If you have student loan debt then you probably understand the stress those monthly payments brings to your ability to make ends meet. You certainly aren’t alone in this fight to stay afloat and, luckily, there are ways to lower your payment and get some relief from your student loan debts.
Deferment
Student loan lenders are often willing to suspend your payments for a period of time for certain circumstances. A change in careers, staring your own company, relocating due to military or spousal obligations are just a few of the reasons for applying for a deferment. Typically, a lender will also suspend any interest charges during the deferment period.
Forbearance
A forbearance agreement is another type of payment suspension that halts interest and payments on your loan balance for a specified period of time. Forbearance agreements may be offered to those who don’t qualify for a deferment, and are generally given on a financial need based determination. Job loss, loss of a spouse or medical illness are some common reasons for being granted a forbearance.
Forgiveness
Student loan debt forgiveness programs are available for those who meet certain criteria. Some of the more common eligibility requirements are careers in public service, health care, military, education or nonprofit fields. Loan forgiveness programs are also available for federal loans that are offered by the government.
Consolidation
Loan consolidation is another option for lowering your student loan payment, which would essentially roll multiple loans into a single loan with a (likely) reduced interest rate. The consolidation loan repays the lenders and debt payments are made to the consolidation loan lender. Debt consolidation is a process that should be pursued carefully, as some companies don’t offer the best rates. A student loan lawyer can help find a proper consolidation or other solution to lower payments.