Student loan debt relief is an important topic that many people need help with. However, not everyone knows where to begin to look or how to proceed. The fact of the matter is that there are a number of student loan debt relief options available to those seeking them. Let’s look at the most common student loan debt relief options.
The U.S. government offers one of the best student loan debt relief options available: The Care Act student loan relief program. The Care Act is a fairly easy student loan debt relief program. Basically, this program was created by Congress in part to help student loan borrowers who qualify for subsidized assistance under the Higher Education Act (HEA) who experience unexpected financial hardship. In order to qualify for the federal student loans, most students will have to meet certain requirements, such as low income and a fixed monthly income. Once approved, the borrower will then be given a new payment option, such as an income-driven repayment plan or an income-based loan deferment.
Under the care act, the government also offers direct loans, which are standardized federal loans that don’t require the borrower to have an existing bank account. Direct student loan debt relief plans differ from subsidized plans in a few ways. For one, a federal direct loan does not require a cosigner. Furthermore, a federal direct loan can be subsidized or unsubsidized. For people who qualify for federal student loans but cannot qualify for federal assistance based on their own situation, direct loans are an option.
Another option for student loan debt relief is loan consolidation. This is an option that has been around for years. When you consolidate, all of your federal student loans are consolidated into a single payment that is generally lower than the combined payments for all of your previous student loans. The federal government or the department of education offers student loans that are eligible for this service. However, each borrower must first apply and be accepted for this service before being able to consolidate.
There are several different student loan debt relief services available to graduates. One service is loan consolidation. This is a great student debt relief service for graduates who need more than a six-month grace period between payment. Loan consolidation allows a borrower to take out one loan at a much lower interest rate. The borrower then pays that one loan at a lower interest and pays it off over a six-month period. There are usually minimum payments involved in this repayment plan, but it is still a good student debt relief service for graduates.
Another service that most graduate students qualify for is subsidized student loans. Subsidized student loans are student loans that are specifically designed to help those with lower incomes. To qualify for these student loans, you must meet specific income guidelines. Your eligibility will depend on a few factors including your family’s income and total assets. If you do qualify for this type of student loan, the federal government will provide partial or full tuition assistance depending on your financial needs.
There are also private student loans for those graduate students who qualify for federal government student loans but do not have enough available resources to consolidate. Private student loans can offer student debt relief companies much better deals because they are not subject to any federal government programs and have much more flexible repayment terms. There are many private lenders who specialize in giving student loans to students who qualify for federal assistance. The rates for private student loans are often higher because they are not backed by the federal government. They are more competitive because they have to compete for business from private lenders.
One last option for student loan debt relief for graduates is income-based repayment plans. This may be your best bet if you qualify for both the private and federal government programs. Under income-based repayment plans, you agree to repay a portion of your student loan debt based on your current income. With this plan, you pay less each month towards your loan because your income does not fluctuate that much. This allows you to pay back your debt without having to worry about fluctuating income.