Paying off major student loan debt

ToddJ · 03-24-2005, 10:13 PM

I need some advice paying off student loans. I have a lot of loans through Direct Loans and wanted to try to consolidate them. However, when you are looking to get into college, you can find all kinds of scholarships, but are there any types of grants for people who have graduated?

nolesrule · 03-24-2005, 10:36 PM

Consolidate before interest rates start going back up. I don't know of any grants to help you out. However, there are loan repayment plans for federal stuent loans that can backload the payment schedule or adjust it based on income. You'll pay more in interest in the long run, but payments will be smaller at the beginning.

Justin Lane · 03-24-2005, 11:31 PM

Quote:

However, when you are looking to get into college, you can find all kinds of scholarships, but are there any types of grants for people who have graduated?

I have not heard of any free money after the fact since the job you get hired, obtained due to these loans and the degree you earned, is supposed to pay off the loans.

J

Chris · 03-24-2005, 11:36 PM

Quote:

I need some advice paying off student loans. I have a lot of loans through Direct Loans and wanted to try to consolidate them. However, when you are looking to get into college, you can find all kinds of scholarships, but are there any types of grants for people who have graduated?

Some companies will offer you a stipend against student debt if they hire you (mostly law offices, medical practices, etc.)

If you've been a victim of a violent crime, or have suffered a tragic injury, you can apply for amnesty, which basically says that due to means not your own, your degree means squat now (or you were unable to graduate because of those concerns).

If you graduate with more then a double PhD in sciences, and are willing to go into the federal forensics services or state department, you can get complete forgiveness.

If you graduated with the right general degree, and are willing to enlist, you can get partial debt forgiveness (to full forgiveness, dependant).

Scott_lb · 03-24-2005, 11:48 PM

This might sound goofy, but there is some pretty good advice on student loans by Suzy Orman in her new book "Young, Fabulous, and Broke". It's basically a book on personal finance geared towards those in their 20's and early 30's. She has a chapter devoted exclusively to the topic of student loans.

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Scott Tucker · 03-24-2005, 11:54 PM

If you own a home you can get a equity loan. The interest is low and probably tax deductable as mortgage interest usually is.

Scott

Joseph S · 03-25-2005, 12:45 AM

Rates are real cheap now, something like 2.7 percent up through 7/1 and consolidation rates will likely be less than that if you consolidate during your grace period. You can get bonuses from the lender for repaying on time for x number of months, for doing direct withdrawal. There are repayment options to pay for some grad loans up to 7 years of interest only payments, then partial interest, then full interest. Check with your school fin aid dept. If you go to more advanced programs, are unemployed, etc. there are deferments available for govt loans after your grace period is up.

nolesrule · 03-25-2005, 01:22 PM

student loan interest is also tax deductible, and is probably lower interest than a HELOC.

Mike Voigt · 03-25-2005, 09:12 PM

Also look into membership with a credit union. A small loan, used to pay off debt, repaid quickly, and repeated with some frequency has two effects: 1. it probably reduces your interest rate, and 2. it builds up your credit score very quickly.

nolesrule · 03-25-2005, 11:09 PM

It's hard to find a personal loan to beat student loan interest rates.