Do you want to know how to get private student loans forgiven? This is one of the most trending questions in regard to the topic of private student loans. The question you should however be asking is if it is possible to get private student loan forgiveness.
How to Get Private Student Loans Forgiven
The answer to the question above is simple. You can only get your private student loans forgiven via death or total disability discharge. With that being said, there really is no such thing as private student loan forgiveness, in many cases at the least.
There are however two exceptions to the matter and that is if you die or become permanently disabled. And as morbid as that may sound, some private lenders will only forgive your loan balance based on that.
If however you have got federal student loans, you can get them partially or completely forgiven via income-driven repayment plans as well as other federal student loan forgiveness programs. And even though there are no formal student loan forgiveness programs as for federal student loans, there are a couple of things that you can try out in order to ease the burden of your private student debts such as talking to your lender about alternative repayment options, student loan refinancing, and many others.
Talk to Your Lender About Your Options
If you are one of the many student loan debtors currently struggling to keep up with their private student loan payments, then you should talk to your lender about your options in regard to lowering your monthly bill. Different lenders as you should know have different programs aimed at helping borrowers manage their payments.
Your lender may just be willing to offer you flexible repayment options that are beyond what we have outlined so far. And if you don’t know how to phrase out your request, you should try making use of this sample letter that the Consumer Financial Protection Bureau created to help borrowers easily ask private lenders for a lower payment option. But you should also note that private lenders are not obligated in any way to honor the request of the letter.
Consider Deferment or Forbearance
Many private lenders in the market offer deferment or forbearance which are two options that allow you to temporarily postpone your loan payments. Deferment as you should know is typically an option if you are going back to school or getting entrance into the military. Lenders usually offer forbearance to borrowers who are struggling to make payments simply because they lost their job, got sick, or experienced one form of financial challenge.
Deferment, in other words, is typically planned, whereas forbearance on the other hand is a tool for borrowers to utilize when unexpected circumstances pop up, says Joe DePaulo, the co-founder of private student lender College Ave Student Loans.
With both deferment and forbearance in play for private student loans, interest however still accrues during the time when you are not making payments, so you should go by this route only if it is that you really need it. This is way different from federal student loan deferment, in which interest does not accrue for borrowers with subsidized loans.
Lower Your Interest Rate By Refinancing
If it is that you have good credit, then you just may be able to get a lower interest rate on your private student loans simply by refinancing. For those persons who do not know about refinancing, here it is, when you refinance, you simply chose a new lender that can offer you a simpler and lower rate, and that lender will get to pay off your original lender.
Many lenders in the market also allow you to select between a fixed interest rate, which will stay the same all through the life of your loan, and a variable rate which according to the name changes as the economic market changes.
You Should Always Find Your Best Repayment Strategy
In addition to all of the options mentioned in this post, it will be great if you create your own repayment strategy to help tackle your private student loans. For instance, pay the minimum monthly amount toward each of your loans and then put any extra cash that you have toward your loan with the highest interest rate. You should also tell your lender to apply the extra payment to the balance of your loan instead of your next monthly payment which will help you to get rid of your most expensive debt quicker.
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