Qualifying for Reductions

You may be eligible for a reduction on the amount you own on your student loans, which can make life easier after you complete your education.

Create a long-term plan while you're still in school to pay down your educational loan debt quickly and efficiently Planning ahead can help you manage your debt once you have completed your bachelor's degree.

Support Your Community
It's possible to reduce what you own on your Federal loans while you serve your community. The Federal government allows you to trade community service for a reduction in certain Federal loans. Spending a year in a service organization like VISTA, the Peace Corps, or AmeriCorps can reduce your student loan debt by up to $5,000. Serving with the armed forces or the National Guard can eliminate up to $10,000 from your total student debt.

If you want to stay local, it may be possible to educate others while you help yourself. Teachers who work in qualifying schools may be able to wipe out their entire Federal student loan debt over a period as short as five years. Both urban and rural schools may qualify, as long as they are in underserved districts. Doctors, lawyers, and nurses can also eliminate some of their educational debt by working for government advocacy agencies for a year or two after graduation. Choosing a major that helps your community can really pay off.

Employee Tuition Programs
You may not know how generous your employer can be. Attractive education reimbursement programs from employers may relieve some of your student debt burden in exchange for joining the company when you graduate, particularly in high demand fields like engineering and accounting. Pursuing a bachelor's degree could make you even more attractive to your employer who may be willing to help you with your educational expenses.

Employers have good reason to trade loan assistance for employment--by extending educational expense benefits to future employees, employers hope to lock up the best talent. After your second year, you should start following possible job leads if your grades or chosen major reflect a commitment to your chosen field. It may take a few years of service before a tuition payment plan goes into effect, but it could greatly reduce your educational debt over time.

Consolidate Your Loans
If you're making large payments on your home, car, or credit cards along with your student loans, it may be easier and more cost-effective to consolidate your loans. Loan consolidation generally takes a weighted average of your interest rates and provides you with one reasonable monthly payment that can reduce your overall payments. You can choose to work with a private lender or the Department of Education can help you consolidate your Federal loans.