Great Lakes Student Loans – How to Manage Debt
If you’ve been thinking about consolidating your college debt, there’s good news and bad news. The good news is that you can apply for federal student loan forgiveness if you meet certain criteria. The bad news is that sometimes you’ll get the bad news that you don’t qualify. There are two options when it comes to federal student loans, federal student loan forgiveness or private student loans. And then there are the private loans that you need to choose between.
Most federal student loans are subsidized. Subsidized loans are great because they come at no interest while you’re in school. Subsidized loans are great because they mean that you can afford to make timely payments – so timely payments are critical to returning to school. However, when you graduate, you may find that you are eligible for either unsubsidized or subsidized repayment options.
What do those repayment plans have to offer you? If you qualify for federal student loans, your repayment plan will likely allow you to make timely payments while you’re still in school. If your plan includes subsidized and unsubsidized student loans, you and your family will have access to great Lakes resources to help you get through graduation – and into the future. Here’s how those resources can help you make the most of your loan’s repayment plan:
o Look for a great Lakes repayment plan. Each of your federal student loans come with specific repayment plans. Check out the repayment plan labels on all of your Great Lakes debt – it’s possible that one or more repayment options could suit your needs. Once you’ve found a plan that suits your financial situation, read the guidelines for the plan – many students find that they can modify their loan repayment plans simply by adding a payment plan option. This can help you manage your student loans in a way that best meets your needs.
o Consider refinancing. If you’re having trouble managing your Great Lakes student loans, you might want to consider refinancing to free up some cash. Most lenders understand that borrowers need to manage their student loans. Many lenders offer special refinancing programs that can help borrowers better manage their debt. This can allow you to pay off your debt faster, enjoy lower monthly payments, and get lower interest rates. Talk to your lender about your refinancing options – you may be able to lower your payments and interest rates without paying a fee.
o Explore student loan forgiveness programs. Another option that borrowers can pursue is student loan forgiveness. You may qualify for federal student loans through deferment or forbearance. Federal student loans are the biggest source of federal student loan forgiveness – you can reduce your payments or even have interest forgiven by filing for federal forgiveness. However, not all borrowers will qualify; check with your lender and filing for federal forgiveness won’t help you if your lender doesn’t approve your request.
o Call your loan servicer. Loan servicers work directly with Great Lakes student loans. When you’re struggling to make payments, it’s important to contact your loan servicer. Your loan servicer will review your situation and give you options. They can help you work with your lender and arrange repayment plans or settlements. In addition, they can tell you how to avoid default and remind you when your due date is.
As you work with your loan servicer, remember that your success depends on your ability to follow the plan agreed upon. The repayment plan may include payment arrangements with your loan servicer that you can’t afford. Don’t ignore the federal student loan servicing center; use their resources to find ways to pay off your debt quickly and to avoid default.