Credit and Bad Credit Mortgage Loans. To get aid with your financial situation you can visit her at http://www.badcreditloanservices.com