7 Student Loan Tips

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7 ways to make paying your student loans easier

7 ways to make paying your student loans easier

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  • 1. 7 Ways To Manage, Reduce, or Eliminate Your Student Loan Debt Flickr/ KitAy
  • 2. 1.) Pay-as-you-earn • This program limits payments to just 10% of your discretionary income • Any remaining balance after 20 years of on-time payments will be forgiven • For more details, check out the fact sheet Wikipedia/ Mando vzl
  • 3. 2.) Income-based repayment (IBR) • This program limits payments to just 15% of your discretionary income • For those who don’t qualify for pay-as-you- earn • Any remaining balance after 25 years of on-time payments will be forgiven • For more details, check out the fact sheet Flickr/ Andrew Schwegler
  • 4. 3.) Take your time! • Even if you don’t qualify for an income-dependent repayment plan, you can extend your payment plan’s timeframe up to 25 years • You’ll pay more in interest over the life of the loan, but the payments will be more manageable Payments for $50,000 in student loan debt
  • 5. 4.) Lower your interest rate • If you have private student loans, now may be a good time to refinance and take advantage of low interest rates • The better your credit, the lower your payment could be • Lenders like Discover Financial are offering rates as low as 2.99% (variable) or 5.99% (fixed) Flickr/ 401(k) 2012
  • 6. 5.) Teacher Loan Forgiveness • Teachers in low-income schools can qualify for up to $17,500 in student loan forgiveness – Full-time secondary and elementary school teachers can get $5,000 in forgiveness after five consecutive school years – Highly-qualified mathematics, science, and special education teachers can qualify for $17,500 after five years
  • 7. 6.) Do you work in the public sector? • Public service employees may be eligible to have any remaining balance forgiven after 10 years of on-time payments • Qualifying jobs include – Education – Law enforcement – Healthcare (non-profit) – Public libraries – Public legal services – More (see description) Flickr/ Dave Conner
  • 8. 7.) Deferments and Forbearance • A deferment is a period during which repayment of your loan is temporarily delayed – May last up to three years during periods of hardship, such as unemployment • If you don’t qualify for a deferment, a forbearance may allow you to stop paying for up to 12 months – Unlike a deferment, interest will continue to accrue Should be used as a last resort
  • 9. Are you taking advantage of this tax loophole?