Oklahoma Wesleyan University

Now that you’ve graduated it’s time to pay that money back.

You should always keep your notices from the lender – if you haven’t contact the Financial Aid office and see how they can help you recreate your financial package.

Interested in Loan Forgiveness?

Several programs exist that allow you to have your student loans paid off in return for a period of service to an organization. Some options are:

AmeriCorps AmeriCorps is a U.S. federal government program on civic education, education, and public service. If you are willing to commit a year volunteering for Americorps, you get $4,725 to pay off your college debts,⁶ and a stipend up to $7,400. For more information, visit their website or call (800) 942-2677.

Peace Corps Corps is an American volunteer program run by the United States Government offering working for twenty-seven months period on work related to international development, such as education, business, information technology, agriculture, and the environment. If you travel with the Peace Corps, you will get to defer most of your student loans until after you leave the program, may get some of your loans reduced by as much as 70%. Visit their website or call (800) 424-8580 for more details.

VISTA (Volunteers in Service to America) VISTA is a national service program created in 1965 and incorporated into AmeriCorps in 1993. It aims to fight poverty, homelessness, and illiteracy in the United States. You will get $4,725 to pay off your loans if you join in on their cause for at least 1,700 hours. Visit their website or call (800) 942-2677 for more information.

Military Service If you join the Army Reserve or the National Guard after graduation, you can receive up to $20,000 to pay off your loans. If you are willing to accept additional risk, ask to be stationed in areas of hostility to get even more money.

Teaching Teach for America for example, selects college graduates to teach in low-income communities and offers $4,725 to pay off your student loans for each year you work for them. Visit their website for more details.

Under the National Defense Education Act If you become a full-time teacher in an elementary or secondary school that serves students from low income families, you could have a portion of your Federal Perkins Loans forgiven. Ask your school district’s administrators to see which schools qualify under this program.

Start the repayment plan

After graduation, you’ll get 6 months of freedom from loan repayment. When loan repayment begins, you’ll pay at least $50 a month (unless you’re in forbearance, deferment, or your lender agrees to a smaller amount) until your entire loan (plus interest) is paid off. In any given month, you can opt to pay off more than your monthly requirement without penalty.

There are four main payment options – you can switch from one to another, depending on your financial status:

Option 1: Standard Payment. Under the standard payment, you’ll have finished paying off your debt within 10 years, and you’ll have the best interest rate. This is the quickest way to pay off your loans, but it also requires the highest monthly payments.

Option 2: Graduated Payment. This is the payment method for people who get out of college expecting to make a modest but steadily increasing wage. The payment requirements will start off gentle, then increase every couple of years for the next 10 to 30 years.

Option 3: Income-Based Payment. If you’re in a commission-based or seasonal business (say, selling houses or selling ice cream from a truck), your income probably vacillates. So your monthly payment bill will be proportional to the amount you are currently making and you’ll get up to 15 years to pay it all off. The good news is that you will always be able to pay your loans. The bad news is that if you have a particularly good month, you never get the chance to enjoy it.

Option 4: Long-Term Payment. With this schedule, you’ll be allowed to pay the least possible amount per month for 10 to 30 years. If you’re a procrastinator by nature and this schedule sounds like it’s your cup of tea, here’s the catch: by the time thirty years is up, you may have paid double the original amount of your loan. This payment plan has by far the worst interest rate.

If you need to hear some numbers before making a decision on a payment schedule, contact your lender.

Read more: SoYouWanna pay off your student loans? | SoYouWanna.com http://www.soyouwanna.com/site/syws/loans/loansfull.html#ixzz0v8gq2jqE