Securing a student loan might seem like a great idea to help you pay for college, but many graduates soon realize what seemed smart four or so years ago now leaves them strapped with a significant financial burden.
If you feel as if your student loan debt is out of control and you are frightened you will never be able to pay off the amount, you are not alone. Hundreds of thousands of graduates are postponing their lives to catch up on student loan payments and in many cases, they are forced to default on their loan. Many college graduates are even filing for bankruptcy before the age of 30 – all because of student loan debt.
Luckily, there are things you can do even after you used loans for college to make your situation a bit easier.
Looking for ways to how to handle your student loan debt? Consider a few of these tips:
Ask about Bank Discounts
Some banks are providing borrowers with a break in interest rates, payment terms, and even balance forgiveness. These are private lenders doing this, so not all student loan debt will be eligible. These programs, intended to improve public relations for the lenders, can be extremely beneficial for those who borrowed from private lenders to pay for college.
Use Your Career to Ease Your Debt
Though you likely chose your college major years ago, you might still be in the process of choosing a career. Or you might have flexibility or a desire to change employers. If at all possible, consider a switch to public service. These lower paying job opportunities with federal, state, and local governments offer debt forgiveness to employees once they have made 120 monthly student loan payments.
For more information on choosing a career that helps you pay off your student loan, check out this Huffington Post article.
Location, Location, Location
Are you considering a move? Your destination could mean debt forgiveness for your student loan. Some municipalities offer financial perks to encourage borrowers to settle down in the area. If you are not locked into your current location and you are willing to be open-minded about your destination, you could be eligible for student loan debt forgiveness by choosing a particular location.
Consider a Balance Transfer
Student loan interest is usually low and credit card interest can be notoriously high, so it might seem counter-productive to transfer your student loan balance to a credit card. However, there are instances in which a balance transfer offer includes zero interest, at least for a limited time. If you are sure you can pay off the balance in time, you could save thousands of dollars in interest. And if you choose a rewards card, you could even earn cash back or other perks when you move your student loan to the card. While this could be a smart move you must make sure you can pay off the loan BEFORE a higher interest rate kicks in.
Not every solution will be right for every situation, but the important thing is to understand you have options. You do not need to feel desperate because of student loan debt. And if things have gotten out of control with your financial burden, there are still options available.
To learn more or to speak with someone about a plan to get your student loan debt back within your control, contact the law office of Frank J. LaPerch, PC at 845.942.5500.