Student Loan Debt Relief Options.txt by rakaisanjaya


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Student Loan Debt Relief Options

Student loans just like your car or mortgage loans need to paid timely. The more you delay, the
difficult it gets for you to completely repay them. If you are facing trouble in repaying your student
loans, you can take help of several student loan debt relief options.

Student Debt Relief Programs

Educational loans, if not paid on time are charged with late fees. In case you are unable to repay
your loans on time, as mentioned in the legal documents while you took the loan, you may end up
in default, which is quite a serious financial setback. If you are in default, your credit rating will be
spoiled and legal action can be taken against you by federal government, your loan service
provider, your educational institution and even by your loan guarantor. If you have been finding it
difficult to make payments of your loan for quite some time, it is time to rush to your loan service
provider or the school, college that gave you the loan, and seek query. If you approach them
timely, you may benefit from some student loan debt relief options. It is a blunder not to mention
your creditors that you are unable to pay monthly dues. They will retaliate more badly, if you end
up with a huge amount unpaid. If you delay, your financial situation will only be burdened with
higher interest rates and added principal amount.

Repayment Plan Changes
After you have graduated from your college and it is officially the time to start repaying your loans,
you can choose a debt repayment plan based on your financial situation. Under several student
loan repayment plans, you'll get a time frame of 10 to 25 years to repay your loans. All repayment
plans will depend on the type of federal loan program you have opted for. Standard Repayment,
Extended Repayment, Graduated Repayment and Income Based Repayment (IBR) Effective July
1, 2009 are some options available to federal student loan candidates.

If you are able to meet several requirements established under the loan program you've taken,
you may be granted a deferment that will allow you to temporarily halt the process of loan
payment. There are several rules and laws and regarding that and it specifically depends on your
type of federal loan.

If you are unable to qualify for a deferment, you should try for forbearance. In this procedure, you
will be allowed to pay your loans, in parts or the time for your loan repayment may be extended.

Debt Consolidation
It is the most logical step to take especially when students have trouble repaying either federal or
private loans. By , multiple loans can be clubbed in one loan repayment program, with some relief
in interest rates. This reduces burden on students to quite a great extent as they don't have to
manage procedures of multiple loan payments at several places.

Public Service Employee Forgiveness Programs
The federal government has come up with this scheme to grant flexibility to employees of public
jobs for repaying their student loans.

Note: Discussing all debt relief options with their complete details is beyond the purview of this
article. To get expert advice and know all details about debt repayment plans, please visit the
official website of the U.S. Department of Education. For information on Federal loans, you can
contact, Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243; TTY 1-

Students planning to take educational loans must first try to take full benefit of federal loan
programs instead of approaching private loan lenders. This is because federal programs have
several repayment options and they are flexible in nature, unlike private loans. Besides, interest
rates of student private loans are not usually the same as advertised in commercials. Make sure
that you and your parents have discussed the loan issue with your school's/college's financial aid
office properly. Don't jump in the student loan market without expert consultation.

The information briefed above on student loan debt relief help was specifically dedicated to federal
loans because they offer a wide range of options to student for repayment. Private loans are more
difficult to repay and consolidation works the best in such cases, as aforementioned earlier. If you
have taken private student loan, seek proper counseling with the loan service provider and ask for
options to make the repayment process easier for you. Gather sufficient information on student
loan debt relief options and only then proceed further. You have to be careful regarding every step
you take to secure your financial future.

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