Options for Reducing Student Loan Payments
The biggest factor that makes student loans grow is the interest rate. This is one of the most important factors when considering options for repaying student loans. Helpful options for repaying student loans to stay ahead of the interest rate include:
Starting student loan payments while in school
Using automatic pay for student loans
Make extra student loan payments on months you can afford to
These options for student loan repayment are not for everyone. Everyone experiences different financial circumstances and setbacks. If you can find a way to use one of these options, you could pay off your loan faster and pay less money in total. The longer someone takes to repay a loan, the more they will pay in total.
If you are in a situation where you cannot afford the set monthly payments, there are alternatives. Several student loan repayment plans are available to choose from. Many of these are based on financial circumstances. These student loan repayment plans include:
Income-driven repayment plan
An income-driven repayment plan changes the monthly payments owed based on monthly income. This is great for people with unstable employment or inconsistent income. In some months, you may not have to make a monthly payment at all. Deferment and forbearance may be possible under severe life circumstances and will delay the due date for repayment. However, interest will still make the loan grow.
Negotiation Tips for Student Loans
You might find yourself in a situation where you will negotiate a student loan repayment plan. This may involve a phone call or email with the student loan servicer. Common tips for deciding on student loan negotiation include:
Trying out an income-driven repayment plan first
Checking the loan lender’s math for errors
Exploring all other student loan repayment options
When it comes to student loan settlement tips, this is where negotiation is important Obtaining a student loan settlement is not impossible but can be difficult. You may not be offered the best deal and you might be required to pay a large lump sum. In some cases, there can be tax consequences.
Some loan services will work with you if you call them. Explain your financial situation and why you cannot afford the monthly payments. Be open to their ideas and express reasonable concerns you may have. Do not hesitate to ask questions.
Call Tom Bible Law for Legal Aid
Do not panic if your student loans have brought you to bankruptcy. You can contact us at Tom Bible Law by dialing (423) 424-3116 for a consultation today concerning your financial situation. Our experienced team of Tennessee bankruptcy lawyers can help you explore all your bankruptcy options. We are located throughout in the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.