Student Loans
Unlike most debt, student loan debt is actually a good debt to have, as this debt allows people to attend college who would have not have been able to afford it otherwise. Unfortunately, the cost of a college education is increasing every year and many families are finding student loans to be a huge undertaking. While there is not too many ways to seriously, slash you education debts. Here are a few things that you can do to make the cost of your loans more manageable:
- Consolidate you loans. If you find you cannot afford your payment and do not qualify for a deferment, forbearance, or cancellation, try to consolidate your loans. The Federal Direct Consolidation Loan Program allows you to combine all of your loans into one single low rate. While the rate will vary, the current cap is 8.25 percent on the interest rate. To see if you are eligible to consolidate your student loans try calling the Student Loan Marketing Association at 800.643.0040
- Defer your student loan payments. If you are not in default, you can request a deferment on any federal loan disbursed after July 1,1993, if any of the following are true:
- You are suffering hard times financially.
- You are unable to find full-time employment.
- Enrolled in school at least half-time.
- Enrolled in an approved graduate fellowship or rehabilitation program for the disabled. To obtain a deferment of a federal loan, contact the current loan holder. Obtain deferment forms from theDepartment of Education.
- To get more information about Consolidation Loan options contact theLoan Origination Centers Consolidation Department or call 800.577.7392.
- Obtain Forbearance. While you may be unable to qualify for a deferment and are facing hard times financially, your lender may allow you to postpone your payments or temporarily reduce them. This option is easier to obtain and you may be able to obtain forbearance even if you are in default. Forbearances are the least attractive option because interest continues to accrue even though you are not making payments. Lenders typically grant forbearance’s in six-month increments for up to two years. Again, there is no stated condition to qualify, so call your lender, and ask.
Student Loan Resources
- Find information about your student loans through the National Student Loan Data Systemor call 800.4.FED.AID. This site will provide you with your loan and grant amounts, loan status, the outstanding balance, and disbursements.
- You can obtain further information on student loans inThe Student Guide, published by the U.S. Department of Education. You can also obtain a copy by calling the Department of Education’s Federal Student Aid Information center 800.433.3243 or the Department of Education’s Debt Collection Services Office 800.621.3115.
- If you have tried the abovementioned and are still having trouble getting information, you can call the Student Loan Ombudsman at 877.557.2575.
- For information of on student loans and repayment options click
The Project on student Debt - To estimate monthly payments under different payment plans click
SallieMae.com - To identfy and compare lenders for federal or private student loans click
Simple Tuition.com