After graduation, students may have a great deal of student loan debt due to the fact that borrowing has become a more common practice in order to meet rising college costs, but as many graduates are finding out, either an employment position that allows them to meet these repayment obligations is not present or students have simply underestimated the amount of loans they have borrowed in relation to meeting college tuition costs and are overwhelmed with student debt. Yet, there are options for student loan forbearance and forgiveness on certain types of college loans which may be used after graduation to help meet debt relief goals.
Initially, students who may have exited college and have found that there are no jobs available are, obviously, in a position where either unemployment or underemployment does not allow them to meet obligations on their student loan debt. Many students typically consolidate various student loans, when it is in their best financial interest, but there are also forbearance options which can help a student avoid making payments for a set period of time as these forbearance opportunities simply grant a graduate permission to forgo making payments on their loans. While this can help some graduates get on their feet financially, forbearance does sometimes cause overall costs to rise due to the fact that interest still continues to build in some cases.
Yet, federal student loans also can offer a graduate forgiveness if they enter into a public-service field or there are some careers, like those with the federal government, that will repay a set amount of college debt each year, up to a specific amount, if a graduate agrees to stay employed at this position for a set period of time. Obviously, being able to find an employment opportunity that will repay federal student loan debt is something that is highly sought out by many graduates, but there are also some students who may be unaware that this option could help them find debt relief from their federal student loans.
Understandably, erasing student loan debt can be problematic for some, yet there are those who are in a financial position to simply begin meeting their required payments after graduation. While options like forgiveness may only be available to those in certain career fields, opportunities for forbearance can help unemployed graduates and, thanks to new federal student loan assistance plans, there are programs that go beyond these measures in order to help students avoid defaulting on their college debt.
While graduates can contact their student loan lender to explore options that may be available for their particular situation, some of the general assistance plans that are typically offered usually center around these forbearance and forgiveness options, as well as consolidation loans and income-based repayment plans. Private loans usually have assistance programs that may help graduates in a difficult financial position, but many of the federal programs that are offered are simply tailored to help students avoid missing payments on their loans and doing damage to their credit history right out of college, so addressing financial concerns related to student loan debt early will typically be more beneficial to those who may have problems repaying their college loans.