Do you know how to get rid of private student loan debt? Well, the truth is, getting rid of private student loan debt is not as straightforward and easy as its federal counterparts. It can really e complex and at most times difficult if you don’t know what you are doing.
How to Get Rid Of Private Student Loan Debt
A lot of progress has really been made over the past couple of years in helping borrowers that have been struggling with federal student loan debts. There are even many programs out there plus many different loan repayment plans as well as student loan forgiveness programs that can help with it.
When it comes to private student loans, this unfortunately is not the case. And just until recently when Wells Fargo and Discover ban announced that they would be helping student loan borrowers with their loans, there were little to no options available for borrowers that are struggling with private student loan debts.
The truth is that there are thousands of borrowers today that are knee-deep in student loan debts across the country. So with that being said, what can a private student loan borrower do to ease his/her burden?
Ways to Ease Private Student Loan Burden
There are times that loan settlement will not just work for you. Now the question you should ask yourself is if this gets to happen, what next? If you are in this situation, then for one, it is just that you may be in default regarding your loan, which is something that you must avoid at all costs. Perhaps it’s just that you are not willing to pay a lawyer or a debt settlement company fees, or it is just that your lender is just not willing to settle. To get rid of your private student loan debts, then you should at least try and consider the following options;
Loan Consolidation
What does it mean to consolidate your loan? Well, this is simple. One possibility when it comes ot getting rid of your student loan is to consolidate it into one loan with a single monthly payment and then possibly a lower monthly payment. This very move could and will reduce the interest that you have to pay in the long run in just one swoop.
Refinancing
Another option that is worth trying out is to refinance your private student loans. The thing here is that you are just taking out one loan in order to pay off another, but you just might be getting better terms with the new loan deal. When it comes to refinancing your private student loans, it might make a whole lot of sense for students that want to lower their interest rate or get to change the terms of their repayment plan and are comfortable with losing a couple of benefits.
Forbearance or Deferment
When it comes to deferment, you can easily and effectively suspend your loan payments for a specific amount of time, this type of move could help you to take a break from payments and will then let you to take a break from all forms of payment thus allowing for more manageable payments when your deferment period gets to end. And if it is that you are going through a prolonged period of financial hardship, then deferment may just be a good option at the end of the day before your loan enters default.
Forbearance on the other hand lets you to postpone your payments, but the thing is that you will have about 12 months at most times before repayments restart. And additionally, when your loans are in forbearance, you will still get to accrue interest.
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