Here is how to reduce your Student Loan Debt

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Written By Michel Gerrald

Knowledge, Success, & Happiness.
My vision is to shift the mindset of success.

In 2020, the total amount of outstanding student loan debt surpassed $1.6 trillion. Graduating with a mountain of debt isn’t the finest way to start adulthood, yet here we are. If you’re like the majority of recent grads, you’re definitely looking for any strategy to reduce the student loan debt.

Good news – there are ways to cut down your student loans by taking out loans or going for any of the option listed below, so you don’t have to start life as a slave to debt. And you don’t have to beg Nicki Minaj for help.

Public Service Loan Forgiveness (PSLF)

The PSLF programme will cancel the remainder of your student loan debt if you meet the following criteria:

  • You’ve made a total of 120 qualifying monthly payments.
  • Working full-time for a reputable employer,
  • Direct Loans ARE ALSO AVAILABLE.
  • Pay back your loans with an income-driven repayment plan.

Every year, you must submit a Public Service Loan Forgiveness: Employment Certification Form.

Employers who qualify are either:

  • Non-profit organisations that are tax-exempt under Section 501(c)(3) (3)
  • Governmental organizations (local, state, federal or tribal)

Please visit the Federal Student Aid website for additional information on this student loan forgiveness programme and eligible jobs.

Income-Driven Repayment Plan Forgiveness

The federal government provides four distinct income-driven repayment options, each of which is calculated based on a predetermined proportion of the recipient’s annual income.

These programs not only lower your payments now, but also forgive the remaining balance of your loan after you have made payments for 20-25 years. The one and only disadvantage? You are going to be responsible for paying taxes on the amount of the forgiven balance.

Perkins Loan Cancellation

If you have Federal Perkins Loans, you may be eligible to cancel some or all of them through the Perkins Loan Cancellation programme.

To be eligible, you must work in one of the following fields:

  • Teaching
  • Firefighter
  • Military service
  • Public defender
  • Volunteer service
  • Speech pathologist
  • Law enforcement officer
  • Nurse or medical technician

The programme has stringent prerequisites and qualifications. More information about the programme and eligible jobs can be found here.

Loan Cancellation or Discharge

The federal government may discharge or cancel your student loans in the following circumstances:

  • Bankruptcy
  • Death
  • Disability
  • Someone stole your identity and took out a loan in your name.
  • While you are still enrolled, your school closes.

The complete list of qualifying debt-cancellation scenarios can be seen here.


There are numerous grants available to help with student loan debt. Some are from states, while others are for specific occupations.

These are some of the most popular grants and programs to reduce student loan debt. Some companies may also offer student loan repayment schemes, so check with your supervisor to see what choices are available to you.

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