The unwelcoming job market and cutbacks for many graduates have caused difficulties when it comes student loan debt. Some college graduates have found themselves in a situation of severe underemployment or have been unemployed due to various economic factors. In these cases, solutions for college debt troubles have been sought out and there are some graduates who use college loan debt forgiveness programs and affordable repayment plans to deal with their college loans.
Typically, federal student loans have some of the best repayment options available to those who may be struggling. While private student loans may offer forgiveness in certain situations, federal student loans often can offer student loan assistance, forgiveness, or repayment options for those who are enrolled in certain programs or for graduates who may work in a public service career.
Students who work in a public service career may find that they can qualify for student loan debt forgiveness after 10 years’ worth of repayments. While, again, some college graduates are currently having a difficult time repaying their student loan debt obligations, there are repayment plans that can help with monthly repayment obligations on student loan debt, which could make any college graduate’s repayment plan more affordable.
While not everyone will qualify for college loan debt forgiveness, plans like income-based repayment options, student loan consolidation plans, or forbearance programs have allowed many college graduates who may be struggling to repay their debt the chance to make their student loan repayments more affordable. Graduates who have federal student loan debts will usually work with Direct Loans, a program within the department of education which handle student loans.
These affordable repayment options have been used by numerous graduates to make their student loan debts less burdensome but it needs to be understood that there are certain cases where these programs may not be helpful or could cost more over the long run. Consolidation loans or even forbearance plans could stretch out the repayment timeframe for a graduate who is paying off their student loans, which could lead to a higher overall cost. However, in cases where an individual who is repaying college loan debt fears they may miss payments, contacting their student loan lender about these options could provide solutions which will allow them to avoid missing repayments, which could do harm to their credit score.