| You've finished college and now that your | | | | tax returns withheld, and your professional |
| student loans are due, you're in more | | | | title suspended or revoked. |
| financial difficulties than ever. So as a | | | | |
| student in financial trouble, you need help. | | | | If you're in danger of defaulting or just |
| Can you get financial aid for paying back | | | | want to spread your debt over a longer period |
| student loans? | | | | of time with a lower monthly payment, you can |
| | | | consolidate the loan, either through a |
| The truth is, no. It doesn't exist. But you | | | | private lender or with the Department of |
| do have some options, and there is some | | | | Education. |
| financial help available from the department | | | | |
| of education as well. | | | | This is the only way to actually reduce the |
| | | | amount you have to pay with help from the |
| If you're having trouble paying off student | | | | government; if your debt is consolidated |
| loans, one of the basic options is | | | | there are different plans you can use that |
| consolidation. If you want to play this card | | | | will allow you to pay the debt in a way that |
| later, you can get through temporary | | | | is convenient to your situation. If your |
| financial difficult by deferring or | | | | situation changes, you can switch between |
| forbearing payment. Stafford loans offer | | | | plans as well. |
| deferments but some private lenders do not; | | | | |
| they are generally granted for unemployment | | | | You can pay off the loan in steady payments |
| or other economic hardship, or if you are | | | | over a long period of time, or extend it for |
| still studying. | | | | up to 30 years (or more with some services) |
| | | | with lower monthly payments but a higher |
| During deferment, you can either pay the | | | | accumulated total. You can opt for a |
| interest only, or you can capitalize the | | | | graduated plan, allowing you to pay lower |
| interest, adding it to the total debt and | | | | payments now to give you a chance to get out |
| paying interest on the interest after the | | | | of financial trouble, and the payments |
| deferment period. If your loan is subsidized, | | | | increase in steps over time. |
| the government pays the interest during the | | | | |
| deferment. If your loan was a need-based | | | | There are also income-based plans. In these |
| subsidized federal loan, you will receive | | | | plans, your income is taken into account as |
| help in this form if you have trouble paying | | | | well as your expenses and household size, and |
| back your loan. | | | | if you are impoverished you do not have to |
| | | | pay. The downside is that in order to get out |
| Lenders may or may not allow a forbearance | | | | of paying the debt, you have to remain in |
| due to extreme circumstances. Generally they | | | | poverty the rest of your life. |
| last 12 months, and interest continues to | | | | |
| accumulate in every case. | | | | While there is no financial aid for paying |
| | | | back student loans, the government and |
| Avoid defaulting a student loan. You can lose | | | | private lenders do offer options to ease the |
| access to financial aid or social security | | | | actual financial burden of the loans. |
| services, your wages can be garnished, your | | | | |