Getting Out From Under Your College Debt

The vast majority of people that graduate from college or from any type of professional training related to a career end up owing a substantial pile of money to the government. That money you got was a loan and it builds in interest as time goes on.

You need to consider the impact that student loan debt will have on your future before you go to school. The large payments that you have to make can prevent you from owning a home, having the car you want, and in some instances advancing in your career. You can go to jail for failure to pay but this has never been done yet.

The simplest and easiest way to get out of student debt is not to acquire any. The programs beg you to sign up but do not really warn you about the consequences. Your easiest way out of student loan debt is to take a full load each semester, make all As, and make the dean's list.

Government and private groups that provide scholastic scholarships will provide you with a full ride for school that can even include money for a place to live and a spending allowance.

As strange as it may seem the United States Legislature has actually taken some action in providing student loan forgiveness and student loan relief. The other option that you have is student loan consolidation.

The U. S. Government student loan forgiveness and student loan relief program are designed in part to make it easier for people to pay off education debt. The money the government saves is used to fund educational assistance to poor and minority students.

A person who makes payments for 20 years on their student debt and does not miss a payment will not have to pay anything else. The old scheme was 25 years so you save five years of money to use as you desire.

New student loan payments on loans made after January of 2014 will be based on the amount of the borrowers discretionary income. The discretionary income is the money you have after you make house payments, car payments, and utility payments. If you have no discretionary income or no income at all, you pay nothing.

Another provision of the law allows you to pay 15 percent of your discretionary income to pay off your student debt. This allows you to pay off the debt faster. The law even accepts the reality that people with an education get faster advances in income. The provision lets you pay the debt off faster but still allows you to pay nothing if your discretionary income is zero.

Banks have been taken out of the student loan picture completely. You can still use banks for student loan consolidation but the banks cannot tack on added fees for processing the student loan consolidation. Banks cannot charge variable interest rates for any educational loan.

New legislation has made it easier for people with educational debt to pay off the debt and still acquire the trappings of the “American Dream.” The law allows people who should go to college because of the ability the chance to go despite their lack of funds.