November 26, 2011

Make Your Job Work for You

Now that you’re out of school and starting your career, you may be worried about repaying student loans. Don’t fret­­––here are 5 ways your new career can help you tackle your loan payments.

1. Compare Job Opportunities Across the Country

Did you know that the job you want may pay more in a different city? Not only can you make more money in another city, but that city’s cost of living might be lower too. Look at opportunities across the country to find a place where you can get the most for your money. Earning more money while paying less for expenses can help you save and make it easier to repay your student loans.

2. Work With Your Salary

Once you’ve been hired, look at your salary and plan a budget with the budget calculator. You can repay your student loans on any budget, but you need to know how much you can afford every month before you determine what repayment plan works for you. Take a look at the Debt/Salary Wizard to figure out how much you can repay monthly and how long it will take to pay off your loans.

3. Get Help From Work

Find out if your company has financial advising services. Your employer may offer great resources to help you understand your student loan repayment options and decide on the right plan for you.

4. Find Financial Support

Many companies offer financial assistance for student loan borrowers. Some employers will give you money toward your student loanspotentially thousands of dollars a year. You may even be eligible for up to $5,250 tax-free from your company toward undergrad or grad school tuition, books, supplies and other expenses, so you don’t have to borrow as much money.

5. Apply for Deferment or Forgiveness

If you decide to be a public servant, you may be able to postpone your student loans with a deferment or have them forgiven altogether. There are several loan deferment and forgiveness programs offered to those who work in the public service sector. Here are a few:

  • Military service deferment is offered to members of the armed forces who are on active duty or have been demobilized. The deferment lasts for the total time of deployment and up to 180 days after returning home.
  • The Teacher Loan Forgiveness Program offers complete or partial student loan forgiveness for public school teachers working full time in low-income districts for 5 years or more.
  • Public Service loan forgiveness encourages public service careers by forgiving the balance of borrowers’ loans after they make 120 qualifying payments.
  • Perkins loan forgiveness is offered to Perkins loan borrowers who work as a public servant in one of many job fields, including law enforcement, education, childcare, nursing, and more.

If you think you are eligible for one of these options, contact your servicer to talk about your options. If you still have questions, contact us. At American Student Assistance®, we’re here to help.