Student loan debt is something that many graduates are struggling with especially since many have entered into a very unwelcoming job market. Some students have either been unable to find a job after graduation or have received a position that does not afford them the income they need to repay their student loan debt.
However, for certain types of student loans, various repayment options are available and can be helpful when it comes to erasing college loan debt. Forgiveness plans, income-based repayment options, and consolidation loans have all been used to help graduates who have been seeking ways to manage their college debt.
Federal student loans offer certain forgiveness plans for individuals who work in a public service related career. Public service employees who have student loan debt and are in a Direct Loans repayment plan may qualify to have their debt forgiven after 10 years’ worth of repayment. For many who have acquired a large amount of student loan debt, this option is allowing them to erase their student loan debt in a much timelier manner.
However, not all college graduates qualify for forgiveness, but there are certain repayment programs that may be offered to help them meet the costs of paying down their student debt. Income-based repayment plans can be available on some student loans and allow a college graduate to only pay a small percentage of their income towards their student loan debt. Monthly payments on student loans can be quite expensive, but under this income-based repayment plan students are only meeting a minimum payment, which can be more affordable in many cases.
There also options like student loan consolidation plans which can help those graduates who have various student loan debt. While there are certain types of student loans that cannot be consolidated with each other, like federal and private loans or subsidized and unsubsidized loans, consolidating student loans can make repayment more manageable. By compiling student debt into one college loan repayment plan, students have been able more easily meet their monthly student loan payment obligation since consolidation loan only requires one payment from month to month.
It’s dependent upon a graduate’s student loan situation as to what options may be available in the area of student loan repayment or forgiveness. While federal student loans often have a variety of options in this area, some private lenders will assist college graduates who may be struggling to repay their college loans. However, like any type of debt, student loans deserve careful attention since interest rates and a lengthy repayment time period can cause costs to add up so any graduate that may be having difficulty repaying their student loans should take prompt action to find an affordable solution.