If you happen to have just graduated, you may have noticed that paying back your student loans is possible and can be done - but you may also notice that there’s a good chance you’ll only be paying the interest. If this is the case (and it often is), there are a few options available to you.
- The logical choice here is to figure out a way to pay more than the interest on a loan. If you just make interest payments, this is akin to throwing money away. You won’t really make a dent in the loan just by paying interest.
- You can try and cut your living expenses. If you cut back on what you’re paying out of pocket regularly for everything else in your life (home, rent, car, whatever), you may be able to put more money towards your actual loan payments. But, this is often hard to do - and it’s one reason why a lot of new graduates cannot afford a home and a family and student loan repayments.
- You might be eligible for a reduced payment option. If you do not make a lot of money, or you fall into another repayment category (part of the Army, etc.) you may have some additional options available to you.
- If you do make a decent wage and are not eligible for any reduced repayment option, but still don’t want to simply pay down the interest on a loan, it might be harder to come up with a plan. You may still have some options, though, that do not include defaulting or endlessly paying interest. Call the lender and see if they have any in-house payment options to keep the loan from going into default.
The Default Status
All too often, new graduates wind up going into default on a loan simply because there are no other options, or the options available aren’t helpful. This is a problem that has to be fixed, but in the meantime, many new graduates will find themselves buried in debt and dealing with lending companies regularly - not a good way to go about living life.
However, defaulting on student loans happens to more people than you might think. In fact, you might feel very much alone in all of this, but trust me when I tell you that you are not alone. It is also possible to end your student loan problems with the right legal team on your side. If you are facing an insurmountable amount of student loan debt and even default, contact the Dellutri Law Firm today for a completely free case evaluation. We may have some ideas for you!