With overall consumer debt increasing at an unprecedented rate, and with recent college graduates entering a tough job market, find the best student loan repayment program is becoming more important than ever. Many grads are also looking for student loan repayment assistance, since the jobs that are available may not pay enough to allow for large, inflexible payments on student loans. Fortunately, there’s a lot of information available about various student loan repayment programs and assistance options.
If You’ve Got a Problem… You’re not Alone
Recent reports indicate that average student debt has climbed by 8% recently, but salaries for the entry-level positions graduates are applying for have only gone up by 4%. The difficulties recent graduates are having with student loan repayment programs have attracted the attention of a broad spectrum of public and private organizations. For a good overview of the current climate for student loans and the need for student loan repayment assistance, go to ProjectOnStudentDebt.org. You can download a PDF version of their white paper, “Addressing Student Loan Repayment Burdens,” from a recent program the organization put together to study and report on the issues surrounding the current situation. This website also has links to lots of other helpful documents, such as “Student Loan Options in a Tight Credit Market,” and “A Borrower’s Guide to July 1, 2008.”
Student Loan Repayment Assistance… “The Truth is Out There”
It’s important to remember that not only do you have options for structuring your student loan repayment program to better fit your budget, but there are also opportunities to get assistance with your debt, or even to have portions of it completely cancelled—forgiven. Depending on your career (education, law, medicine, and medical research are great examples), you may have access to state or federal programs that will assist with your student loan repayment program or qualify you for having some or all of your student loan debt completely forgiven. Check with your college or university’s student financial aid office to get a comprehensive listing of these opportunities, or check out websites like FinAid.org, USAfunds.org/borrowers/loan_payment_solutions, the U.S. Department of Education’s help center at www.ombudsman.ed.gov/relief, or the National Consumer Law Center’s assistance site at www.studentloanborrowerassistance.org.
Getting the Best Program for You
Even if you’ve already set up a student loan repayment program, you can usually change your program once a year, if you find that your plan isn’t working within your budget. If you’re on a standard, flat-rate, 10-year repayment plan, you may find that a graduated repayment plan, or even an income sensitive repayment plan, would help you stay current and still allow you to take care of other necessary monthly expenses. Contact your loan provider for more details on how and when you can switch among the available plans.