Many graduates are entering into a workforce that may not be offering them the financial compensation or even employment opportunities that have traditionally been associated with some college majors, and since student loan debt has become a major hindrance in the financial lives of countless graduates, there is a great deal of concern as to what students may be able to do in order to handle their debt in the long run and simply make their payments more affordable at the present time. It’s been stated that student loan debt has become more of a problem than credit cards, simply because costs at educational institutions are on the rise and, in many cases, may be at a point where simple scholarships and grants might not meet all of the financial need that a student has.
Currently, there are a variety of opinions on this issue with some officials stating that the ability for students to access funding so easily has allowed colleges to increase tuition and fees simply because they know that financing is available in many cases no matter what a student’s position may be. Obviously, students from a variety of financial backgrounds can usually qualify for federal student loans, but there are also parent loans and private loans that are available to meet excessive costs that may come when a student attends a major university or private college.
However, there are some opportunities for college loan forgiveness or even the simple reduction of a student’s repayment costs on their loans after graduation, and this can be particularly helpful for graduates that are currently facing a situation where they are underemployed. As an example, some students may qualify for student loan forgiveness after a short period of time in repayment, while others can simply get a student loan repayment plan that is affordable on their income, thanks to federal programs like student loan forgiveness for public service employees and income-based repayment plans.
New graduates may be unaware of these programs despite the fact that they have been around for quite some time, yet not everyone will qualify is for these repayment plans, and in cases where private student loans have been used it could be the case that repayment assistance might not be available from a particular lender. Yet, students in a public service career may be able to find not only an affordable repayment option on their debt but are also in a position where they may be able to qualify for forgiveness after 10 years in repayment.
Obviously though, not all students are in a public service career, and even those who are may not necessarily meet the qualifications for this forgiveness option, but when it comes down to simple affordability, students are being urged to speak with a representative from their student loan servicer as these federal loan repayment plans may offer help when it comes to repayment, even if forgiveness is not an option. There is some concern that the student loan debt bubble will soon burst if more students are simply unable to afford their debt repayment obligation and default, but it should be remembered that some may be in a position where they can have their payments reduced and made more affordable when an optimal employment situation and income is not present in their life.