The problem of loan debt plagues over 40 million American students. Among those unlucky few, 5.6million owe a debt of $50, 000. This doesn’t have to become an unbearable burden- instead, students just need to learn how to pay off their student loans. It is a huge crushing burden, constantly taxing your mental and emotional stability. It is not new unreal for a few of them to think about how they can escape this burden- running away to a foreign country, fake their death maybe? However, there seem to have legitimate ways in which students can turn their loans around just in time and pay off their debt.
Ways of Paying Off the Student Loan
There is a concept of a grace period for those who have taken student loans. This grace period extends up to six months that means six months of not constantly worrying about footing a large bill. This period has been provided to students so that they can earn the money they’re going to pay.
Here are certain useful tips to prep for the student loan payment procedures:
- The grace period of six months can be effectively utilized to research all the ways to avoid the huge debt burden.
- A budget can be created that goes along with the student loan.
- Paying it off also a valid option and should be given some priority.
- Talking about all your options with the loan provider may also help.
- Late fees fine must be avoided at all costs, and for this reason, automated pay can also be activated.
- Student loan default would add an ugly chunk on your repertoire; hence it must be averted at all cost.
- The specific dates for paying off the amount must be noted down to set a feasible target.
These are the student loans programs giving a six-month-long grace period:
- Loans that are either Direct, Subsidized, or Unsubsidized.
- Federal Stafford Loans which are either Subsidized or Unsubsidized
- Loans from private infrastructure.
Students with loans from the federal student can decide to consolidate in one way or another through the education department, loan service provider, or external source of a private lender. Sometimes lenders who are working privately often give loans with much lower interests that the available resources. It is because of the good credit score availability of the student.
Procedures for Payment
The monthly repayment options depend on the source of your loan and the amount of money loaned. Usually, it takes up to 10-12 years for the full repayment of the amount, but it also depends on other variables too, like the amount of money to be paid each time can determine the longer or the shorter length of the repayment duration.
Repaying the entire thing by 10 years is the best option of the lot because in this case, the rate of interest will be a lot lesser compared to the other payment options. However, the only constraint here is the amount that has to be paid each time is much higher than the rest of the loan options. So, unless there is a proper income support group backing you up financially, this 10-year plan would be pretty difficult to attain. In that case, there are multiple income-based loan repayment options, as well. Those can be explored too.
Some Other Methods of Paying Off the Loan
- Take part in some Income-based enrolment program, and research Loan Forgiveness
There is a great opportunity to get out of student loan debt for the ones who have taken up the Federal student loan. This is called the income-driven repayment system. If a student, who is from a low-income group, applies for this, their loan may get reduced to suit the income group they are in. The entire loan also gets forgiven once the period is up, even when it has not been paid fully. This usually takes up to 20-25 years.
There is another student loan debt pay off the program by the US government, and that is known as the PSLF Program- also known as, Public Service Loan Forgiveness Program. Since this is a highly anticipated government program, the competition is extremely high when it comes to avail this. One of the major criteria to get the benefits of this program is to work for the government thought a non-profit social welfare organization. You must be willing to give full-time hours to it to reap the benefits of the wonderful debt pay-out.
- Pursue a career in public service
A career in public service is exactly the type of criteria for becoming eligible for the PSLF. Not only does this have a provision of debt forgiveness for those who work in the public sector, but it also has special provisions made just for the ones enlisting in the national army, whether military or navy or air force. If the normal 20-25 years seem too long, this is the perfect opportunity to serve your country, as well as unburden yourself from the mountain of student loans.
There are other options than joining the military- Peacekeeping forces or AmeriCorps are also great options!
- Play a game
Online gaming portals which pay you money for short games, or taking up trivial quizzes can also be another way to opt-out of this huge debt of student loan. The Federal system cannot guarantee that their options will work, and enlisting yourself in the army just because of repayment of student loans is frankly not wise at all. These games can instead provide entertainment and fast cash just the way you like it. They take place every day without fail- and, in this way; you can save up enough money to eventually be able to pay off the entire debt.
The crisis of not being able to pay off your student loans is not just concentrated at one part of the world anymore- it’s been plaguing students from all over the world and has become one of the growing concerns among graduates. The burden it brings is truly unparalleled, hence simple ways must be found to avoid this.