How to Get Out of Student Loan Debt Without Paying

Millions of Americans are struggling under the weight of student loan debt. If you’re one of them, you may be wondering how to get out of student loan debt without paying. Follow these tips to get started.

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Introduction

If you’re one of the millions of Americans struggling with student loan debt, you may be looking for ways to get out of debt without paying. While there’s no surefire way to get rid of student loan debt without making payments, there are some strategies you can use to avoid or minimize payments.

First, consider whether you qualify for any student loan forgiveness programs. Several programs are available that can help you get out of debt without making payments. For example, the Public Service Loan Forgiveness program forgives federal student loans for borrowers who work in qualifying public service jobs. To qualify, you must make 120 qualifying monthly payments while working full-time in a qualifying job.

If you don’t qualify for forgiveness programs, you may still be able to reduce your monthly payments by refinancing your loans. Refinancing consolidates your loans into a new loan with a lower interest rate. This can make your monthly payments more manageable and help you save money over the life of your loan.

You can also defer or forbear your loans if you’re struggling to make payments. Deferment allows you to temporarily stop making payments on your loans, while forbearance allows you to temporarily make smaller payments. These options can give you some breathing room if you’re facing financial hardship.

If you’re struggling with student loan debt, talk to your lender about your options. There may be ways to get out of debt without making payments that work for your situation.

The Different Types of Student Loans

There are four types of federal student loans:
-Direct Subsidized Loans: These loans are for eligible undergraduate students with financial need. Your school will determine the amount you can borrow, and the U.S. Department of Education will pay your interest while you’re in school at least half-time, during your grace period, and during any deferment periods.
-Direct Unsubsidized Loans: These loans are for eligible undergraduate and graduate students; there is no requirement to demonstrate financial need. Your school will determine the amount you can borrow based on your cost of attendance and other factors. You’re responsible for paying the interest on a direct unsubsidized loan during all periods.
-Direct PLUS Loans: These loans are for eligible graduate or professional students as well as parents of eligible undergraduate students with good credit history (a credit check will be done). Your school determines the amount you can borrow based on your cost of attendance and other factors. You’re responsible for paying the interest on a Direct PLUS Loan during all periods. If you choose not to pay the interest while you’re in school and during grace periods or deferment or forbearance periods, your interest will accumulate (accrue) and be capitalized (added to the principal amount of your loan).
-Direct Consolidation Loans: You may be able to combine all, some, or just one of your federal student loans into a Direct Consolidation Loan—regardless of whether they have different repayment terms or varying interest rates. Applying for a consolidation loan does not guarantee approval; each lender has its own guidelines that borrowers must meet in order to qualify.

How to Get Out of Student Loan Debt

It can feel like you’re never going to get out from under your student loan debt. You may have even considered defaulting on your loans. But there are options for getting out of student loan debt without paying. You can look into loan consolidation, loan forgiveness, or student loan discharge. Let’s explore these options in more detail.

Refinancing

There are a few different ways to get out of debt, but refinancing is often the best option for those who want to save money and pay off their loans quickly. Refinancing involves taking out a new loan with a lower interest rate to pay off your existing loans. This can help you save money on interest and get out of debt faster.

There are a few things to consider before refinancing your loans, such as whether you qualify for a lower interest rate and how much it will cost to refinance. You should also compare the terms of different lenders to find the best deal.

If you’re looking for a way to get out of student loan debt, refinancing is definitely worth considering.

Consolidation

If you have multiple student loans, consolidation can be a good way to simplify your payments or save money on interest. Loan consolidation means combine multiple loans into a single loan with one monthly payment. You might be able to get a lower interest rate on the new loan, which could save you money over the life of the loan.

If you consolidate federal student loans, your new fixed interest rate will be the weighted average of your previous rates rounded up to the next highest 1/8th of 1 percent. For example, if the weighted average of your interest rates is 6.15%, your new consolidated interest rate will be 6.375%. Although this example shows that consolidating can slightly increase your consolidated rate, it could still save you money if you get a lower interest rate than what you’re currently paying.

Forbearance

Forbearance temporarily suspends or reduces your monthly student loan payments. The forbearance period can be granted for up to 12 months at a time for direct federal loans, and up to 18 months for Perkins loans. You can request forbearance if you’re experiencing temporary financial difficulties, or you can have your payments automatically suspended if you enter into public service. Keep in mind that interest will continue to accrue during forbearance, so your balance will grow and you’ll end up paying more in the long run.

deferment

Assuming you have federal student loans, you may be able to temporarily postpone making your student loan payments through a process called deferment or forbearance. With deferment, your payments are postponed for a period of time, and with forbearance, your payments are reduced or temporarily stopped.

To qualify for a deferment or forbearance, you’ll need to contact your loan servicer and request one. Your servicer is the company that handles the billing and other services for your loan. You can find contact information for your servicer on your monthly billing statement or by logging in to My Federal Student Aid.

If you qualify for a deferment or forbearance, you won’t have to make payments on your loans during the period of time when they’re deferred or in forbearance. However, interest will continue to accrue (accumulate) on most types of loans during this time unless they’re subsidized by the federal government.

If you have trouble making payments on your federal student loans, don’t wait until you default to take action. Defaulting on your loans has serious consequences that can last for years. These consequences can include wage garnishment, loss of eligibility for deferment, forbearance, and repayment plans, damage to your credit rating, and collection fees.

Loan Forgiveness Programs

The first thing you should do is look into loan forgiveness programs. If you work in certain public service fields, you may be eligible for loan forgiveness after 10 years of payments. You may also be eligible if you become disabled or die.

There are also income-driven repayment plans that can make your monthly payments more affordable. These plans base your payment on your income and family size, and any remaining balance is forgiven after 20 or 25 years.

You should also consider refinancing your student loans. This could help you get a lower interest rate, which would save you money over the life of the loan. You may also be able to extend your repayment term, which would lower your monthly payments. Just be careful not to rack up more debt in the process!

Conclusion

If you feel like you’re never going to get out of student loan debt, you’re not alone. In fact, according to a recent study, nearly 40% of Americans believe they will die with student loan debt.

The good news is that there are ways to get out of student loan debt without having to make payments. In some cases, you may be able to get your loans forgiven or discharged. In other cases, you may be able to refinance your loans to get a lower interest rate or longer repayment term.

If you’re struggling to make your student loan payments, don’t wait until it’s too late to seek help. There are options available to help you get out of debt and on with your life.