We have seen issues related to student loan debt over the past months, as reports have arisen stating that students are now facing higher amounts of debt in student loans than in other areas of financial obligations, like credit card debt, but an overlooked aspect of student loan problems has centered around the monthly payments that some graduates have to meet, which can be quite costly. Depending on the amount and the number of loans that students have, some young graduates may be facing repayment requirements that are well beyond their means to affordably meet at the current time, particularly for those who may not have found full-time employment or simply cannot meet student loan payment obligations in the area of hundreds of dollars each month on their current income.
What this translates to is the need for help for students that have a high amount of college loan debt in terms of making their monthly payments more affordable, but this may come in different payment arrangements or repayment programs depending on the situation. Opportunities are available to lower student loan debt payments, but will not always work to a graduate’s advantage, and for this reason counselors are urging young men and women to make sure they focus on current payment plans and what they require so that they can better select which assistance option to pursue.
This could be as simple as contacting one’s student loan lender or servicer, but there are students who are opting for consolidation on their student loan debts as a way to get a more affordable monthly payment. Consolidation may be beneficial in this area, but it does not mean that students will not meet higher overall costs, rather they may only get help when it comes to paying the monthly requirement on multiple loans.
Federal loans typically have consolidation programs available but there are also some graduates who have turned to private consolidation loans as a way to pay off both a mixture of federal and private student loan obligations, but careful attention must be paid to interest rates and payment costs may come as this will not always be an affordable option for some.
Luckily, students that do have federal loans may be in a position where income-based repayment plans are available, and may be helpful, when a student’s debt situation and minimum monthly payment is simply too expensive on their current income. Students do also have some options when it comes to forbearance opportunities, but this is only delaying required repayment and is often not going to be available unless a student happens to be unemployed, or facing a particular type of financial distress.
Again, students may benefit from explaining the situation to their servicer, as federal loan repayment requirements can be adjusted to help students find the affordability they need on a monthly basis, but it should be remembered that private loans may not always have these options available, and this is one reason among others that some advisers often suggest against borrowing this time of student loan debt. Yet, with consolidation plans, income-based programs, and other forms of aid still available, students may be able to work out an agreement at the present time that would allow them to avoid missed payments when their student loan debt obligation is too much for them to handle.