Those who are looking for student loan debt relief are many, and every day, millions of Americans still continue to live with the stress of paying off loans contracted during their student days. There are many ways to get relief for student loans. You can find solutions or programs that completely eliminate the loan or reduce the interest rate on the loan. Depending on your needs, the type of loan, and your current financial situation, you can find the right program to manage your loan without experiencing any financial stress of any sort. Below are some of the options that are available for you; however, you'll need to align them with the type of loan you have in order to find the one best suited for you.
One of the options you can consider will be a payment plan for financial hardship. There are many of such plans and you can choose depending on your specific needs and the type of loan you have to pay. The Income Contingent Repayment Plan is designed to allow you to make a monthly payment based on the percentage of your current salary. You can make payments for as low as $5 and the government can cancel the remaining balance if you have not been able to pay your debt for after 25 years. The Income Sensitive Repayment Plan is available for FFEL loans and is calculated with due consideration on your annual income, the size of your family, and the total amount to be settled for the loan. If you have a Perkins Loan, you can use the Hardship Repayment Plan which allows you to pay at least $40 monthly. The school reserves the right to extend the loan to a period ten years or more especially if you are unemployed or suffer from illness.
You can reduce your interest rates on your student loan by getting a consolidation loan which combines the different federal student loans into a single vehicle. You only make one monthly payment to settle your existing loans. You get more than reduced interest rates when you opt for this solution. You can track your payments easily, and avoid the stress of making many different payments per month, plus your monthly payments can be reduced as well. This solution is best for you especially if you do not qualify for other repayment plans.
Another program that you can consider is the Teacher Loan Forgiveness Program. If you work as a teacher or an administrator in a public or private school, you can apply for Teacher Loan Forgiveness. This program is designed to offer student loan relief to teachers employed to offer their services to the public. You can qualify for loan forgiveness for amounts ranging from $5000 to $17,500. This program is one of those created by Congress as an incentive to motivate those working in the teaching sector and those who would want to serve the community as teachers.
The lender can give you the permission to completely stop making the payments or to reduce your payments due to reasons such as poor health, unemployment, or other unforeseen hardships. You can also find many reasons to apply for loan cancellation. In some situations you can only cancel part of the loan, but there are certain requirements to be met. If you were enrolled in an institute that closed down while you were there, you may qualify for loan cancellation.
One a loan has been refinanced, continue to make the same payment as before in order to pay off the debt as soon as possible. The faster a loan is paid, the least amount of total income that goes towards that loan. Students today can benefit from living frugally early on and then enjoying being debt-free later in life. Consider these tips on how to refinance student loans when trying to lighten the financial burden of college and make monthly loan payments a much easier process.
One of the options you can consider will be a payment plan for financial hardship. There are many of such plans and you can choose depending on your specific needs and the type of loan you have to pay. The Income Contingent Repayment Plan is designed to allow you to make a monthly payment based on the percentage of your current salary. You can make payments for as low as $5 and the government can cancel the remaining balance if you have not been able to pay your debt for after 25 years. The Income Sensitive Repayment Plan is available for FFEL loans and is calculated with due consideration on your annual income, the size of your family, and the total amount to be settled for the loan. If you have a Perkins Loan, you can use the Hardship Repayment Plan which allows you to pay at least $40 monthly. The school reserves the right to extend the loan to a period ten years or more especially if you are unemployed or suffer from illness.
You can reduce your interest rates on your student loan by getting a consolidation loan which combines the different federal student loans into a single vehicle. You only make one monthly payment to settle your existing loans. You get more than reduced interest rates when you opt for this solution. You can track your payments easily, and avoid the stress of making many different payments per month, plus your monthly payments can be reduced as well. This solution is best for you especially if you do not qualify for other repayment plans.
Another program that you can consider is the Teacher Loan Forgiveness Program. If you work as a teacher or an administrator in a public or private school, you can apply for Teacher Loan Forgiveness. This program is designed to offer student loan relief to teachers employed to offer their services to the public. You can qualify for loan forgiveness for amounts ranging from $5000 to $17,500. This program is one of those created by Congress as an incentive to motivate those working in the teaching sector and those who would want to serve the community as teachers.
The lender can give you the permission to completely stop making the payments or to reduce your payments due to reasons such as poor health, unemployment, or other unforeseen hardships. You can also find many reasons to apply for loan cancellation. In some situations you can only cancel part of the loan, but there are certain requirements to be met. If you were enrolled in an institute that closed down while you were there, you may qualify for loan cancellation.
One a loan has been refinanced, continue to make the same payment as before in order to pay off the debt as soon as possible. The faster a loan is paid, the least amount of total income that goes towards that loan. Students today can benefit from living frugally early on and then enjoying being debt-free later in life. Consider these tips on how to refinance student loans when trying to lighten the financial burden of college and make monthly loan payments a much easier process.
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Before you make any decisions, make sure you read Rick's solid guide on student loan forgiveness programs and how you can handle student loan debt
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