Many students find out that they have excessive amount of debt only after graduation. Student loans add up to a huge chunk of debt that may take many years to get rid of. Schools charge more and more money every year in form of tuition and study-related fees, and many people solely rely on financial aid to cover their education cost as well as certain living expenses. While student loans do not have monthly payments up until graduation, once the degree is received they become due and may hit your budget really hard. Very few graduates make decent income right after college, and many face truly financial hardship once student loan repayment kicks in. Current state of economy does not make it any easier either. Fortunately enough, there are two little-known government programs adopted to assist graduates to manage their loans and get rid of debts faster.
IBR or Income-Based Repayment Program is a form of government help aided to help college graduates to repay their student debt. This grant program may help you to pay off or get forgiven some, or even all, of your student debt. Only people experiencing severe economic hardship are eligible to apply. Application is very simple, with chances of success increasing with your ability to furnish proof of financial hardship that affects your ability to make timely student loan payments. With recent economic downturn more former college students are eligible to apply, so it is really worth giving a shot.
Another form of government assistance is commonly known as work exchange. It focuses on attracting college graduates to work in underdeveloped areas and industries in exchange for student loan forgiveness. While most of such jobs feature low income, amount of student debt that may be written off makes it overall a nice proposition to many people struggling with debt. While this program is little known, it may present a huge benefit for many recent graduates: a secured employment along with opportunity to become debt-free soon.
Preparation and Planning Is Vital
In order to make a successful application whether it is for IBR or Work Exchange, try consolidating your student debts first. Student loan consolidation may eliminate your need to seek government assistance in the first place, allowing you to manage your debt with the help of lowered interest rates and more affordable payments. Should it not be of help in your individual situation, it will serve as a documented proof that you have exhausted all possible options before seeking help from government. No matter which route you are going to take in your attempts to reduce your student debt burden, always be sure to properly document every single step you make and to keep all your paperwork in order. Time has proven that many applications that would have been successful otherwise, were rejected due to lack of proper documentation.