In 2009, the average college student graduated with $24,000 in debt, according to the "New York Times." Although these are typically low-interest loans, it can be a struggle to pay them off when just starting out, when laid off, or if you can't find quality employment. Fortunately, there are a number of sources for help with school debt.
Loan Forgiveness Programs
If you have federal student loans, you might have part or all of them forgiven by entering certain professions. Volunteering for organizations like the Peace Corps, joining the military, or teaching or practicing medicine in certain low-income communities can earn you a grant to cover your loans -- possibly the full amount. In addition, you receive a small stipend for your living expenses.
Consolidation
When paying off multiple loans at different interest rates, you might be paying a lot more than necessary. By consolidating your loans, you might reduce the interest rates and overall cost as well as the monthly payment. This can give you payments more manageable for your financial situation.
Forbearance
If you experience financial difficulties due to job loss or the inability to find steady employment, forbearance may be a solution. With this option, you work out a plan with the lender to postpone or reduce your payments for a specified time. When the period ends, you resume regular payments.
Talking to Lenders
It is important to talk to your lenders before you fall behind in your loans. Whether your payments are too high to bear or you lost your job, pick up the phone and call the lender. Most student loan companies are flexible and willing to work with you. Before you call, look at your budget to figure out what you can do for the loan company. For example, you might be able to make payments if they were just $50 a month less. Or perhaps you need a break from paying while you settle into a new city with a new job. Be upfront and honest about what you can do, and ask the lender to help you come up with a plan that works for you both.
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