Student loan debt is often something that many graduates must deal with as the cost of college tuition is on the rise and have required that students obtain financial assistance that goes beyond scholarships and grants. Yet, it’s understandable that if a student must borrow college loans they do not want their student debt following them around and causing financial strains for years after graduation. For this reason, many students turn to consolidation loans for student debt or enter into student loan forgiveness programs, which may afford certain college graduates the opportunity to have their student loan debt forgiven after a set amount of time.
Consolidation loans can be helpful to some students but there are financial advisers who worry that students will incur more costs overall with a consolidation loan. When a student has various college loans and uses a consolidation loan, a larger principle is attached to an interest rate which can build over time and take longer to repay. Also, certain types of student loans do not consolidate and for an individual who has various student loan debt sources a consolidation loan may be unhelpful. Yet, for those students who can consolidate all of their various debts into one student loan consolidation plan, many financial counselors often advise paying more than the minimum requirement so that student loan debt can be erased in a timelier manner.
However, students who have federal student loan debt may qualify for certain student loan forgiveness options available to public service employees. While private student loans and non-public service employees may have options for having their debt forgiven, it will be dependent upon their situation and lender as to whether this is an option. Yet, graduates who have federal student loan debt may qualify for federal student loan forgiveness after 10 years of repayment, when enrolled in specific Direct Loans repayment plans. Since many students acquire a large amount of student loan debt after graduation, these forgiveness options can be helpful for public service employees who are struggling to repay their debt.
Again, debt forgiveness and assistance options will vary depending upon if a student has federal student loan debt or private student loans, but there are ways to make repaying these college loan debts more affordable. Students who are having trouble often are advised to contact their lender or, in the case of federal student loan debts, consult the Direct Loans website for more information and student loan repayment options.