How To Get Rid of Your Student Loan Debt

The average student loan debt is $25,000. Even if you had the surplus money, paying this off is, well, hard to do, but nothing is free. You can play the lottery and hope to win millions or even go further into debt by wasting dollars trying to win.

One thing you can do if the loan payment is simply too high is to get it changed. Many federal loans will allow this. This can be done by basing the monthly payment on your yearly earnings or a graduated scale to allow for increases. The income based adjustments are limited to no more than 15% of your income and any debt not paid off after 25 yrs. if removed. This new program began in 2009 and 630,000 doing it. In 2014, the amount will go down to 10% of net income and any debt not paid off in 20 yrs., removed. All this to stop mass defaults on loans, which are far worse.

Another thing is check out the Stafford Teacher Loan Foregiveness program, which allows some teachers to delete $17,500 of their debt. In 2011, 28,000 people had $250 million in loans forgiven. Also, check out the Public Service Loan Foregiveness program. This began in 2007 and allows for debtors to work for non-profits to have the balance of remaining loans removed if they have made payments for 10 yrs.

Another thing one can do is pray and get a federal job, which is remote. But, if you do, some jobs will repay up to $10,000 a year in loans if you agree to stay for three years. There are about 8500 such jobs to apply for.

Federal loans are much more apt to help you with repayment plans, unlike private loans. Missing payments will only hurt your credit.