Student Loans – Students Up To Their Eyeballs In Debt Can Find Relief

    December 31, 2013
    Tina Volpe
    Comments are off for this post.

Student loan debt is mounting and although earning a degree can promise a better career after graduation – the debt can be stressful to those saddled with huge loans.

Today, nearly 40 million Americans are burdened with $1.2 trillion in student loan debt, according to CBS News

Don’t go and default on these loans just because you are over your head. You could be eligible for Public Service Loan Forgiveness (PSLF).

PSLF says that by participating in public service opportunities rather than working in the private sector, some of your student loan debt is forgiven — that includes almost any state, federal, or nonprofit organization.

One highly recommended program, AmeriCorps offers grants, cancellation or forgiveness that can reduce the burden. This can be particularly helpful for graduates who work in low-paying fields to help make debt more manageable.

Another essential and helpful program, Income-Based Repayment (IBR), was recently promoted by the U.S. Department of Education after learning that too few people knew it even existed.

Under IBR, payments of federal student loans are capped at 15 percent of “discretionary income,” meaning that if the borrower is below the poverty level, the payments can be reduced to equal 15 percent of their income, based on the size of their household.

Another IBR plan is “Pay as You Earn.” If qualified for this program, it allows just 10 percent of discretionary income to pay your loans, and forgiveness after 20 years of payments.

President Obama wrote recently, “too few borrowers are aware of the options available to them,” so the Education Department made it easier to understand on their website, and in turn – sent emails to more than 3 million borrowers to make them aware of available programs.

So, although you might not get completely out of debt – you get your debt down to an affordable level and thereby relieve the stress of those hefty monthly loan payments.

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  • David

    To the author: Your first sentence is:

    > A new study put out by student loan analyst MeasureOne says that the ** PRIVATE ** loan market might be leveling off since 2011. [emphasis mine]

    But the rest of the article fails to explain what the consequences of this “leveling off” are. And the advice to which you refer is applicable only to PUBLIC loans.

    Can you explain what the point of this article is?

    • http://www.tinavolpe-writer.com/ Tina Volpe

      Hi David –

      Yeah, it probably is a little “weak” – I’ll revise to make it more clear…

      The point is that many student loan holders aren’t aware of the options available to ease their burdens.

      Thanks for the critique! :)

  • j

    This article still flips the main issue. You start off talking about “Private” Student loans and then only talking about relief that applies to “Federal” loans. And once again it “beats around the bush” of the real problem that if you have private student loans you are trapped and the only way to get rid of the debt is to pay it off. You have no protection with private student loans and the government allowed the flood gates to open up for these private banks and allowed them to charge whatever interest they want and still have the same protection that federal loans have against bankruptcy.

  • j

    please.. take away their nikes, every new years cell phone, drinking at bars and everything else they can’t manage.. they can pay their loans.. idiots.

  • Lawrence Nordee

    Student Loan Consolidation is an even worse problem and no one is talking about it. I can not find employment because of information filed with credit bureaus. My $12,118.00 student Loan has ballooned to. $60,000.00 since 2011.

  • alvin

    I have been in debt my credit score use to be really bad. But now my credit is great. if you want to get that house you always wanted or apartment.if you are in debt and dont know what to do call 877-549-5421 they will help you improve your credit score.

  • Anastasia Willson

    I think that our President must really care about students who got students debt. To be honest I can`t understand how borrowers do not pay for their loans. Yes, I took out student loan 4 years ago. Every month I make a payment in time because I need to have good credit history. Two months I had tight budget and my friend advised me to get a loan. I found debt service with normal interest rate. So, keep in mind this company providing payday advance loans here.