Qualifying for Reductions

Don't let student loans increase your stress level after you graduate. Build a long-term strategy before you graduate and you'll build good credit as you get out of debt.

Work in Your Community
Thanks to private and Federal organizations, it's possible to use community involvement for loan forgiveness. Spending time in service organizations like the Peace Corps, VISTA, or Americorps can reduce your student loan debt by up to $5,000. Join the Army National Guard, and you can eliminate up to $10,000 from your total debt.

Working in certain fields can also reduce your debt as you earn a paycheck. The Federal government offers debt reduction incentives to teachers working for five years in low-income schools or teaching certain 'essential need' subjects. Loan forgiveness opportunities are also available for lawyers who choose to work for non-profit organizations and doctors who work in areas struggling economically.

Find a Generous Employer
Many employers find themselves exhausting the pool of recent graduates before all open positions are filled. For job applicants in fields like accounting and engineering, that means even more of an incentive to complete an educational program. What's more, a growing number of employers offer tuition reimbursement programs that can reduce the overall amount of your student debt if you promise to work for them when you graduate.

Employers often cover financial aid payments, hoping to lock up the best talent before graduation. If your grades are solid, use your last years of school to start contacting potential recruiters. If you're already employed, you should check to see if your employer offers a tuition reimbursement program. You'll have an incentive to stay with the company and your boss will have the promise of a more educated employee.

Loan Consolidation Tips
If a group of unpaid loans is starting to put you under financial stress, it may be possible to save money by consolidating your loans. Student loan consolidation involves rolling up all of your loans from various lenders under one large loan, with one monthly payment and one interest rate. If you decide to consolidate, it's possible to work either with a private lender or with the Department of Education. Consolidation loans use the weighted average of your loans' interest rates. Combining your loans reduces the number of your creditors.

Debt reduction comes in many forms. Research the details of your loan and you'll have the power to make educated decisions on your financial future. Contact your loan provider for more details.