When it comes to student debt, the numbers across the board are staggering. If you are one of the 40 million Americans who recently graduated from college, you are in good company with others who owe about $1.2 trillion in student loans. As the economy continues to bounce back and areas of consumer debt wane somewhat, Experian released a study noting that college debt is still on the rise.
By all accounts, paying down this debt feels impossible to many recent grads. Statistics reveal that an astronomical amount of graduates remain unemployed or severely underemployed long after graduation. For those who graduated with bachelor’s degrees, 2013 statistics reveal that while the average debt looms large at $28,400 per student, average starting salaries stood at $45,000.
So what is an individual bogged down in debt to do? Have you considered these options?
You can opt to take on a job that affords you student loan forgiveness. These include:
Teaching: Not only can it be rewarding to be an educator, but it can be financially rewarding, as well. The Teacher Loan Forgiveness Program can wipe out $17,500 in student loan debt for teachers who teach for five full and consecutive years in designated districts.
Public employees: If you get a job working full-time for the government, a tax-exempt non-profit or a service program such as the Peace Corps or AmeriCorps, you may be eligible to have your loans forgiven after you’ve made 120 monthly payments.
For those who have chosen to pursue careers in any of the hundreds of other job sectors, there is a more global strategy for dealing with student loan debt.
Negotiate with Lenders: Many people don’t realize that if you have borrowed money from a private lender and are having trouble paying it back, there is the opportunity to negotiate for lower payments. Your lender doesn’t want you to default; it won’t get paid. Therefore, it’s in everyone’s best interest to find a way to make it easier for you to pay what you owe. Some examples include: reducing the debt or changing the payment terms.
Don’t go up against your lenders without a knowledgeable debt negotiation lawyer who can offer credibility to your case. If you’ve hired a lawyer, the lender will know you mean business and may be more apt to negotiate a deal you can live with and pay back.
Contact Joel R. Spivack, Esq. for a free consultation about your student loan debt. Everyone goes through financial troubles at some point or another. You aren’t alone and Mr. Spivack can explain your rights and options for getting out from underneath your mountain of student loan debt.