Help For Student Loan Debt
If you ‘re like the average college graduate, you’ve paid a steep cost to earn your bachelor’s degree. According to some studies, the typical college graduate has accumulated more than $20,000 in student loans.
This is never an easy debt to pay off. But when the national unemployment rate stands near 10 percent – which is where it’s been for months now – all this student loan debt represents even more of a burden. After all, it’s not easy to pay off that debt if you can’t find a job.
There is hope, though, if you’re overwhelmed with student debt. First, check for your loan’s grace period. Most student loans, at least those backed by the federal government, come with a grace period of about six months. This period kicks once students graduate. During it, you won’t have to make a single student-loan payment.
Of course, if you don’t land a well-paying job before the grace period ends, then it might be time to look at Plan B.
That’d be an income-based repayment program. Under such programs, college graduates who are struggling financially can apply to make much smaller student loan payments each month. Usually, the program allows graduates who haven’t found a solid job to make a loan payment that equals no more than 10 percent of their income. This can provide some sizable financial relief for struggling graduates.
To apply for the program, graduates will have to call the company that services their loan. It’s definitely a call that you should make if you haven’t landed a job. The program even comes with a bit of forgiveness, though you have to be in financial distress for some time: After 25 years, whatever amount of your student loans that you haven’t paid off will simply disappear. Yes, it will be forgiven.
Today’s college graduates are burdened with a historic amount of debt. Not only do they have to contend with student loan debt, many also graduate with a significant amount of credit card debt. Some studies indicate that undergraduates generate an average of more than $3,000 worth of credit card debt while working toward their degree. Add that to the already overwhelming amount of student loan debt that graduates face, and it’s no wonder so many students never want to step out into the real world.
No one wants to struggle with student loan debt. But those graduates who are should at least know their options. There are financial safety valves out there. Graduates just need to take advantage of them.