Student loan repayment is probably your first financial challenge once you have completed your college or graduate study. It’s the time when you have to pay off your student loans. This will become more complicated when you have different loans as you have to make different payments at the same time.
Student loans in many cases are not only difficult to manage but they are also harder to afford. The good news is, however, there is help to this debt problem. And the purpose of this article is to help you find student loan debt relief.
There are several payment options for a successful student loan debt relief. The following are three strategies you can pursue.
Request Repayment Rescheduling
A repayment rescheduling includes extended repayment, deferment and forbearance. With an extended repayment plan you will extend the repayment period from ten years to up to 25 years. This plan will lower your monthly payment, if you don’t mind spending the next quarter of a century paying off your student loan debt.
A deferment or a temporary suspension is another payment rescheduling alternative. If you’re in a financial trouble, such as unemployed or returning to school, you can ask a deferment of your debt repayments. A deferred loan normally does not accrue interest during the suspension period but you have to check your lender whether or not the interest continue to accrue.
Another temporary suspension is forbearance. You can ask your lender to suspend your loan repayment up to one year. During forbearance, you are encouraged to pay off the interest every quarter because interest does continue to accrue. Otherwise it will be capitalized into the principal of the loan.
Change Payment Plan to Graduated Repayment
The idea of graduated repayment is that you to make smaller payments at the beginning of your career life. Over time, as you’re getting established in your chosen career and as your salary increases, the monthly payment gradually goes up.
Both repayment rescheduling and graduated repayment are repayment methods that focus on reducing the amount of monthly payments or adjusting the period of payment. If you have a lot of different loans the following method is more effective than the above-mentioned methods.
Student Loan Consolidation Program
When you finish college or graduate school and have many loans, the idea of consolidating all of your loans will simplify your student loan repayment. In this scenario you take all of those loans together and sell them to one debt consolidation agency.
The agency will pay them off at once to your creditors and you now owe this agency for that amount. When you have consolidated your student debts you owe only one loan to one lender, the debt consolidation firm.
Student Loan Repayment Discipline
When it comes to working your way out of student loans, a debt management discipline is a must. In your early career life, this is a training ground for getting a money management skill, which will contribute to your success in career and life.
You can put your repayment plan into a step-by-step process, beginning with the amount that you have to pay each month. With your own student loan repayment program, instead of worrying how you can pay the debts, you’ll find ways out of your debt and be confident with your ability to repay the loan.