The Three Options for Repaying Your Student Loans

When it comes to student loans, you have three choices to get rid of them. If you feel that what you have been doing so far is not moving you fast enough towards your goal, take a look at the options available.

Pay them off with accrued interest

No surprises there, right? You can repay your loans by making fixed monthly payments for 10 to 25 years—assuming you don’t use a single month of forbearance or deferment. Alternatively, you can choose graduated payments, which increase every two years over the same 10 to 25-year period, resulting in even more interest. In either case, you will pay back a substantial amount beyond what you originally borrowed.

Active Wage Garnishment and or Tax Offset

When you don’t pay your loans and don’t take any action, you will eventually pay them through AWG (at a 22% interest rate). Depending on your loan balance, it could take a long time, and they will take 15% of your discretionary income straight from every paycheck you earn and tax return that you file. These are both not good options.

Partial or Total forgiveness

There are programs like Teacher loan forgiveness and Public Service Loan Forgiveness that can forgive your loan balance but are not quick and easy like some companies might portray. You must follow specific requirements for years in both programs.

The reality is that the loans will be paid off one way or the other. It will come out of your pocket or through a federal program.

As a Public Schools-approved vendor and an A+ Rated company with the BBB, we’ve helped over the years thousands of school teachers, administrators, and all types of public service workers from across the country learn what options are the best for them. TSLHG also enrolls them in these programs and tracks their progress so one may complete them successfully.