ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Paying Back Student Loans

Updated on September 16, 2015

Paying Back Student Loans

Paying back student loans can be very difficult for families that do not have the earning capacity to do so. As of 2015, there is over 610 billion dollars of educational debt that is spread across the United States. PBS Frontline recently did a piece on education titled College, Inc. and stated that student loan debt is roughly equal to the nation’s credit card debt; thus, the government has been trying to tackle the student loan debt problem before it escalates into a crisis. It is also been stated by several news media organizations that roughly only about 40 percent of student loans out of that 60 plus billion dollars are being paid on time. The rest of the student loan debts are either behind in payments, default or in forbearance or deferment. Before giving up hope on paying back student loans, consider looking into alternatives to help ease your debt burdens.

According to USA Today, The average student carries at least $20,000 of education debt.

Paying back student loans can be difficult when interest accumulates and spirals out of control to the principal balance due.
Paying back student loans can be difficult when interest accumulates and spirals out of control to the principal balance due.

Why Paying Back Student Loans on Time is Important

Understand that student loans are not treated like regular unsecured debts, such as credit cards. As of 2005, Student loan debt cannot ever be discharged in bankruptcy court and there is no statute of limitations for collectors to sue. That means that debt collectors can sit back until your are ready to retire and still collect! Collectors that are hired by lenders can levy bank accounts, place wage garnishments in you live in a state that allows them to do so, place liens against your property and even seize income tax refunds from the IRS. Why would the government allow such a thing you asked? Because with the rising costs of education, lenders would shy away from lending money if consumer protections were stronger; thus, individuals seeking a college education would have a hard time finding the funds to attend training. It is a flawed system indeed, but the matter is how you can ease the burden that you are now in.

Paying Back Student Loans with Plans

In 2009, the government introduced the IBR, which stands for Income Based Repayment plan to help formal students pay back student loans. The process involves capping the payments of a percentage or yearly wage income. Some individuals that are below 150% of poverty guidelines will not have to make a single payment and the government will pay the interest for the first three years. To see if you qualify, contact the servicer of your federal education loans or contact the Department of Education for more information. The steps are to receive an application from your student loan servicer then either send a copy of last year’s tax return or fill out an IRS release form per the lender requirements with the application and then wait for a decision if you are accepted into the program.

Paying private student loans under plans are not generally available because they are not backed by the federal government. Private student loan lenders do not offer the flexibility that federal loans do in terms of payments. Interest is often much higher and is compounded monthly onto the principal that in turn causes the total balance to balloon. What can you do about it? The only thing that you can really do is do what ever it takes for paying back student loans that are private. Consider picking up a part time job and try to make double payments if you can to knock down the principal. When you put more money towards the monthly debt payment, include a letter with a separate check that the funds are to be applied to the principal. Check the following monthly statement to ensure that the lender followed through with your request.

Additional Tips for Paying Back Student Loans

Avoid forbearances if you can. When your student loans are in forbearance or deferment, some loans that are private or unsubsidized will capitalize the monthly interest onto the principal.

Look into programs that ease paying back student loans such as AmeriCorps and governmental service jobs that forgive student loans after a certain time period of services performed.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)