It shouldn’t come as a surprise that student loan debt is worse than ever in 2017. To be precise, the current figures show that 44.2 million Americans have racked up $1.31 trillion in student loan debt. If you are one of the millions of individuals facing significant student loan debt, the weight of that debt can feel crushing.
Currently $32.6 billion of the total loan debt is 30+ days past due, and $31 billion is delinquent by 90+ days. If you are having difficulty paying your monthly student loan bill, these figures should prove that you definitely aren’t alone. However, no matter where you are with your student loan debt, there is a way out. Check out three valuable tips for managing your out of control student loan debt.
Temporary deferment or forbearance
Facing an unexpected emergency expense on top of your already high student loan payments? If you’ve been managing your payments well, but have stumbled upon an extraordinarily challenging financial period, a temporary suspension of your loan payments can be the best option. Depending on your individual circumstances, you may qualify for either a deferment or forbearance of your loan. These temporary suspensions of your payments do not impact your credit, and are a great way to catch up financially. To get started, contact your loan provider to see what options are available for your individual situation.
Income-driven repayment plans
If you are experiencing more of a long-term issue with making payments on your loan (i.e. the monthly payment is too high), you might qualify for income-driven repayment. These payment plans are established based on what loan companies determine that you can pay each month with your current income. In some cases, that monthly payment can be dropped to $0/month.
One expert Scottsdale bankruptcy attorney states that bankruptcy law exists “for the reduction or elimination of certain debts.” If you are already considering filing for bankruptcy due to overwhelming personal debt, it is possible to have your student loans erased in bankruptcy. While special steps and proof of hardship are required to eliminate student loan debt with Chapter 7 or Chapter 13 bankruptcy, it can be done. If you need assistance with including your student loan(s) when filing for bankruptcy, contact a legal professional who has worked with similar cases.
Student loans can be overcome
No matter what financial difficulties you are currently facing, there is a way to control your student loan debt. In addition to the options listed above, your student loan provider may have other options available, such as student loan forgiveness programs for individuals in certain job positions. The best way to decide the right option for you is to contact your student loan provider to determine which options are available for your unique situation.