Student Loan Consolidation Plans In Place For Graduates Seeking Lower Payments But What May Changes Offer?

Student debt consolidation loans have offered plans for some graduates to find lower payments on federal obligations that they have when this type of debt is in place, and as we have recently seen announcements that there are potential changes forthcoming, some are starting to question how student loan consolidations will be beneficial when it comes to not only getting more affordability but finding debt relief in a timely manner. Understandably, some graduates are facing a massive amount of debt as there are students who may owe $100,000 or more on student loan debt obligations, but even students who may average around $20,000 to $30,000, monthly payments may be beyond their means at the present time due to the lackluster job market into which many have graduated.

While President Obama did announce that he wants changes in repayment options and forgiveness opportunities that may be available for students who do consolidate, as federal consolidation loans have at times brought more affordable rates and payments for young men and women who have graduated with a substantial amount of debt, but this does not always mean that they can still afford these payments. Yet, programs like the Income Based Repayment initiative may also change as announcements indicate that the new plan being proposed would allow students with federal loans who participate in this income-based program to only have to pay 10% of their discretionary income and rather than students being able to have their balance forgiven after 25 years of repayment, this timeframe has been lowered to 20 years for those who would qualify.

Graduates should understand that this is only applicable to federal loans as there are students who are struggling with a wide variety of debts, be they federal loans, private loans, or even some parents are having to repay what they borrowed from these loan sources as well, but when it comes to federal loan repayment opportunities it’s often pointed out that there can be more options available for affordability, repayment assistance, and even forgiveness. Students who enter into a public service career after graduation may be able to have their student loans forgiven after 10 years of repayment at the present time, and there are also opportunities for these specific students to participate in income-based repayment plans as well.

Obviously, students are struggling greatly when it comes to meeting college tuition costs, which have seen increases as of late, and after graduation many of these graduates are facing a huge amount of debt in comparison to earning opportunities that are available, which has not afforded some the ability to pay back these debts in a timely and affordable manner. While students are urged to explore federal student loan assistance programs, it’s hoped that these changes that are being proposed may help more in the future but those who are currently out of school or may have been paying on student loan debt from federal loans for quite some time can still explore options such as consolidation in the hopes of getting a more affordable monthly payment on their debt.