Many students are currently graduating college or have recently done so in the past weeks of May, but there are those who are finding themselves in a position where they are leaving college with not only a substantial amount of debt but potential hardships that will be faced when it comes to finding employment. College loan debt assistance is one of the more popular forms of financial aid that students turn to as many are unable to meet college costs or find free sources of financial aid to pay tuition, which has led to a great deal of debate in and of itself, but students who are already in a position where they have debt and recently graduated college may have only a few months during a grace period where they can figure out how they will begin the process of paying off what they owe.
Luckily, for students who have borrowed federal loans, there are a wide range of repayment assistance plans available to help these graduates find the affordability they need, but if joblessness remains a problem, some may be turning to student loan forbearance opportunities as a result of unemployment. The federal government has been quite lenient on students in the past as they are able to use this forbearance option to forgo making payments on their debt for a set period of time, especially when unemployment is a factor. However, this particular topic has also brought up a great deal of debate among commentators as to whether forbearance, which may be necessary for some, is a good idea and should be taken advantage of if a student is in a certain predicament after graduation.
It goes without saying that if a student has no job opportunities but has been searching for employment, the inability to make student loan payments could lead to financial distress if they miss payments on these loans. There are those who have turned to debt consolidation on student loans as a way to find more affordable monthly payments, but some graduates are, again, entering into a workforce where it could be difficult for them to find a job, let alone one that will help them repay their debt. While many counselors have argued over the past months that students must seek out free sources of financial aid and avoid borrowing at all costs, substantial amounts of debt are still being seen by graduates and, when forbearance is necessary, the overall costs could become much higher.
Due to the fact that interest begins to accrue after a student has graduated college, and on certain types of loans, it will continue to build during a period of forbearance, students may be in a difficult financial position if they do not pay down these debts after college. Again, it’s understandable that students who simply cannot pay even a minimum payment on their student loan debt may need to consider this option so that missed payments will not occur, but talking with one’s student loan lender, like Direct Loans for those who are repaying federal loans, could also be beneficial as there are not only consolidation loans, and income-based repayment plans, but also forgiveness opportunities that may help students deal with their college loans in the coming months.