How to Get Rid of Student Debt

Graduating college with tens of thousands of dollars of debt can be a burden. College is expensive, and unfortunately, most students need financial aid to complete their education. As a result, many begin their adult years with debt. Although student loan lenders can be flexible and offer low monthly payments for 15 years, you may prefer to get rid of your debt sooner. Fortunately, there are ways to accomplish this.

Instructions

1

Look into programs that offer loan forgiveness. Eliminate a percentage of your debt with programs that ask you to volunteer time or enroll in a special program in exchange for loan forgiveness.The Peace Corps, Americorps and the military provide such programs to graduates. Loan-forgiveness programs are also available to graduates who work as teachers or in the health field.

2

Elect a shorter term and higher payments. Make personal sacrifices, such as forgoing the purchase of a new car or home, and use this money to pay off debt. Student loan payments are typically low and have a 15-year term. Double or triple your payments to pay off the debt in half this time.

3

Use your equity. Homeowners can borrow money from their equity and use this cash to get rid of their student loan debt. Talk to a mortgage lender about a home-equity loan or cash-out refinance. Schedule a home appraisal to see whether you have adequate equity in your home.