Debt Repayment Plans For Federal Student Loans–Are Forbearance Options A Good Idea For College Graduates?

Debt repayment for federal student loans has been a concern for many graduates as the job market has not created idealistic conditions for certain individuals when it concerns paying debts, starting their life, and erasing student loan obligations. Yet, there are debt repayment plans for federal student loans which can make the costs more affordable from month to month, if a student qualifies for these specific programs.

However, there have been instances where students have simply been unable to make payments on their student loan debt and have opted for forbearance instead. Student loan debt forbearance can be helpful in that it allows college graduates to delay repaying their student loans and will obviously alleviate the requirement of monthly payments on college loans.

Forbearance opportunities are available on most federal student loans, and some private student loans as well, but financial advisers often caution students against jumping into these plans without analyzing their personal financial position. The idea of a graduate not being required to make repayments on their student loan debt after their grace period has ended is something that has drawn many individuals to these forbearance options.

Yet, in some forbearance plans, interest rates do still continue to build and unpaid interest that may be added to the principal amount.  This would obviously cause higher costs concerning interest payments as, with a higher principle, more would be owed overall.

Understandably, graduates who have little or no income may simply not have the money to pay their student loan debt at the present time, and rather than default or miss payments, they have opted for a forbearance plan. Yet again, students who can begin combating their debt after college are often advised to begin repaying, even if minimum payments are all that can be met, since delaying repayment could cause overall costs to increase and, for some graduates, that could lead to more trouble down the road.