It shouldn’t come as a surprise that student loan debt has become one of the biggest financial crises facing our country today. After the Great Recession, the housing market and other financial institutions stabilized, while college tuition costs skyrocketed. With more people attending college than ever before, it’s no wonder that 44 million Americans are now $1.5 trillion in debt due to educational loans.
Unfortunately, almost half of all these debtors are aged 21 to 35, and they may struggle to make payments even after earning a college degree and taking on a full-time job. In many coastal cities or large metropolitan areas, borrowers may be paying up to a third of their paycheck on loan payments.
At The Buchalter Law Group, our Brevard County debt relief lawyers have more than 40 years of combined experience helping people who are financially struggling to regain solid footing again. From advising you on bankruptcy alternatives to modifying or consolidating a loan agreement, you can count on our team for high-quality, compassionate counsel during life’s most difficult times.
Here are a few ways you can better manage your serious student loan debt:
- If your lender is the federal government, you may be able to modify the terms or defer payments. Through the Federal Student Aid Office or FSA, you can change your student loan repayment plan virtually anytime. There are many different variations of plans to consider on their website, or you can negotiate with the loan servicer directly.
- You may also be able to modify or defer some private student loans. After facing pressure from consumer advocacy groups, private banks like Wells Fargo, Sallie Mae, and Discover have begun to offer deferment and forbearance programs for student loans, along with pilot repayment programs. Contact your private lender first to see what options are available.
- If you’re not behind on payments, you may be able to refinance your loan debt with a lower interest rate. Companies like SoFi, Earnest, Lendkey, and Upstart focus on helping college graduates who have a high earning potential, but too-high interest rates on their current loans. Coming with perks like career counselors, loan forbearance when you lose a job, and networking events, refinancing with a private student loan company can be a great way to better manage your debt, especially if your credit score is still high.
- If you also have credit debt, consolidation may be the best option. Depending on your circumstances, consolidating all your debts into a single manageable payment to one servicer can help you cut down on costs while still working towards your goal.
In some cases, you may not be able to pursue any of the options listed above. However, our skilled legal team can still help you come up with a plan to find financial stability again. Relying on the services of a lawyer may allow you to effectively negotiate or settle certain debts, or prepare for the fallout if bankruptcy is truly your only recourse.
We offer free case evaluations! Call today at (321) 320-6088 or contact us online.