| Many college students and graduates are looking for | | | | Adding up all of these individual loan payments could |
| a solution for their student loan debt. While | | | | total $300-$1000 per month or more! Not many |
| borrowers may be having difficulty paying back | | | | students can afford such payments. |
| student loans, there is help. Solutions for paying back | | | | That's where consolidation comes in. Consolidation is a |
| student loans are available. | | | | process that combines all of the student loans into |
| What causes difficulty in paying back student loans? | | | | one loan. Borrowers can dramatically reduce monthly |
| New college graduates may find that it takes them | | | | payments of student loans by consolidating. Average |
| longer to find a job than they expected. While there's | | | | monthly payments could be less than $100 to around |
| a six month grace period from the time students | | | | $250 per month. This is just an estimate. The |
| graduate until repayment begins, sometimes it takes | | | | monthly payment depends on the total amount |
| six months or longer to find a job. | | | | borrowed, the interest rate and the way that loans |
| Many recent graduates who are employed are | | | | are consolidated. |
| underemployed -- working part-time or temporary | | | | Consolidating through The Income Contingent |
| jobs until they find a permanent position. During this | | | | Repayment plan is designed to help make repaying |
| time they may need help in making loan payments. | | | | student loans easier for students who intend to |
| New college graduates can use several strategies to | | | | pursue jobs with lower salaries, such as careers in |
| help with student loan repayment. Taking on | | | | public service. The monthly payment amount is |
| additional part-time jobs or freelancing may be an | | | | adjusted annually, based on changes in family size and |
| option. | | | | annual income. This program is only available through |
| It is also wise to keep living expenses low the first | | | | the US Department of Education, not a lender or |
| few years out of college. Graduates can live with a | | | | bank. |
| roommate, or downsize into a smaller apartment. If | | | | Finally, the Graduated Repayment Plan starts the |
| new graduates are still looking for a job, it may be a | | | | payments at a low level (usually interest only) and |
| good idea not to move until permanent employment | | | | gradually increases the payments until the balance is |
| is found. Then it will be easier to move to an area | | | | paid. This is helpful for graduates because payments |
| closer to the job. | | | | are low when the first graduate, and increase as |
| Applying for a forbearance may be an immediate | | | | earning power increases over the years. This plan is |
| solution for times of difficulty making loan payments. | | | | available by consolidating through a bank or other |
| A forbearance is temporary period of suspension of | | | | lender. |
| payments on a federal or direct loan after | | | | It is important to note that according to current |
| repayment has begun, and if the student does not | | | | regulations student loans may only be consolidated |
| qualify for deferment. | | | | once. So borrowers who have already graduated and |
| This means that if a student has already started | | | | consolidated with a standard plan cannot take |
| paying back loans, they can apply for a suspension of | | | | advantage of the income contingent or graduated |
| payments on the grounds of financial hardship. A | | | | plans. For borrowers who have already consolidated, |
| forbearance must be applied for through the lender. | | | | a forbearance may be the best option for temporary |
| Being able to hold off payments for a few months | | | | relief of student loan debt. |
| can be a big help during a time of financial hardship. | | | | Use the student loan repayment calculator from |
| Another student loan debt solution is to consolidate | | | | finaid.org to find out what loan payments could be |
| payments. Unless consolidated, each student loan is | | | | using different types of consolidation. |
| accounted for and paid separately. When a student | | | | College graduates can find student debt relief using |
| graduates they will receive paperwork and payment | | | | one of the solutions mentioned above. Discuss loan |
| slips for each loan. 2, 5, 12... no matter how many | | | | repayment options with your lender and see what |
| loans were taken out, they will be billed separately. | | | | can be done to help you repay student loans. |