How can I pay off my student loan balances? Many student loan debts can be consolidated into one low monthly payment. There are many federal and private educational loan consolidation programs available to help students pay off their debt. There is a fixed interest rate on all federally subsidized and non-subsidized student loans, which means the payments will stay the same through the life of the loan. This is a great option for students who have multiple student loan debts.
What if my student debt is in a higher tax bracket? Federal student loans can be consolidated with an eligible lender to reduce the total amount owed on both the federal and the private student loans. To qualify for this, you must have a federal tax return and an eligible college. Once the loan is consolidated, the interest will be reduced and the monthly payments can be increased based on an inflation rate increase or a decrease in the student loan balance.
Can my federal student loans be deferred? Deferment is a repayment plan that allows federal student loans to go into deferment until specific conditions are met. Students with poor payment records are encouraged to opt for deferment so that they do not accrue late payment charges. If you do opt for a deferment, your loan will go into forbearance until your next payment due date; at that time, the payment will be revised to include interest.
Can I lower my monthly payment for federal student loans by paying extra on the principal? The interest on subsidized and unsubsidized student loans usually does not accrue interest while you are enrolled in a program. Repayment usually begins after a grace period of six months, at which time the student has to begin paying the regular monthly payment. You can lower your monthly payment by paying extra for your tuition and fees.
How can I lower my monthly payments for my student loan by repaying loans early? In some cases, the federal government offers deferments to graduates who repay loans early. Repaying student debt may lower your total loan cost, but it will also increase your interest. Make sure you have a good payment history before you start repaying loans early.
Do I qualify for income-driven repayment plans? If you have a low FICO score and a relatively high debt-to-income ratio, you might consider an income-driven repayment plan. Under this type of plan, your federal loan interest is tied to your loan’s percentage of your gross income. There are certain advantages to this type of loan repayment plan, including the ability to consolidate multiple private student loans into one single loan, but you must meet certain income guidelines.
Are there any private loans I can use for my private loan consolidation? There are private loans that qualify for income-driven repayment plans, such as loans from WorkMed or US Loans. WorkMed’s income-driven repayment plans allow you to consolidate private loans with their financial assistance. US Loans offers different loan forgiveness options, which can reduce your monthly payments and make repayment less stressful.
Is there a way to combine federal and private student loans? Yes, you can consolidate your federal and private student loans by combining your loan payments into one payment. To do this, the borrower must apply for loan forgiveness. There are several private loan forgiveness programs available, but you must contact your lender first. To learn more about consolidation options, visit the Government Repayment Help website.
Is a student loan repayment plan right for me? Do I need a loan consolidation? If you are struggling with your monthly student loan payments and don’t want to risk defaulting on your federal loan, a private loan repayment plan may be the best option for you. You may also want to consider a deferment or forbearance. A deferment allows a borrower to postpone payment until his or her finances improve, while forbearance is an extension that allows a borrower to pause payments during an extended period.
Can I defer my student loans? Yes, you can defer your student loans if you meet specific requirements. Usually, a borrower needs to have his or her gross income at a certain level and have his or her debt under control. This means the borrower must have enough income to sustain himself or herself while in a period of financial hardship. A borrower may also want to consider a student loan deferment if his or her current interest rates are too high and he or she wants to save money by lowering his or her interest rate.
Can I consolidate my student loans? The nice thing about consolidating is that you can usually get a lower interest rate this way. However, you should be aware that there are many lenders that only offer consolidation if you have good credit or if you are using the equity in your home to pay off your student loans. However, since there are so many lenders that specialize in this type of loan, there is no reason why you shouldn’t look into this option as well.