How to Get Out of Student Loans through the Best Working Ways in the US
It notable that a majority of the students ask, “How can I get rid of my student loans,” or “How to get rid of my student loans” on online search engines. In response to this question, it can be evaluated that there are certain ways to get out of paying student loans. Many of the students could not continue their studies due to higher loan repayment. The students also need to work during their studies to repay the loan amount. This largely affects the students in their educational performance. Correspondingly, due to the poor academic performance, the respective student could not obtain better and higher salaried jobs and thus failed to repay their loan amount. Besides, with the additional liability of repaying students loan, the respective family could not afford other important purchases. The respective family who has taken educational loan faces significant issue, when there arises any contingent liability. For instance, this includes the financial stress due to accidents or health problems. Thus, many of the students seek how to avoid paying student loans back. It, therefore, becomes a pertinent aspect to look upon and carefully study for the potential student loan seekers in order to be aware of a potential fallback option in case they such conundrum. The proper evaluation and assessment of possible way outs can facilitate them to tactfully avert such circumstances accordingly.
Addressing the Decisive Question, “How to Avoid Paying Student Loans?”
In response to answering the question of how to get rid of school loans and how to not pay student loans back, it can be said that one of the most used strategies is the Income Based Repayment Plan. This is mostly used when the borrower students face greater hardships in loan repayment. In this plan, if the student borrower has taken loan before July 1, 2014, the interest rate will not be higher than 15% of the discretionary income. Besides, it is notable that many of the students and their parents enquire to know when do I have to pay back student loans. Thus, based on this plan, if the individual makes payments for 25 years, the loan amount will be avoided. This significantly helps the parents to stop paying student loans. Another way is the Pay As You Earn Repayment Plan, which is also to a certain extent similar to that of the Income Based Repayment Plan. In Pay As You Earn Repayment Plan, the individual who does not have more than 10% of the discretionary income, the loan of the individual student will be avoided after 20 years. This plan is popular in the US as Obama Student Loan Forgiveness. It can, therefore, be regarded as a highly beneficial proposition get out of paying loans.
How to Get out of Paying Student Loans is Indeed a Matter of Deep Concern
Another similar way to resolve the issue of how to get rid of student loans without paying is the Revised Pay as You Earn Repayment Plan. Through the consideration of this plan, the individual student will not be required to pay the loan amount. This revised plan significantly benefits the students. This ensures their proper education, which in turn results in the success in their life. In this context, unlike Pay as You Earn Repayment Plan, the borrowers taking the loan amount after 2007 will be considered. The Revised Pay as You Earn Repayment Plan also offers a subsidy to the borrowers to cover 50% of the interest. In addition, it is also notable that some of the students and their parents ask how to get rid of student loans legally. In response to this question, it can be said that the students can legally get rid of their loans using another decisive way that is Income Contingent Repayment Plan. In this regard, it is crucial to mention that Income Contingent Repayment Plan is to a certain extent different from that of Income-Based Repayment Plan and Pay as You Earn Repayment Plan. In Income Contingent Repayment Plan, there is no need to show the income statement of the borrower and any of the individual can make payment through this plan to get rid of the loan repayment. In this context, many of the students and their parents ask when do you have to pay back student loans. In response to this question, it can be stated that in Income Contingent Repayment Plan, the loan will be given only after the end of 25 years.
How to Not Pay Student Loans from Your Own Money and Continue Your Study
In addition to the above context, another way to get rid of students’ loan is the Public Service Loan Forgiveness. Public Service Loan Forgiveness is the most popular tool in the US, which is used by the students to avoid their loans. It is recommended that the student can combine Income-Based Repayment Plan or the Pay as You Earn Repayment Plan with the Public Service Loan Forgiveness to derive maximum benefits. Moreover, it can be said that the students and their parents get tax benefits when they opt for educational loans.
Figure 3: Ways to Master In Students Loans
The average costs of colleges in the US for the academic year 2017-18 are depicted in the below table:
Hence, the five ways to get out of paying students loans are listed below, which can facilitate to address the prevailing conundrum effectively:
- Income Based Repayment Plan
- Pay As You Earn Repayment Plan
- Revised Pay As You Earn Repayment Plan
- Income Contingent Repayment Plan
- Public Service Loan Forgiveness
It can thus be concluded that by following the above 5 ways students can get rid of their educational loan, which will, in turn, lead to the relaxation of the financial burden on the students.