Not all college graduates are finding that they are in a position to begin repaying their student loan debt obligations at college as difficult job market conditions have either led some graduates to enter into job opportunities that are well below their qualifications or there are still students who have graduated that are unemployed and, obviously, unable to make student loan repayments on their debts. However, there are ways to help graduates avoid missed payments on their student loan debts as doing so can greatly hinder one’s personal financial life early and is to be avoided if at all possible.
One of the more popular ways that students have been able to avoid missing their payments on student loan debts is through assistance plans like federal forbearance options. Students who may have a federal loan or a federal student loan consolidation plan do have the opportunity to receive forbearance options which will allow these unemployed individuals to avoid missed payments or financial hardships in their personal life.
Obviously, graduates who are in a difficult financial position will benefit from being able to forgo monthly payments on their student loans, but it needs to be remembered that some loans still continue to build interest despite being in a period of forbearance, so graduates may also explore other options if they do not want to enter into a forbearance plan. Last year, as an example, the income-based repayment plan which was offered by Direct Loans for students who are repaying Federal student loan debts allowed these individuals to lower the amount they must pay on their loans to a percentage that was based on their monthly income.
In cases such as this, graduates could acquire a more affordable payment from month to month but also begin the process of repaying their federal loans. While, there are still options like student loan consolidations that may help lower the amount a student must meet from month to month, advisers often suggest that graduates explore these options in order to find more cost efficient plan for their situation. Obviously, lower monthly payments could result in overall higher costs being met thanks to interest, but of course, there are those who argue that students stand to benefit more from meeting higher costs overall than missing payments on their student loan obligation.
Yet, students with either a private student loan or loans or federal loans may have various options depending on their situation and, for this reason, should contact their student loan lender about opportunities that could be available for their particular debt repayment needs. Some students may qualify for student loan debt forgiveness plans or, depending on one’s career, there are employers who will repay a graduate’s debt on college loans up to a set total amount while they are employed. While options do vary, the majority of graduates who are combating student loan debt do have these affordability options that can help avoid missed payments and credit score damage related to student loans.