Unfortunately, too many people today are suffering under high student loan balances, outrageous interest rates and the inability to keep up with monthly payments. With student loan debt default rising each day more people are falling into a downward spiral of financial hardship. However, you don’t have to keep down this dark path. You do have options.
Federal Programs
The government has enacted several programs to help people find relief from mounting student loan burdens. On December 21, 2012 the government implemented the Income Based Repayment (IBR) program giving some federal loan holders the ability to pay as they earn. In other words, allowing you to restructure your monthly payment based on your disposable income. The IBR program lowered the payment cap from 15% to 10% of discretionary income, reducing the minimum payment amount for many qualified debtors.
The Public Service Loan Forgiveness (PSLF) program is a debt forgiveness program designed to help debtors that pursued careers in public service fields. If you work in the fields of education, social work or public service you may be eligible to have your remaining debt forgiven after 10 years of eligible employment and qualifying loan payments; as opposed to the prior 20 year rule.
Lender Based Solutions
While the federal programs are helping many people find relief from their student loan debt burdens, many people may not qualify or have luck securing lower payments through these programs. You may be surprised to learn that many lenders, especially private lenders, are willing to negotiate payment terms on your loan. There are many lender based options for lowering your payment, erasing penalty fees for delinquency, modifying your interest rate, or even eliminating a portion of your total balance.
Negotiating with lenders and applying for federal assistance programs can both be tricky. Make sure you consult with a student loan lawyer to review your case and guide you through the process. Maximize your chances at successful student loan debt relief by having professional representation on your side.