Many students graduate with thousands of dollars in student loans every year.
If you have recently lost a job or suffered another financial blow, it might help your finances if you lower your student loan payments. Or, if you cannot make any payments, you might be able to defer your payments for a few years until you can change your financial situation. Keep in mind, however, that if you are not suffering financially, it's best to pay off your student loans sooner rather than later.
Instructions
1. Apply for deferment on your student loans. Everyone is allowed deferment of federal student loans if they meet certain qualifications such as recent unemployment, returning to school or working in a low-paying public service job. In most cases, during the deferment period, the federal government is responsible for paying the interest accrued on your subsidized Stafford loans. Check with your lender for other loan deferment qualifications.
2. Consolidate your student loans to lower your monthly payments. Fill out the necessary paperwork with your lender by July 1 to set a low interest rate. Be advised that this action will make the time you spend paying out your loan longer.
3. Apply for economic hardship deferment if you have a low income job. The length of time allowed for this deferment is up to the lender's discretion. Try to use the deferment period to find a better paying job and change your financial situation by paying off other debt, such as credit card debt.
4. Contact your lender about forbearance as a final alternative. In forbearance, your payments are also deferred for a short amount of time; however, your interest continues to grow. Lenders want you to pay back your money, so instead of putting your loan into default, they lower your monthly payments. As this is bad for your credit, use this as a last resort.
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