Student Loan Relief Refinancing And Restructuring Your Loans
Finding student loan relief may come in the form of consolidated student loans. While Congress is in talks to double interest rates on newly taken out Stafford loans (rates would take affect after July 1st of this year) current loan holders are trying to figure how to pay off what they have already borrowed .
Finding student loan relief through loan consolidation offers borrowers with federal loans to combine multiple loans, obtain a lower monthly payment, and extend their loan terms. Currently, 1 in 5 Americans holds student loan debt. That may seem like a small number but translated into a dollar amount, the total amount owed is about $1.1 trillions dollars.
Graduates are having a more difficult time than ever trying to find jobs out of college while so many of those who do aren’t making enough to support their student loan payments. With the odds stacked against them, 60% of post-college job seekers (according to reports by Urban Institute and the FINRA Investor Education Foundation) are worried about repaying their loans. Even those borrowers who earn a “comfortable living” expressed concern about being able to make their monthly payments and find a resolution to their student loan debt. Those making less than $25,000 annually are in the toughest predicament, according the the survey’s findings. Seventy-two percent of these borrowers expressed dismay about being able to pay off their loans completely and within a reasonable amount of time.
Not only is it difficult for many to maintain a steady flow of payments, younger people are finding it harder and harder to pay other debts like car loans and mortgages/rent. In fact, these consumers say they will have to put off their goals of buying homes and going to graduate school. Without some form of student loan relief borrowers may never see a light at the end of the tunnel as far as their loans are concerned.
Refinancing and restructuring student loan debt by way of student loan consolidation is becoming more common as borrowers consider how their finances will support the financial aid that carried them through their scholarly journey. Those who are looking to consolidate can find one lower payment by combining their existing federal loan. This offers a more affordable approach to paying back what they owe.
Loan forgiveness programs are making headlines as the government offers to cancel all or a partial amounts of loans in the case of certain volunteer work, military service, teaching or practicing medicine in certain types of communities and other criteria specified by forgiveness programs. Consolidation and forgiveness are specific to federal loan, meaning privately held loans do not qualify.
In the brink of already troubling economic times, the average student loan is $26,000. For those who are already struggling for cost of living expenses, restructuring student loan debt via a student consolidation loan can offer borrowers the opportunity to focus on their futurenot their debt. Maybe then, and only then, can they find some student loan relief!