Getting out of student loan debt is the foremost thing on many peoples minds when they think about financial freedom and the monthly statement that pops in the mail every month. And now more than ever, especially with student loan debt totally 1 Trillion dollars in the US. This is one of the reasons that congress is working to pass H.R. 4170, The Student Loan Forgiveness act of 2012.
But while this bill is still on the house floor, finding a way to get rid of student loans TODAY is the fastest way to end up putting more money in your pocket.
A good portion of student loans are comprised of hefty interest payments and even if you do look forward to writing off the interest paid on your taxes at the end of the year, its still up front money out of your pocket.
And while a few people think that ignoring the student loan bill coming in the mail every month is a way to get out of paying back the loan, it could land you in a world of trouble by simply thinking it will go away if you dont think about it or worse yet ignore the bills and phone calls.
The consequences of not paying a student loan can be grave. Firstly, you are putting your credit future at risk as well as your own financial health. Did you know that you could lose your tax refund to your student loan if your loan goes into default? And depending on the type of loan you have, your wages could even be garnished.
Top 5 Ways to Get Rid of Student Loan Debt Fast
- Make Larger Payments: Of course this is often easier said and done especially in these hard economic times. But consider the fact that you could reduce the payment terms of your student loan by years, if you add $100 to $200 dollars a month, every month. You may want to see about ways to bring in more money, perhaps through a second job you love. Or even learning a new skill and applying for a job that can handle more of your student loan debt.
- Join the Military: Did you know that active or reserve duty in the military could provide you with student loan debt forgiveness. Of course the military wants your service, and you will be required to provide it. But in many cases all or most of your loan can be forgiven. You can also enjoy the perks of free schooling should you need more money to pursue an advanced degree.
- Join the Peace Corp or other Volunteer Agency: The Peace Corp is another great way to get your student loan debt forgiven. Again, for just a few years of service you could be on your way to not having any loan to pay back at all. This is great if you like community service and the ability to help others. Some Peace Corp missions even allow you to see the world for free.
- Become a Teacher in a Special Program or School: Many people believe that being a teacher is a thankless job. Luckily, it does have some perks to it, even if the pay is small. There are towns that actively recruit teachers where there is a need for those with educational talent and the ability. You can often inquire through your local school system if you have a degree in education or at least figure out what additional classes and certification will make you competitive in the educational field. Again, youll have to promise to stay for a specified amount of time in order to get your student debt forgiven.
- Become a Police Officer or Work for the State: Check with your local law enforcement divisions in your home town. Many law enforcement jobs allow for educational loans to be reduced or eliminated. The same for state government employees.
So, there you have it, the top 5 ways of getting out of student loan debt.