| The figures for students opting for loans are only | | | | forgiven. Students may work as doctors, nurses, |
| going higher as each year passes by. Not only that; | | | | teachers, or may join the armed forces or work in |
| with the escalation in the cost of tuitions, the amount | | | | voluntary institutions such as the AmeriCorps or |
| borrowed is also at an all-time high. But despite that, | | | | PeaceCorps to get their loans forgiven. The amount |
| the list of student defaulters is low. This is due to the | | | | of loan forgiven depends on the period of service |
| fact that today there are many solutions for student | | | | the student provides. However, the catch here is |
| indebtedness and students are better-informed of | | | | that the student must think whether working for a |
| how to implement these solutions. | | | | higher paying institution may help to get the loan |
| The wisest solution is that of loan consolidation. A | | | | repaid faster. |
| student can bundle up all the federal loans that may | | | | There is also an option of rehabilitating loans. After 12 |
| have been borrowed during the educational period | | | | monthly payments to the lender, the student may |
| into a single loan, with a single rate of interest. When | | | | request the lender to sell the loan off to someone |
| a student consolidates loans, then the rate of | | | | else. Once this is agreed upon, the student has 9 |
| interest locks in at the current rate and hence, the | | | | years to repay the loan. Filing for bankruptcy is a |
| student does not have to suffer the rising rate in the | | | | possible, though very difficult, process. To be |
| future. Consolidation also saves the student from | | | | declared bankrupt, a court must be ascertained that |
| having to deal with more than one creditor. | | | | the student will not have even a minimal standard of |
| Consolidation is a seemingly viable option, but the | | | | living for a major chunk of the repayment period, |
| student must do some research to find out whether | | | | were the loan to be repaid. |
| it would really help. Sometimes with consolidated | | | | Student loans cannot be completely eliminated. |
| loans, the interest reductions are not much and the | | | | Hence, students must try to repay them as soon as |
| student must think whether it is worth making the | | | | possible. It helps to take up a job immediately after |
| effort to get the loans consolidated. The Student | | | | graduation. There are students who are still |
| Assistance Act of 1965 has facilitated students with | | | | unemployed when the grace period is coming to an |
| huge loans to extend their tenures of repayment up | | | | end. This is a catastrophic situation. In fact, lenders |
| to as many as 30 years. But though this gives an | | | | provide discounts to students who manage to repay |
| ease of repayment to the student, it will pile up a | | | | their loans on time. |
| tremendous interest for such a long tenure. | | | | Students must learn debt management techniques. |
| The best option seems to be debt forgiveness. | | | | Becoming aware of the sticky situation they are in |
| There are several socially benefiting organizations | | | | often helps to solve the situation. |
| that the student can work with to get the loans | | | | |