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Struggling with Student Loan Debt? Here Are Your Options
Posted By Godwin Bowman & Martinez || Aug 25, 2017
Thanks to the rapidly rising price of a college degree, student loans have now become the second-largest type of debt in the country, trailing only mortgages. That also means many people are now struggling under the weight of their student loan debt, especially those who had to take out massive loans to pay for their degree at their institution of choice. If you’re struggling with this debt, you may not know where to turn, especially when you can barely make ends meet on your own living expenses. Fortunately, there are more options available to you than you might realize. Here are just a few of the most common student loan debt relief solutions you may be able to pursue.
Forbearance & Deferment
Have you lost your job, suffered a serious illness, or in some way lost your ability to earn money and pay your bills like you did previously? If your condition is temporary, you may be able to obtain a temporary stop on your loans through either a forbearance or deferment. Forbearances simply freeze the balance of your account, including the interest, while deferments freeze the balance but continue to collect interest, so your total cost will still continue to rise.
Income-Based Repayment Plans
Income-based repayment plans are those which are tailored to your income amounts based on the amount of time since your graduation. Normally, these plans cost less in their first years and more towards the end, allowing you to use a consistent percentage of your earnings to pay off your loan rather than a fixed amount, which is beneficial to those who don’t earn much after graduation.
If you work in a public service position, as a teacher, nurse, or in many other occupations, there’s a chance you may qualify for a form of student loan forgiveness. If you’ve served in your position for a certain amount of time, you may qualify to have a good chunk or even the entire remaining balance of your loan forgiven. Talk to a Dallas bankruptcy attorney to learn if you qualify for one of these options.
Are you dealing with multiple lenders and making multiple payments on multiple due dates every month? Consolidating your loans into one simple payment means one cost paid on one date once per month. This gives you less of chance of missing a payment, paying late fees, or having huge chunks of your paychecks disappear all month, which means you could potentially save money in the long run.For more information about student loan debt relief options, talk to a Dallas bankruptcy attorney about your situation. Call Godwin Bowman PC today at (214) 939-4400 to request a case evaluation.