College Loan Repayment

Unlike grants or work-study aid, loans remain a part of your life long after college graduation. It's important for you to give some serious thought to how much debt you're willing to shoulder and to map out a plan to repay loans as easily as possible.

Some advisors suggest that monthly student loan repayments should not exceed 10–15 percent of a new grad's starting monthly income.

Most lenders will allow borrowers to adjust repayment terms to suit individual needs and circumstances. Most students repay their loans using a standard repayment plan. Standard repayment involves making equal monthly payments over a 10-year period.

The Federal Direct Loan program

And numerous private lenders also offer flexible repayment options. Don't forget to account for fees when you are considering education loans. Up to 4 percent of the total amount of a loan may be eaten up by up-front fees. Visit the aid office when you feel you are taking on more than you can afford. The financial aid staff will be able to advise you about reducing your level of borrowing and managing your current debt.

There are some careers that offer partial to complete loan forgiveness!

Teaching – The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, individuals who teach full time for five consecutive, complete academic years in certain elementary and secondary schools that serve low-income families and meet other qualifications may be eligible for forgiveness of up to a combined total of $17,500.

Volunteering – Popular programs such as the Peace Corps , AmeriCorps all offer deferment or partial payment towards loan debt. Each program differs in its formula for awarding payments.

Participants may see up to 70% of select government loans forgiven.

Military - The Montgomery GI Bill, offered through the U.S. Armed Forces Recruiting program, may pay up to 60% of college tuition costs. Those active in the Army National Guard may be eligible for a payment of up to $10,000 towards loan debt. Additionally, many veterans and private military associations offer funding through scholarships and grants.

Medical Professionals – Doctors, nurses, and physical therapists can take advantage of several programs offering loan forgiveness in select geographic areas. By providing services to depressed regions, up to 100% of their loans may be deferred.

Law – Law students and newly graduated lawyers who offer their services at free and reduced cost can take advantage of partial loan forgiveness. By working for agencies that provide public-interest or non-profit services, graduates can make a difference in the lives of those who can’t afford legal representation.

As the need grows for more professionals to serve our communities, there will be an increasing reward for those who answer the call.

Loan forgiveness can be a big motivator towards commitment in these fields. Participation in forgiveness programs can add value to your degree and will make college affordable for thousands more each year.