A parent posted a nice write-up a year back (2013) on how they found solution to their son’s overwhelming student loan debt. After their son graduated from college, he found himself overburdened with his education loans, He was earning only poverty wages, which was not enough to accommodate such a financial burden. It was a hopeless situation for him and his parents. In order to find a solution, they began to look for a suitable program.
During the research, they that the f Income Based Repayment (IBR) Plan, which is offered by the federal government was a great solution. This plan eventually proved to be their savior.
By using a loan calculator, the family found that under IBR, their son’s monthly student loan payment would be lowered to $272 per month. Without this plan, the amount would have been close to $1,000 considering the loan balance. This plan gave them relief in an otherwise stressful situation.
The End of Road could be a new beginning for borrowers
The above story proves that people who look for solutions to various issues may learn from other’s experiences. It could be related to relationship, job, finance or education. In the domain of education, one of the burning issues has been student loans. Overwhelming student loans are responsible for an ‘Anxiety Syndrome’ among students and their parents.
Despite the persistent problem of loan repayment, some people find solutions and share it on the social sites. This may spread awareness among others who are also struggling to reduce student loan burdens.
According to an article published in Forbes, the U.S. has more than $1 trillion ins outstanding student loan debt! For recent graduates, it is likely to be a struggle to find a reasonably paid job in this tough job market. With such an economy, individuals are unlikely to be able to pay the full amount due on their student loans. However, with the help of loan consolidation, borrowers can merge their multiple education loans into one, and repay their loans conveniently through a flexible repayment plan.
The U.S. Government is there to help
“How am I going to repay this?”
This is the obvious question that may crop up in these borrowers’ minds who don’t have enough income to pay off their education loans. With a little bit of research, and by keeping themselves updated, they can easily find a solution.
The best solution comes from the federal government. However, due to a lack of awareness, many borrowers don’t know the various flexible options that the government offers.
Usually, when borrowers receive their first billing statements on their student debt, they are placed under the 10-year Standard Repayment Plan. Under this plan, the monthly payments are fixed. The amount of monthly payments is higher, and borrowers often find it inconvenient considering their current income.
In order to reduce their monthly payments and interest rates, borrowers can consolidate their loans under plans such as the Income Based Repayment Plan (IBR) or Income Contingent Repayment Plan (ICR). Under these plans, the repayment duration is a maximum of 25 years where borrowers will make a reasonable monthly payment. After 25 years, they may also qualify for a loan forgiveness program.
Borrowers don’t have to settle for the Standard Repayment Plan if they can’t afford it. They can hire student loan repayment consulting services, and find flexible options to ease their debt.