4 Ways to Get Out of Student Loan Debt

When it comes to student loans, there really isn’t much that a college graduate wouldn’t do to get rid of the thousands of dollars they owe. We’ve heard of some creative solutions like a start-up business, tutoring in addition to a regular job, and even babysitting.

It was announced recently that average student debt actually grew this year. Graduates are now expected to leave college with a diploma and nearly $27,000 worth of debt. Luckily for recent graduates there are some ways to escape paying that big bill.

  • Join the Peace Corps of AmeriCorps. By joining either program you can defer your payments and get some of your federal loans covered. The Peace Corps offer 15 percent coverage after your first two years of service and a 20 percent loan cancellation for third and fourth years of service. Graduates can have up to 70 percent of a Perkins Loan covered. AmeriCorps is a bit different as it covers interest accrued after you apply for forbearance during your time with AmeriCorps.
  • Become a teacher. Areas with low-income schools or high demand programs might cover a portion of a graduate’s student loan. If you have a Stafford loan you might be eligible to have up to $17,500 of your loan covered. Perkins loans are eligible to be paid off completely.
  • Go into the medical field. The National Health Service Corps and National Health Institute are providing eligible nurses and doctors loan repayment services. In some cases a graduate can have up to $35,000 of their loans covered.
  • If you’re a lawyer, work in nonprofit or with special interest groups. There are several programs available for lawyers who are looking to get rid of some of their debt. Equal Justice Works is a great resource for lawyers looking for loan repayment assistance programs.

If you have multiply student loans, a debt consolidation loan could help you manage your student debt much better. Federal loan consolidation programs are available as is debt consolidation for private loans.

The Takeaway

Many of these programs are great for helping students in need, however, it is important to go over all the qualifying information the program has as well as your student loan agreement. Find out what your options are, even if you’re still in college it is good to know how you will deal with debt in your post-grad life. AmOne can help you find financial solutions that are right for you. If you’re interest in debt consolidation, contact AmOne today to speak with our Money Coaches for free.