Student debt is an issue that 71% of people will have to deal with, a number that is on the rise. With an average debt of $37,172, more and more people are turning to organisations and companies to help with their financial situation, simplifying and easing the burden. The good news is, there are different options available, and taking the time to research can help you when it comes to dealing with any financial worries, and simplifying payment schemes.
If you are struggling with multiple loans, consolidation will create one simple loan repayment that can sometimes be smaller than the amount you are currently paying. Benefits of this type of loan management include having only one monthly payment, being eligible for income driven repayment plans, access to student loan forgiveness options and conversion of interest rates. There are many companies available that will help with either consolidation or refinancing student loans, research which is best for you and will provide the financial outcomes you need.
Through not refinancing it is estimated that Americans have lost $5billion, an average of $11,500 per household. Not only a potential way to save money, this can be an option for finding lower monthly payments, shorter payment plans, or as with consolidation, change of interest rate. If you have older loans you can consider finding a new loan that has better features than the one you have currently, so by changing the loan over you can be saving yourself a great deal of money.
Many individuals may not be aware that they are eligible for loan forgiveness. If you are working either for government companies or some not-for-profit organisations you may be able to have some of your student loan retracted. To qualify you must work more than 30 hours a week and have paid 120 monthly payments before you will be considered.
These payments must also have been paid after October 1st 2007, however if you meet all these criteria you can apply via the Employment Certification for Public Service Loan Forgiveness form. This is beneficial to anyone who wishes to have a large sum of their loan forgiven. However, do keep track of legislation as currently there are plans to change qualifying criteria, where a payment of 12.5% of income for 15 years is need before loan forgiveness will be considered.
With so many options available for most individuals it is worth taking the time and energy to find out which financial plan best suits you. Student debt can easily be reduced or eradicated, if you are aware of these methods. Applying for monetary help can also ease payments, and help you work towards a better financial future.