By: Andrew Jackson
The rising cost of college means that more students are forced to take out student loans to pay for college. Student loans can be a great option, but it’s no secret that for many people they can be difficult to pay off. If you’re unable to handle the burden of your student loans, you’re not alone. In fact, because of the national law that came into effect in 2005, it has become difficult to repay your loans as a student even if (worst case scenario) you file bankruptcy. If you do have loans looming over your head that you can’t pay, your best bet is to look for ways to decrease and simplify your payments.
A few instructions for student debt relief
Here are a few instructions that you can follow to getting debt relief for your student loans.
1. Apply for deferral: The very first thing that you should try doing is apply for a deferral for your student loan debt. You can do so if you happen to be enrolled in school, unemployed or even serving in the military or Peace Corps or even perhaps suffering economic hardship. Make sure that you’re not more than 6 months behind on your payments or else you won’t be eligible. As for having a non-government loan, call your lender directly and ask how you can go about qualifying and applying for a loan deferral.
2. Change the repayment plan: You can change the repayment plan for your federal loan. There are different options like a graduated repayment plan or payment of a smaller amount right after graduation. Basically the amount owed will keep increasing as you grow older. You’ve also got the option of going for an extended repayment plan if required, but for this you need a balance of at least 30,000 dollars. Again, there are other repayment plans available if you’re going through financial hardship.
3. Contact private lenders: Another step you could take is to contact the private lenders and set up a meeting with the concerned loan counselor. You can also review your debt and then have a discussion regarding the options available for reducing your loan burden. You can find out whether you can pay less money each month and instead repay your loans over a longer period of time.
4. Try consolidation for your loans: You could also try consolidating your federal student loans into a single monthly payment. This would be a good option if you’re really deep in debt or perhaps in default and still can’t qualify for a deferral. Moreover, consolidation generally helps you lower your interest rate. There are quite a few ways by which you can do this. You can get in touch with your lender and try getting it done by yourself or perhaps take help form debt relief companies regarding student loans.
Keep in mind these tips and get rid of your student loan debt for good.
By: Andrew Jackson
Andrew is a financial writer enjoys who contributing his work to communities, blogs, and websites. He analyzes financial situations and advises on different debt relief options. He also helps people manage their budgets through free counseling. To find out more about debt relief visit: https://www.facebook.com/
