Breathe Easier with Student Loan Repayment Options

You may not be in a position to pay what is expected, but with a little help you may find an affordable option.

14:06 20 April 2014

The price of an education can be steep and circumstances do not always provide us with the opportunities we expect upon graduation. Many of us are stuck with piles of debt before we even have the chance to find a decent paying job, let alone the dream job we hoped to land with our new degrees or certifications.

If you are feeling strangled by the need to repay a lot of student loan debt, there are a few things you can do which may give you some room to breathe.

• Contact lenders directly—when you contact lenders directly, you may have the ability to negotiate different repayment terms. Many lenders try to offer flexible alternatives because they realise situations may occur which are beyond are control and make repayment difficult. Find out what options are available.

 

• Deferment or forbearance—you may have the ability, depending upon your financial situation, to apply for deferment or forbearance. These two options allow you to pay reduced amounts, or even delay your payments for a period of time while you try to get your finances on track.

 

• Consolidations—you may also qualify for consolidation options. There are various lenders who may either have consolidations specifically for student loans, or even personal loans. Any of those might be able to give you lower interest rates for the loans you pay. If you cannot get lower interest rates, you may be better off keeping your loans separate.

 

• Forgiveness—sometimes your circumstances may qualify you to have your student loan debt forgiven. For the most part loan forgiveness is reserved for those serving public needs, or areas of high risk. In some cases, if you have a degree which you can no longer use through no fault of your own, you may be able to have it forgiven.