Student loans are something that can be difficult to repay, especially for recent college graduates who may have been unable to find lucrative job opportunities due to high rates of unemployment and a weak job market. While defaulting on student loans is never a good idea, there are student loan debt forgiveness options and affordable repayment plans for college graduates struggling with their debt.
Some of the most well-known and affordable repayment options come from federal student loans. Typically, federal student loans will forgive student debt for employees who work for a nonprofit organization and make a set amount of repayments for a specific period of time. Usually, the requirement for federal student loan forgiveness comes after 10 years’ worth of repayments, but there are plans which could help individuals who feel they may be unable to afford their current payments on student loan debt.
Some repayment requirements for college loans are too expensive for graduates to meet at the present time, and as a result, lower repayment options may be available. For students who may qualify for student loan forgiveness but are required to pay 10 years’ worth of repayments, or for graduates who simply may be unable to meet their repayment requirements, plans like income-based repayment options, forbearance, or even student loan consolidations are available.
While it will depend on one’s student loan situation as to which programs are available or will be best, options like student loan consolidations can help individuals who fear they will be unable to meet multiple monthly student loan repayments or who feel they cannot afford more than one payment each month. Options like student loan consolidations may be more costly over the long run, if students only meet minimum monthly payments, but consolidations can be helpful when it comes to avoiding missed payments or defaulting.
Also, student loan forbearance can allow a student to get on their feet, financially, before they began meeting repayments or income-based repayment plans can lower a student’s monthly repayment obligation to a small percentage of their income. While some counselors may advise students to talk with their lender and explore various repayment options, anyone who has entered into some form of student repayment assistance plan are often advised to keep an eye on interest rates and the repayment timeframe, as again, only making minimum monthly payments could cause overall costs to rise and, if possible, should be avoided.