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According to recent studies by AllianceBernstein Investments, Inc. and the Project on Student Debt:
- 66% of college graduates have student loan debt.
- Nationally student loan debt for graduating seniors ranges, depending on where you live, from $11,067 to $23,198.
- Average student loan debt for Ohio graduating seniors is $19,259.
This debt can have a profound effect on the quality of life after college. College students who were surveyed indicated that as a result of their large student loan debts:
- 44% have delayed buying a house.
- 32% were forced to move back in with a parent or guardian or live at home longer than expected.
- 27% have delayed medical or dental procedures.
For many students, paying off student loans can take years, sometimes as long as 40 years. Defaulting on these loans or being delinquent is a bad idea. These options damage your credit history and could cost you future loans, a home, or a job. The good news is that there are ways to reduce or eliminate student loan debt.
STUDENT LOAN REDUCTION PROGRAMS
Peace Corps
This organization specializes in projects overseas helping struggling and developing countries. Depending on the type of student loan and the length of service, a graduate can have 15-70% of the debt cancelled. Visit the College Students Guide on the Peace Corps website at: www.peacecorps.gov
AmeriCorps
This is the domestic arm of the Peace Corps. It is “a network of local, state, and national service programs that connects more than 70,000 Americans each year in intensive service to meet our country's critical needs in education, public safety, health, and the environment.” For a year of successful service, a worker can earn an education award of about $4,725 to be used “for either college tuition or it can be applied to paying off student loans.” For more information, visit the AmeriCorps website at: http://www.americorps.org
Military Service
 The Army, Navy, Air Force, Marine Corps, and Coast Guard all have some form of student loan payback program for enlisting after graduating from college. The Army's program, for example, pays back up to $65,000 in loans over three years. For more information, visit their websites at: www.army.mil , www.navy.mil , www.airforce.com , www.usmc.mil , or www.uscg.mil or visit a local recruiter.
Teaching
Teaching in designated school systems may qualify graduates for federal programs that offer cancellation or deferment of certain student loans. Some states like California and Illinois also offer incentives for teachers that include student loan payback. For more information on these programs, visit the U.S. Department of Education website at: www.ed.gov
National Health Service Corps
The National Health Service Corps recruits “f ully trained health professionals who are dedicated to working with the underserved.” Those individuals who have qualifying educational loans are eligible to compete for repayment of those loans if they choose to serve in a community of greatest need. In addition to loan repayment, these clinicians receive a competitive salary and a chance to have a significant impact on a community. For more information, visit their website at: www.nhsc.bhpr.hrsa.gov or contact the State Loan Repayment contact, Coleen Schwartz, at State of Ohio Department of Health,
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or 614-728-3700.
Equal Justice Works
Equal Justice Works was founded in 1986 by law students dedicated to working for equal justice on behalf of underserved communities and causes. Their website provides extensive information on a variety of loan repayment assistance programs for law school graduates who enter “public interest or government work.” For more information, visit their website at: www.equaljusticeworks.org
For more information, please visit www.ohiotreasurer.gov or call us at 1-800-228-1102. |
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