Qualifying for Reductions

Even if you have received financial aid or research or teaching assistantships to complete your graduate or doctoral degree, you may still find yourself with a significant amount of student loan debt. Once your repayment period begins, consider loan repayment reductions that help make life easier after you complete your graduate or doctoral degree.  

Improve Your Community
The government allows you to trade service work for debt reduction on your Federal loans. Spending a year in an organization like AmeriCorps, VISTA, or the Peace Corps can reduce your student loan debt by up to $5,000. Serving with the Army National Guard can eliminate up to $10,000 from your student debt load. Contact your school's financial aid department for more information on service organization debt reduction.

Loan cancellation is possible if you find the right career. Workers in professions like nursing, law enforcement, or teachers who work in qualifying rural or urban schools may be able to wipe out their entire Federal student loan debt over a period as short as five years. Lawyers and doctors may also eliminate debts by working for government advocacy agencies for a year or two after graduation. 

Employment and Debt Reduction
A growing number of private employers offer education reimbursement programs that can relieve some of your debt burden in exchange for agreeing to a certain number of years of employment with the company, particularly in high-demand fields like engineering and accounting. By extending educational expense benefits to current or former students, these employers hope to lock up the best talent.

Start contacting job recruiters about a year before you graduate, if your research, employment, or grades reflect a commitment to your chosen field. It may take a few years of employment before an education reimbursement plan goes into effect, but finding the right employer could greatly reduce your educational debt over time.  

Loan Consolidation
Loan consolidation rolls up all your educational loans and leaves you with one monthly payment that could reduce your overall payments. The Department of Education can help you consolidate your Federal loans, or you can choose to work with a private lender. Create a long-term strategy while you're in school to pay down your student loan debt. Planning will help you manage your debt and possibly repay it faster. 

Consolidation loans may also be available for consumer credit debt. Contact your lender for more information.