A college education is still necessary for many careers. Unfortunately, many people take out student loans to pay for school leading to significant debt upon graduation. Loan repayment can be an even bigger challenge if you don’t make enough money to put a dent in your debt, leaving you to wonder what options you have. Here are some legal ways to get out of paying back your loan.
Loan Repayment Assistance Programs
Loan Repayment Assistance Programs or LRAPs, are designed to aid debtors in repaying some or all of their student loans. If you have competencies in certain high need areas such as healthcare and education, you may be eligible to participate in an LRAP. Many of these programs require participants to commit to working in a certain field or role for a specified period of time in exchange for debt forgiveness. Although some of these programs are known to tax on the forgiven debt, this avenue may be well worth it to you.
You may have heard that you can’t declare bankruptcy to discharge your student loan debt. Consider this route if you can demonstrate that repayment would prevent you from maintaining a minimal standard of living. Keep in mind that you would need to also show that you’ve made an earnest effort to repay. Declaring bankruptcy is not a “get out of jail free” card, and you should definitely consult experts from the law offices in Rockville Maryland to explore your options.
Some companies offer loan repayment assistance. More companies are beginning to offer this as a benefit, so you should inquire about this. You won’t reap the tax benefits since employer funds will be considered additional taxable income. Depending on your total debt load, this may be the right move for you.
If you’re considering borrowing to pay for college, don’t do so anticipating a way to get out of your financial obligation. If you’ve amassed a significant debt burden, you have options to explore. Do your research and talk to actual experts to get solid advice.