The Best Ways to Find Student Loan Relief
- August 6, 2018
- Posted by: Jeff Gitlen
- Category: Student Loans
If you are having trouble paying off your student loan debt, you may be looking for some student loan relief. The good news is that there are many different student loan relief programs that will help you better afford your loan payments.
No matter what your financial situation is, you will find that making the loan payment can cause some stress and undue hardship on you and your family. Below, we will go over some ways that you can find student loan relief.
If you have extra income that you can set aside on a monthly basis, consider prepaying your loans. By doing this, you can save thousands of dollars in many cases while paying your student loans off fast.
If you do want to prepay your loans, make sure to consider which student loan to pay off first. Once you have paid that one off, start sending additional money to the others.
Paying the Interest While in School
If you are able to, you may want to consider paying your interest while you are in school. Unsubsidized federal student loans and those student loans offered by private lending companies accumulate interest immediately. This will help keep your loan amount down. The interest rate on most loans is not such a substantial amount that you could not afford to do so.
Many students who do choose to do this, enjoy the benefits of lower payments when they do graduate.
Investing Your Money
If you are knowledgeable about investing, you could find some student loan relief through an investment. You can invest the money and then when you receive your return on the investment, you can pay off your student loans.
Lower Your Interest Rate
Another thing you can consider doing is asking for a lower interest rate. If you have private loans, banks and lenders may work with you to adjust your interest rate. Of course, you will have to meet the criteria and be in good standing, but it is worth a try. You can save a lot of money by simply lowering the interest rate by a couple percent.
If you have federal student loans, you may qualify for an income-based repayment program. Under this program, you will make payments toward your loan, but the amount you pay is based on your income and family size. Sometimes, depending on your circumstances, you may qualify for a $0 payment.
If you are in a tight financial spot, you may qualify for forbearance on your student loans. This means that you are granted a grace period, typically for a year, where you do not have to make payments.
You can reapply for a forbearance after your current one expires each year. Throughout forbearance, interest will continue to accrue on your account and some students opt-in to at least pay the interest to prevent the amount of the loan from rising.
If you are in a career such as teaching, medical, or public service, you may qualify for student loan relief through forgiveness. Not all program and career options allow for forgiveness, but some do. You should consider whether your career choice has a program of sort and then look into the requirements of it.
For instance, the public service loan forgiveness program requires you to make 120 qualifying payments before the loan is forgiven.
You can choose between the best student loan consolidation companies, and whichever you choose will provide you with one payment and one interest rate. If you choose to go with a private lender, then you can consolidate your student loans under one interest rate which is hopefully lower.
You'll need solid credit and income to make this happen; however, if you can get a lower rate, then your monthly payments should go down. Some students find this option to be beneficial for them, but pay attention to the fine print because many times, consolidation nullifies the chance to qualify for a forgiveness program.
Talk to Your Provider
If you are having trouble affording your payment, it is important that you speak with your lender or loan servicer. You do not want your loans to go into default as this means you cannot receive federal financial aid until you are caught up.
There are many options for student loan relief and each one can benefit you in a number of ways. Many students enjoy the benefits of the income-based repayment plan and forbearance. If you are able to, you can utilize some of the other options such as lowering your interest rate or prepayment.
No matter how much student loan debt you have, there are always options to make it more affordable. Consider all of your options, talk to someone with knowledge in the subject, and help yourself out by saving some money!
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