Many graduates often exit a college or university with some form of student loan debt and, if not dealt with in the proper manner, can be quite burdensome on their personal finances for years after graduation. However, some students have entered a job market that is quite unwelcoming and, as a result, have been unable to begin repaying their student loan obligations due to either the low wages they are earning at the jobs that are available or because of the fact that some can’t even find employment.
However, student loan forbearance plans may be available on certain types of debt and by using these forbearance options, many college graduates have been able to avoid defaulting on their own debt. While both private loans and federal student loans may have forbearance options, private lenders must be consulted concerning forbearance plans that may be available to students with this type of debt.
Federal student loans, on the other hand, often have well outlined procedures and guidelines for obtaining a forbearance on debt. Many students have been able to take advantage of unemployment forbearance programs over the past months which, when a student qualifies, will allow a college graduate to forgo making payments on their federal student loan debt for a set period of time. While interest may still accrue during the forbearance periods, students can either choose to pay this interest or it will simply be added to the principal amount when repayments begin.
Assistance with student loans for those who are in a troubled situation can be found in various forms outside of forbearance programs as well. While college graduates are often advised to contact their student loan lender about options available for their personal student loan situation, there are income-based repayment plans and student loan consolidations that may make meeting monthly student loan payments easier.
While federal student loan debt is sometimes unavoidable, it doesn’t have to be financially burdensome for years after college graduation if a graduate happens to have an income that will not afford them the means to meet their monthly student loan payment or if a job is simply unavailable at the present time. Student loans for various programs can be helpful, but students need to be wary of the interest that may be building while they are in a period of forbearance.