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