When it comes to repaying college loan debt, there are some students who are in the position where they have mixed types of student loans, meaning that they may have both federal and private loans that which must be repaid. Understandably, this can be difficult for men and women who may have graduated into a job market where there are few opportunities available in the field that they are looking to enter, so when it comes to combating both private and federal student loans, the ways that graduates have handled these types of repayment obligations have often varied and may require different techniques for certain students.
As most of us know, there are a great deal of problems which have been creeping up related to student loan debt as this particular type of debt obligation has begun to become not only present in the life of many graduates but it has become an excessive burden in terms of a graduate’s financial situation. There are students who are facing student loan debts in not only the tens of thousands of dollars range but some have even seen their student loan repayment bill creep into the six-figure area. While it may be somewhat rare for some students to acquire student loan debts that are more than $100,000, when it comes to be paying these obligations, there may be vast differences between what options are available for private student loans and federal loans.
It’s because of this is that some students have had to prioritize which type of loan they will focus their efforts on primarily, as some students will have a different amount of debt in each area of their student loan obligations, meaning they may owe more on federal debt in private or vice versa, but many private loans do not offer the repayment assistance plans that federal loans will bring to the table.
Yet, the attack plan that a graduate uses to combat their student loans will have to be a personal decision and it will need to be a case where the student has reflected upon their debt and repayment options before deciding which of these obligations they repay first. However, if a student is able to either consolidate their federal debts, take advantage of forbearance plans or even income-based repayment opportunities this could offer more affordability in terms of federal debt obligations and may free up additional funds to apply towards a private student loan.
Also, if a student runs the risk of being unable to meet the totality of their minimum requirements, exploring hardship assistance on both federal and private loans should be an early step in the process, as there are indeed some banks that may offer hardship assistance when private student loans cannot be paid in full at the present time or minimum monthly payments are too high. However, in the situation where a student can not meet both of these obligations, it may be necessary to look at the repayment assistance options available for each loan, see which one will offer the most affordability, and then began to use additional funds saved to pay down the debt that may not have these repayment assistance options.
There are also some students who may simply owe a small amount on either a federal loan or private loan and there are some individuals who have, in the past, focused as much money as they could on paying down these loans so that additional funding can be used to combat the larger debts. However, if graduates are finding that they are in a difficult financial position, contacting a student loan lender early to ask about hardship assistance will be helpful, but it will also require that a student make a personal decision as to how they will combat these debts. Of course, exploring these hardship repayment assistance plans can be helpful, but since it will depend on a graduate’s personal situation as to what opportunities may be available or strategies may be best, it will be necessary for a student to simply sit down and run the numbers so that they can find the best repayment plan for their student loan debt obligations.