Some college graduates are finding that the unwelcoming job market has created an income situation which has not allowed them to meet their monthly student loan repayment costs. Typically, students who graduate college with student loan debt are giving a grace period before they must begin repaying their loan obligations, but many are finding that the job market is unwelcoming in many cases or situations where underemployment is present may not give them the funds they need to honor their college loan repayment requirements.
However, there are some who have been able to use income-based repayment plans, like those from organizations like Direct Loans, which services federal student loan debt. Within these programs, graduates are able to reduce the amount of their monthly payment on their student loan debt to a small percentage of their monthly income. Obviously, a student who may have a low monthly income and can qualify for this type of plan will be able to repay their debts from month to month but at a much lower cost.
Yet, there are still concerns on the part of many advisers and graduates who feel that these lower monthly payments on their student loan debt will cause their overall costs to increase and their repayment timeframe to be much longer. While some students have used these income-based repayment options with student loan consolidation plans, there is still the concern that federal student loan debts which may qualify for these plans may be more costly once all is said and done.
Obviously, students who worry about missing payments on their debt and hurting their credit score may be willing to chance paying an overall higher cost, in total, through these income-based repayment plans and consolidation loans. There are those who feel that, if financial times are difficult now, students may be able to take advantage of these plans and, when their financial situation improves, make higher payments towards their student loan debt and either erase their debts in a shorter amount of time or at least lower the overall costs they will have to pay.
Financial aid counselors, however, have often advised that graduates review their student loan debt situation before making a decision, as not all may qualify for these income-based repayment plans or may benefit from options like student loan consolidations. Understandably, students have wished to avoid missing payments on their student loan debts, so exploring various options and talking over assistance plans with one student loan lender will obviously be helpful in not only controlling costs at the present time but ensuring that a graduate does not pay more than is necessary in overall repayment costs.