How You Can Erase Your Student Loan Debt
Most Americans dread paying their student loans. However, there are ways to avoid paying them back and escape the penalties that come with it.
For instance, Danial Reagan is a former student who said sometimes it’s the choice of food – eating ramen noodles or eating something hot.
Although many struggle to pay their loans back, they do it sometimes sacrificing their way of life in order to pay those loans back.
According to Cheryl Smith, she could purchase a home with the loan payments.
And, that’s not too surprising. Student loan debt ranks as the second highest debt in the U.S.
Smith is lucky. Her loan days will be over sooner rather than later due to the Public Service Loan Forgiveness Program that began in October. After she pays faithfully for 10 years, the rest of her balance is gone – no matter the amount left. Plus, depending on the income level a person has, some folks pay nearly nothing each month because of the income-driven repayment plan option.
In order to qualify, a person must work full-time at a nonprofit organization the IRS recognizes. They can also work for a federal, state, county or city branch in various positions:
- Law enforcement
- Public safety
- Emergency management
- Military service
- Public service for elderly and disabled persons
- Public interest law services
- Public education
- Public library services
- Public health
- Early childhood education
Smith said it was a win-win situation for her, as she loves serving the public.
Bear in mind there are other ways in which people can have their student loan debt forgiven. For instance, some programs will reduce how much loans a doctor or nurse will pay back by working in certain areas of the country. For additional information about the forgiveness program, check out https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation.