Student loan debt is holding many people back from doing the things that they should do. Whether you have cheap student loans or are buried in debt, we have your tips to reduce your student loan debt and how to get your finances organized. Don’t hesitate to reach out and share your tips on reducing student loan debt!
Income-Driven Repayment Plans (IDR)
The most common option that many borrowers opt for is the IDR plan. This is a smart option as most recent students don’t start out making a large salary. Also, most go from living at home during college to moving out and paying rent and other living expenses.
IDR plans have four options availabl
- Income-Based Repayment (IBR) is depends on your family income and size. Your payments are typically 10 to 15 percent of your income.
- PAYE (Pay As You Earn) is based on a percentage of your income. This is ideal for those currently dealing with financial hardship or if your income varies month-to-month, which you will have to prove.
- REPAYE (Revised Pay As You Earn) is less than what you would normally pay on a standard 10-year payment plan. They take 10 percent of the difference between your current monthly income and 150 percent of the poverty line. You’re not required to prove financial hardship.
- Income-Contingent Repayment (ICR) isn’t just about what our income is. They also consider how many people are in your household and your tax filing status. It’s capped at 20 percent of the fixed monthly payment on the 12-year loan term.
Prior to graduating, you can speak with your financial aid office to see which of these options will work best for you. If you’re interested in applying for one of these programs, get in touch with your federal student loan servicer to discuss your options. Do not default on your student loans.
Refinancing Your Loans
Another excellent way to learn how to organize your finances and get your student loan bill down – refinancing. Refinancing your student loans means you’re taking your current loans and applying for a new loan to lower your monthly payments and interest rate. You may also get the chance to extend the repayment period.
Shopping around for interest rates is an excellent way to see if refinancing is the best option for you. Just remember, if you have poor or no credit, you may have trouble getting approved for refinancing. Before refinancing, make sure you know your credit score.
Extended Repayment Plan
When you graduate from college, the standard repayment plan on your student loan is 10 years. However, you can stretch out your loans and extend your payment plan to 25 years with either graduated or fixed payments.
What many people are not aware of are the student loan repayment assistance programs. This free help is here through government agencies and nonprofits to provide student loan assistance. Unfortunately, if you have private loans, you will not qualify for any forgiveness income-based repayment plans.
Get Additional Student Loan Tips Today!
Getting your student loan debt down is essential, but can be stressful for many people. We don’t want you to default, but lenders know that most people are not making the salaries that they should be. Get in touch with your lenders to discuss your options, and get back on track with your finances! Learn more about how to get your finances organized and start planning for your future with the financial experts at Budgetry.com.