One of the fastest growing types of debt is student loans. The cost of college has risen astronomically over the years, and in order to get ahead in life many students are resorting to taking out loans to pay tuition and other expenses. While this type of loan is generally better than most in that the interest rate is typically lower than what a bank would offer, the amounts being accumulated are far more than what an average starting salary right out of college is being reported. The disparity between what you owe and what you make is causing many college graduates to move back home after graduation, just to be able to make their student loan payments. This type of living arrangement is not ideal, for both the parents and the student, so looking for alternatives is a must.
One thing you can do is to take steps to lower your student loan payments. A lower payment can free up part of your salary, so you can provide for yourself and/or your family. Some ways to obtain a lower payment are:
- Request an income sensitive repayment plan, rather than going with the monthly payment amount calculated at the end of your deferment period. An income sensitive payment takes into account what you make, and your household size. If you have dependents at home and make very little, you are likely to be given a reduced payment that is more in line with your budget.
- Consolidate your loans, which gives you a longer repayment period and lowers the monthly amount due.
- Request an interest only payment for a period of time, until you can make a higher payment.
- Opt for a payment plan that starts off with smaller payments, and ends up with higher payments towards the end of the life of the loan. This allows you to pay less when you are just starting out, and then increase your payments as your salary increases.
Any of these methods can work for you, but the key is to find the type that works best. We can help by analyzing your income and debt, and working with your lender for a solution that makes sense. Call us for more information.
If you need help making your student loan payments, contact our office. Call a Plantation, Florida debt relief attorney today.