Learn About Ways And Means to Reduce Your Educational Debt

by Fin Lit Financial

In the tough economic conditions, if you are a student trying to repay your educational debt, you will soon realist that it is going to be around for a long time. The reason for the same is that the loan will only be one of the many that you and most certainly will need during the rest of your life. Even if you do get a job right after completing your education, the option before you is to stay at home to save money or bunk up with friends and share the rent.

However, have you heard of the term Student loan forgiveness? Yes, there is a way to substantially reduce the size of your loan. In fact there are a number of ways to do the same. The first way is to get a teaching job. No , not any teaching job. As per the rules, you need to take up a teaching assignment at a public educational institute located in an area which has low income residents. Depending on the rules set by the financial institute that has provided the loan, students need to put it around five years of teaching in such schools. They can teach either the elementary section or the secondary section during this time period.

The second way is to sign up for military service. Each arm of the military has its own rules and regulations on this matter. Just like the first option, you have to dedicate certain number of years to the military and achieve certain rankings to qualify for this program. The third way is to become a public servant. Yes, students can join the government and become a public servant. There are many financial organizations that are willing to reduce the debt for these employees. However, the student has to be employed directly with the government either federal or local, and not with a sub-contractor to the government. They can also avail of this facility if they seek employment with a non-profit organization.

The final method is income based repayment. This can also be classified as Refinance student loans. Under this method, the amount is adjusted as per the income levels of the student. So in effect, the loan is getting refinanced and reduced to ensure smaller payments. Each of these methods can be easily adopted. However, you need to ensure that the rules are followed to the “T”.