How to Eliminate College Debt
Attending a college or university can help you get a better job and possibly more money. But a college education is expensive, prompting many people to rely on student loans to pay for their schooling. This results in a huge debt upon graduating. Depending on the amount borrowed, it can take 15 or more years to repay a college debt. However, there are ways to get rid of college debt sooner.
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Instructions
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Make higher monthly payments. Student-loan lenders accommodate new graduates and accept lower payments to alleviate financial stress. Rather than submit small payments, double or triple your minimum student loan payment (if possible) to get rid of the debt faster. Paying $500 on a $20,000 debt can pay off the loan in approximately three years.
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Borrow from your equity. Eliminate college debt by tapping into your home's equity and using the available cash. Speak with a mortgage broker to discuss your options and to determine whether you're eligible for this type of loan.
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Volunteer your time. Receive loan forgiveness on a percentage of your college debt by volunteering with organizations such as the Peace Corps, AmeriCorps or Volunteers in Service to America
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Speak with a local recruiter about military service. Joining the military can make you eligible for a loan repayment program, which pays off a percentage of your college debt.
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Teach in a low-income community. Graduates with a Perkins or Stafford student loan may qualify for loan forgiveness if they agree to teach in a low-income school district for a designated amount of time. School districts can provide additional information on eligibility and the application process.
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References
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