If your friend is currently unemployed, regardless of whether or not unemployment compensation is being received, the first thing that needs to be considered is filing for a student loan deferment. In situations of hardship, such as unemployment, or when someone decides to return to school, student loan payments can be deferred for a period of time. For those unemployed, payments can be deferred for up to 36 months, but an application must be completed to continue this deferment every 6 months, and proof of unemployment must be provided.

Depending on the type of student loans that your friend has, interest can still accrue during this time period, but the interest rates for student loans are typically not as steep as mortgage interest rates or the interest rates on other types of loans. Still, as long as she is not making payments and the interest rates are continuing to accrue, nothing is actually being done to get out of debt. However, for someone who is unemployed and receiving only a small unemployment check, there are obviously other priorities that need to come before this, such as housing, utilities, and food.

The primary focus for someone in this situation should be finding a way to get back to work or establish a steady stream of income again. Once the paychecks are coming in again, and the other "priority one" bills are caught up, then payments on the outstanding loans can begin again. (A payment plan with payments higher than the previous agreement can allow someone to catch up for payments that were missed.) Once your friend returns to work, she will have to provide proof of income to whoever provided the student loans. In some cases, an income -based payment plan is offered when certain criteria is met.

When setting up a new payment agreement, be careful not to promise to pay more than you can actually afford. In fact, if you can get the lowest monthly payment possible, you will actually be better off in the long run. This way, you can pay in a little extra when you can afford to do so, paying down the principle of the loans, and if you do get in another jam down the road, you will have some wiggle room and a little extra cash to pay for emergencies. Keep in mind that defaulting on a student loan can severely affect your credit, your ability to ever return to school if you desire, the ability to receive parent student loans for your children's education, and can also result in a judgment or lien against real estate or personal property.

When you find yourself in a difficult situation and unable to make your student loan payments, it is best to call your student loan servicing company or agency and communicate your problem to them. Often, these organizations can provide you with information on deferments and forebearances that can prevent a student loan default or will work with you to create a new payment plan.

If you have multiple student loans, especially if these loans are through different companies, a student loan consolidation can save hundreds of dollars in interest rates and provide you with more realistic payment amounts.

For students who are working or planning to work as teachers, nurses, or for the public health service, there are a number of student loan forgiveness programs and additional deferments that can help with the balance of your student loans. Forms for providing proof of income, obtaining a deferment or forebearance, and additional information on all deferment programs can be found on the Federal Student Loan Servicing Center website, which is listed in the sources below.

President Obama recently passed legislation that would allow for student loan forgiveness after 20 years for those with student loans who were not behind on their payments and paid their student loan debt for a period of 20 years. However, this program only applies to those that take out student loans after 2014.

These are some tips on how to pay off student loans quickly:

1. Make your friend aware of the following:
* If your friend is a medical student who conducts medical research the National Institute of Health's NIH Loan Repayment programs can pay up to $35,000 each year.

* There are plenty of Law School Loan Repayment Assistance Programs that are available that will provide financial assistance to legal graduates who assist in public sector.
* There are also many programs offering debt forgiveness for students who provide support and assistance to the public. Visit AFT.org because they have the full breakdown of all the different programs provided in each state that can be used to pay off student debt.
* Those who are able to offer a one year commitment to Americorps will receive a salary of $7,400 and an award of $4,725 upon completion of the placement. Until then, college loan debt can be deferred until the program is completed. There are 75,000 positions available at the moment.

2. Another helpful way to pay off student loan debt is through loan consolidation. This can lower interest rate although the extending term will be more affordable it also increases the cumulative interest paid.

3. These are the other ways to pay off student debt:
* Do some freelance writing to earn extra cash. There are many online sites like associatedcontent.com, suite101.com or the examiner.com.
* Rent out your driveway if you have one. By doing this you can earn several dollars a month, that is if your driveway is not being used. There are some individuals who are willing to pay hundreds of dollars a month for this facility.
* Walk pet dogs and earn as much as $10 per hour or do some pet sitting service.
* Become a registered childminder. This is subject to complying with a Criminal Records Bureau check. You can possibly earn extra money by working as a childminder.
* Sell items that you don't need. You can either sell this on ebay or at a garage sale.

4. IRS has tax breaks and presently the law allows those with college loan debt to receive up to $2,500 of tax relief on interest payments every year. If you meet the income requirement you have to complete tax form 1040A (line 18) or 1040 (line33).

Once you`re in such a situation the FIRST step that needs to be taken is SELF-AWARENESS: my best friend has been in such a situation for over 5 years in a row, complaining about the gravity of the situation, but doing very little about it. She ended up paying double the sum she owed, just because of the interest rate: she can get this off her shoulders if she understands and takes full responsibility of the fact that ...let`s say for a year, she`s not going to have pretty much of a social life...but that she is definitely going to get rid of this "expensive", appeasing issue.

Secondly: a part-time job offers mobility (you can do other money-gaining activities in the rest of the time left) and a sure source of income. Such other activities are: house-cleaning (for those house owners that can afford a considerable remuneration), doing homework and other assignments for your colleagues (there are many slackers), you can also search to see if you could do tv - movie, shows or commercials figuration. Some of the advice given by the previous person who answered this question might also suit you. That they suit you is quite important...vital if i may say so, as you would be doing it for the entire period you set yourself to finish with the loan.

The best of luck!!!

1. This going to be hard but necessary. Take your monthly loan repayment and multiple it by 4. That is your monthly pay back amount. Probably two years to pay back 10 years of payment.
2. Live with your parents until the debt is paid off

or

Marry into wealth