It is a fact that the right way of managing debt is to be debt-free. However, this is easier said than achieved with the current economy. When it comes to financing your college education, you cannot avoid student loans. This is because the majority of the people cannot avoid their tuition fees.

If you want to be successful in repaying your student loan, there are several things you need to consider. You need to be ahead of the game and repay the loan before signing the first promissory note. Unfortunately, the majority of students do not consider repaying their loan until they graduate from college and get their first job.

Tips to deal with student loans

Do the leg work

You should note that not all loans are created equally. There are loans, which provide repayment incentives as you continue to attend college. Usually, this bonuses can extend even after graduation. Some loans do not provide a stipend, and others are due after few months from graduation date.

You may also qualify for low-interest rates. Moreover, if a student opts to repay his or her loan through automated withdrawal systems such as payroll deductions, there is a chance of getting this incentive. You will note that there are notable differences for every student loan. Therefore, you need to ensure that you understand what each loan offers and go for one that offers best incentives.

Read your mail

Usually, student borrowers get an overload of information about student loans. They receive emails immediately or even throughout their college time. It is necessary to ensure that you read your emails carefully. If you find that there is something you do not understand, you should know how to resolve the problem. If you find some things are not clear, you should not ignore the email. Rather contact them. Avoid missing on critical deadlines or important information, which you should act upon.

Organize your paperwork

You can save all the student loan paperwork as soon as you receive it in the email. In this way, you will understand what you exactly need. You will also be reminded of the amount you borrowed. Signing promissory note can seem quite exciting, but repaying the loan appears to be something very far away.

It’s crucial to know that the student loan forgiveness program isn’t an easy way out of your debt. However it can help relieve some of the burden like the obama student loan forgiveness program. In fact, there are some instances where you can be exempt from paying the loan any further. You are most likely to offer your services – perhaps based on work in public service, or income or even teach in a qualified learning institution in exchange for student loan forgiveness.

Reasons for student loan forgiveness

1. False Eligibility Certification

FFEL programs loans or direct loans can be discharged, particularly if the learning institutions certified you (student) based on your eligibility for its learning programs rather than the student loan. For instance, if the school endorsed a loan check, signed your name, or even executed an electronic fund transfer without your consent, then the amount of loan can be discharged.

2. Bankruptcy

In this case, the bankruptcy court has the mandate to decide for your student loan forgiveness. If you (the borrower) can prove that repayment would cause any undue hardship, you might be granted your request. Courts often look at whether the repayment will affect your standard of living. If you are determined to repay over a period of at least five years, before filing Chapter 13 or Chapter 7 bankruptcy, and the hardship would likely to extend through much of your payment period. If the student loan is discharged under such circumstances, you will be free of paying back the loan and be eligible for more federal student aid.

3. Disability

A Total & Permanent Disability Discharge can also apply to the higher federal programs. For instance, you would not have to pay any federal direct loan or complete an obligation of TEACH Grant service if you accidentally suffer permanent injury and not able to work. To qualify for student loan forgiveness, you must, therefore, prove to your department of education. You can do this through documentation by the Department of Veterinary Affairs of the United States, which shows a service-related injury hinders you from working. You can also submit an award notice of Social Security Administration for disability/supplemental income benefits, or a certification of a physician stating substantial activities can affect a condition expected to continue/lasted for at least five years or result in death.

4. Death

The student loan forgiveness can also be considered if the borrower dies. This means that a copy of death certificate must be presented to the loan servicer or school.

5. School Closure

If the learning institution closes before completing your course/program, or before graduating, then the student loan forgiveness program is the best option for you because, in this case, a loan discharge is granted. It can also be a case when the school fails to pay your tuition refund.