With college tuition rates skyrocketing like never before, many students need to borrow money to pay their educational expenses. There are two types of loans students can obtain: federal and private. Federal loans are funded by the government, whereas private loans are issued by credit unions, banks, and online lenders.
While both loans act as a form of financial assistance, the main difference is that federal loans are more advantageous in terms of forgiveness, consolidation, and other repayment programs that generally don’t accompany private loans. So why would students take private loans? Put simply; federal loans cap the amount students can borrow. With high tuition costs, federal aid often only shuffles off part of the financial burden of a college education.
Indeed, private student loans help students get through school, but paying them off can be a struggle. When faced with nonexistent private student forgiveness options, here are three substitute resources that could benefit you.
Chat with Your Lender
One of the first things you should prioritize if you’re struggling to pay down your student loan debt is to call your lender. Lenders come in several different forms, each with a different set of criteria and options for handling these situations. While your lender likely won’t forgive your loans, they may present some other helpful solutions to alleviate some of the demand from your monthly payments for a limited time.
For instance, some lenders may offer loan deferment, also known as forbearance. This is when your lender allows you to pause your payments temporarily; however, the amount of time depends on your lender. Students struggling to keep up with repayments face difficult choices. Do you just stop making payments and let interest accrue on your loans? The answer is no. Don’t just ignore your loans. Other alternatives are accessible; you just have to take early action to see what best serves you.
Look into Private Student Loan Repayment Programs
If you’re saddled with private student loans and feel you can’t get ahead no matter what you do, applying for a student loan repayment assistance program (LRAP) might help take the weight of your loans off your shoulders. Essentially, these programs help student borrowers repay their debt.
To get LRAP benefits, you must meet specific requirements as these programs are usually only granted to qualifying professionals, such as teachers, lawyers, doctors, nurses, dentists, and pharmacists. Your college or university, current job, or state may have generous repayment programs, so it’s critical to do your research and apply early.
Make Extra Income on the Side
To aid your debt-repaying efforts, picking up extra gigs in your free time may help you generate more income. Of course, you can attempt to lower your expenses, but that’s not always possible when you have a family, children, or other obligations. Another source of income, even if it’s just an additional $100 or $200 every few weeks, can put you in a comfortable position and get you back on track.
If picking up a part-time job won’t fit in your schedule, consider looking into more flexible jobs like food delivery or rideshare services. There’s also childcare, tutoring, or housekeeping services. These are great opportunities that allow you to set your own working schedule and earn as much as you’d like.
Regain Your Financial Freedom Through Debt Settlement
The lack of private student loan forgiveness programs makes the future uncertain for millions of students across the globe. Students in Arizona don’t know exactly how or when they will be able to pay off their student loans—and what that will mean for their upcoming endeavors. There’s so much to stress about, but there are sensible options available to you. The debt settlement lawyers at McCarthy Law understand that uncertainty is hard to live with, which is why we give you strategic advice and guidance to ensure you’re making the right decisions to solve your financial issues.
At McCarthy Law, we deliver the best solutions to your debt problems. We are aggressive negotiators who work with your creditors to arrange an appropriate debt settlement. We will evaluate your situation, considering several factors, like your employment, debt, and credit, to determine the steps necessary to reach your goals. Discuss your debt resolution options by calling (855) 976-5777 or filling out our contact form today.