Student Loan Repayment: How To Plan Your Repayment
Student loan debt has passed the $ 1 trillion mark. That’s more than Americans owe in credit card debt! While thousands of successful students graduate each year, many are struggling to find a job to help them pay off their student loans. Making a payment plan should always mean never missing a payment and knowing what payment options you have.
First, and possibly most important, is to remember to NEVER miss a payment. Student loans are one of the few types of debt that you cannot escape or get rid of in bankruptcy. Student loan debt is considered good debt and can help your credit score when you make your payments on time and in the required amount. On the contrary, your FICO Score can really suffer if you don’t make your payments. In fact, the IRS can garnish your wages and take money from your state / federal tax return to try to collect your student loan balances. You may also be charged collection fees along with attorney and court fees in case the government needs to pursue you in court to try to collect what it owes them. The bottom line: make your payments. If you are not in a position to make the payment they are requesting or cannot do anything at all, don’t just sit there! Call your lender and let them know your situation so they can work with you. Federal loan holders are very good at understanding your situation and working with you accordingly. Private lenders will also work with you in most cases. You likely qualify for loan consolidation or restructuring, which brings us to the topic of knowing your payment options.
You may be one of the millions of people struggling to find gainful employment after graduating from college. The government realizes how difficult it is right now and has created several programs to help ease the pain of paying off your student loans. Depending on your particular financial situation and employment status, you have options with income-based payment plans, income-dependent payment plans, graduated payment plans, extended payment plans, forbearance, and deferral. There are also student loan forgiveness programs for those who qualify. You can visit the federal student aid loan consolidation website to find out which programs will work for you and how to apply. It is the best way to control your student loan debt and avoid missing payments. Make a plan to control your college loans!