Many lenders are worried that college graduates that are deferring their student loan debt or seeking forbearance will end up defaulting on student loans. While there are many who are defaulting on their student loans, if college graduates are given the opportunity to defer or obtain forbearance they may be more likely to stick with repaying their student loans.
Currently the economy and job market are not a pleasant and welcoming place for college graduates or many with a college degree. However, when the degree that was obtained for a college tuition—which seems to increase by leaps and bounds each year—is of no consequence to employers looking to hire the cheapest labor they can find, many college graduates say, “why should I pay for a degree that has gotten me nowhere?”
Frustrations are evident but no college graduate with any ability to look down the road and weigh consequences wants to ruin their credit by defaulting on loans. Like the housing market, assistance with principal reductions, interest, and deferment of payments may help.
There are many student loan forgiveness programs available to those who qualify and there is the opportunity for college graduates to get forbearance or a deferment on their student loans, so as the economy and job market start to improve there will be more employment opportunities that can provide the income to repay student loan debt.
If you are thinking of defaulting on student loan debt, reconsider at least for the sake of your credit score and look into a deferment or forbearance option from your loan provider. If you consolidated your loans you can also get a temporary reprieve from paying student debt and in some cases the timeframe for doing so is up to three years. Don’t feel crushed by student loan debt because there are options out there.
