|
||||||||||||
|
Apply to refinance student loan debt for a lower interest rate and payments. Student loan consolidation can lower monthly payments, or you can negotiate a debt settlement to lower the overall balance.
Consolidating student loans couldn't be easier! By consolidating your federal student loans, you can take advantage of lowering your monthly payments which will give you more money to use for other expenses such as rent or mortgage payments and credit card payments. Depending on your balances, you can reduce your monthly payments up to 60%. You may qualify for student loan consolidation if: Your loans are in their grace period or repayment period. You have $10,000 or more in unpaid Federal Loans
The Higher Education Act (HEA) provides for a loan consolidation program under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. Under these programs, a borrower’s loans are paid off and a new consolidation loan is created. These programs simplify loan repayment by combining several types of Federal education loans (that may have different terms and repayment schedules or may have been made by different lenders) into one new loan. The interest rate may be lower than on one or more of the underlying loans. In addition, the monthly payment amount on a consolidation loan is usually lower and the amount of time to repay may be extended beyond what was available in the separate loan programs. These features should result in more manageable debt and should make borrowers less prone to default.
Consolidate federal student loans today.
Student Loan Forgiveness Programs You may qualify to have some; or all, of your student loans forgiven through a student loan forgiveness program. Qualification for student loan forgiveness depends on your degree and your current occupation. If you're wondering whether you can have your student loans forgiven through your job, ask someone in your human resources department. Here are ways to have student loans forgiven.
Volunteer: Certain volunteer organizations offer student loan forgiveness in exchange for your personal time. If you volunteer for AmeriCorps, Peace Corps, or Volunteers in Service to America (VISTA) you can have up to 70% of your student loans forgiven. Visit their websites to find out more information about student loan forgiveness programs.
Become a Full-Time Teacher: If you have a Perkins loan, you can have part of it forgiven by working full-time in a elementary, middle, or junior high school that serves children from low income families. The more years you teach, the more student loan debt you can have forgiven. Your local school board will have additional information about which schools in your district offer student loan forgiveness under the National Defense Education Act.
Other states have additional student loan forgiveness programs that allow you to have student loans forgiven in additional situations. Contact your loan board of education for information about having your student loans forgiven.
Join the Military: One of the military's many benefits is student loan repayment. Currently, the Army, Army National Guard, Air Force, Air Force National Guard, and the Navy offer student loan repayment programs up to $20,000 depending on the branch. Unfortunately, the Marine Corps, Coast Guard, and the Air Force Reserve do not offer student loan forgiveness.
Become a Doctor or Lawyer: Medical and legal professionals can end up with six-figure student loan debt. Fortunately for these PhD holders, there are several student loan forgiveness programs that can reduce their student loan burden.
The National Institutes of Health forgives some student loan debt for medical students who complete certain types of medical research including clinical, medical disparities, and contraception research.
Certain health professionals can receive up to $50,000 of student loans forgiven through the National Health Service Corps Loan Repayment Program in exchange for two years of volunteer service at a clinic that has a shortage of health professionals. You may be able to receive additional forgiveness for additional service.
An extensive list of medical student loan forgiveness programs is available at the Association of American Medical Colleges' website.
Law school graduates may have some of their student loans forgiven by doing some non-profit work. Equal Justice Works has a list of law schools that have a loan repayment assistance program.
If your school is on the list, contact your financial aid department to learn how you can have your student loans forgiven.
Student Loan Forgiveness Con: Forgiven loans are sometimes considered as taxable income which must be reported to the IRS, which could increase your tax liability for that year. Not all student loan forgiveness programs require you to pay taxes on the forgiven debt. Consult your tax preparer for more information.
Get more information about debt, and read our articles related to a student loan. Debt
People are seeking debt advice every day as they are buried in bills. There are some tried and true methods to get out of debt, yet deciding on the one that is right, can be difficult. The most important thing is to stick with a plan and keep track of goals. Getting out of debt requires dedication once a plan is implemented.
It is so easy to become burdened with debts, yet almost impossible to escape from it when thousands of dollars are owed. Unfortunately, some may wait too long to try to tackle it. To be able to get control of it, it is necessary to understand the types of debt. Some debts are unsecured, which means the debt is not attached to a piece of property, like credit card debt. A mortgage payment is a secured debt, and if the loan is not paid, there is a risk of losing the home.
Getting control of bills needs to begin with a carefully prepared, written budget, and keeping track of every dollar. It is a guide and may need adjusting from time to time. That is ok, it helps to review it, adjust it, and, stick with what is written down.
Organize all required monthly expenses. Begin with food expenses, the mortgage payment, and utility bills. Consider looking over last years bills to get an estimate of the total expenses for the year. For example, a utility bill may be higher during hot months or cold months, and it may be necessary to set aside money to prepare. Reviewing last years income and expenses can help you discover any extra payments for insurances, taxes, etc.
Example of Expenses Listed on a Budget:
* Mortgage Payments * Utility bills * Phone bills * Child Care * Gifts, Birthdays, etc. * Gas, auto payments, repairs * Food, cook more, eat out less * Money deposited into a savings account.
The list above is an example, make your own list and write a dollar amount by each item. Consider things on the list that could be eliminated. For example, cell phone plans could be reduced or home phones may not be needed. Notice that entertainment is not on the list. By eliminating this expense, there could be more money to use to pay down bills. If it is put on the budget, make sure to set an amount that is reasonable and set limits. Entertainment expenses can take a big bite out of the monthly income. Try to do more home activities for a while.
First time budgets can be a success, and it takes time for it to become a habit and refined. It is a starting point, as many people never follow one, and later wonder how they got into debt. The more it becomes a habit, the more you know your expenses, and what you must plan to spend out of each paycheck. Keeping bills paid on time can be huge stress relief.
Target debts to pay every time a paycheck is received, spread it around to what is necessary to pay first. After some weeks, you may find your finances in better shape and feel some pride in getting debts well under control. Paying debts must become a weekly target, to make progress and get bills paid. This also helps to avoid any added expenses. Using a calendar as a reminder is a good tool to use. When getting out of debt is not working, consider a free quote from a debt counselor. |
|
