Student loan debt is all over the news these days, and it’s getting more attention from lawmakers than ever before as levels of college borrowing and indebtedness reach all-time highs.
According to the Consumer Financial Protection Bureau, outstanding student loan debt has reached $1.2 trillion, with more than 7 million Americans currently in default. But waiting for relief to fall into your lap is a mistake that could seriously harm your financial future for decades to come.
So, instead of waiting for help to find you, here are a few things you can do to get some relief from your student loan debt.
The first best course of action if you’re struggling to make your student loan payments in full and on time is to talk to your loan Servicer. If you have private student loans, reach out to your Lender. Every federal loan Servicer and private student loan Lender operates differently, so it’s important to speak directly with them about your options.
Lenders and Servicers provide a range of options if you can’t make a payment, and are there to help you find the solution that best fits your circumstances. If you’re struggling with repayment, it’s crucial that you contact your Servicer or Lender as soon as possible. Ignoring your loan payments will hurt your credit and cause a chain-reaction of difficulty that can haunt defaulters for the rest of their lives.
If you have federal student loans and are struggling, you probably qualify for special programs. These programs can provide relief if you are currently unable to make payments.
If your outstanding federal student loan debt is higher than your annual income or if it represents a significant portion of your annual income, you should investigate the various income-based repayment plans to understand if one of them can help lower your payment.
If you have private student loans, refinancing may help you lower both the monthly payment you’re making, and the total amount you will pay over the life of your private education loan.
Refinancing to consolidate all of your loans will often lead to paying lower interest rates, especially with rates currently hovering around all-time lows. To qualify for refinancing, you typically need to exhibit good credit, steady employment, and earn a bit more than you spend on bills every month.
Any company that offers to consolidate and refinance your private loans will have different requirements, terms and conditions. Do your research to find the best option for you.
Contact Champion for Help
Still not sure where to start? We can make it easy!
Contact Champion today and speak with someone familiar with your options.
We aren’t debt collectors, we don’t have anything to sell—all you’ll get from us is free information and expert guidance on how to deal with your student loans if they become too much to handle.