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Teacher Debt ReliefDebt relief for teachers can be achieved in several ways. The majority of them are generic in that they are available to everyone, but a few are centered on helping teachers who are struggling with student loan debt. Let’s delve right into your debt relief options.

Credit Counseling for Teachers

Accredited credit counselors have existing relationships with a variety of creditors. These relationships allow them to negotiate with your creditors for lower payments. This may be done by arranging interest only payments for a time, negotiating a lower interest rate, or extending your repayment term. A credit counselor will contact all of you creditors in an attempt to consolidate your payments into one payment. You will make that payment to the counselor, who will then distribute the money amongst your creditors as agreed.

Credit counseling should not be confused with an attorney or company offering debt relief. Debt relief agencies often encourage you to stop paying your bills altogether, ruining your credit, and causing debt collectors to contact you. You can find an accredited credit counselor in your area by following this link:  https://www.nfcc.org/index.php

Debt Consolidation Loans for Teachers

If you are struggling with your payments now, you may wonder why you would seek out another loan. A debt consolidation loan will allow you to lump all of your balances into a single payment. These loans will carry a lower interest rate than any credit card payments you may have, often extend repayment terms are available, and the new loan will allow you to focus on a single payment each month. That single payment should be lower than the combined payments you were making prior to the consolidation loan.

The drawback to a debt consolidation loan is that you have to recognize that you are in financial difficulty before late payments occur. Why? These are personal loans, without collateral, so you will need the best credit possible. Many lenders require a credit score in excess of 720.

Student Loan Forgiveness for Teachers

The federal government has a student loan forgiveness program available to teachers. It is designed for borrowers who have made 120 on-time payments as scheduled. There are too many details and provisos to list here, but you can find them all by visiting this government link.

If none of these options is viable for you, bankruptcy may be on the horizon. You need to be aware that federally subsidized student loans do not qualify for bankruptcy protection. The government is able to collect your debt in perpetua, even taking payments from your retirement funds. Despite having that ability, the feds are not interested in going to that extreme, so call your loan service agency before default occurs.