Need Help Paying Back Student Loans?

Many college students and graduates are looking for a solution for their student loan debt. While borrowers may be having difficulty paying back student loans, there is help. Solutions for paying back student loans are available.

What causes difficulty in paying back student loans?

New college graduates may find that it takes them longer to find a job than they expected. While there's a six month grace period from the time students graduate until repayment begins, sometimes it takes six months or longer to find a job.

Many recent graduates who are employed are underemployed -- working part-time or temporary jobs until they find a permanent position. During this time they may need help in making loan payments.

New college graduates can use several strategies to help with student loan repayment. Taking on additional part-time jobs or freelancing may be an option.

It is also wise to keep living expenses low the first few years out of college. Graduates can live with a roommate, or downsize into a smaller apartment. If new graduates are still looking for a job, it may be a good idea not to move until permanent employment is found. Then it will be easier to move to an area closer to the job.

Applying for a forbearance may be an immediate solution for times of difficulty making loan payments. A forbearance is temporary period of suspension of payments on a federal or direct loan after repayment has begun, and if the student does not qualify for deferment.

This means that if a student has already started paying back loans, they can apply for a suspension of payments on the grounds of financial hardship. A forbearance must be applied for through the lender. Being able to hold off payments for a few months can be a big help during a time of financial hardship.

Another student loan debt solution is to consolidate payments. Unless consolidated, each student loan is accounted for and paid separately. When a student graduates they will receive paperwork and payment slips for each loan. 2, 5, 12... no matter how many loans were taken out, they will be billed separately. Adding up all of these individual loan payments could total $300-$1000 per month or more! Not many students can afford such payments.

That's where consolidation comes in. Consolidation is a process that combines all of the student loans into one loan. Borrowers can dramatically reduce monthly payments of student loans by consolidating. Average monthly payments could be less than $100 to around $250 per month. This is just an estimate. The monthly payment depends on the total amount borrowed, the interest rate and the way that loans are consolidated.

Consolidating through The Income Contingent Repayment plan is designed to help make repaying student loans easier for students who intend to pursue jobs with lower salaries, such as careers in public service. The monthly payment amount is adjusted annually, based on changes in family size and annual income. This program is only available through the US Department of Education, not a lender or bank.

Finally, the Graduated Repayment Plan starts the payments at a low level (usually interest only) and gradually increases the payments until the balance is paid. This is helpful for graduates because payments are low when the first graduate, and increase as earning power increases over the years. This plan is available by consolidating through a bank or other lender.

It is important to note that according to current regulations student loans may only be consolidated once. So borrowers who have already graduated and consolidated with a standard plan cannot take advantage of the income contingent or graduated plans. For borrowers who have already consolidated, a forbearance may be the best option for temporary relief of student loan debt.

Use the student loan repayment calculator from finaid.org to find out what loan payments could be using different types of consolidation.

College graduates can find student debt relief using one of the solutions mentioned above. Discuss loan repayment options with your lender and see what can be done to help you repay student loans.

About the Author: Michael Carter is a contributor at College Financial Aid Guide, an online informational resource for educational funding, scholarships and student loans. Find out more about Paying Back Student Loans

---

Building Interaction Into Your Online Course

You've already decided that you're ready to author online and... Read More

Marketing Students: 5 Guidelines For Your Final Paper

Get motivated! ('Why do I write this paper?")This is a... Read More

Study More Effectively

If you are studying for an exam or if you... Read More

What Makes A Penn State Online Degree Preferable To Other Online Degrees?

A Penn State online degree is a college degree from... Read More

Thinking of Dropping Out of College?

If rising tuition costs or personal concerns have made you... Read More

The All-Important College Application

H.G. Wells once said, "Human history becomes more and more... Read More

Acing the SAT Exam

Don't cheat. This goes without saying for 999 out of... Read More

The College-Bound Students Early Bird Menu

Many parents and students I counsel confuse Early Admission, Early... Read More

The Pros and Cons of an Online College Degree

Getting a college degree online seemingly appears to be a... Read More

How to Find Money for College Education

Many current and future college students need help to pay... Read More

Packing for College

Sending a child away for college and helping them pack... Read More

Why You Should Choose an Accredited Online Degree

An accredited online degree is a college degree that is... Read More

Caribbean Single Market and Economy - Who Says UWI isn?t Doing Enough?

The University of the West Indies (UWI) has often been... Read More

Federal PLUS Loans

As a student entering college, it is very unlikely that... Read More

Whats behind the Explosive Growth in Distance Learning?

There is a ground swell of support globally to support... Read More

Dont Graduate - What Students Should Know About College, But No One Ever Tells Them

For all the students even dreaming about going to college,... Read More

Online Education

I always dreamed of going to school and getting a... Read More

Naturopathic Schools

NATUROPATHIC SCHOOLS instruct in Naturopathic medicine which is an holistic... Read More

Student Loans ? Ensuring a Brighter Future Ahead

Higher education in the university gives students a chance to... Read More

Natural Healing Schools

What are NATURAL HEALING SCHOOLS? Natural Healing Schools teach natural... Read More

PCDI - The College and University Alternative for Working Professionals Pursuing Their Degrees

PCDI | Professional Career Development Institute - The College and... Read More

Online Degree Education - Advantages

Distance education has been getting a lot of attention lately,... Read More

Quality Schools

After presenting these ideas at the NAREN (National At-Risk Education... Read More

Business and Academia!

The driving factor of any university is to make the... Read More

Mind-Body Secrets for College Success - Six Key Secrets

Embrace the secrets of the body-mind connection and tap into... Read More

What Are Online Masters Degrees?

Online masters degrees are higher education college degrees that are... Read More

College Low Expectations Game Cost Students, Parents, & Taxpayers Thousands of Dollars

During a recent conversation with a client, he shared with... Read More

Student Moans and the Quarterlife Crisis

It's that time of year again when global issues take... Read More

What to Look For When Choosing an Online University

A college degree gives a person a guarantee of higher... Read More

How To Pass Exams

In modern society passing educational examinations becomes an increasingly important... Read More

The Oxford Student - Official Student Newspaper

Academics from Oxford University have mathematically proven long held suspicions... Read More

Hidden College Costs: Roommate Conflict

Parents, if you're already reeling from the costs of today's... Read More

Too Much to Read and Too Little Time

I spent the better part of 17 years in and... Read More