It’s graduation season – an exciting time for graduates – but also a time to take a look at student loan debt. Many young people are plagued with student debt once they finish college. Loan debt usually piles up while students earn their degrees. Once students finish school, they usually have a short amount of time – generally a 6-month grace period – before they have to begin making payments.
The job search can be trying, and a record number of millennials are living at home. Recent graduates may have a difficult time when it comes to paying off student loans. There are options that graduates can look into to make managing their student loan debts a little easier.
1. Payment Options: Depending on your loan provider, you may have multiple options when it comes to paying back your loans. You can pay a flat monthly rate during your period of repayment. Some providers also allow for graduated payments. With this option your payments will start off low and then increase over time. You can also choose a repayment plan based on your income. Explore the options your loan service provider has available.
2. Loan Consolidation: You may have had to take out multiple loans to finance your education. Multiple monthly payments can add up and be extremely straining to your budget. Multiple federal education loans can be consolidated into one loan which will require one payment. This will allow you to make one monthly payment.
3. Cancellation: In certain conditions, the requirement to repay your loans can be forgiven or cancelled. Your loans can be forgiven if you’re employed in a certain field or if you serve in the Peace Corps. There are other circumstances that discharge you from loan obligation. You will have to make sure you satisfy the specific conditions of each circumstance.
4. Deferment/Forbearance: You can postpone payments towards your student loans if you are experiencing financial hardship. This can allow you to avoid default on your loans. You will want to follow the steps your provider has in place for deferment. This process usually involves filling out an application and providing required paperwork.
There are options for recent graduates that are struggling to repay their loans. Consult your loan service provider to see which options they specifically offer.
If your overall debt is overwhelming, bankruptcy may be right for you. Contact Citizens Law Group today to speak with one of our experienced advisors. Our bankruptcy attorneys can help you get on track to a fresh start.