Student Loan Debt Reduction

Student loan debt reduction became a hot topic this year along with other financial crises such as sub-prime lending, mortgage scandals, and the continually rising personal and national debt in America. When faced with tough economic conditions, debtors usually look for means of reducing their debt obligations with more fervor than ever before, and similarly, students with outstanding college loans will seek student loan debt reduction strategies to reduce their monthly payments or their cumulative repayment amount.

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A variety of comprehensive, as well as niche, student loan reduction methods exist.

Options for student loan debt reduction include:

• Consolidating student loans
• Refinancing student loans
• Forbearance options
• Loan forgiveness programs for teachers
• Armed service loan forgiveness initiatives

According to the National Center for Education Statistics, 65% percent of students leave college with student debt. In part, soaring college loan numbers are due to nationally rising tuition costs, which have gone up at double the rate of inflation in recent years. Students, although meandering stressfully into a world of debt, wisely do undergo these financial strains all for a higher and inevitably more lucrative purpose. For example, the Bureau of Labor Statistics, in 2008, insists workers with postsecondary degrees enjoy more consistent employment plus a 62% jump in median weekly earnings. Nevertheless, as they adage goes, “One must spend money to earn money”. The axiom proves itself in recent college graduates facing massive student loan repayments during their initial years in the workforce. Many times, the sheer crush of the loan obligations financially threatens or overwhelms graduates. In these instances and others, student loan debt reduction strategies prove intrinsically valuable.

According to the National Center for Education Statistics, 65% percent of students leave college with student debt. In part, soaring college loan numbers are due to nationally rising tuition costs, which have gone up at double the rate of inflation in recent years. Students, although meandering stressfully into a world of debt, wisely do undergo these financial strains all for a higher and inevitably more lucrative purpose. For example, the Bureau of Labor Statistics, in 2008, insists workers with postsecondary degrees enjoy more consistent employment plus a 62% jump in median weekly earnings. Nevertheless, as they adage goes, “One must spend money to earn money”. The axiom proves itself in recent college graduates facing massive student loan repayments during their initial years in the workforce. Many times, the sheer crush of the loan obligations financially threatens or overwhelms graduates. In these instances and others, student loan debt reduction strategies prove intrinsically valuable.

From information provided by the Ceridian Corporation in 2005, nearly three-fourths of United States employers offer some form of tuition assistance programs for employees, but for students with existing student loan debt, there is no such relief generally. A small number of niche occupations, such as nurses, teachers, and law enforcement, offer loan forgiveness programs for service within that particular industry, however, terms and conditions of such plans widely vary and individually tailored research proves prudent. Another career path offering loan reduction options is the United States Armed Forces. For periods of enlisted service with their ranks, the United States Armed Forces alleviates some or all of an individual’s school loan debt.

If the aforementioned careers are not applicable or desirable, there still exist numerous options for student loan reduction. Consolidation and refinancing student loans can help individuals manage their monthly payments by lengthening the life of their loan and combining multiple payments into one lower monthly payment. Another option, specifically available for financial hardship, is found in the form of forbearance options on loans. A student debtor can speak with their lending institution and plead a case of financially downtrodden times, and in turn, the lender can potentially restrict payment obligations on the principle amount of a loan for short timeframes.

Many graduates enter their post-college life with student loans, mortgage payments, credit card debt, and a plethora of other personal financial obligations and may face bankruptcy early in their professional careers as a result. For the uttermost baffled, bankruptcy may appear to be the only option. National statistics indicate each individual taxpayer pays $400 annually to cover court proceedings for student loan related bankruptcy cases. Keep in mind that in virtually all instances, student loan debt obligations are not dischargeable in typical bankruptcy proceedings. Before allowing this to happen, students should consider all of their options.

Interested in student loan debt reduction?
Get assistance with student loan debt reduction today.