Student loans are excellent investments for your future. However, they can also be a massive burden if you end up struggling to pay them. Just ask the millions of people in the U.S. who are also struggling with their student loan debts. You can regain control of your finances and move forward by leveraging student loan management programs.
At Reed Law Firm, we can assist with other financial relief strategies, such as bankruptcy, to help lighten your financial burden.
How Student Loan Management Programs Work
Essentially, student loan management programs are non-bankruptcy options that you can use for managing private and federal student loans. Instead of leaving your student loans on hold, accruing interest, opting for a student loan management program can make handling your debts more manageable and affordable.
With various programs to choose from, you must understand the eligibility requirements and program conditions to determine the most beneficial option for your situation. Make sure to explore your options carefully to enter the best program for your situation.
Repayment Plans
Through this option, your monthly loan payments will be reduced, which can help you catch up with your debts. These options are usually income-driven, meaning that your payments are dependent on your income.
Refinancing
When you refinance your student loan, you will get a new loan with a reduced interest rate. You can refinance private and federal student loans.
Rehabilitation
You can rehabilitate your student loan debt if you are not eligible for any repayment plans because you have defaulted on your loan. Once you’ve successfully rehabilitated your student loan, you can then apply for repayment.
Loan Modification and Deferments
Federal law requires federal lenders to offer deferments if a borrower can prove hardship. Once your student loan has been deferred temporarily, you can pursue other alternatives to fix your financial issues without worrying about making your student loan payments on time.
Additionally, federal lenders must also allow borrowers to renegotiate or modify their student loan payment plans once a year. This could reduce your monthly loan payments by modifying them based on your current income or extending the payment period.
Debt Consolidation
With debt consolidation, you will take out new loans that you can use for repaying other debts, such as student loan debt. This will enable you to consolidate all your loans into a single loan with a more manageable repayment period and reduced interest rate.
Student Loan Forgiveness
If you qualify for a student loan forgiveness program, a portion or all of your student loan debts may be forgiven, discharged, or canceled. There are various loan forgiveness programs to choose from, but for many people, it will come down to their specific circumstances and financial goals.
Get Legal Assistance From a Seasoned Columbia Bankruptcy Attorney
At Reed Law Firm, our Columbia bankruptcy attorney understands the difficulty of paying certain debts, and we regularly help people take back financial control through the bankruptcy process. Schedule your free case review with our office by calling 803-726-4888 or reaching us online.
