Do you know how to get help with private student loans? You are very much unlikely to get private student loan forgiveness, with a couple of exceptions. There is however hope, as while you might not get to wipe the whole slate clean, you just could improve on your debt situation by employing a couple of strategies and this is inclusive of repayment assistance as well as refinancing.
How to Get Help with Private Student Loans
Forgiveness unlike federal student loans rarely applies to private student loans. Some lenders may offer student loan forgiveness if you become permanently disabled or die, but not all of them will do, just so you know. You also will very much likely be on the hook in the event your cosigner dies. Crazy right?
And even with Biden’s plan, this very legislation just applies to federal student loans. So in the event, you are hopeful to get forgiveness for your private student loan with this legislation, I am sorry to disappoint you. Private loans as you should know are a business enterprise, and so the government does not have the authority to make private lenders to grant forgiveness.
Strategies to Help with Paying Back Private Student Loans
If in the event you are struggling to pay back your private student loans, and then know that you are not alone, a majority of students in the US are buried in student loan debts. And whether it is that our economic landscape continues to cause an uptick in default and delinquencies also remains to be seen. And even still, you might find some relief simply by going through with one or even more of the actions mentioned in this post, and they are;
- Contact your lender
- Refinancing if your student loans
- Explore private student loan repayment assistance programs
- Optimize your federal loans
- Find an employer offering student loan assistance
- Get a side hustle
Contact Your Lender
The first thing you really can do in the event that you are having a hard time in making your private student loan payments is to contact your lender.
Your lender is very much likely not offering student loan forgiveness for private loans, but it just might still get to offer help in many other ways. For instance, you simply might qualify for deferment or forbearance, which gets to postpone your payments temporarily.
You should also know, however, that not all of the lenders in the market offer deferment or forbearance, and those that even have these differing guidelines for how long you can get to postpone your payments. Note, as well, that your interest will also continue to accrue all the while your payments are on hold.
Whatever you get to do, you shouldn’t simply abandon your payments. Defaulting on your student loan can tank your credit score, thus making it hard to borrow money in the future. And as such, keeping an open line of communication between yourself and your lender could be very important.
Refinancing Your Student Loans
In most cases, refinancing your private student loans could be a boon for your budget. But depending on your creditworthiness, you just might qualify for a lower interest rate than what you’re paying at the moment.
There are even some student loan refinancing lenders who will offer additional perks for their members. For instance, borrowers who get to refinance through SoFi Bank, N.A can now qualify for career coaching and even financial planning at no additional cost.
And just like all financial decisions, though, there is no one-size-fits-all approach to refinancing private student loans. Borrowers that have lower credit scores or those who did not even complete their degree may get to find that they have fewer and even fewer ideal options than others.
Explore Private Student Loan Repayment Assistance Programs
Many states offer some form of student loan repayment assistance, such as student loan grants for professionals that qualify, of course.
Many of these programs in question are aimed at teachers, medical workers, and even lawyers who are willing at the end of the day to work for a given amount of time in underserved communities. And depending on the program, you can get money to repay your federal or private student loans.
Some programs in question are based solely on residency, rather than the precise job that you do. The Kansas Rural Opportunity Zones program, for instance, pays $15,000 over a period of five years to qualifying borrowers who move to an eligible area in Kansas.
You can also find out what’s available to you where you live or went to school simply by searching online or even by contacting your state education agency.
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