Finding a good paying job is even more crucial for new college graduates who have to juggle between paying their student loan debt and credit card charges. According to the National Center for Education Statistics, an approximate 50% of fresh college graduates owe some form of student loans with an average amount of $27,800.
It is important to have a clear understanding of what comprises your student loan debt and its nature in order to find out the options available to you. Check out studentloanborrowerassistance.org and finaid.org for vital information concerning student loans. Also check out nslds.ed.gov/nslds_SA/ for information on federal loans.
Student loans can be generally classified into federal loans, if government issued, or private loans, if issued by a non-government entity such as a bank or other financial institution.
If you owe on a federal loan, you can take advantage of the new federal program known as Income-Based Repayment. This program allows the repayment of loans based on the amount of the debtor’s income. As such, monthly payments will be reduced or increased depending on how much you are making per year. There is also the Public Service Loan Forgiveness program which favors public sector employees by permitting their loans to be forgiven after the lapse of 10 years.
If you are finding it impossible to deal with several student loan debts, you can also opt to consolidate these type of loans. However, federal loans cannot be consolidated with private loans and credit card debts cannot be consolidated to either of these loans. Loans need to be similarly classified for the consolidation option to apply. One of the advantages with this method is that your interest will be reduced to a single rate and you only have to worry about a single payment every month.
Another option is to outline a debt settlement program that will serve as your guide in paying off your student loan debt. Talk to a debt counselor or inquire from your loan provider the options available to you. By knowing as much information as possible, you will be better equipped in dealing with the payment of your loans.