The cost of student loans is rising, and the economic situation makes it difficult to find a job that pays well enough to begin paying them off. For many young graduates entering the work force, the ability to pay off student loans is one of the primary factors in deciding which job to accept. Some graduates are forced to take extreme measures to pay off their debt, such as moving back in with their parents or working a second job. However, these options are not available to everyone, or may simply be too painful. Luckily, there are several ways to pay back your student loans, as well as reduce, defer, or even eliminate them.
Joining the military provides many options for repaying your student loans. Depending on how qualified of a candidate you are, the military typically offers signing bonuses that you can use to lower your debt. Some signing bonuses are well into the tens of thousands of dollars, and can greatly reduce your student debt in one strike. Additionally, the military offers a regular paycheck which can go towards your student loans. The military also provides food, clothing, and shelter which can reduce your expenses, leaving you more money to pay off your debt. The military even has special incentive programs designed to forgive or pay off some of your student debt. The Army, Navy, and Air Force all have their own student loan repayment plans. Visit this website for more information and links.
Another great way to repay student loans is to become a teacher in certain areas or in certain subject matters. The Federal Government allows for the deferment or cancellation of student loans for some teachers. This is done to provide teachers with the incentive necessary to fill needed positions. Perkins, Stafford, and Douglas loans may all be canceled or deferred in this manner. If you are interested in these programs you should consult with your loan officer or a local school board. However, becoming a teacher may require you to get a degree, and therefore necessitate the taking out of more student loans. However, if you have a teaching certification, these options may excellent for you. More information can be found by visiting this website.
The Federal Government also allows graduates to apply for hardship programs. These hardship programs allow for you to defer paying your loans back, reduce the debt that you owe, and in rare circumstances eliminate them altogether. There are many different programs, all of which require you to be in a different set of circumstances. For example, there are programs which allow you to defer your loans when you become unemployed. There are also hardships programs for when you experience economic difficulty. However, these deferments don’t last forever. Most have a surprisingly short lifespan. In some cases you may end up owing more in the long term because of deferred interest. However, if you are truly in a bind, you may have no better options. More information about these and other Federal hardship programs can be found here.
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I am a new family med physician who just passed his national FP boards. Even though I make $70,000 a year I owe 4 times that in student loans. As a result my living and student loan expenses far exceed my income. The job market for FP docs now is really tight with few jobs paying not a lot of money. Are there any programs available where I could work or volunteer as an FP doc in exchange for the program paying off my loans for me over a certain number of years? Thanks.
“Some graduates are forced to take extreme measures to pay off their debt, such as moving back in with their parents or working a second job. However, these options are not available to everyone, or may simply be too painful. ”
“Extreme measures”? “Too painful”?? Seriously???