Student loan debt repayment assistance has been made available through various plans, like college loan consolidation opportunities, as these options have given students who are struggling financially more affordability when it comes to their repayment options and methods for erasing debt owed from their educational pursuits. Obviously, many students are finding that current tuition rates are on the rise and, for many, financial assistance is simply not enough to offer them the aid that is necessary to meet all of the costs associated with tuition, fees, and books, among other things.
However, college graduates who owe student loan debt are being advised to explore options for student loan debt repayment and current students who may be looking into student loan borrowing opportunities are also being asked by counselors to weigh various options that may be available for their particular situation. Obviously, student loan consolidation plans, like Federal student loan consolidation programs, have been offered to individuals as a way to make repayment more affordable after graduation when financial distress has been present.
According to an article on SmartMoney.com, “Research firm Student Lending Analytics estimates that 37 percent of graduates facing loan repayment are struggling, delinquent or in forbearance. Fortunately, a monthly payment cap of 15 percent of income above a certain level recently went into effect for federal loans,” which is a relief to students who may be entering into a very difficult job market or who have graduated during a time of economic distress and are unable to either find employment or meet the repayment requirements on these loans.
Essentially, graduates who are looking for student loan debt repayment assistance or consolidation options have opportunities to find the affordability they need, but these plans must be explored before an individual takes the initiative to acquire one form of debt repayment assistance or another. Again, a student loan consolidation plans are one of the more common ways that federal student loans have been made more affordable as the consolidation repayment requirement on multiple debts is usually much more affordable for students who owe multiple monthly payments. However, not all student loan debt situations will offer more affordability through consolidation, as increasing a principal amount associated with a loan can take a longer time to repay and, even if a low interest rate is involved, this could lead to higher overall costs.
Students must calculate these factors into their decision as to whether a consolidation loan is in their best interest or whether they will be able to erase multiple loans in a shorter timeframe if they budget and repay their debts promptly. However, students who simply cannot meet their minimum monthly payments may be able to consolidate their loans and also participate in federal programs, which are only available on federal student loans, which will only require that a student pay a set percentage of their income towards their student loan debt. This is been beneficial for some as there are also forgiveness options of which students may take advantage, and depending on one’s situation, student loan debt may be forgiven after 10 years for public service employees or 25 years for traditional students who are making payments. While there are options that can make monthly payments more affordable, graduates must make sure that they are paying attention to overall costs as well, as those who are in a financial position to erase their debt faster could cause these overall costs to increase through some of these student loan repayment assistance methods, but again, financially distressed graduates may find a great deal of relief through both consolidation and specific federal student loan repayment plans.