Whether or not you believe there is a major student loan debt crisis in the country — and people are, in fact, divided in that belief — you can’t deny that a number of agencies have stepped forward with solutions for debtors. Both public and private sector organizations have developed solutions that let individuals manage their student loan debt in keeping with personal budgets. While those solutions do go a long way to helping individuals reduce their debt, they aren’t always all-encompassing.
Individuals with federal student loans can take advantage of a number of programs to help them with student loan debt. If you are facing a personal debt situation that makes it difficult or impossible to pay your student loans as they are currently structured, you often don’t have to continue paying them. You do, however, have to take time to reach out to the entity managing your loan to request a forbearance or deferment.
Some private loans come with similar options, and reports are that at least 19 private education lenders have programs that help you reduce your interest rates. Qualified graduates working with these lenders might even experience rates as low as 2.2 percent.
The goal of these programs is to assist individuals to make student loan payments over time in a way that fits their budget. However, these steps are not always enough to help you make ends meet across your life. Many times, student loans are not the only financial woe someone faces. While student loans themselves cannot be discharged in a bankruptcy, filing for Chapter 13 or Chapter 7 bankruptcy can help you address your overall financial state. Coupling a bankruptcy with helpful programs from student loan lenders can help you pay off student loans and get all of your money matters in order for the future.
Source: Forbes, “The Real Student Loan Crisis: Debt-Fueled Tuition Inflation,” Nick Clements, Aug. 08, 2016