Many college students are graduating and exiting college with some form of student loan debt due to the rising cost of tuition. Obviously, tuition costs, fees, and books can be quite expensive for any college student, especially since these expenses are on the rise and for some simple scholarships and grants do not meet their financial needs. In cases such as this, many students turn to student loans as a way to supplement their student financial aid and meet the remainder of their college costs.
However, more and more students are acquiring debt from various student loans throughout their college career and, upon graduation, find that they may be unable to easily meet these costs. Yet, there are various strategies that can be used to erase student loan debt quickly and certain programs that can make student loan payments more affordable and easier to pay off.
Different types of student loans will have differing forms of student loan repayment assistance plans. For instance, erasing student loan debt from a federal student loan can be accomplished in a variety of ways. Students over the past have used student loan consolidation plans, income-based repayment plan, forbearance options, and even student loan forgiveness programs.
Students who are able to meet certain requirements may have their student loan repayment amount dropped to a small percentage of their monthly income through income-based repayment plans, they may be able to compile all of their various student loan debts under one consolidation plan, or for students who work in a public service field and owe on federal student loans may be able to have their debt forgiven after 10 years’ worth of repayment.
Yet, what many college graduates focus on is how their student loan debt will affect their personal financial life. If repaying student loan debt will simply take smart budgeting habits, many students may find they can erase their debt faster if they began paying on their college loans as quickly as possible. However, if a graduate is sure to miss payments on their student loan debt, which could harm their credit score, forbearance options or income-based repayment plans may be best.
While some students have obtained consolidation loans in order to make various student loan debts more affordable, it will be important to understand that cases such as this could cost more over the long run if the student only meets minimum monthly payments. Yet again, the student loan repayment plan that is used will be dependent upon a student’s financial situation after college and whether they are able to make any repayments on their college debt or not.