If you are debating how to pay off debt, you can look into programs that reduce what you owe. You may get cash aid to pay certain types of debts. For other types of debt, you can review payment plans that cut the number of monthly payments and the overall payment amount.

Student loans are a common type of debt that can last for years. If you took out a federal loan, you might be able to ask for debt forgiveness or a different payment plan.

Student loan forgiveness – when the government erases a portion or all of your student debt – is not common because it is only available under certain circumstances, such as:

• Your school closes while enrolled or shortly after you withdraw. The government may discharge your loan if you need to go to a different school to complete your program or the institution closed within 120 days of your departure. 
• You become permanently totally disabled. You must meet the program’s definition of total and permanent disabled. 
• You declare bankruptcy. The government may discharge your student loan if you file for Chapter 7 or 13 bankruptcy and demonstrate that repayment is not possible. 
• Your employment or volunteer service. You may qualify for student debt cancellation if you have a Federal Perkins Loan and work as a teacher, firefighter, nurse, law enforcement officer, or other employment and volunteer work in a qualified field. 
• You are part of the Teacher Loan Forgiveness Program. If you meet the work requirements for the program, you can have up to $17,500 of debt forgiveness on your government loans. 
• You are part of the Public Service Loan Forgiveness program. If you work for the government or a non-profit, you can apply for forgiveness of your remaining debt after making 120 qualifying student loan payments.

The government does not have cash assistance programs for credit card debt, with the exception of declaring bankruptcy. However, you can go through non-profits and organizations that handle debt consolidation and payment plans.

Debt consolidation involves paying off multiple debts with one loan. While consolidation does not lower your overall debt amount, it can save you hundreds to thousands over the loan term. 

A single loan means a single monthly payment. One payment each month is easier to manage and can reduce your risk of having multiple late payments. 

A consolidation loan should have a lower interest rate than the original debt. Credit cards are almost always in the double digits, but a personal loan is much less since it is not a revolving line of credit. A lower interest rate will save you money, and you can pay off the debt faster by putting more down on principal.