Student loan debt can be crippling, and it can be overwhelming to keep up with those payments, especially if you just graduated. If you need to lower your student loan payments so that they are more manageable, you can consider the following:
Income-based repayment plans
If you took out government student loans, you may have the option to lower your payments based on your income. Because it can be difficult as a new graduate to get established in their chosen career field, this option is meant to help make the repayment process a bit easier. If you qualify based on your income, you’ll have a lower minimum payment, but there’s a catch: you are essentially lengthening your loan by doing this; you are not getting any of your debt forgiven. As such, this means it will take longer to pay off your student loan debt. In the end, you could pay more this way based on the additional interest, but could be a worthwhile option to consider.
If you have multiple student loans, grouping them together under one larger loan can help make your student loan debt more manageable. By consolidating your debt to just one loan, you’ll be paying less in interest, which can help to lower your monthly payments.
You may qualify to have all or some of your student loan debt forgiven. To find out if you qualify, speak with your loan provider. If you work in a government position, for example, you may be eligible to discharge some of your student loan debt. This can help to lower your payments or shorten your loan term, and will help to lighten up the burden of repaying your student loan debt.
Another popular income-based repayment plan is Pay-As-You-Earn, which basically calculates your monthly payments based on 10 percent of your discretionary income. Depending on how much you owe, your regular monthly payments, and your income, this can be a good option for some people looking to lower their student loan payments. Only certain types of loans qualify; contact your lender for details.
Do you need extra cash to take care of your student loan debt? Peachtree Financial Solutions may be able to help if you’re receiving long-term structured settlement payments. By selling some or all of your future payments to Peachtree and receiving your money in a lump sum, it can be easier to tackle large amounts of debt, such as student loan debt. If you’re getting ready to attend college and contemplating student loans as a way to take care of college expenses, your lump sum of cash can instead be used to take care of those expenses, which can help you to avoid student loans. Contact Peachtree Financial Solutions today for more information and to receive your free quote!
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.