Students who have recently graduated college have been tracking the employment situation in our nation, as April brought good news that there were about 244,000 jobs added that month, but the unemployment rate still rose despite this addition of job opportunities. Yet, the month of May reported a major decrease in the job growth that was seen in earlier 2011, and the unemployment rate did edge slightly higher again, which has led many graduates and even students who have long been out of college to question whether employment opportunities and stable income would be made available to help them repay their student loan debts.
Many graduates are now facing a very troubling situation where jobs are difficult to come by but there are also a great many who are facing a high amount of student loan debts which can be burdensome particularly for someone who is unemployed. For this reason, many are looking at repayment assistance options that may reduce their student loan obligation, but others have had to turn to student loan forbearance opportunities to help them avoid missed payments and doing further damage to their financial life which may result if certain debt obligations cannot be paid.
Ideally, students who are in a position where they cannot meet payments on their federal student loans will be able to use this forbearance option as a way to forgo making payments for a set period of time, and in some cases, students can get a great deal of relief from not having to meet payment obligations, even if they have been granted an affordable student loan repayment plan. Yet, private student loans may be more problematic for some, as not all lenders will offer an unemployment assistance forbearance option, and this could put students in a bad position when unemployment is a factor.
Before turning to this option though, students need to understand that a forbearance on federal debts that are available to graduates will continue to build interest and once a forbearance period has ended, in many cases the student will see that interest applied to their principal, which will obviously increase the total amount they owe on their loan. Students are being prompted, for this reason, to explore income-based repayment plans or simply talk with their student loan lender to inquire about opportunities that could be available for their particular financial position that may help them avoid forbearance, but also find affordability in their monthly payments so that their student loan debt obligations will not begin to negatively affect their financial life.