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Loan Forgiveness Programs
Paying off loans can be expensive, especially if you are not working. However, you must pay them back. Most people do not qualify for loan forgiveness programs, significantly reducing your payoff amount or forgiving your loan altogether. If you don’t take advantage of such programs or qualify for any of these programs, this means that you will be paying your loan back the old-fashioned way-womp womp.
Four Student Loan Forgiveness Programs
Public Service Loan Forgiveness
Your federal loan balance is dismissed if you work full-time for a governmental agency or nonprofit organization for at least a decade. This program is best for those who are already planning to pursue a career in the public sector. Only certain types of loans may be paid in this program, and you must make 120 payments on your loan before you can get the rest of the loan dismissed.
Teacher Loan Forgiveness
If you are a teacher and work full-time for a total of five consecutive years, then you can have up to a total of $17,500 in student loans forgiven (direct loans or Stafford loans). You must work in a low-income public school, and you must also have taken your loans out after Oct. 1, 1998.
Perkins Loan Cancellation
If you have a Federal Perkins Loan, you can have up to 100% of your loans canceled after five years if you work in a public service job (e.g., teacher, firefighter, nurse, police officer, etc.), but this can change on an ad-hoc basis.
Income-Driven Repayment
This plan gives you the option to make your monthly payments based on a certain percentage of your income. This payment plan is targeted at people with large balances relative to their yearly income.
**Please remember that these programs I listed above are subject to change at any time, and you always want to check programs for yourself to get more in-depth details.
There are many repayment plans and loan forgiveness programs well beyond the four I just listed. You can find more programs by doing some of your own research (which I suggest); you never know what programs you may find that fit your needs perfectly. Also, there may be people in your own social circle that have gotten their loans paid off. Ask around and see what opportunities the people in your circle have taken advantage of.
Takeaway
The goal of this section is to inform you that there are many opportunities available to you that will help get your student loans paid off if you simply search for them. Many employers now also offer student loan repayment programs. The key is to simply ask. You won’t be able to take advantage of opportunities available to you if you never ask. ASK and SEEK for answers and opportunities, and you will find them.
How To Pay Off Your Student Loans Early
If you end up not finding any opportunities to help pay off your student loans, then you will have to buckle in and set up an automatic repayment plan to get those suckers paid off.
Step 1
Decide when you want to pay your student loans off completely.
The first step for setting yourself up to pay off your student loans is to decide on a date you want to have all your student loans paid off.
When you have a clearly defined target and plan of action written down, you will most likely reach your goal at the desired time you set to achieve it – which is why I say that deciding on the date you want to have your loans paid off completely and writing this down is the first step to getting your loans paid off.
By creating a table or chart or simply writing down your loans with their relative balances and respective goal pay-off dates, you are setting yourself up to have no more student loans.
Step 2
Set up an automatic payment plan, so you never miss your payments.
First off, the automatic payment option is one of the best things that has ever happened. Automatic payment plans allow you to almost forget about keeping track of every time funds escape your account. When you have an automatic payment plan set up, all you need to do is ensure that you have the appropriate funds in your account to avoid overdraft fees.
Step 3
Pay more than your monthly minimum payment.
Most likely, you will need to pay more than your monthly minimum payment to reach your desired goal of paying your student loans off early. If you decide to pay your loans off in a longer period, then that is fine as well; as long as you have a plan of repayment, you are set. However, remember the longer you take to pay off your student loans, the more interest you will end up paying.
Step 4
Stop Stressing and forget about your student loans
Once you have your target pay-off goals set and your automatic payment plan set, it is time to forget about your student loans…seriously. You have done your part to set yourself up to pay off your loans. Of course, you can find ways to increase your monthly payments to pay them off even faster, but until then, focus on the rest of your life.
Critical Mention: Many people feel bad and tied down by their loans, but this is a state of mind. If you feel like student loans are taking too much of a chunk out of your paycheck, then let that be the fire that propels you to pay them off faster. You can also add another stream of income or ask for a raise at your current job. Do whatever it takes to make you more comfortable and happier.
Takeaway
Don’t look upon student loans as negative; look at student loans as opportunities to enhance yourself. College is not only an investment academically, but for many people, their college experiences were some of the most enriching moments of their lives that offered them some of the most valuable lessons and memories. Value your experiences, opportunities, and the education you obtained from taking out student loans and continue to live your life productively.
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This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.