How To Get Someone Else To Payoff Your Student Loans

someone else pay student loan paymentsI recently read a press release from Spring Arbor University, a Christian university in Michigan, that they will automatically enroll new students in their loan repayment assistance program. The program guarantees that the college will help repay the student’s loans if their income does not meet the “upper-income threshold” of $37,000. The school’s main motivation for this new program? According to Spring Arbor President Charles Webb, it is to provide “students and their families with peace of mind”.

This is a fascinating concept. Spring Arbor College has essentially taken a bold stand against the rising costs of tuition. They have declared to all of their prospective students that the student’s education, and their ability to get a quality, private school education, is more important than the college’s revenue. I imagine this will create a sharp increase in the number of new student applications they receive this year!

I do wonder however, if this is a good idea. Does it teach students responsibility, or does it teach students that they have one more crutch to fall back on if they can’t make ends meet after they graduate? Student loans are becoming an epidemic however, and radical changes do need to happen. Maybe this is a great start towards that end.

Regardless of whether you pay off your student loans or you have someone else pay them off for you, it is important to remember that these loans will cost somebody. You should never take out more student loans than you absolutely need, and you should pursue all other “free” financial aid options before considering student loans. Student loans are often inevitable, but they should only be used as a last resort.

With that said, for those of us not fortunate enough to graduate from a college that paid off our student loan debts, here are a few other ways to have someone else pay off your college debts.

<h3?Military Service

This is obviously not an option for everyone, and it should not be considered solely as a loan repayment service, however the military does offer generous loan repayment benefits. They also offer tuition assistance benefits for pursuing a graduate degree while in the military. These degrees can often be pursued while on deployment.

Employer Tuition Assistance

When you evaluate a job offer you should ask specifically about their tuition assistance programs. Many companies offer to reimburse you for the cost of graduate degree programs because it is mutually beneficial for you and your company to pursue an advanced degree. Some companies will even offer to reimburse you for your previous student loan debt. Be sure to include this benefit in your salary package negotiations as this could be a significant deciding factor when evaluating job offers.

Move Your Residence

Some cities are so desperate to attract working adults with college degrees that they will offer incentives to move and work there. For example, if you move to a “Rural Improvement Zone” in Kansas, they will send you a check for $15,000 which you could use to help pay down your student loans. Also, if you decide to move to the state of Alaska, you will benefit from their oil profit sharing payout each year. You could use these funds to pay down your student loans debt.

Do you have any more creative ideas of a way to have someone else pay off your student loan debt?

This post is written by our new staff writer DJ.  Be sure to look for more of him and check out his author bio under the about section above.

Photo by: marsmet531
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Comments

  1. The income threshold idea is an interesting one. That’s how Australian government student loans work, you don’t have to start paying them back until you make over a certain threshold. As it’s government stuff, they’re able to tie it to your income tax return stuff somehow. I think it’s an interesting idea, though it would also provide an incentive to stay just below the threshold (I’m not sure how low it is).

  2. Hi Anne, Thanks for the comment! I believe their minimum threshold was $22,000. I wonder how many folks would be encouraged to earn below $22,000 just to avoid paying back their student loans. It would be an interesting psychology experiment…

    All Federal Loan programs also have an income based repayment model, which does graduate the income payments based on your income. The more you make, the higher your payments are. That model seems to make the most sense to me.

  3. When I finished my teaching credential which was after 30 years of business experience, I applied for a grant to pay it off. It paid off about 90% of the cost of my credential.

  4. Hmm, that’s an interesting approach especially coming from the school itself. It’s crazy what schools cost these days!

    • @Untemplater – College costs are completely crazy. It’s sad that this has become such a hug issue. I really think we are on the edge of a “student loan bubble” and we are all going to be the ones to pay the price.

  5. You can always do Teach for America and teach in an at-risk district, or even learn an instrument and play in the military band!

  6. @ Tony – Great options! Teach for America is an excellent program. I’m not quite so sure about playing for the military band…but I appreciate your creativity.

  7. This post reminds me of my cousin Gary. He was the oldest among the cousins and he always teaches us ways to survive in life – and he shared something similar to this one. Having to grow up in a minimum wage family, he found ways to stay in college and finish it in several different ways.

    Truly inspiring.

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