8 Non-Traditional Ideas to Eliminate or Reduce Your Student Loans without Paying Them Off

As our nation and a large portion of our citizens continue to struggle with the bursting of the “Real Estate Bubble”, there is another bubble emerging; the “Student Loan Bubble”. Driven by increasing enrollments, easy access to loans and the skyrocketing cost of college tuition, student lending balances have increased by 10% or more each year of the last decade; and tuition costs have increased at a far greater rate than housing, energy and health care costs, as well as the overall rate of inflation. Today, total student loan balances exceed total credit card debt. Experts speculate that delinquency and failure rates will rise in coming years because many students will be unable to repay their loans as income growth falls short of borrowers' expectations. With the inability to discharge many of these loans in Bankruptcy, those with high student loan balances are going to have to find a way to pay them off as quickly as possible. If you don’t have a job or a sizeable income to make those payments, there may be a solution from the following sources that are more interested in your time and skills, and are willing to help you repay your loans in exchange for them.

1 - Take a Teaching Position:

Several types of government student loans can be canceled if you teach full time in a designated low-income elementary or secondary school. Both Perkins and Stafford loans are examples of these.  Also taking on a teaching job where there is a shortage of teachers with certain specialties may qualify you to have your student loan repaid. Check with your local school districts since programs vary and can change frequently. Contact the American Federation of Teachers for additional information.

2 - Government Employment:

Some state governments offer student loan repayment to employees. This is typically extended to students that studied in some of the harder to fill areas such as social work, education and nursing. Your level of income may also be considered with lower paid employees getting preference.

3 - Peace Corps:

Volunteer for the Peace Corps; they will pay up to 70% of your student loans depending on how many years of service to which you are willing to commit. You won’t earn a salary, but you will get to travel the world and gain valuable experience for your next employer.

4 - AmeriCorps or VISTA:

Join AmeriCorps or VISTA (Volunteers in Service to America) and receive a sum of money to be used towards your student loans. You may also be paid a stipend for your expenses while you work with others to improve your community. VISTA is now under the direction of AmeriCorps. Go to www.americorps.gov for more information on the work that you will be expected to perform.

5 - Hospitals:

Nurses, physical therapists and occupational therapists are in high demand by hospitals and many offer a program to repay the employee’s student loans. From time to time other healthcare professionals may be offered this benefit so contact the hospitals in your area directly and consider moving to another area if the repayment program is good enough.

6 - Military Service:

The Army National Guard may at times offer a student loan repayment plan; it is usually tied to the term of service. Indeed all branches of the military may offer this when the need to recruit a specialty presents itself. Check with your local recruiter.

7 - Employment:

Although not that common, some employers will repay student loans for an employee that has a particularly desirable degree or experience. Explore the possibilities during your interview process or ask the Human Resources department if you want to be tactful.

8 - Opportunities for Lawyers and Doctors:

There are many organizations, both federal and state, that will repay your student loans in exchange for services. Most of the positions are in organizations operating for the public interest or benefit such as government agencies and non-profit organizations. Doctors and nurses can get the entirety of their school loans repaid in exchange for practicing in areas that lack adequate medical care. Check with your school for more information on these programs.