A project by a group of journalism students about the concerns of students regarding student loans and debt. This video is an attempt to demystify and clarify some of the common misconceptions of the student loan process.
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Question by eric: Are there any ways to reduce undergrad student loan debt (private and/or fed)?
I have over 80K in undergrad student loan debt. My parents had to stop paying for school BC my sister needed serious and expensive surgery. But i continued my education, got saddled with a huge debt and have only on OK pay lol. Can anyone help???
Best answer:
Answer by Sam
I’m sorry, but student debt is very unforgiving.
You cannot get out of it like you can get out of other debts.
If you ware still going to school (at least part-time),
then you usually do not have to start payments on the debt.
Some, especially private debt, though, will accrue interest, and will continue to do so until the debt is paid off.
Here are a couple options for you:
1. volunteer organizations: Americorps, PeaceCorp, etc.: some of these repay a portion of your loans.
2. military service: can pay upto $ 20K.
3. doctor or lawyer: some organizations will help foot part of the bill (e.g. NIH)…upto $ 50K.
4. become a teacher: if you have a Perkins loan, and depends on the state.
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Lastly, see if you have an income based repayment plan…
or see if you can be on one.
this will link your payments to a percentage of you income.
That way, the payments will never become too big of a burden.
After 25 years on this…the balance of your loan will be forgiven.
The time limit is 10 years if you are in public service.
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One other thing…you must remember that any amount that is forgiven on your loan might be taxable.
That is, it will increase your tax liability because it will be considered like “income”.
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I know this information because I just looked into how to pay off my own student loans.
Hope this helps
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