College Loan Forbearance Programs–Can Delaying The Repayment Of Student Loans Benefit Graduates?

Certain college graduates have turned to college loan forbearance programs after graduation as a way of delaying their required student loan repayment obligations. However, there is concern as to whether there are benefits to forbearance options which may be available to graduates who are facing the repayment of a sizable amount of student loan debt.

As an example, federal student loans can offer a variety of repayment assistance options, with forbearance being one of them. Under these forbearance programs, students have the opportunity to delay making repayments to their student loan lender for a set period of time, and this could be helpful to those who are not in a financial position to begin repaying what they owe.

However, certain types of student loans do continue to build interest despite being in a period of forbearance. For this reason, students may be able to make interest payments during their college loan forbearance period, but many argue that this still increases the overall costs that a student will have to meet as simply letting interest accrue will, obviously, increase factors like monthly payments or the repayment time frame, and for some, this could be quite costly.

Forbearance opportunities are usually sought out by students who simply cannot meet their minimum repayment requirements on their student loans. Yet, some financial advisers suggest that students consider income-based repayment programs, which are available on certain federal student loans, or a consolidation loan which could be helpful to graduates concerning their student loan debt.

While some would argue that income-based repayment programs, which lower the monthly repayment requirement on student loan debt and student loan consolidations also increase the overall costs one may face, counters to these arguments usually point out the fact that students will at least be making a dent in their college loan debt. Also, as is the case with some consolidation plans, students may be able to meet more than the minimum monthly payment requirement on consolidations, which may allow them to escape their debts faster and at less cost.

Financial aid counselors, however, have suggested that students who are in need of assistance when it comes to repaying their debts simply look at their situation, run the numbers, and choose the repayment plan which will be most affordable and cost efficient for their particular student loan predicament. Obviously, students should seek to lower the overall cost they must meet on their debt, but some have been in the position as of late to only be able to find student loan options that will help them avoid missed payments and damage to their credit score.