Students who have trouble repaying their college debt may have opportunities if they qualify for certain student loan assistance plans to ease the burden of repaying this type of debt. Federal student loans have offered income-based repayment options for individuals who are struggling to repay this debt obligation and may run the risk of either missing payments or defaulting entirely.
It was announced last year that students in certain college loan debt situations may have opportunities to have their monthly payment obligation reduced to a small percentage of their income, which has been beneficial for graduates who were unable to find employment opportunities that allowed them to meet their minimum monthly student loan repayment requirement.
The job market has been unwelcoming for many college graduates, and those with a high amount of student debt have had difficulty making required payments due to either unemployment or underemployment. Yet, these opportunities to enter an income-based repayment plan have offered the affordability that some students have needed, but there are critics who say this option may not be helpful for college students as costs could increase.
Obviously, if a graduate is offered a lower monthly payment obligation, their student debt repayment timeframe will be extended and, when interest is factored in, this could increase overall costs. While there have been some students, at the present time, who are unconcerned with these higher total costs, as avoiding missed payments is their main priority currently.
Yet, there are also forgiveness options for some individuals who are in a particular career. Students with federal loan debt who may be in an income-based repayment program but also work in a public service sector may be able to qualify for student loan forgiveness after 10 years of repayment. Also, students who are not working in a public service career might have their debt forgiven after 25 years, but this will depend on the amount of student loan debt one has acquired as to whether they will still be repaying on their loans.
While these income-based repayment options may not be available for all graduates, students who are having difficulty meeting their monthly student loan repayment requirement have been prompted to contact their student loan lender or consult sources for federal loan debt like the Direct Loans program. Income-based repayment programs have assisted numerous students who were having difficulty repaying their debts, but graduates must make sure that this form of student loan repayment will be right for their situation and the most cost efficient way of handling student loan debt.