Little-known facts about student loans

Category: Education

Graduating class

Have you considered borrowing money to help pay for college, or do you already owe thousands of dollars in student loans? Whether you’re just beginning to explore student loan options or you’re currently repaying debt from a student loan, the following are some helpful, yet little-known student loan facts:

You can potentially eliminate or lower your payments

If you fall into a specific income bracket, you may be eligible for lower payments or you may be able to get some of your debt discharged completely. Pay As You Earn is a plan that can allow qualifying borrowers to pay 10 percent of their discretionary income towards their student loan debt for 20 years; after the 20-year period, remaining debt is discharged.

Making a payment every 269 days will keep you from defaulting

There are some severe consequences for falling behind on student loan payments, such as withheld income tax refunds, poor credit, and wage garnishment. But as long as you make a payment every 269 days (for federal student loans), you’ll avoid defaulting.

You may be able to discharge debt without filing for bankruptcy

In fact, this is usually one of the debts that cannot be discharged through bankruptcy. But if you’re disabled and you receive Social Security or you’re a disabled veteran, you may be eligible to have your student loan debt forgiven—regardless of whether you also declared bankruptcy.

Your town may offer financial assistance

More rural towns and counties throughout the country are providing financial help for college graduates by assisting them with their student loan debt. Find out if your town participates, or if you’ve thought about a change of scenery anyway, consider one of the towns that do offer this type of assistance if you’re in a tremendous amount of student loan debt.

Loan forgiveness

If you work for the government, you may be eligible to have your debt discharged through loan forgiveness if you’ve made at least 120 monthly payments. Various industries are eligible, including some jobs with non-profit organizations, so ask your lender if you qualify.

If you have federal loans

If you have more than $30,000 in federal student loan debt, you may be able to opt for an extended repayment plan that can help to lower your monthly payments. But bear in mind that this will extend the life of your student loans for many more years, so it’s best to only use an extended repayment plan as a last resort. Another way to lower your monthly payments is to enroll in an automatic debit program, which can potentially help to lower your interest rate by as much as 0.25 percent.

Are you in a lot of debt from taking out student loans? Peachtree Financial Solutions may be able to help if you’re receiving long-term structured settlement or annuity payments. At Peachtree, we purchase future payments from people who need their money sooner. Receiving your money sooner can make it easier to tackle large amounts of debt and expenses, such as student loan debt.

If you haven’t taken out student loans yet, but have thought about it in order to pay for college, explore the other options available to you. If you’re receiving payments from an annuity or structured settlement, you can use that money to help pay for college. Although the periodic payments may not be enough to cover all tuition and other college expenses, receiving your money in a lump sum can make things much easier.

Whether you want to pay for college or you need to pay back student loans, let Peachtree help. Contact Peachtree Financial Solutions today to learn more about selling future payments for a lump sum of cash!


Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.

Tags: college, federal loans, Financial Aid, loan forgiveness, private loans, Student Loans

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