Dealing with student loan debt
Updated on October 25, 2019
Policymakers in our country understand the need to address college affordability. College tuition fees keep rising each year, making it difficult for minimum wage students to attend school comfortably. While scholarships are a viable option for many students, not all qualify.
Federal loans, on the other hand, are available to all students within the state. The government issues them as part of your school’s financial aid offer. Since 2006, student loan debt has risen to $1.6 trillion, which is more than the credit card debt in the country.
While federal student loans help thousands of students to have access to higher education, they have created a loan crisis in the US. These loans leave borrowers drowning in debt and living half their lives trying to clear them.
Addressing the problem
Policymakers have implemented various plans that allow defaulters to pay back their loan conveniently. For instance, there are income-driven repayment plans that enable students to pay off loans that are too high.
Income-driven payment plans are based on your state of residence, income, family size, and type of federal loan taken. However, the responsibility of finding debt-free higher education plans does not lie on the government alone.
Borrowers also need to take action to reduce their student loans. Student debt can be overwhelming, especially if they are massive, but with a repayment plan, you can pay back gracefully. First, begin by understanding your loan, its terms, and details.
You also need to know the interest rate of your loan to help you determine if consolidation is an option or not. Some loans allow you to pay extra on, thus, identify if this is an option for you.
Second, choose a student loan payment plan to make your repayment manageable. Your options, however, for this may be restricted if you have a private student loan.
You can check what repayment options you have with your private lender that are lenient. Loan forgiveness is also a vital option to reduce your student debt.
StudentLoanify is here to help you with your repayment plans. Contact us today to find a suitable plan for you.