Student loan debt is often one of the most stressful and difficult aspects of student life. It is also one of the least understood by many students and their parents. When a student is under pressure to pay off his or her school loan, the pressure can be unbearable. If you find yourself struggling with the burden of college student loans, the first thing you should do is contact your lender and see what options you have. Here are some tips to help you get your student debt under control.
Loan forgiveness programs are designed to relieve borrowers who are struggling to make their payments on their student loans. When you apply for student loan forgiveness, you are discharging all or part of your existing federal loan debt. There are several ways to qualify for forgiveness; some requirements are specific to each loan.
If you have multiple loans from the same lender, there is more flexibility available. Depending on how much you owe on each loan, you may be able to combine or merge them into one loan.
If you have multiple types of federal student loans from multiple lenders, you may qualify for a Consolidation Program. This type of plan allows you to consolidate all of your loans into one lower interest rate and repayment term. It allows you to continue making regular monthly payments on the new loan while decreasing the length of time you pay on the older loans. A Consolidation Plan will not eliminate any past due accounts; instead, it consolidates them into one payment that has a lower interest rate and lower monthly payments.
If your student debt is a result of your parents defaulting on student loans, you may qualify for a Parental Relief Program. With this program, your parents’ loan debts are removed from your credit report and they no longer receive any benefits from your parents’ credit cards. If you have this program, the interest rates on your new loan will be set according to the interest rate on your parents’ previous loan.
In some cases, your parent’s bankruptcy may qualify for you to be able to wipe out your student loans through bankruptcy court proceedings. You can contact your financial aid office and find out whether or not your creditors can work with you to wipe out your debts.
If you are enrolled in school and still unable to make your college payments, you may qualify for federal student loans or private student loans that will help you pay for your college education. If you have fallen behind on the payments on one of your student loans and are unable to make your payments, you may qualify for loan forgiveness programs that allow you to pay for your school expenses over time.
Student debt is one of the most common problems that students face when they enter college. There are many reasons why students find themselves in this situation, but you should find a plan that is right for you and your current situation. There are multiple options out there, so it is a good idea to check with your lender for the various options available to you.
Loan forgiveness may also mean that your parents no longer need to pay their student loans and can enjoy the benefit of having lower interest rates and other benefits that you could not get otherwise. If you have multiple loans that you can consolidate, you may be able to qualify for a better deal with your other student loans and have the same loan balance and interest rates as if you were still paying them individually.
Another option to consider is to take advantage of any special programs offered by the government to help you consolidate or repay your student loans. Whether you qualify for a Government sponsored loan program is determined by the federal and/or state you live in. In some cases, your college loans will be canceled by the government to help you pay for your education. or you may be eligible for a tax-free loan that will assist you in repaying your student loan.
Remember that there are many options that can help you pay off your federal consolidation or other federal student loans and become debt free. The key is to find out which student loan options will best suit your needs.