Debt relief from student loan obligations can come in a variety of ways as there are numerous means of combating student loan debt that has been beneficial to graduates over the past months. Yet, one recent program for aiding individuals who are having difficulty repaying their student debt has come in the form of a repayment plan which has lowered monthly payment obligations for many.
For federal student loans, the income-based repayment plan has been made available to assist graduates that may have been in a position where meeting the full amount of their monthly federal loan repayment requirement was simply impossible. Many graduates entered into an unwelcoming job market, thus leading to unemployment or underemployment for those who must meet monthly student loan repayment obligations.
The income-based repayment plan has been set in place to allow individuals who qualify to only meet payments on a student loan debt in the amount of a certain percentage of their total monthly income. Obviously, students who are underemployed will benefit from this option as they will only be required to pay a small percentage of their monthly income towards their student loan debt, which has offered a great amount in student loan debt relief for those who may have had high monthly payments.
Many have turned student loans over the past months as a way to meet rising college costs, and some students have acquire a large amount of student loan debt from federal loans. Federal student loans are one of the more popular borrowing options students seek as factors like a student’s credit history is not taken into account and affordable interest rates are usually offered. Yet, just because a federal student loan is made available does not mean that a student must borrow, and many financial aid counselors often suggest students seek out as much financial assistance from scholarships and grants as they can before borrowing.
Yet, when it comes to repaying student loan debt from federal sources, there are ways which this burden can be lessened through these income-based repayment plans, federal consolidation plan, or even forbearance options for students who may be unemployed. Again, student loan debt can be quite problematic for almost any college graduate, but advisers have suggested that students who have difficulty making these debt repayment obligations contact their lender and inquire about debt relief options on their college debt so that a more affordable payment arrangement may be reached before a student’s credit score suffers as a result of missed payments.