Student Loan Relief Information
Student Loan Relief has become quite the buzz lately. There are companies popping up everywhere that claim they can help you consolidate your student loans and in some cases get them forgiven entirely. This promise is difficult to pass up for many struggling consumers that cannot afford to make their payments on the student loans that they have in place. You need to be aware of a few things before you jump into bed with one of these so-called “Student Loan Relief” companies. First and foremost, do your research! Many of these Government Student Loan Consolidation Programs can be accessed and completed by yourself without the need to pay another company to help you. If you choose to hire an outside company to help you with the student loan consolidation process then make sure you check up on them for consumer complaints before you give them any money or information. There are some great Student Loan Relief companies that are honest and ethical, but you need to proceed with caution.
We’ve put together some additional information that will hopefully help you in your quest for Student Loan Debt Relief.
Should I Consolidate my Student Loans?
Deciding whether or not to consolidate your student loans can be tricky. You need to consider several factors before you decide to go through with a Student Loan Consolidation Program. Here are some of the things to consider that will help you to make an more informed decision on if student loan consolidation is right for you or not.
What types of student loans do you have?
For the most part only federal student loans can be consolidated. If you have privately held student loans you will need to contact your lender(s) directly to see if they have any programs available to you that will help you reduce your monthly payments to them.
Are you struggling to make your monthly student loan payments?
If you are finding it difficult to make your monthly student loan payments then you may want to start planning ahead quickly. You need to avoid a wage garnishment at all costs. Once a garnishment is in place it can take several months to get it released and this can cost you thousands of dollars in fees and penalties. If you’ve already used up all of your forbearance and deferment options then student loan consolidation may be the right move for you.
Do you have multiple loans with multiple student loan payments?
If you’re like most consumers who have student loan debt then you probably have 3, 5 or even 10 different student loans. This can be an absolute nightmare to keep up with. Making even one student loan payment every month can be difficult but there are several people that are making multiple payments to multiple different lenders. If that’s the situation that you’re in then you may want to take a serious look at student loan consolidation as an option to help eliminate the burden of making multiple student loan payments every month.
How much are you currently paying in interest?
You want to find out exactly what your current interest rate(s) are on your student loans and if you have fixed or variable rate loans. Determining how much you are paying in interest can make or break the decision to consolidate your student loans. Most consolidation programs will get you into a fixed rate no higher than 8.25%. In addition, with most Student Loan Consolidation Programs the Government will pay your interest for several years and lower your payment significantly. In some cases your payment can be eliminated entirely. You also need to keep in mind that if you string your student loan payments out over 20 or 30 years then you may end up paying much more interest in the long run.
Income-Based Repayment Plan (IBR)
The Income-Based Repayment Plan or IBR is one of the most common ways to consolidate and manage your federal student loans in order to get your payments lowered so that you can afford them.
The Federal Student Aid Office of the U.S. Department of Education provides an IBR Fact Sheet that will tell you everything you need to know about Income-Based Repayment Plans so that you can decide for yourself if an IBR is a good option for you.
If you’re looking to apply for an Income-Based Repayment Plan on your own, the Federal Student Aid Office provides more information on their Income-Based Plans page, along with an IBR Q&A PDF to answer specific questions on Income Based Repayment.
If you’re still considering an IBR but you’re confused or you feel that you may need assistance then give us a call at 800-542-3870 and one of our friendly and knowledgeable Student Loan Consolidation Experts will help you. As always, we encourage you to try to get an Income-Based Repayment Program approved on your own but if you feel that you need professional assistance we’re here to help.
Obama Student Loan Forgiveness
You may have heard of the “Obama Student Loan Forgiveness” program. So what exactly is it and is it right for your situation?
Under President Obama’s Student Loan Forgiveness Program borrowers with an income hardship can qualify for repayment programs that require payments capped at 10% of the borrowers income. This program was put into effect on March 8th, 2012 and has already helped thousands of struggling borrowers with student loan debt that they cannot afford. The Obama Student Loan Forgiveness Program can help struggling borrowers for up to 10 years and in some cases it can eliminate their remaining student loan balances entirely after 10 years of consecutive payments.
Do I qualify?
First of all you need to know that the Obama Student Loan Forgiveness Program only applies to federal student loans. If you have private student loans then this is not the program for you. If you have privately held student loans you may want to look to your lender or employer for help. They may have some sort of program in place that can help you reduce or eliminate your monthly payments entirely.
If you think you may qualify for the Obama Student Loan Forgiveness Program and you need additional information, see simpletuition.com’s Obama Student Loan Forgiveness page.
If you need additional assistance then feel free to give us a call at 800-542-3870.
Student Loan Debt Relief Resources
Getting a Student loan Debt Relief Program approved can be a very difficult and time-consuming task. Here are some resources that may help you along the way.
- Federal Student Aid Office: U.S. Department of Education
- AllTuition.com: Private Student Loan Refinancing
- StudentLoans.gov: U.S. Department of Education
If you’re still having difficulty getting a Student loan Debt Relief Program approved on your own then feel free to give us a call at 800-542-3870.
We can point you in the right direction to get professional help that’s guaranteed to get your student loan payments lowered or eliminated entirely as long as you qualify for one of the many Student loan Debt Relief Programs available to you.