Student Loan Debt Repayment
When I was finished with school I had some student loan debt and I paid it off within 2 years of graduation. I can understand why it is intriguing to have the government pay off your student loan debt, but I think you will end up paying it back in increased taxes over the long run.
Some ideas for reducing your student loan debt and repayments:
Consolidate Student Loans
Consolidate your student loans into one loan that spreads the payments over a longer period of time. Sometimes this enables you to receive a better interest rate on the consolidated loan. Checkout Sofi or Lending club to consolidate your loans.
SoFi helps members take control of their finances. From getting out of high-interest debt to managing your wealth, we are here to help you get your money right.
Lending Club – Through personal loans, auto refinancing loans, business loans, and medical financing LendingClub offers the borrowing and investing solution right for you.
Work out a plan with lenders to extend payments.
The Extended Repayment Plan allows you to repay your loans over an extended period of time. Payments are made for up to 25 years.
Under this option, you have two options for your student loan payments: fixed or graduated. Under the fixed plan, your monthly student loan bills stay the same throughout repayment. If you choose graduated, your payments will start low and then increase — usually every two years.
Your monthly payments will be lower than what they’d be with the standard or graduated repayment plans, though you’ll pay more than you would under the standard one.
Less Now More Later
Work with a lender to pay less now and more later as your income grows.
Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can change repayment plans at any time—for free. Contact your loan servicer if you would like to discuss repayment plan options or change your repayment plan.
Work with a lender to defer payments until your financial circumstances become better. If you are expecting a better job with more money then perhaps they may be willing to work with you. Just remember when deferring payments you will accrue interest during the deferment period.
Employer student loan contributions. Employer student loan contributions are a type of employee benefit in the United States. With this benefit, employers pay back student loans on behalf of employees, at certain amount per month as decided by the employer. … This benefit has grown as education debt has increased.
Get a Better Job – Employer Might Pay Off Loans
Get a higher paying job or work extra hours for your employer to get the debt paid off. Perhaps your employer has some sort of a plan to help with student loan repayment. Some employers provide this perk.
Federal Employee Student Loan Forgiveness
The government might pay them off for you. Federal employee student loan forgiveness.
Federal employees enjoy valuable health benefits and access to a federal employee student loan forgiveness program as they try to become debt-free. If you have federal student loans, working for a government agency can help relieve the burden. You might be able to get as much as $60,000 in help paying off your loans.
With any of these ideas make sure that you read the paperwork completely. If you don’t understand ask questions. Check with your financial advisers, or parents or whomever you trust. You don’t want to make things worse by getting into a loan that doesn’t work out for you. These tips should help you with your student loan debt repayment.