When it comes to federal student loans, money can add up very quickly. With interest fees and collection costs, loans could practically double in size from the initial start date. It is extremely important to know all information beforehand. Keeping an eye on those loans and their respective payments could ensure the debt doesn’t raise through the roof. For people struggling to make payments, there are options out there. Student debt relief is available.
One of the most important pieces of advice is to know the loans, as well as the grace period. Each loan is different, but federal loans have basic commonalities. It is important to know the statistics concerning specific loans and repayment plans. Keeping up to date on just how much is still owed, and all payments made, could reduce future hassles. Keeping in mind different options for loan forgiveness and discharge is important. Employees in public service to the state could save some money, as well as people with permanent disabilities, to name a couple of examples. Grace periods are also very important. The first payment will be due six months after leaving school for federal Stafford loans and nine months for federal Perkins loans. Making sure not to miss the first payment is crucial to keep student loan debt down.
For those graduates struggling with the standard federal repayment plan of ten years, there are options available. Other repayment plans include Income Based and Pay as you Earn. While these may be suitable for some, this is not the option for everyone. Yes, the monthly payments will be lower, but that interest will add up, often very quickly. This is not the option to reduce student loan debt. Instead, making payments in a standard plan will reduce the debt steadily.
When seeking student loan debt help, a few options could be thrown into the mix. One of these ways to reduce student loan debt is to lower the principle. This is the monthly allowance payments go towards. A principle can be lowered by paying a little more than the requested amount as often as possible. Even the littlest bit extra will help. In this way, a graduate could save tons of money in interest, as well as lowering his or her monthly payments.
Anyone who has gone through student loan debt counseling will bring up consolidation. This means that all of the federal loans can be consolidated into one loan, allowing a set interest rate and easier payments. There are pros and cons to consolidation, and this step should be discussed with a financial advisor or loan servicer prior to consolidating. There are various links within this website that offer help, advice, and student loan debt counseling. Research all the information possible, and always know the ins and outs of every option. Some will be for the better, but others could make things much, much worse. Remember, the goal is to reduce school loan debt, not raise the interest.