How to Easily Pay Off Student Loan Debt

Fifty percent of Americans earns $50,000 or less and the dream of going to college has turned into a nightmare. The cost of college tuition increases higher than the yearly rate of inflation and less free money such as grants and scholarships are available for students wanting to go to college.  As a result, students are forced to obtain student loans. Student loans are merely another form of predatory lending and the economy is suffering from it.  

The default rate on most student loans is over 50% which affects college accreditations, affects the housing market - causes graduates who want to become homeowners to delay purchasing homes, prevents homeowners from upgrading to larger homes; causes couples to delay having children or achieving their financial goals; requires parents to provide financial support to children who move back home instead of focusing on planning for retirement and affects our reputation as a global economic leader.

One way to tackle student loan debt is to take advantage of student loan forgiveness programs. To be eligible for a student loan forgiveness program you must have made 120 separate monthly payments on time on Direct Loan Program loans.  Employees that work in the following industries are eligible: public health, public education, public library services and school library or other school-based services, emergency management, social work, military service, public safety, law enforcement, public interest law services, public library sciences, early childhood education, public service for individuals with disabilities and the elderly, employees who work for a not–for-profit tax-exempt 501(c)(3)organization or a private, not-for-profit organization.

The types of Loans eligible for student loan forgiveness are: 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). Here is a list of easy ways to pay off student loan debt using student loan forgiveness programs:

1.      Volunteer in the ACTION program (including VISTA). Volunteers in Service to America call 1-800-942-2677 or 202-606-5000, americorps.gov/about/programs/vista.asp.

2.      AmeriCorps call 1-800-942-2677, americorps.gov. Volunteers may apply for partial cancellation of Perkins Loans call 1-800-424-8580 or 202-692-1845, www.peacecorps.gov.

3.      Pay as you earn. https://studentloans.gov/myDirectLoan/index.action.

4.      The American Federation of Teachers maintains a list of other loan forgiveness programs for teachers, http://www.aft.org/funding-database/stafford-loan-forgiveness-program, http://www.aft.org/funding-database/perkins-loan-forgiveness.

5.      Employees who serve in the legal industry contact Equal Justice Works www.equaljusticeworks.org/ 202-466-3686, The American Bar Association (ABA) www.americanbar.org also has a summary of Loan Repayment Assistance Programs.

6.      National Institutes of Health's NIH Loan Repayment Programs www.lrp.nih.gov/ student loan debt for citizens who are conducting clinical medical research.

7.      US Department of Agriculture's Veterinary Medicine Loan Repayment Program (VMLRP) www.nifa.usda.gov/vmlrp offers loan forgiveness.

8.      Contact the American Physical Therapy Association www.apta.org/ 1-800-999-2782 or the American Occupational Therapy Association www.aota.org/ 301-652-2682.

9.      Disadvantaged Health Professions Faculty Loan Repayment Program www.hrsa.gov/loanscholarships/repayment/faculty/

10.   Indian Health Service (IHS) Loan Repayment Program www.ihs.gov/loanrepayment/

11.   American Association of Medical Colleges (AAMC) maintains a database of state and other loan repayment programs for medical school students http://services.aamc.org/fed_loan_pub.

12.   US Department of Education Cancellation/Deferment Options for Teachers studentaid.ed.gov/PORTALSWebApp/students/english/teachercancel.jsp?tab=repaying and Teacher Loan Forgiveness Form https://www.myeddebt.com/borrower/PDFFrames.jsp?fileName=form.teacher.loan.forgiveness.pdf.

13.   US Department of Education maintains a database of low-income schools eligible for teacher loan cancellation for Perkins and Stafford loans https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp.

14.   The Federal Student Loan Repayment Program http://www.opm.gov/policy-data-oversight/pay-leave/student-loan-repayment/ allows federal agencies to make payments directly to the student loan holder.

15.   Student Loans can be discharged or canceled http://studentaid.ed.gov/repay-loans/forgiveness-cancellation

Exercise Forgiveness Programs to Pay Off Your Student Loans

                                           

Fifty percent of Americans earns $50,000 or less and the dream of going to college has turned into a nightmare. The cost of college tuition increases higher than the yearly rate of inflation and less free money such as grants and scholarships are available for students wanting to go to college.  As a result, students are forced to obtain student loans. Student loans are merely another form of predatory lending and the economy is suffering from it. 

The default rate on most student loans is over 50% which affects college accreditations, affects the housing market - causes graduates who want to become homeowners to delay purchasing homes, prevents homeowners from upgrading to larger homes; causes couples to delay having children or achieving their financial goals; requires parents to provide financial support to children who move back home instead of focusing on planning for retirement and affects our reputation as a global economic leader.

One way to tackle student loan debt is to take advantage of student loan forgiveness programs. To be eligible for a student loan forgiveness program you must have made 120 separate monthly payments on time on Direct Loan Program loans.  Employees that work in the following industries are eligible: public health, public education, public library services and school library or other school-based services, emergency management, social work, military service, public safety, law enforcement, public interest law services, public library sciences, early childhood education, public service for individuals with disabilities and the elderly, employees who work for a not–for-profit tax-exempt 501(c)(3)organization or a private, not-for-profit organization.

The types of Loans eligible for student loan forgiveness are: 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). Here is a list of student loan forgiveness programs to help repay federal student loans:

1.      Volunteer in the ACTION program (including VISTA). Volunteers in Service to America call 1-800-942-2677 or 202-606-5000, americorps.gov/about/programs/vista.asp.

2.      AmeriCorps call 1-800-942-2677, americorps.gov.

3.      Peace Corps. Volunteers may apply for partial cancellation of Perkins Loans call 1-800-424-8580 or 202-692-1845, www.peacecorps.gov.

4.      Students who are in the Army National Guard may be eligible for their Student Loan Repayment Program, www.1800goguard.com/index_1024.asp.

5.      Full-time teachers in an elementary or secondary school that serves students from low-income families.  Contact your school district's administration to see which schools are eligible.

6.      Mississippi teachers who currently have their Alternate Route Teaching License and teach in a shortage area may be eligible for the Teacher Loan Repayment program www.ihl.state.ms.us or call 1-601-432-6997.

7.      The American Federation of Teachers maintains a list of other loan forgiveness programs for teachers, www.aft.org/yourwork/tools4teachers/fundingdatabase/.

8.      Employees who serve in the legal industry contact Equal Justice Works www.equaljusticeworks.org/ 202-466-3686, The American Bar Association (ABA) www.americanbar.org also has a summary of Loan Repayment Assistance Programs.

9.      Loan Repayment Assistance Programs (LRAPs) provide funds to make monthly payments.  Repayment and awarded benefits cannot exceed $10,000 in any calendar year or an aggregate total of $60,000 per attorney.  http://apps.americanbar.org/legalservices/probono/lawschools/pi_lrap.html

10.   US Department of Health and Human Services offers loan forgiveness programs through the National Health Service Corps, http://nhsc.bhpr.hrsa.gov/ and the Nursing Education Loan Repayment Program, http://bhpr.hrsa.gov/nursing/loanrepay.htm.

11.   National Institutes of Health's NIH Loan Repayment Programs www.lrp.nih.gov/ student loan debt for citizens who are conducting clinical medical research.

12.   US Department of Agriculture's Veterinary Medicine Loan Repayment Program (VMLRP) www.nifa.usda.gov/vmlrp offers loan forgiveness.

13.   California residents can contact the Office of Statewide Health Planning and Development www.oshpd.cahwnet.gov/ State Loan Repayment Program, 916-326-3745.  

14.   Contact the American Physical Therapy Association www.apta.org/ 1-800-999-2782 or the American Occupational Therapy Association www.aota.org/ 301-652-2682.

15.   Nicholas J. Pisacano MD Memorial Foundation Inc. (American Board of Family Practice) www.njpmf.org/

16.   Disadvantaged Health Professions Faculty Loan Repayment Program www.hrsa.gov/loanscholarships/repayment/faculty/

17.   Indian Health Service (IHS) Loan Repayment Program www.ihs.gov/loanrepayment/

18.   American Association of Medical Colleges (AAMC) maintains a database of state and other loan repayment programs for medical school students http://services.aamc.org/fed_loan_pub.

19.   Students who receive the Michael Murphy Loan to study law enforcement, law, probation and parole, penology, or other related fields are eligible to work as a State Trooper (or related law enforcement official) in Alaska. Contact the Alaska State Troopers, Director's Office Scholarship Fund, 907-269-5511 www.dps.state.ak.us/ast/.

20.   Maryland state and local government employees who earn less than $40,000 gross annually may be eligible for a loan assistance/repayment program to study law, nursing, physical and occupational therapy, social work and education. Contact the Maryland State Scholarship Administration, 410-974-2971 x146.

21.   US Department of Education Cancellation/Deferment Options for Teachers studentaid.ed.gov/PORTALSWebApp/students/english/teachercancel.jsp?tab=repaying and Cancellation for Childcare Providers,  studentaid.ed.gov/PORTALSWebApp/students/english/childcare.jsp?tab=repaying as well as the Teacher Loan Forgiveness Form www.ed.gov/offices/OSFAP/DCS/forms/form.teacher.loan.forgiveness.pdf.

22.   US Department of Education maintains a database of low-income schools eligible for teacher loan cancellation for Perkins and Stafford loans https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp.

23.   The Federal Student Loan Repayment Program www.opm.gov/oca/pay/studentloan/ allows federal agencies to make payments directly to the student loan holder.

24.   Student Loans can be discharged or canceled http://studentaid.ed.gov/repay-loans/forgiveness-cancellation

25.   Your federal student loans may be included when filing for bankruptcy http://studentaid.ed.gov/repay-loans/forgiveness-cancellation, www.studentloanborrowerassistance.org/bankruptcy/  

Student Loan Help is Finally Here

The Income Based Repayment (IBR) is a new program created by Congress which reduces student loan payments based on your income similar to the Sallie Mae graduated payment program and was a result of the College Cost and Reduction Access Act of 2007. Annual student loan payments under IBR are capped at 15% of the borrower's income (adjusted gross income minus 150% of the poverty level for the borrower’s family size).

The IBR went into effect on July 1, 2009. Graduating seniors of the Class of 2009 are eligible for IBR within 2 months of graduation. Those who previously graduated or graduated before IBR took effect will have to wait to become eligible for IBR.

All federal student loans are eligible for the IBR program including subsidized and unsubsidized Federal Stafford loans; Federal Grad PLUS loans and Federal Direct Consolidation loans.

Another option to help pay federal student loan debt is loan forgiveness. Only Federal Direct loans (including Federal Direct Consolidation loans) are eligible for student loan forgiveness for public service.

Beginning October 1, 2007, borrowers who have Federal Direct loans may begin counting time in public service. Borrowers who have already consolidated their loans outside of Federal Direct must wait until July 1, 2008 to be eligible to "reconsolidate" into Federal Direct and begin counting time in public service.

For more information visit the Finaid website or Department of Education website.

If You Can't Pay Ask for Forgiveness

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 solution 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.

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 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.


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.

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.