Student Loan Debt Relief

While minimal when compared to other types of debt, there are options out there for student loan debt relief if you are struggling to payback your student loans. Some of us have heard rumors that there is nothing that can be done to find relief and so when we struggle and payments become too much to pay, we simply let them go and end up in default. Once you have defaulted your options shrink even further and in some cases there may be nothing you can do beyond paying the full balance. There are however some options available for seeking relief from student loan debt:

• Communication: All other options open from here. If you are struggling to make payments on one or more of your student loans, do not simply fret or ignore the issue, contact your lender and let them know that you are struggling and may not be able to continue to make payments at the current set amounts. You may find that the lender has forbearance or hardship programs in place that can help you. They may also be able to make other suggestions that will increase your ability to make your payments.
• Consolidation or Refinancing: If you have one or more loans that have not been refinanced or consolidated you may be eligible to consolidate everything again at a lower interest rate, lowering your monthly payments and making it possible to continue paying on all of your loans. Remember that Federal and private sectors student loans cannot be consolidated together.
• Deferment: If the reasons you cannot make your payments is a temporary financial setback, such as the loss of a job or some financial emergency, but you will be able to resume your payments at a later date without struggle, you might ask for the payments to be deferred. If the lender agrees then the monthly payment will be suspended until the end of the deferment period. How long of a period the lender is willing to defer the payments for will vary from lender to lender.
• Forbearance: In the case of forbearance the lender may agree to allow you to payback your loans at a reduced monthly rate. This type of relief is also only available for a short period of time after which normal payments must resume, so again it is most suitable when your financial struggle is a temporary one and once it passes you will be able to make the full payments without burden.
• Loan Forgiveness: Under certain circumstances, some students may qualify to have some of their student loan debt forgiven, this is generally relegated to Federal loans and will require some exchange, such as volunteer work or working in fields and communities that have great need for services you are qualified to provide. More often than not these programs will apply to medical professionals and educators, but are worth investigating. You may also seek student debt relief from the government by volunteering for military service. Speaking with a military recruiter can provide you with the details on this. Learn the different types of student loans on the following page.