How to Receive College Debt Relief Assistance: Achieve Monetary Peace

students pulling and pushing on student loan rock looking for college debt relief assistance

How To Get College Debt Relief Assistance

Are you looking for college debt relief assistance in search of financial wellbeing? Students faced with overwhelming student loan payments are not alone. Seven out of ten college seniors in 2014 had student loan debt, with an average amount of almost $30,000 dollars per student. In some states, the average amount of college debt per student is even greater than that.

Families who are unable to pay for college, often find it difficult to repay the federal student loan payments after graduation.

college student writing on notepad

In recent years, the burden of debt upon graduating from college has received more attention than ever before. But, something positive has come out of this.

Now, there are programs that offer college debt relief assistance.

Are you struggling to pay back your student loans?

Read on to learn about college debt relief assistance that could set you free from student loan debt today!

The Student Loan Crisis Facing Graduates Today

Attending college frequently considered necessary to secure employment in many career fields. But, for many students, a post-secondary education also means accumulating an extreme amount of college debt. A growing percentage of these students are part of the student loan crisis that we are currently facing.

A recent study found that the poorest families could not afford 97% of colleges without loans. With loans, these families could still only afford about 20% of colleges listed. This means that for certain students, roughly 80% of the 2000 colleges studied are not an option.

The Institute of Higher Education Policy found that families income ranges of $69,0000 per year or less could only afford 1 to 5% of all colleges.

The researchers estimate 95% of colleges are not an option for many Americans, according to an article published by The Atlantic.

The Rising Number of Students in Default

Another recent study, performed by the Brookings Institution, found that about 40% of all graduates will default on their student loan payments within five years of finishing college.

At the present time, many Americans believe that for the average family college remains unaffordable. Still, many took out whatever college loans necessary to obtain a degree. Accepting the possibility of incurring outrageous college debt upon graduation.

bar chart with green arrow indicating rising debt

The most recent generations were led to believe that a college education would be worth the cost. Furthermore, many thought that without a degree, success would practically be out of reach.

Now, with the financial aid crisis looming, and frustrated graduates, unable to pay, feel that they have few options. Other than to abandon their college loans and surrender to default.

College Debt Relief Assistance Programs Offer Hope

In response to the student loan crisis, implementation of programs designed to help alleviate college debt continues to evolve.

Now programs are widening their reach to include a larger number of students in a variety of fields.

If you’re struggling to pay college loans, one of these college debt relief assistance programs might be right for you.

Teacher Loan Forgiveness Program

One of the most widely publicized student loan forgiveness programs is for teachers. However, to qualify you must meet certain requirements.

One such qualifying requirement is completing a term at a Title I funded school. This requirement covers many of the teachers employed for the estimated 67% of schools that receive Title I funding. That estimate comes from the Washington-based Center for American Progress.

teacher checking grades in grade book

You can find out more about the student loan forgiveness for teachers program from the Department of Education website. If you believe you qualify complete a student loan forgiveness application.

Public Service Loan Forgiveness

Similarly, this program for those who choose to pursue a public service career is eligible to have their college loans forgiven.

The program, also known as the PSLF, is one of the most popularly used routes to forgiveness of college debt. More information about student loan forgiveness public service programs is available on the Department of Education website.

The Income-Based Repayment Plan

This program helps people who are experiencing a financial hardship, regardless of their career field.

Like the other forgiveness programs, there are certain factors to consider. Basically, depending on your situation and income, a repayment plan is set. At the end of the term, your loan i0s forgiven.

If you have college loans from before July 2014, your payment will not be higher than 15% of your discretionary income. On this plan, you make payments for 25 years. At that point, your loans become forgiven.

If you are a borrower with college loans after July 2014, your loan will not exceed 10% of your discretionary income.  In addition, the loan will forgive after just 20 years.

calculator check book with pen and cash

Income Contingent Repayment Plan

There are no income requirements for this plan and anyone can make payments under this plan.

Using calculations based on your income, you have a payment plan established for twenty-five years. At the end of twenty-five years, your college loan becomes forgiven. It’s as simple as that.

Using the repayment estimator tool may help you calculate what your approximate payment would be.

Also, the Department of Education offers a complete list of possible plans that can help ease the burden of student loans. You may be able to find a plan that is more suitable for you by checking out their website.

Find Out How to Protect Yourself from Student Loan Scams

There are several new college debt relief assistance options available for student loan help, to start the recovery process.  But beware, there is also a slew of student loan scams. These can cause you to fall further into debt and cost you, rather than save you money.

Educate yourself on the current ways scam artists are tricking college loan recipients so you don’t become a victim.

Check out our blog to find out more about how to avoid scams now!

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2 Comments

  1. There is indeed a student loan crisis in the US that needs to be addressed.

    Thanks for the information about loan forgiveness programs such as for teachers and public servants.

    For low-income earners who cannot afford to pay college tuition, this loan forgiveness programs should be made known to them to influence the decision of the choice of college major.

    Income-based repayment program is good as well since it caps loan repayment at 25 years (which is truly long enough!)

    My kids went to state universities which were close to home so there were no additional expenses on dormitories.

    Tuition was reasonable, they commuted home and graduated from college without debt.

    It’s difficult to start a life with the burden of debt repayment. It’s a culture that needs to change drastically. 

    Valuable post!

    Thanks!

    • Agree wholeheartedly.  There is definitely a student loan crisis in the US today.

      Many students selected degree programs that really didn’t translate to the real world.  $100K degrees with no demand can destroy a graduates future.

      As a result many graduates are trying to figure out how to receive college relief assistance.  A minimum wage job is not going to cut it. Paying off debt on a worthless degree is a tough pill to swallow. 

      There’s lots of blame to go around, but the economy is changing and future would be students need to adapt to the times.

      I’m glad to hear your kids made the right choice and stayed close to home and graduated with no debt.  Their future appears to be bright.

      All the best. 

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