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Unfortunately many college students are finding themselves in massive debt after graduation. College is expensive and more and more people are using student loans to not only pay for their education, but living expenses as well. Although this is great to help get you through school, once school is over the weight of those debts comes due. This forces a student who has not even started working in their profession to have to determine how to pay off mounting loans.
With debts come due and a substantial income not yet coming in many new graduates feel like they have nowhere to turn. With the current economic situation this issue is only escalating. The good news is that the federal government has some things in place to help out the new graduation manage their loans and get help if it is needed.
Government Grants
Depending on your specific situation it is possible to get a government grant, called an Income Based Repayment Program, or IBR, to pay off student loan debt. These grants can pay off part, and in some cases all, of your student loans. Not everyone will be approved for these grants. It is a simple application process, but in that application you have to show how paying off your loans would be a financial hardship, if not impossible. The federal government is really focused on helping people get out of debt, so now is the time to apply for one of these grants and help to pay off student loan debt.
Work Trade
Another option to pay off student loan debt is with a work trade. The federal government, on top of their grant program, is also offering a work exchange. There are several areas where you can work to and have your student loan debts paid off. For example of you work in a low income area at a school, or as a public service person you can have your student loans forgiven. This is a little known program that is readily available. Part of the government grant process will allow for you to state if you are doing this sort of work, or if you would be willing to. If this is something you can or would do it will be much easier to have your student loans paid off by the federal government.
Consolidate First
An important step before apply for the government grant is to have your federal student loans consolidated first. Taking this crucial step will not only help to save you money in the long run, but it will show on the grant application that you are taking all the steps you can to save you money and pay off student loans.
Application
It is up to the student to prove the burden of the debts so it is very important to make sure to keep very good track and records of your payments and income situation.
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