If you have found that your student loan payments are dragging you down financially and that you can no longer afford them, don’t despair. Doing nothing, or defaulting on your student loan, is a bad idea because it can wreck your credit and jeopardize your financial and professional future. Instead, it’s much better to learn about the various options available to you that can make your payments more manageable or give you more time to pay. Being proactive and talking with your loan servicer or an experienced student loan attorney will give you options that can make your financial life a lot easier.
Changing Your Repayment Plan
When you’re simply interested in lowering the monthly payment on your student loan, you may want to check out income-driven repayment plans. These include the Income-Based Repayment (IBR) plan, the Pay-As-You-Earn (PAYE) plan, and the Income Contingent Repayment (ICR) plan. The IBR plan is a federal student loan repayment plan that charges you a monthly payment that is based on your income and family size. The PAYE plan is also a federal student loan repayment program that puts a cap on your monthly payment of ten percent of your discretionary income. After making twenty years of payments, the rest of the loan is then forgiven. The ICR plan is another federal repayment program that caps monthly payments at twenty percent of your discretionary income and lasts for 25 years. While these programs are for federal student loans, those who have private student loans can contact their individual lenders to see if repayment plans are available.
Consolidating or Deferring Payments
If you have more than one student loan, it may be possible to consolidate the loans into one monthly payment. This may lower the payment by extending the time over which the loan is repaid. If you’re having a tough time making your student loan payments that you anticipate will be only temporary, you can also apply for some type of deferment. There are many different types of deferments that are offered on federal student loans, and you can qualify for them if you’ve been sick, injured or unemployed. A deferment may give you some time during which payments don’t have to be made, and depending on the type, interest may or may not continue to accrue.
Call to Schedule a Consultation With a Minnesota Student Loan Lawyer Today
If you are interested in learning more about student loan payment options, call to schedule a consultation with a Minnesota student loan lawyer today. The legal professionals at the Hoverson Law Offices, PA are aware of the financial burden that student loan payments may sometimes cause. Visit our website at hoversonlaw.com or give us a call at 612-349-2728 and schedule a consultation with our compassionate legal staff. We have the experience to help you find the student loan repayment option that is right for you.