Student Loan Debt Services Will Break Through Federal Options

Monday, September 30, 2013

Repayment options are good to have when dealing with a surplus of federal student loan debt. Since student debt has toppled credit card debt for the highest household debt, it's a wonder why more people are not seeking financial relief.

There are many different repayment options depending on your type of student loan debt relief you are looking for or what your loans are eligible for. Federal loans do not fit into the 'one size fits all' category.

*IBR (Income-Based Repayment) plans cap monthly payments based on your household income and family size. After 25 years of eligible payments the remainder of the loan is forgiven.

*Pay As You Earn Repayment Plans began in 2012 for what is considered a 'new borrower'. Payments may vary each year based on income and family size, tax filing status and where you live. As of now, this plan offers some of the lowest monthly payments as compared to all other federal repayment options.

*Graduate Repayment Plans provide short-term relief.

*Extended Repayment Plans offers low payments over a longer period of time. Interest increases over time depending on the length of the loan.

*Loan Consolidating wraps multiple loans into one easy payment at a fixed interest.

*Deferment will bring temporary relief by postponing payments. There are special circumstances which would make a debtor eligible. The government will make the interest payments during this time.

*Forbearance will also bring temporary relief from postponing payments but the government will not pay the interest. Loan balances will grow with interest while in forbearance.

*Loan Rehabilitation Programs will help those borrowers who have loans in default. Both borrower and lender must agree on the repayment terms and conditions. Once the loan is back in good standing, the lender will then remove the default status. A rehabilitated loan may then be eligible for other payment options.

*Perkins Loan Rehabilitation requires nine payments from the borrower to the direct lender in order to rehabilitate the loan.

*Public Service Loan Forgiveness is a great program for public service employees with the government, military or public schools who have federal student debt problems.

You may have multiple loans with each open to several relief possibilities. It is very important that the student loan debt is examined carefully before entering into any one of repayment plan. You want to make sure that you get the most benefits from these loan repayment options as possible. Hire a financial student relief service to process your loans in the best possible way to get the most guaranteed savings. Reputable companies stand by their loan processors for their knowledge behind student loan relief opportunities.

The task can be quite daunting for the average person. Not only are government forms and program conditions complex, but the time it would take to get through a government help service line may deter anyone to quit. No one wants people quitting when it comes to finding debt relief. Take a step in the right direction and call a professional service for your free student loan debt relief consultation today.