BusinessWeek.com offers an article regarding how to Kiss Those Student Loans Goodbye, but indicates that even with a number of programs out there, qualifying for them isn’t always easy.
In the last year or two, a number of programs have emerged that are designed to assist students with student loan repayments. Because there are thousands of students who are finding it difficult to land a job in the down economy, or who have lost their jobs before paying off student loan debt entirely, programs like SponsorChange.org are gaining popularity. When students volunteer in their communities, SponsorChange.org helps them repay their student loans.
Alternative Options for Paying off Student Loans
Americorps – In exchange for volunteering for one year, individuals receive a small living stipend and an education award of $4,725, which can be applied to existing student loan debt or future education courses you choose to take.
Peace Corps – In exchange for volunteering for two years in a foreign country, students can defer loan payments during their two-year term of service and a cancellation of federal Perkins loans up to 15% for one year of service and 70% for four years of service. After you complete a two-year term, you receive a $6,000 readjustment allowance, part of which can be used to repay student loan debt.
Sponsor Change – Located in Pittsburgh, Pennsylvania, this program allows young working professionals the ability to volunteer their free time in exchange for stipends paid by program donors, which are used to reduce student loan debt. You must have a bachelor’s degree and proof of student loan debt.
Work Programs – There are a large number of career specific programs available that let you work in your industry in exchange for forgiving or paying off student loan debt.
Loan Forgiveness Programs
There are also some circumstances which allow students to completely wipe out their student loan debt, such as military or public service, and certain volunteer situations.
About Debbie Dragon
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.