Help is available if you're struggling to pay your school loans after graduation.
Taking out a student loan while in college is a necessity for many people who need it to pay for their education. Most people are able to repay these loans once they begin working since their degree allows them to earn more money. However, layoffs, reductions in employment hours or unexpected expenses may leave you without the funding to make your student loan payments. While this can be stressful, there are a number of ways you can get help for school loans.
Instructions
1. Consolidate your student loans. Check with your current lender to see if it’s possible to consolidate your student loans. Often this allows you to secure a lower interest rate and pay less over the lifetime of the loan. If your current lender doesn’t offer this, check with other vendors that specialize in student loans such as Sallie Mae and Chase Bank, or visit with a loan representative from your local bank or financial institution.
2. Apply for a deferment. Complete the paperwork from your lender to apply for a deferment for your school loans. This suspends the payments on your student loan for a specific period of time, allowing you to become more financially sound before payments resume. Depending upon the type of loan you have, interest may still accumulate during the deferment period.
3. Ask your lender about lowering your monthly payments. Lenders understand that financial hardships occur, and they would rather you make a smaller payment than no payment at all. You may be able to get lower payments by extending the length of the loan.
4. Check into loan-forgiveness programs. Visit the student aid website operated by the Department of Education to learn what federal programs are available for loan forgiveness or cancellation. Careers in public service often qualify if certain requirements are met. Contact a representative from your state Department of Education to learn if specific loan cancellation programs are available in your area. For example, Kentucky offers loan forgiveness for nurses who meet the criteria established by the Kentucky Higher Education Student Loan Corporation. Volunteer to serve with the Peace Corps or AmeriCorps for additional loan forgiveness and repayment assistance.
5. Check your employee benefits. Meet with representatives from the personnel department in your company to learn if they provide any assistance for people who need help with school loans. Some employers will pay a specific dollar amount or percentage as an employee benefit. This can provide you with the help you need to get your student loans paid off. If a benefit doesn’t exist, ask your supervisor for a salary increase or ask to work extra hours to bring in more money to pay your student loans.
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