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Best Ways to Pay Off Student Loans Fast
After graduation, many students have grace periods of six months to get a job before they can start paying off their federal loan payments. However, when the time elapses, reality kicks in. Like many, these young people dream of paying off their students loans. A recently conducted study shows that half of Americans carry $25,000 in debt.
You can save up while paying up your student loans in many ways. You can also painlessly deal with your credit. One thing remains certain – no one can escape his or her student loan debt. However, there are a few programs you can use to have your federal student loans forgiven. You can also get more information from sites like ELFI Student Loan and many more.
Become a public school teacher in a low-income area
The United States government has a program, the Teacher Forgiveness Program, which allows people to get up to $17,500 of your federal Stafford loans forgiven. People can also have their Perkins loans entirely forgiven in exchange for five successive, full-time years as a teacher. You’ll have to teach at a low-income elementary or secondary school.
Become a nurse
Like teachers, nurses also have programs to help them erase their student loans. Programs like Nursing Education Loan Repayment Program help nurses have a part of their student loans expunged. But then, you have to be willing to work in a critical shortage facility for a given period.
Apply for the Income-Based Repayment Plan
As an owner of a student loan, you should consider applying for the Income-Based Repayment Plan. This program adjusts students’ monthly loan payments to become more than 15% of their “discretionary” income.
For example, a recent graduate student makes about $20,000 or less. Because the federal income level within the United States is $11,490, that means they only make $8,510 in discretionary income. Under the law, he or she would need to make payments that were 15% of that $8,510. This equals to approximately $106 a month. Some recent graduates make so little that they qualify to make $0 payments. If you make these adjusted loan payments for 25 years, the remaining balance would be wholly forgiven.
Join the military
Another way to have your loan forgiven is to join the army. Each branch of the military has its Student Loan Forgiveness program. From the Army to the National Guard, you can get some of your student loans forgiven. Forgiven loan amounts will depend on the level of rank achieved. You can check with your military branch to see which program you can qualify.
Get a public service, government, or non-profit job
If you borrowed money under the William D. Ford Federal Direct Loan program, you could apply to the Public Service Loan Forgiveness program. The program asks for full-time employees in the public service. It also affects people working in the non-profit sector. In this program, you can only have your debt forgiven if you make 120 successful loan payments, which is about ten years.
According to American laws, public service jobs include any employment with a federal, state, or local government. It might also include a non-profit organization that has been designated as tax-exempt by the IRS.