4 Ways To Combat Your Student Loan Debt To Move Financially Forward
Based on an American Student Assistance 2015 study, people’s student loan debt is the reason they are not moving forward with their huge life milestones.
It doesn’t matter if your student loan debt is a pain in the rear or keeping you from financially moving forward, you can reduce the burden to purchase a home, buy a car, begin a company or start your family. How so?
Consider An Income-Driven Repayment Plan
One of the best solutions student loan borrowers should consider is the income-driven repayment plan, the Pay As You Earn plan and the Revised Pay As You Earn plan, which will let approved borrowers cap their payments at a certain amount of their income with debt forgiven after so many years of making payments.
Consider Student Loan Forgiveness Programs
The government provides federal borrowers with the chance to forgive their loans if they work at a nonprofit agency or for the government for 10 years. There’s also the federal program for teachers where their loans are partially forgiven if they work in a low-income public school for at least five years.
Ask For A Deference or Forbearance
The forbearance and deferment programs permit certain borrowers to quit making their monthly payments for a time. Deferments are more for borrowers who are facing economic hardship, will go back to school or are serving time in the military. It provides for forbearances to people who are facing financial challenges.
With certain federal loans, you don’t have to pay interest when in deferment, but the interest does building in forbearance. While some private lenders do offer these options, they’re not as good as what the federal government will provide.
Look At Student Loan Refinancing
Consider student loan refinancing, but only if you’re okay with your refinance federal loans going private. When this happens, you don’t have the federal protection and benefits such as forgiveness programs, income-driven repayment plans, forbearance and deferments.
