For decades, people have been told to go to college because doing so would give them the best shot at a great career. Some college graduates are not as fortunate. Subsequently, they are forced to take jobs that don’t even require a college degree. We all know that those jobs make paying student loans very difficult! Well, fear not, you will find a solution in these 10 creative ways to pay off your student loan debt.
1. Income Based Repayment Plans
While this option has been becoming increasingly popular over the last few years, some college graduates and dropouts still don’t know about income based repayment plans. The Department of Education created these programs to help people manage their student loan debt by reducing their monthly payments.
Monthly payments are determined by your annual income of the previous year. For some people, their monthly payment could be $20 or even $5 dollars a month.
Others may not be required to pay anything. If they have an income that is at or below the poverty line, their monthly payments will be marked as paid (even though they are not paying anything). Depending on your repayment plan, the remainder of your loan can be forgiven within 20 or 25 years.
Program participants are required to submit their annual income every year for the purpose of recalculating the monthly payment and continuity.
The Wall Street Journal has found that only 40% of people with student loans are paying them back. A lot of people think that they are hopeless and tend to let their loans go into default. The income based repayment plan is a great way for people to manage their student loans more responsibly.
2. Kansas Rural Opportunity Zones
The state of Kansas is working hard to discourage population decline. The Rural Opportunity Zone program encourages Americans to move to rural Kansas to experience the lower cost of living and high quality of life. The zones are made up of 77 counties that have been authorized to offer student loan payments.
In order to be eligible for the income tax waivers, individuals must meet the following requirements:
– Have a college degree (either undergraduate or postgraduate)
– Have an outstanding student loan balance
– Have established residency in a rural opportunity zone after July 1, 2011 and on or after the date on which the county opts in the student loan program
Despite living in uncertain times, Americans are still hopeful in fulfilling the American Dream. Kansas has enabled Americans to realize their dream by not only offering free land but also student loan assistance. Some people have been a victim of misfortune. The state of Kansas is giving them a second chance.
3. Move to Niagara Falls Program
The city of Niagara Falls, New York has experienced a significant population decline, due mostly to the relocation of several industrial corporations. While it remains a tourist attraction for Americans and Canadians, the city is looking for other ways to boost their economy to avoid losing their “city” status.
They are hoping that by enticing people to move there; it will bring in talent that will positively influence the labor force, which could keep them there longer than the two year requirement.
New residents who live there for two years will get a total of $7,000 to pay off their student loans. In order to qualify for the reimbursement, the applicant must have attained a two or four year degree from an accredited school and rent a home or apartment in a designated area.
This program presents a great opportunity for people who don’t have a lot of student loan debt and any major life commitments.
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