Are you overwhelmed by student loan debt? Going to school gives you confidence that once you graduate, you will be able to find a job that will provide you with financial security. Many financial admissions officers do not discuss what will occur with the loans that you acquire to make that possible. It may be tempting to ignore the debt from your student loan and focus on your everyday life, but that creates a bigger problem. If you fall behind on payments, the government can garnish your wages, or withhold federal payments and tax refunds. Your credit would be damaged and may prevent you from purchasing certain assets like a car or home. Additionally, there is the potential of being sued.
There are three forms of student loans: federal loans, private loans, and refinance loans once you have finished or left school.
Federal loans are provided through the government, which allows them to be more flexible. A lot of options for repayment of federal student loans revolve around income, but some are not tied to income and are for all types of federal loans. These repayment plans are classified as standard, which is the typical 10-year term for a federal student loan. Borrowers’ loans are enrolled automatically into this plan when their loans enter the repayment phase unless they choose a different method. There is a graduated payment plan, which begins with lower monthly payments that will increase over time to be paid off within ten years. Finally, there is the extended payment plan, which will need to be paid off within 25 years, and can be used when the borrower has more than $30,000.00 in outstanding loans.
Banks and other financial institutions offer private loans to students. By utilizing this option, students need to have a good credit score. If they do not have a good credit score, they can use a cosigner to qualify for the loans. By having a cosigner on the loan, the student is responsible for repayment, but the cosigner is also accountable for repayment if the student fails to pay the loan. When it comes to obtaining a private student loan, you will need to have a perfect credit score to get a low-interest rate for the loan. Less than 5% of borrowers receive the lowest rates for these types of loans. Private student loans can contain hidden variable interest rates within the fine print that may increase within a few years.
Refinance loans of student loan debt can consolidate your existing federal and private education loans into one single loan with a lower interest rate. Many lenders will also allow you to choose your loan terms and customize your loan payment to make it more affordable. The good thing about refinancing your student loans is that you can do so when your credit is improved and whenever you feel it is right. The best time to do so is when the savings will make a difference. When you have student loans with high variable rates, you can refinance when the interest rate environment is attractive, your credit score has improved, and your finances have improved.
At Debt Rescue Law we take student loan debt settlement seriously. After all, many of our attorneys have faced student debt in the past. We have firsthand experience working with lenders and can establish a settlement plan that works for you. We stand by our representation and guarantee that if a Debt Rescue Law attorney fails to provide a settlement agreement, Debt Rescue Law will give you a full refund. How many other settlement law firms can make this promise? We take the risk out of regaining your financial stability.