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10 Creative Ways to Pay Off Your Student Loan Debt

10 Creative Ways to Pay Off Your Student Loan Debt
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For decades, people have been told to go to college because doing so would give them the best shot at a great career. Some college graduates are not as fortunate. Subsequently, they are forced to take jobs that don’t even require a college degree. We all know that those jobs make paying student loans very difficult! Well, fear not, you will find a solution in these 10 creative ways to pay off your student loan debt.

1. Income Based Repayment Plans

While this option has been becoming increasingly popular over the last few years, some college graduates and dropouts still don’t know about income based repayment plans. The Department of Education created these programs to help people manage their student loan debt by reducing their monthly payments.

Monthly payments are determined by your annual income of the previous year. For some people, their monthly payment could be $20 or even $5 dollars a month.

Others may not be required to pay anything. If they have an income that is at or below the poverty line, their monthly payments will be marked as paid (even though they are not paying anything). Depending on your repayment plan, the remainder of your loan can be forgiven within 20 or 25 years.

Program participants are required to submit their annual income every year for the purpose of recalculating the monthly payment and continuity.

The Wall Street Journal has found that only 40% of people with student loans are paying them back. A lot of people think that they are hopeless and tend to let their loans go into default. The income based repayment plan is a great way for people to manage their student loans more responsibly.

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    2. Kansas Rural Opportunity Zones

    The state of Kansas is working hard to discourage population decline. The Rural Opportunity Zone program encourages Americans to move to rural Kansas to experience the lower cost of living and high quality of life. The zones are made up of 77 counties that have been authorized to offer student loan payments.

    In order to be eligible for the income tax waivers, individuals must meet the following requirements:

    – Have a college degree (either undergraduate or postgraduate)
    – Have an outstanding student loan balance
    – Have established residency in a rural opportunity zone after July 1, 2011 and on or after the date on which the county opts in the student loan program

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    Despite living in uncertain times, Americans are still hopeful in fulfilling the American Dream. Kansas has enabled Americans to realize their dream by not only offering free land but also student loan assistance. Some people have been a victim of misfortune. The state of Kansas is giving them a second chance.

    KS Rural Opportunity Zones graphic

      3. New York Young Farmers Loan Forgiveness Program

      The state of New York has been looking for ways to stimulate their agriculture sector. In return, the state is providing loan forgiveness to people who have obtained a college degree from a New York college and agree to operate a farm on a full-time basis for five years.

      Working in the agriculture sector is quite a noble path, as it is one of the cornerstones of our economy, A lot of new farming operations either break even or don’t make enough to scale their operation.

      The state of New York recognizes that their agricultural sector can only be successful if their farmers are given sufficient support. Their loan forgiveness program gives farmers a chance to start off with a clean slate.

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        4. National Health Service Repayment Program

        Shouldn’t the people who bring wellness into our lives be given a break? The government thinks so. The National Health Service Corps (a U.S. Department of Health & Human Services program) is giving primary care medical, dental, and mental health clinicians up to $50,000 to repay their student loans in exchange for a two year commitment to work at a NHSC site that helps underprivileged communities.

        After the initial service commitment, corps members can continue working to receive additional loan repayment assistance.

        Healthcare grads typically have more student loan debt than other grads (excluding law and most STEM majors); yet are likely to secure a high paying career. This program is another option that can offer healthcare grads to have at least half (if not more) of their student loan debt paid in exchange for serving underprivileged communities.

        Which may be ideal for people who came from such communities and desire to give back in service.

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          5. Be Zerobound

          Zerobound is a program that provides an innovative option to reduce student loan debt for graduates who are dedicated to volunteering. Zerobound brings together volunteers, organizations, and sponsors together on one platform to connect and support each other.

          They work with all graduates, ranging from those who are seriously struggling with their debt to those who just need a bit of help.

          This is a great program for students who have spare time to contribute to a cause that resonates with their passion. In return, they are able to receive some financial relief from their student loan debt.

          Zero-Bound-Logo1

            6. Move to Niagara Falls Program

            The city of Niagara Falls, New York has experienced a significant population decline, due mostly to the relocation of several industrial corporations. While it remains a tourist attraction for Americans and Canadians, the city is looking for other ways to boost their economy to avoid losing their “city” status.

            They are hoping that by enticing people to move there; it will bring in talent that will positively influence the labor force, which could keep them there longer than the two year requirement.

            New residents who live there for two years will get a total of $7,000 to pay off their student loans. In order to qualify for the reimbursement, the applicant must have attained a two or four year degree from an accredited school and rent a home or apartment in a designated area.

            This program presents a great opportunity for people who don’t have a lot of student loan debt and any major life commitments.

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              7. Health Professions Faculty Program

              Faculty working at a health professions college or university can receive up to $40,000 toward the repayment of their student loans if they come from a disadvantaged background. In return, they must serve on the faculty for two years.

              In order to be eligible for the program, individuals must meet the following requirements:

              – Be a U.S. citizen (either born or naturalized), U.S. National, or Permanent Resident
              – Have a degree or be currently enrolled in an approved graduate training program within certain health disciplines
              – Have an employment commitment for a full-time or part-time faculty position for a minimum of two years, beginning on or before July 31, 2015
              – Be from a disadvantaged background, based on economic or environmental factors

              While healthcare grads often have more student loan debt than other graduates, they are very likely to secure a career in that field. This program is another option that can offer healthcare grads to have at least half (if not more) of their student loan debt paid in exchange for serving on the faculty for two years.

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                8. Perkins Loan Cancellation Program

                Perkins Loans are low interest federal loans that are reserved for students in exceptional financial need. Perkins Loan recipients may cancel a portion of their loan (or even the entire loan in some cases) if they are employed in certain occupations. The current list of accepted occupations for this program are listed as the following:

                – Teachers
                – Corps members (Peace Corps, Americorps, or Action Corps)
                – Law enforcement officers
                – Social workers
                – Head Start workers
                – Professional providers of early intervention services
                – Healthcare technicians

                There is no application that is required to be considered for this program. If you are interested. you need to contact the school that processed your loan.

                As mentioned earlier, the Wall Street Journal has found that only 40% of people with student loans are paying them back. So, this program is a great way for public service employees to reduce a good chunk of their student loan debt.

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                  9. USDA Veterinary Medicine Loan Repayment Program

                  Do you love animals? Have you ever thought about being an animal doctor? Well, this benefit might convince you to be a veterinarian. The Veterinary Medicine Loan Repayment Program will pay up to $25,000 per year for people who agree to serve three years in designated areas that have shortages of veterinarians.

                  In our culture, we have learned to consider our pets as part of our family. Therefore, it requires that they be entitled to the same level of healthcare as humans. In return, the USDA are giving qualified veterinarians up to $75,000 in tuition reimbursements for dedicating three years in underserved areas.

                  USDA-fields

                    10. U.S. Office of Personal Management Program

                    One thing that you don’t have to worry about as a government employee is the lack of benefits. The U.S. Office of Personal Management makes every employee eligible to have their loans paid by their employer.

                    Government agencies will make payments to the loan holder for up to $10,000 for an employee in an calendar year and $60,000 as the total maximum.

                    Commonly, people equate a government career to a high paying salary. This is simply not true. However, their abundance of benefits including student loan repayment makes having such a career worthwhile.

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                      Featured photo credit: Unhappy Man Mask Sad Face Sitting Depressed via pixabay.com

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                      Last Updated on July 20, 2021

                      Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

                      Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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                      Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

                      Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

                      Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

                      In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

                      Break Free of Your Finances

                      Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

                      When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

                      Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

                      Though it seems hard to believe, it is really very simple to get financial freedom.

                      To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

                      While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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                      Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

                      1. Stop Unnecessary Spending

                      We often spend money inwardly, instead of objectively.

                      For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

                      To stop this habitual spending, log down all your spending over the course of a month.

                      Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

                      This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

                      2. Plan a Monthly Budget

                      This is a great opportunity to get serious.

                      Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

                      Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

                      3. Cut-up Credit Cards

                      Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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                      If not, you may want to consider ridding your life of the burden that credit cards bring.

                      Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

                      Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

                      4. Increase Savings

                      There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

                      It’s good practice to save up to 15% of your income.

                      Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

                      Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

                      5. Invest Wisely

                      Consider investing in funds.

                      Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

                      To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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                      Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

                      6. Invest in Gold

                      There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

                      You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

                      Another way to invest in gold is through ETFs (Exchange Traded Funds).

                      These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

                      With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

                      7. Stash Emergency Funds

                      Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

                      If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

                      Make it hard to get your cash.

                      Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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                      8. Find Fabulous Mentors

                      Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

                      If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

                      There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

                      9. Be Extra Patient

                      Patience is the key of financial success.

                      Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

                      So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

                      Financial Freedom for All

                      Anyone can achieve financial freedom, regardless of their financial circumstance.

                      Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

                      Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

                      Featured photo credit: rawpixel via unsplash.com

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                      Reference

                      [1] Hartford Gold Group: IRA Retirement Accounts

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