Many people who have student loan debt often need assistance when paying their college debt as some college graduates fall on hard times, financially, after they graduate school. There are a variety of student repayment assistance options available that can help students repay their college debt without going broke in the process.
Federal student loans are common among many college students and these types of loans have the most clear-cut assistance options available. Federal student loans have plans like forbearance options, deferment options for students who are still in school, income-based repayment plans, and even student loan forgiveness.
Forbearance options allow students to forgo paying on their student loan for a set amount of time if they have lost their job or simply have hit an area of financial hardship. Different loans might have different requirements during a forbearance period, but essentially a student or graduate usually has to pay nothing at all or only interest costs.
Deferment options usually work for students who are in school and have a type of loan that requires them to pay before they graduate. Deferment options usually allow students to simply defer paying off their student loans until after a specific time has passed, but in these cases interest may have to be paid.
Income-based repayment plans are pretty self-explanatory as anyone who meets the requirements for this option would only have to pay a specific amount towards their college debt each month, depending on the amount of money they earn.
Student loan forgiveness options, while set to change in the near future, offer public service employees forgiveness after 10 years of repayment or nonpublic service employees forgiveness after 25 years of repayment. These are the standards for federal student loans and typically require that a college graduate be in some form of repayment through Direct Loans, the program that handles federal student loans through the Department of Education.
Anyone who may be having trouble repaying their student loans should contact their student loan lender, be it federal or private lenders, to see what assistance may be offered. Commonly, these assistance options listed above are through federal student loans, but private lenders also offer repayment assistance plans as well.
College debt does not have to be a burden to anyone who is struggling financially, so a graduate who might need a little help or time when it comes to repaying their student loans should talk to their lender about what can be done.