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Student reveals various ways to relieve debt

Steven Childress

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Student debt is a scary problem for student who face the competitive job market after graduation.

With the cost of living constantly rising, combined with a period of great income inequality, college debt has become a burden that will affect any income. In a study titled “A+ Debt Management Strategies for Federal Student Loan Borrowers,” Allison Anne Hoyt, an advanced sales attorney with Guardian Life Insurance wrote in her study: “The rst major decision that will impact a borrower’s nancial future is his/her choice of repayment plan.”

The average debt a Paci c University student could accrue, according to the U.S. Department of Education (DOE) scorecard is $27, 592 annually. When combined over four years, the average cost is about $110,368 in debt. The scorecard also suggests an average income of $41,200 after attending university. Compared to Portland State University, whose scorecard shows an average annual cost of about $13,992, Paci c, being a private university, is certainly an above average cost institution.

Student loan debt relief is on the minds of many borrowers, as graduation gets closer and closer. There are many debt relief programs that promise potential forgiveness
of loans, but there are less risky programs that are provided through the federal direct loan
program.

Public Service Loan Forgiveness, Teacher and Disability Loan Forgiveness, Interest Forgiveness and Student Loan Forgiveness at the end of the term are a few of the programs.

According to an article, “Don’t Be Fooled by Student Debt Relief Scams” on Money.CNN.com, Reporter Katie Lobosco said there are many predatory debt relief companies that scam borrowers looking for help.

“Often, the scams are simply passing off the federal government programs as their own and billing you for it,” Lobosco said in her article. “Some companies charge enrollment or subscription fees up to $600, or monthly account maintenance fees as high as $50 per month, according to the Department of Education.” Lobosco gives further advice in her article about checking with loan servicers about eligibility for debt relief programs. She says it’s the first thing that should be done as your servicer will do it for free.

Public Service Loan Forgiveness provides debt relief in the form of loan forgiveness after 120 payments or 10 years of payments. Teacher Forgiveness provides loan forgiveness if students graduate and then serve low-income schools and families for five years. A student can have as much as $17,500 cancelled, Lobosco said.

The weight that student loans carry is different from student to student. There are many y-by-night loan forgiveness websites, but they could have consequences on the borrower. The Federal Student Aid website associated with the DOE addressed student loan debt relief companies.

Their statement said: “As a student who took out loans for college, you do not have to pay for help to manage your debt. The Federal Student Aid site offers help with lowering or capping monthly payments, qualifying for debt forgiveness, federal loan consolidation and advice.”

The U.S. Department of Education provides free assistance to help you handle concern about student loan debt.

The current forgiveness tracks, choosing the right repayment plan and private loan consolidation seem to be the paths of least resistance and possibly least cost.

There does not seem to be a perfect x for the student borrower, but the borrower can start with their loan servicer and decide for themselves how to proceed.

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Student reveals various ways to relieve debt