If you have taken student loans to help you through college, you are normally given a grace period of up to 6 months. What if that grace period is almost over and you haven’t found a job yet? Or a decent paying one at that?There is the risk of your loans going into default. If this happens, your remaining balance will be rendered payable immediately, so this will get you into deeper trouble. What are your choices?You can apply for deferment or loan forbearance if you have federal loans. Private lenders should allow for negotiation as well. What if you have multiple loans amounting to over $10,000?You best option is to consolidate college loan debts. This way you get another lender to pay off your current loans and you will only be answerable to this lender. If you can consolidate your debts within the grace period, then you have a good chance of locking in a fixed low interest rate.If your debt consolidation is completed, you will usually be asked to start the repayment process to the consolidator in 60 days. Even if you are starting on a low paying job, the lower interest rate and monthly payment should still be affordable for you. So how do you consolidate college loan debts?1. Do comparison shopping of different lending companies to find the best one for you.
2. Gather up all information about your current lenders, the amounts you owe, payment dates and amounts, remaining balance, etc.
3. Choose your repayment plan.
4. Choose a repayment plan. There are various types of repayment plans you can choose from: Standard, Extended, Graduated, Income Contingent or Income Sensitive.Remember, before you consolidate college loan debts, you have to weigh all available options first and learn about the pros and cons of debt consolidating.
Student loan programs have changed in 2011. Paying off the high cost of college is getting harder and harder. More and more college graduates leave school with an enormous amount of student loan debt.College students are discovering student loan forgiveness programs to help pay off college debt. Performing volunteer work, teaching in certain school districts or within certain areas, or by providing legal and medical services, can now help in paying down your student loan debts by trading the skills you learned while going to college and getting your degree.Students leaving college and entering the work-world after the government has changed how college loans are disbursed still complain of being confronted by overwhelming frustration of having to pay enormous student loan debts and not really knowing how to tackle that debt.But all is not lost. By participating in some of the following loan forgiveness programs open to certain skill sets and occupational fields, you’ll have an opportunity to see the world and help others at the same time.Teachers: Some loans can be cancelled or, as it’s more commonly referred to, “forgiven,” if the college degree leads to or complements a job in the teaching profession. Up to $17,500 of your principal balance might be cancelled.Americorps: This organization is the domestic arm of the Peace Corps, and it offers up to $7,400 in living stipends. Will pay approximately $4,725 in education awards upon completion of one year’s successful service.Nurses: Repayment assistance (not a discharge) is available through the Nursing Education Loan Repayment Program (NELRP) to registered nurses in exchange for service in eligible facilities located in areas experiencing a shortage of nurses.Volunteers in Service to America (VISTA): Volunteer with private, non-profit groups whose mission is to eradicate hunger, homelessness, poverty and illiteracy.Peace Corps: Volunteers that have outstanding Perkins Loans can receive a 15% cancellation on the debt owed for each year of their first two-year service term and a 20% loan cancellation for their third and fourth years of service. Participants can receive up to a 70% cancellation on Perkins loans.Military Service: The Student Loan Repayment Program (SLRP). Under the Student Loan Repayment Program, when you enlist the Army will pay back up to $65,000 in qualified education loans (up to $20,000 for reservists), the Navy up to $65,000 and the Air Force up to $10,000. The military services have unique student loan repayment programs designed to help recruit and retain active duty and reserve personnel, including both officers and enlisted.Legal and medical studies: Studying medicine or law often equals racking up tens of thousands additional dollars of debt. There are law schools which provide loan forgiveness to those students who volunteer to serve in the public interest and/or work for non-profit organizations.We’ve compiled a list of helpful websites and useful links to make your search easier at our website. Look for “Loan Forgiveness Programs” at FindHow2.com.For more information about student debt discharge, contact the Direct Loan Servicing Center at 1-800-848-0979 if you have a Direct Loan. Contact the lender or agency that holds your loan if you have a FFEL. If you borrowed using a Federal Perkins Loan, contact that particular school which made the loan.Yes, college was worth the price, both in time invested studying and borrowing the funds to attend classes. But now the bills have to be repaid. Fortunately, there are options to get your student loans reduced by offering up your skills and time to worthy organizations. You’ll be helping yourself lower the principal of your student loan principal balances and helping others in the process…. a true “win-win” situation.
Are your college loan debts making it hard for you to cope with the real world?Being a fresh graduate trying to earn for your own keep can be tough if you also have to repay your student loan debts. This is your obligation and any way, you wouldn’t have made it through college without these loans however it shouldn’t take too much of your life, right?Then how can you repay your student loan debts without all the stress?Here a few helpful tips.- Switch to an Extended repayment plan. This will extend the repayment period up to 25 years so that your monthly payment is lowered.
– If you are thinking about going back to school, you can postpone your repayment by deferring. Federal loans allow this.
– If you are experiencing some economic difficulty or if you can’t find a stable job, you can apply for payment forbearance.
– You may consolidate your loans. This will combine all your loans into one so you only worry about one payment each month. Also, you can lower your monthly payment to as low as half of the original cost. You can also lock in to a fixed low interest rate. Just don’t consolidate government loans with private loans.
– Volunteer for the Peace Corps or AmeriCorps. These organizations have programs for lowering your college loan debts.
– Work in underserved communities as a teacher, lawyer or doctor to be a candidate for loan forgiveness.When you have decided on how to repay your student loan, set to work and stick with your plan. This is as sure as drawing a straight line from where you are now to achieving your main goal of clearing off your debt.