“Get an education, and get a job.” It’s good advise and there’s no doubt that a college education can boost your income. However, with an education often comes student loan debt that you’ll need to manage and learn to balance as you climb the career ladder.
To make that a little easier, we recommend the following strategies to alleviate the burden of your student loan debts so the climb towards financial and career freedom is a little easier.
Right after you graduate, consider a deferment. This is possible for federal loans and while you won’t have to make payments during the deferment period, interest may continue to accrue. Thus, you’ll want to weigh this option carefully, however, it’s a good place to start especially when you’re just starting out.
If you are rejected for a deferment, you may be granted a forbearance. It’s very similar, but unlike a deferment, interest will most definitely accrue and be added to the principle. Thus, you’ll want to keep your forbearance period to an absolute minimum even as you continue to make payments on the interest that’s accruing.
Another option to consider is consolidation. This allows you to combine all of your student loans into a single loan with the same interest rate. This makes it easier to make your scheduled payments and manage your total loan balance. Again, weigh this carefully because the interest rate you receive will be an average, and you could end up paying more in the long-run if you’re not careful.
You can also request federal student loan forgiveness. It’s a long-shot but if you are in a profession such as education, medicine, or in the non-profit sector, you may qualify. So, while it’s a long-shot, it’s worth taking a few moments to determine if you qualify and what the process would entail.
Finally, there’s bankruptcy. You cannot discharge your federal loans in bankruptcy; however, you may be able to discharge some private loans. Even if you win, you lose because your credit score will take a very large hit from the discharge of your student loan debt.
The team at Superior Debt Relief would be glad to help you wrap your student loan debts into a comprehensive financial strategy for you to follow. We invite you to contact us at 866-896-7616 to learn more about our services and the strategies we recommend for your individual financial needs.