Student loan debt repayment assistance may be available for unemployed graduates as forbearance options can offer the opportunity to delay payments on federal student loans in cases where financial hardship is a problem. Obviously, there are numerous students who have both relied on student loans as a way to pay college costs and earn their degree, but graduated to find that there was an unwelcoming job market awaiting.
Yet, students who are in debt after graduation and are unemployed may be able to take advantage of these federal unemployment forbearance programs which offer graduates the opportunity to forgo making their payments for a set period of time. Students who take advantage of this forbearance plan do need to understand that in some cases interest does still accrue and, if it goes unchecked, this can create higher overall costs when a graduate begins repaying their student loans.
While there are many students who have turned to student loan consolidation options is a way to manage their debts, this has been a way which students have been able to lower their monthly payment obligation on various student loans. As an example, students who have multiple federal loans may be able to consolidate these loans in a low interest student loan consolidation plan, which offers the benefit of a graduate only having to make one monthly payment. However, there are drawbacks to this option as well since some advisers feel consolidating student loan debt, or any type of debt for that matter, can cause the overall costs to increase when all is said and done.
However, new student loan debt repayment opportunities from federal student loan programs have also been made available as a way to help students in a difficult financial position meet their monthly payment requirements without having to strain their personal financial situation. Opportunities for income-based repayment plans are available to certain college graduates who may have federal loan debt but are not making enough money to where they can easily meet these repayment obligations. Typically, income-based repayment plans allow students to only pay a small percentage of their monthly income toward their loans and, as a result, can more easily afford to erase their debt at the present time.
Yet, advisers caution students who are looking for more affordability in their student loan debt repayment obligations to look at overall costs which may be incurred within these programs. While there are some graduates who have been unable to make payments on their student loans and, as a result, may have chosen one of these assistance plans and could face higher costs as a result, they have helped these individuals avoid missed payments and doing damage to their credit score. However, graduates who can meet their student loan repayment obligation have often been counseled to begin erasing this debt as quickly as they can as, with any debt, costs can mount if repayment is delayed.