How To Save Thousands When Paying Off Student Loans

Lots of students graduate from colleges all over theCommission, offer employees a maximum of $10,000
country with lots of debt in the form of studentper year (up to a total of $60,000) in student-loan
loans. The primary strategy for saving money whenrepayment. These government programs can be
paying back these loans is to consolidate multipledifficult to find and get accepted into.
student loans into one loan with a (hopefully) lowerBut listen to this: enlisting in the Army National Guard
interest rate which will reduce the amount of interestqualifies you for $3,000 a year in student-loan
you are paying on the loan(s) and will also lower yourforgiveness, up to a total of $20,000. Now almost
monthly payment. You truly can save thousands ofanyone can avail themselves of this program.
dollars by consolidating student loans.Health Care
But, there are other, lesser known ways to saveIf you happen to be a new young doctor each year
even more money out of your pocket when payingthe National Health Service Corps pays 4,000
back student loans.health-care professionals to work in underserved
Shrink Student Loans With Public Servicecommunities. Health-care professionals qualify for
The biggest and most diverse program isloan-repayment assistance of up to $50,000 for a
AmeriCorps, which offers more than 75,000 positionstwo-year commitment.
each year. As a member of AmeriCorps, you canIf you are a newly graduated nurse, in return for a
defer your student loans and receive a taxable granttwo-year commitment in areas where there's a
of $4,725 per year for up to two years towardshortage of nurses, you can wipe out 60% of your
repaying them. AmeriCorps is a network of local,student-loan balances with awards from the Nursing
state, and national service programs that connectsEducation Loan Repayment Program. In addition, 38
more than 70,000 Americans each year in intensivestates offer loan-repayment programs to retain
service to meet our country's critical needs inprimary-care personnel. And some private hospitals
education, public safety, health, and the environment.use loan repayment as a recruiting tool. For
The Peace Corps, AmeriCorps' international cousin,information on health-related programs, go to the
has more than 7,000 volunteers working around theBureau of Health Professions.
world in fields such as business development, health,Lawyers
agriculture and education. In return for a two-yearAbout 90 law schools offer loan-repayment awards
commitment, you can defer your federal studentto graduates who work in public service or other
loans. Perkins loan borrowers may have 15% of theirlow-paying fields. I found one example where a
loans forgiven for each year of service.young law school graduate working for a Legal
GovernmentAssistance Foundation in Chicago received a fairly
To recruit and retain highly skilled employees, somegood salary plus $14,500 in assistance one year to
federal agencies, including the departments of Statehelp pay off her student loans.
and Justice and the Securities and Exchange