Student Loan Debt Can Be Cleared in a Quick and Stress-Free

Apr 29 08:38 2013 Melissa Kellet Print This Article

Repaying student loan debt can seem almost impossible when recent graduates are trying to build their careers from scratch. But there are ways to make the experience less stressful and more manageable.

With estimates showing the total amount of student loan debt in the US has reached $1 trillion,Guest Posting there is no doubt that graduates are facing something of a crisis when they enter the working world. There is now not only extreme pressure to do well in college, but to secure a large income almost immediately.It is not an exaggeration to say that the debt graduates face when they begin their careers is often higher than the debt faced by professionals 10 years into theirs. But the good news is that there are ways of repaying college fees without having to succumb to such pressures.There is no easy way to repay student loans, but the experience does not have to be as filled with stress and woe as is expected, nor be as drawn out as it often is. Here are three ways in which students can clear the financial burden.Consider A Loan Forgiveness ProgramThere are great opportunities to reduce the amount of student loan debt by signing up to a federal government loan forgiveness program. These involve a commitment to work in either a selected charity or in public service in return for a certain percentage of the overall debt.Often, military service is highlighted as the prime example, with graduates getting the chance to write off as much as $10,000 of their debts for serving with the Army National Guard. But there are alternatives to joining the army as a way of repaying college fees. A maximum of $4,700 can be written off the debt for each year given to charities like the Peace Corp.Meanwhile, those who graduated as teachers can have 15% written off what is owed on their student loans for the first and second years they commit to schools with a certain number of low-income students. This increases to 20% for each of the third and fourth years, with 30% then written off for a fifth year..Consider Consolidation LoansIt is possible to buy out student loan debt through a consolidation loan, and in doing so ease the repayment schedule. While the original loan may have required payments of $650 per month over 10 years, the terms of a new loan may see the burden reduced to $400 per month, making it more manageable to repay.There are some aspects to be careful of, however, with the lifetime of the loan usually extended to lower the monthly repayments. This means that the process of repaying college fees becomes longer, perhaps from 10 years to 15. But, the immediate effect is to lower the required payments each month.It may be possible to simply renegotiate the terms of an existing student loan anyway, without having to resort to taking out a consolidation loan. So, speak to the lender about options.Be DisciplinedFinally, the best advice is to be disciplined in managing finances until the student loan debt is cleared. It is true that this can be a big ask, since we all would like to enjoy the fruits of our labor. But we cannot enjoy anything if we are facing reminders, final notices and repo men at our door.Managing debt, even with a modest income typically earned early in a career, is greatly helped by budgeting realistically. Repaying college fees may require as much as 20% to be set aside but the sacrifice is worth it.Repayments on $50,000 in student loans may mean $600 each month. So, that new sports car is just not affordable, nor is a month-long 5-star vacation in Europe. Financial discipline is essential to avoid future financial woes.

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Melissa Kellet
Melissa Kellet

Melissa Kellett has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Bad Credit Loans Guaranteed and also in helping people to get approved for home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards, Bad Credit Mortgage Loans among many other financial products. For further information, please visit

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