Private Student Loan Help
Updated – Jan 10th 2020
More on the reality of private student loan forgiveness, read up!
Student Loan debt is continually on the rise in our country. As a matter of fact, according to studies debt is closing in on over 2 trillion dollars. More than 9 million individuals in our country has student loans in default status.
Private student loans amount for about $170 billion of our nation’s student loan debt. Many students have to resort to private student loans in situations where they have exhausted their federally approved funding or flat out don’t qualify for additional federal student aid.
Federal student loans by law cap out at about 8.25% but private loans usually have much higher interest rates than federal student loans. This has became a huge problem for private student loan borrowers because it makes it very difficult for them to payoff the student loan debt.
On top of this struggle, private student loans typically do not offer much of the helpful programs and benefits that a federal student loan borrower will find with with government funded loans.
Currently, options for private student loan forgiveness does not exist. However, there may be a way to help even without private student loan forgiveness being an available option.
Here are some options you can consider and take a closer look at if you have private student loans you may be struggling with making payments.
Student Loan Refinance
Refinancing your private student loans is one of the best ways to help you lower payments on your private student loan payments.
One of the major benefits of private student loan refinancing is that you have a great chance at getting our overall interest rate reduced and potentially save on thousands of dollars over the full duration of the loan.
Basic qualifications for eligibility for student loan refinancing options are usually as followed:
- Stable Employment
- Good Credit
- Reasonable Income-to-Debt Ratio
All of the companies have different terms and requirements, you will need to research to find the best option for you. You can find assistance with this. And private student loan help from our experts.
Also with student loan refinancing you can more times then none, get a better interest rate.
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Federal Repayment Programs
This is only an option if you have federal student loans as well as private student loans.
The federal government provides federal student aid borrowers with alternative repayment options that typically will reduce the monthly obligation for qualified borrowers and certain repayment plans.
In some cases these repayment plans can reduce a borrower’s monthly payments. So much that the savings can be directly applied to your private student loans. This is a very good option for private student loan help repayment.
In essence, you could apply for an income driven repayment plan for your federal student loans to reduce the payment. Then, add those financial savings to your account.
Always take advantage of your federal student loan benefits to give you leverage where you can find it. Without private student loan forgiveness paying off a private loan is already a difficult task. Ultimately, the goal is to eliminate your private student loan as soon as you possibly can.
Address your Lenders
One of the more basic options you have it to speak with your lender. Each private student loan lender has differences in their systems and protocols. So, it is very important to find out exactly what your specific lender offers.
Generally, it is not typical for lenders to offer private student loan forgiveness. Some lenders do have options however to help during difficult times.
Private student loan lenders like Navient for instance, has deferment options for borrowers in financial distress. Granted, student loan deferment can only temporarily postpone student loan payments but it will help avoid defaulting on the loans. A borrower only has a certain amount deferment available to them, so be sure to not abuse this benefit.
Remember, if making your student loan payments is a challenge and private student loan forgiveness probably is a mist. It’s vital that you reach out to your lender. Do not leave the student loans out there, doing so could severely affect your credit and ultimately impact other areas of your life and finances.
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Federal Legislation looking to consider Private Student Loan Forgiveness
Currently there are no options for private student loan forgiveness. But, there have been serious talks in our government about possibilities for private student loans through our bankruptcy laws. More can be learned about this by researching the “Fairness for Struggling Students Act” .
The Act focuses mostly about student loan equally. Meaning, how private student loans do not sure the same benefits as federal student loans. Many lawmakers including Dick Durbin, who is the the lead advocate for the Act. He strongly believe private student loan borrowers should be entitled to the same programs. Including, rights and benefits as federal student loan borrowers have access too.
President Trump as also made mention of the current student loan problem in our nation. And has stated that he plans to raise discussions on the issue. Introducing a major with for those seeking private student loan help.