College graduates who are facing student loan debt repayment may have options for college loan debt relief and when these repayment assistance plans are properly used, there are some consumers who may find that their college loans are easier to erase even when a private or federal student loan debt obligation happens to be quite high. Obviously, there are indications that many consumers are now facing student loan debt, and when coupled with other debts like credit cards, this can create a great deal of financial strain in the life of anyone.
There have been indications that student loan debt has surpassed credit card debt as more students are borrowing money to complete their college education at either an undergraduate or graduate level, and when graduates enter into a struggling workforce, which may not provide them the job that will easily allow them to repay these debts, many begin to feel financial stress early in life. However, students also need to understand that, when debt like federal loans are in place, there could be problems if a student tries to avoid repaying what they owe as a NYTimes.com article states, “Unlike most other debt, student loans generally cannot be discharged in bankruptcy, and the government can garnish wages or take tax refunds or Social Security payments to recover the money owed.”
Yet, students who presently have college loan debt may be able to take advantage of certain repayment programs that could offer more affordability and the option to erase private or federal student loan obligations in a timely manner. While there are those who may have to commit to repayment for an extended period of time, there are options that may make repaying student loans more affordable and, in these instances, graduates will find that they must deal with fewer issues that will arise if they miss payments on student loan debts or attempt to default entirely.
Federal student loans offer repayment programs and consolidation options, among other repayment plans, that may help students who are drowning in college loans, but exploring these opportunities in relation to an individual’s personal financial life will be necessary before committing to a particular repayment option. Opportunities like income-based repayment may lower a student’s monthly payment obligation after they graduate and, obviously, this can help reduce the likelihood that a graduate will miss payments or have to default as a result of financial distress. However, some students have found more affordable payments as a result of student loan consolidation, which can be beneficial if an individual can either meet monthly payments required with this loan or may be able to exceed the minimum payment and therefore erase this consolidated debt faster, but some students may find that a consolidation plan could bring higher overall costs despite more affordable monthly payments.
While private student loans have reportedly begun offering similar repayment plans and even loan forgiveness options, students who graduate with federal debts may want to explore student loan forgiveness opportunities as well due to the fact that some public service employees may have their debt forgiven after 10 years of repayment while other individuals may be able to have their student loans erased after 25 years, even if they have not met the entirety of this debt. However, when students who are either working to repay private loans or federal loans find themselves in a troubling financial position, many advisers often suggest contacting the student loan servicer or lender immediately so that these solutions may be explored and graduates could find an easier route to erasing their student loan debt.