As helpful as students loans is, it has many underlying disadvantages. One of the major disadvantages is that it can keep one in a perpetual debt and lack. In this article, you will get access to at least 6 way to get rid of student loans and its disadvantages.
It is important to bring to your attention that they are so many persons who are still in the accumulated debt of student loans many years after studies. All the incomes they make from their jobs are continuously being swallowed by these debts.
All this is as a result of not knowing how best to get rid of student loans early enough. Read on to discover our working recommendations in this regard.
1. Seek Student Loan Forgiveness
Student loan forgiveness is in the top 5 of our list of 10 ways to get rid of student loans because it is the most less-demanding of them all. A loan forgiveness gives a debtor the opportunity not to pay back the loan or to pay just a part of the loan. With this scheme, a student loan debtor will be able to easily pay up his or her loans or even get an absolute waiver.
We recommend that anyone already cut in the trap of heavy student loan or is concerned about not falling prey to this trap should toe the path of student loan forgiveness. If you qualify for this scheme, it will be a suitable breakout from any kind of student loan you may be into or intends to enroll into.
Outside student loan forgiveness, here are other loan forgiveness that can help one get rid of loans:
- Public Service Loan Forgiveness
- Teacher Loan Forgiveness
2. Make upfront payment as part of the capital
After a time of grace given to a student loan debtor, the loan begins to accumulate interest according to the interest rate agreed on before the loan was taken. More regularly, it is the interest of this loan debtors keep remitting on the monthly payment without touching the capital. This method makes the loan a perpetual one.
To cub this, we suggest that when you are making your monthly payment, try as much as you can to add an extra money to the greed monthly remittance. Inform the lender or the office in charge that the extra money should not be deposited as part of next period payment but a part of the loan capital.
That is, if you are to make a monthly payment of $ 500 for instance, make efforts to pay 600 or $700 instead. Demand that the extra 100 or $200 should be recorded as a part of the capital not the regular interest.
The benefit of doing this is that while you are keeping up to the monthly payment of your loan which is mostly the loan interest amount, you are also able to gradually payoff the actual loan capital. By so doing, you will be able to get rid of student loan with ease.
3. Channel the loan payment into one
In a situation of being indebted to more than one student loan, a viable way for you to get rid of the loan is to channel the loan payment into one. That is, go for a scheme which allows you the opportunity to be able to make one payment per month which will attend to the whole loans.
This scheme is known as Loan Consolidation. It is allowed even in loans from different lenders, both federal and government loans.
Adopting this method is a fine way of getting over student loans because it can help the debtor in qualifying for loan forgiveness and other additional benefits.
4. Claim Bankruptcy- 6 ways to get rid of student loans
Though record of bankruptcy is detrimental to anyone as it harms credit score record which makes it difficult for future financial transaction such as mortgages and even rents. It can in another hand be a way to get rid of student loans. Filing for a bankruptcy in a severe loan case is an advisable option for someone who has exhausted all other options available because it has some future effects which could be negative.
5. Do not take a loan amount you have no tangible plan of how to pay back
One huge mistake students make when taking a loan is that they do not take out enough time to make sure they have workable plans on how to pay back the loans they take. This is a bad mistake that must be avoided by anyone who wants to get rid of student loans.
Before taking a loan, ensure you have a tangible workable way to pay back this loan when payment time arrives. With this kind of plan, you will not get choked or entangled in the hardship of not being able to pay back your debts.
In a situation when you are not certain of how you will be able to pay back the loan you are in need of, consider reducing the amount to a more affordable amount. It is better to take a low amount loan which you can comfortably pay back than taking a huge amount of loan which is capable of keeping you in the struggle of not being able to pay back.
So, if you want to get rid of student loans, do not take a loan amount you can not be able to pay.
6. Go for grants instead of loans – 6 ways to get rid of student loans
There are both government and private funds made available for students. This grants can be accessed by graduates and undergraduates. Instead of taking inconveniencing student loans, you can go for grants which are usual none repayable.
If you were able to get grants it is a more suitable means of fund for you and a fine way of getting rid of student loans.
So, if you know you may not be able payback a loan, think the way of grants from government or private institutions.
Other Federal Government Programs to Help You Get Rid of Student Loans
- Total and permanent disability discharge
- Closed school discharge
- Borrower defense to repayment