Debt is a serious topic and something that should never be taken lightly. When people get into debt, they might find themselves struggling to climb out of it. Others know exactly how to handle their debt, even intended debt, and how to pay it off within a reasonable amount of time. One type of intended debt comes from student loans. Here’s how you can make your student loan payments more manageable.
Your first option is to consolidate the debt. If you have multiple loans from different lenders you can attempt to consolidate them into one loan. The biggest benefit of consolidating your students loans into one is reducing the number of payments. When you reduce the number of payments to just one, you might also lower the total amount being paid per month.
A second option is to apply for an income-based repayment plan. This plan, known as an IBR, can lower your payments to as low as zero. It will not go any higher than 15 percent of your discretionary income. If your student loan debt is greater than your annual income, you will qualify for this type of plan. Any remaining student loan debt will be forgiven after 25 years, but you might have to pay taxes on the remaining debt that is forgiven.
A graduated repayment plan is another option when looking for manageable payments on student loan debt. This plan involves paying a low amount at the start of the student loan and increasing it as your income increases in life.
You can also talk with the student loan lender about deferments on the loan. These can be issued for various reasons, such as being on active military duty, attending school part-time, economic hardship and unemployment. Private student loans can be deferred for no more than one year, while federal student loans can be deferred for three years.
Visit our site today to learn more about student loan debt and manageable payments in Long Island, New York.