With college tuition increasing every year about 5% to 8%, students usually begin their careers with massive debt from student loans. The cost of tuition can be overwhelming for most college bound students, but there are ways to help pay those tuition's.
CNN personal finance editor, Gerri Willis and author of the book, "Home Rich-Increasing the Value of the biggest Investment of Your Life", gives us some ways to ease student loan burden.
1. Let Uncle Sam forgive your student loan
Uncle Sam has some programs that can help with the daunting costs of tuition. A private four year college can run you $25,000 a year and Uncle Sam can help you through loan forgiveness.
You must perform volunteer work, military service or teach or practice medicine in certain types of communities to qualify for these programs.
Volunteering Loan Forgiveness Programs
- AmeriCorps: Serve 12 months and receive up to $7,400 in stipends plus $4,725 toward your loan--that amount is expected to increase.
- Peace Corps: Cancel 15% of your federal Perkins Loan per year.
- Volunteers in Service to America: Provide 1,700 hours of service and receive $4,725.
2. Loan Forgiveness For Teachers.
If you are teacher at an elementary or school in an area that has students from low income families, a portion of your Perkins Loan can be forgiven. For up to five years, you can have a portion of your Perkins Loan forgiven for year you teach. Check with your school districts administration to which schools are eligible.
If you are teacher in a high need school and teach math and science you can also get up to $17,500 forgiven from their Stafford loan.
Visit The American Federation of Teachers at AFT.org for their list of other debt forgiveness programs.
3. Cut Medical or Law School Bills.
Visit the American Bar Association (no this isn't amount drinking), for a list of loan repayment assistance programs. Many law schools forgive the student loans if you serve in public interest or in a non-profit position.
Some options for health care student loan forgiveness programs are:
- National Health Services Corps
- Nursing Education Loan Repayment Program
These organizations offer loan forgiveness to physicians and registered nurses who agree to practice for a set number of years in areas that lack adequate medical care--and that includes remote areas or economically depresses regions.
Visit the American Association of Medical Colleges at aamc.org for a list of state and other loan repayment programs for medical students.
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