Instead, if you find yourself in trouble, there is help out there. You may be able to postpone repayments using deferments, or be eligible for forbearance. In forbearance you can postpone your payments although interest will continue to build up on your loan. Special aid may be available when you make regular payments, even if you have negotiated smaller payments than originally agreed. By being honest and making a real effort to get out of default, you can show the lender you are willing to make it right with a little help from them.

You may also qualify for loan forgiveness through a few volunteer organizations. Here you will be required to help out through volunteer work, military service, teaching, or practicing medical assistance. Some schools will help you with forgiveness if you are within certain fields such as law enforcement, nursing, law, social work, education, etc. Consider looking into AmeriCorps, Peace Corps, the Army National Guard, or asking your student counselor to help you with managing student loans.

Other Options – Scholarships and Savings

Scholarships are one option that may be available to you. These forms need never be repaid, and are often awarded for special achievements, whether athletic, artistic, or academic. You may also find scholarships for studying in certain fields or if you are part of an under-represented group. Finally you can take a look at scholarships offered for exceptional community service such as volunteering.

Be sure to investigate what scholarships you can apply for by speaking to your guidance counselor. Or you can begin your own scholarship search. FastWeb is a free online tool, where you can fill out an application to search for awards that can apply to you. Be aware that some companies will try to charge you for scholarship searching, and should be avoided. Doing your own research or speaking to your guidance counselor can provide all the same results without the cost.

College savings are ideally started by your family while you are very young. A substantial fund can be created even with a small, regular amount. For example, $50 put away each month from birth can lead to a savings fund of about $20,000 if one assumes a reasonable return of 7% on investment. While you can certainly borrow for university later, you will be paying interest on what you borrow, whereas if you save in advance you will earn interest yourself.

When opening savings funds be sure to shop around for the best options for you. Higher interest accounts may be available, and there are often government programs that supplement savings by paying a percentage of what you’ve contributed. By setting an automatic transfer from your regular checking account to savings you can still see your account start growing, and you’ll likely not even notice the money being gone. And take advantage of the advisors at your favorite bank – they will be happy to set up an appointment with you to discuss your best options. It’s never too late to start saving and by doing so you can avoid costly interest later.

If you’ve ever considered joining the armed forces, or served in the past, you will that there are many bills and assistance methods you can take advantage of. The Montgomery G.I. Bill allows the Air Force, Army, Coast Guard, Marine Corps, and Navy to offer up to 3 years of education benefits to veterans. The Armed Forces Tuition Assistance Program may cover up to 100% of the cost of your program at accredited colleges, universities, and technical schools. Each branch of the armed forces can provide tuition assistance above and beyond the Montgomery G.I. Bill, or repay existing loans. Finally there are Service Academies, and training corps programs that allow you to seek higher education while serving the nation.

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