For college graduates who are carrying student loan debts, the issue of unemployment may have arisen at various points in the lives of these men and women as there are certain graduates who have recently left college who are still finding it difficult to find employment, while others may be facing problems like underemployment, but there are also men and women who have been out of school for years and are now facing joblessness but also continued required payments on their student loans. Yet, when it comes to unemployment repayment assistance available on student loan debts, there are forbearance opportunities and even lower payments that may be available on either federal or private loans, but these options must be explored by the individual student and ideally in a timely manner so that a solution can be found.
First, we can address private student loan unemployment assistance, as in this issue is of which will require the most personal research on the part of a student, since each private lender’s student loan repayment requirements and assistance opportunities will obviously differ. While there are some major financial institutions that offer these private loans and have very little information related to what opportunities unemployed students may have when repaying their debts, others may offer more options to graduates if repayment has become a problem due to unemployment.
While it will depend on a student’s or graduate’s particular private student loan lender, some of these institutions may offer options for a reduced payment by only having students pay their interest rate that is accruing on these loans and would at least give the graduate who holds the loan a more affordable payment so that defaulting or delinquency could be avoided. Yet, there are some banks that also say they can work with a student to offer forbearance, but this would be at a lender’s discretion and may only be available to individuals with federal student loans in the majority of cases.
The opportunity to, again, only meet interest payments for a set time, could be helpful for those holding private student loans, but it’s widely known that federal loans bring about unemployment forbearance opportunities, income-based repayment plans, and both federal and private student loan borrowers may be in a position where consolidation will lower their overall monthly payment that is required on this particular form of debt.
Federal student loans usually offer a wider spectrum of repayment opportunities, particularly those for those facing financial hardships, but there may be some private lenders who can work with a graduate in this area as well, yet there are no guarantees. If private loans are a problem, contacting a lender early before missed payments have begun may give a graduate a better opportunity at finding a solution to their problems while they are attempting to overcome financial difficulties in their life.