Qualifying for Reductions

Plan Now
As you begin your undergraduate studies, you should be aware of what you can do later on to reduce your student loan debt. Planning now can make your life easier down the line.

Community Work
The federal government offers a reduction in your loan debt for service work. Joining VISTA, AmeriCorps, or the Peace Corps for a year can reduce your student loan debt by up to $5000. If you sign up for the Army National Guard, you reduce up to $10,000 of your student loan debt.

Student Loan Forgiveness for Teachers
Teaching in qualifying rural or urban schools for five years may eliminate your entire federal student loan debt. Student loan forgiveness programs are available to special education teachers; early intervention services providers for disabled children; head start teachers; and those who teach in areas with teacher shortages, such as foreign languages, science and math.

Other Loan Reduction Options
If you're planning to become a lawyer, doctor, or nurse, you might later be eligible for federal student loan forgiveness. Working for a government advocacy agency for one or two years after graduation, in any of these fields, may make you eligible.

Private employers in many professions are beginning to offer education reimbursement programs of their own. Some of these programs offer to pay off a portion of a student's debt in exchange for that student joining the company. This strategy of enticing talented employees is prevalent in high demand fields such as accounting and engineering.

Consolidation
It might make sense for you to consolidate all of your student loans into one loan with on monthly payment. Do your research before you consolidate: you're only allowed to consolidate once and you don't want to get stuck with a bad rate.

Your consolidation lender may offer an inducement, such as a lower interest rate, for making online and/or automatic payments. Automatic payments also eliminate the risk of missing a payment, which helps build good credit.