Get Rid Of Student Loans By Working For The Government

Graduating with student loans can be a scary proposition. How exactly am I going to pay these off? Well, one strategy to get rid of student loans is to work for the government.

The cost of getting an education is, frankly, obscene. Most of us have to take out sizeable student loans to pay them back. The problem is the monthly payment can reach proportions that make it a long, painful process. Well, there is a program generally known as the federal income repayment program that allows you to pay off the loans much quicker and at much lower rates so long as you work for the government.

The program can be summarized fairly simply. You must work in a public service job. Your annual salary the first year must be less than the total amount you owe on those student loans. Assuming you meet these criteria, then you are going to be happy with your job. Why? Your monthly payment is capped at 15 percent of your discretionary income. This makes it really low. After 25 years, anything you still owe is written off.

Ah, but it gets better. The law for the 2010 program has been amended. The percentages have changed for the better. The monthly cap is now 10 percent. Even better, the time period is now down to 20 years. That's a heck of a deal if you really think it through. The government will actually terminate a good chunk of your loan. What a country!

So, what's the catch? Well, the "program" is actually a number of different ones. You will want to talk to your financial advisor about the various options facing you. The general drawback all the programs have in common is they only apply to your government issued loans. Private loans are not covered. If you go to law school or medical school, this can sometimes be a real problem.

Anything that cuts your student loan debt should be looked upon favorably. Getting rid of student loans by working for the government just might be one positive step that saves you a bundle of money in the long run.

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