A new year is a great time to shape up and get financially fit as the average undergraduate holds student loan debt in excess of $20,000. Break the cycle of long-term student loan debt and alleviate stress by paying these bills early. View our list of clever ways to lessen student loan debt through volunteerism or public service
Numerous federally backed public service programs provide funding to help pay off student loans. These include: Teach for America, AmeriCorps programs, and the Peace Corps. For instance, after graduating from college, you can earn $5,550 toward paying back student loans by serving with AmeriCorps. Volunteering is a great feel-good way to lessen student loan debt, while supporting healthy communities.
Valley of the Sun United Way hosts AmeriCorps Graduation Coaches who mentor kids at risk of not graduating in our Destination Graduation program.
If you work for an organization that is funded by federal, state, or municipal dollars, the government appreciates your service and may help you pay off loans. Anyone from a Department of Defense worker, to a public school teacher, to a firefighter could be eligible for the Public Service Loan Forgiveness (PSLF) program. After making 120 on-time payments, the remaining balance of your student loans could be forgiven.
For students with multiple loans, you may consider a loan consolidation to combine student loans from different lenders in to one loan. The new loan may have a lower interest rate than your original loans, which can help you to pay off your loan more quickly.
You may be able to get your monthly payments reduced with a repayment plan. This could extend you loan term which might lower your monthly payments. However, you could pay more interest over the life of the loan.
With student loan debt rapidly on the rise, recent graduates should be aware of all the options available. We’re excited about the range of loan-reduction options especially the ones that include opportunities for volunteerism to help improve the lives of individuals and families in our community.