A large portion of college students will accumulate some student loan debt while enrolled in school. While taking out exorbitant student loans may have seemed like a great way to finance your college education at the start, you are left facing staggering payments shortly after graduation. If this sounds all too familiar, consider one of these options to help get your payments under control.
- Refinancing Options
If it is simply the structure of your loan or the complexity of multiple loans under different servicers that aren’t working with you, you might want to consider refinancing options. While it may seem simple to stay with your current lender, it often makes sense to shop around. Special student loan refinancing programs are available at most financial institutions, so be sure to look at traditional brick-and-mortar banks as well as online lenders like Simple Path Financial for the best terms.
- Restructured Repayment Plans
If you have a federally-backed student loan, you may qualify for one of several special repayment plans. These are often based on your income. Some examples of plans that are available include extended, graduated and income-driven repayment options. Keep in mind that interest will continue to accrue on your balance and that your new payments may not cover that cost.
- Specialized Grants
Some high-demand career fields offer specialized grants to be used toward student loan debt. They are often for people looking to go into jobs in public service, military, medical or education.
- Deferment and Forbearance
If you genuinely are not able to pay your loans, look into requesting a deferment or forbearance arrangement. These can postpone or reduce your payments if you are experiencing financial hardships. There are eligibility requirements that must be met to obtain either of these.
No matter what you do, it is important that you take steps to ensure you do not default on student loans. That will negatively impact your credit, which can cause problems with making large purchases like a home or vehicle.