Can Student Loan Debt Be Forgiven?

Can Student Loan Debt Be Forgiven?

Private colleges can cost upwards of $40,000 a year. So what do you do if you’re stuck with $100,000 in student loan debts after graduation? According to The New York Times, you don’t have very many options. You typically can’t erase student loans by declaring bankruptcy, and there is no statute of limitations on the debt, so lenders can basically pursue you forever.

The one way you may be able to qualify for debt forgiveness on federal student loans is by working in public service. People who work in public service jobs for 10 years can have the remaining balance forgiven, while those who work in other jobs can get forgiveness after 25 years. For more info, go to¬†FinAid.org and search for “loan forgiveness.”

If that’s not an option for you, keep paying the minimum on your federal loans and put as much as possible toward the private student loans, which have variable rates and less flexible repayment options.

The Washington Post has more advice: Know What You Owe.

If you haven’t gone to college yet, how can you avoid the dire debt situation many grads find themselves facing? Don’t borrow more for school than you expect to make in your first year out of college. Medical school and law school might be worth it – but borrowing a fortune to get a degree in English or philosophy is simply nonsensical. Get educated about which majors have the best job prospects.

Photo: StudentLoans357.com