How To Pay Off Student Loans – Ways Federal Government Pays Off Student Loans

| January 2, 2012

College is highly expensive that so many people use student loans to pay for their education and also to settle their cost of living. Though this is a great relief to so many college students in helping them to go through school. But unfortunately, many of these students find themselves in massive debt after they are through with college. After graduation, having not started working in their various fields of endeavor, these students find themselves being weighed down by the weight of these debts that they have to find a way of paying off these mounting loans.

A research by the National Center for Education reveals that up to 50% of college graduate have student loans, giving an average student loan debt of about ten thousand dollar. Considering the current trend in the world’s economy, this issue is really on the increase. With the due debts and a little income coming in, so many of these new graduates feel like they are left in the middle of nowhere. But it is heartwarming to know that the government has some structures put in place to help these young graduates out of this dilemma and access help if they need it. These help can come in different forms.

Government grants
Government can give grant to new college graduates to pay off their student loans This grant is known as Income Based Repayment Program and it depends on your specific condition. This kind of grant can in some cases clear part, and in some other cases all of a student loan though not everyone gets the approval for this loan. It takes an application process where you will show how difficult or impossible it will be for you to pay off that loan. Or explain how paying of the loan will impose a financial hardship on you.

Work trade
You can pay off debt accrued from student loan with a work trade. This is another program from the federal government called work exchange. There is a level you will get to in your work in several areas and your student loan will be paid off. This program works best with working in the public service or in a low income area at school. This program is readily available. If you are requesting for a government grant, in part of the process, you will state if you are doing this type of job, or if you will want to.

Consolidate first
Before you apply for a federal government grant, make sure that your student loans are consolidated first. This important step will save you money at the end and also show on your grant application that you are taking every necessary step to save you money and to clear all student loans debt.

It is now up to the student graduate to prove the burden of the debts and as such, it is so important that you keep good record of all your payments and income conditions. The federal government is really interested in helping people pay off their student loan and get out of debt, so this is the time to apply for any of these grants and help you out of a student loan debt. Now you know how to pay off student loans, what you need now is action!

Category: Student Loan

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