Doesn’t it feel like you’ll be married to your student loans….forever? Student loans last longer than most marriages these days. Till Stafford do us part is a sad reality.
My friend Stephanie has some huge loan amounts to pay down. She jokes that the light at the end of the student loan tunnel has blown out on her. Poor Steph. She even has private loans to contend with. It’s just awful for her and I know she’s not alone.
For those of you who have both loan types I know you are struggling to survive. Pay the rent, buy food, make your utility bill payments, or pay down your student loan. I know which one on that list would be my last priority. Of course the problem with simply not paying your loans is that it damages your credit score, and that can impact the interest rate on other loans you are paying. Instead of burying your head in the sand in hopes of the problem just going away you should place your loans in a deferment state.
Most people don’t realize they have 3 years worth of deferment eligibility attached to their federal loans. There is an economic hardship deferment and a straight forbearance benefit attached. The economic hardship deferment is the better of the two options as any subsidized loans in your bundle will not accrue interest during the deferment period. Your lender will examine your debt to income ratio to see if you qualify.
A forbearance is also good, as it gets the job done, but interest accrues on the entire loan amount. Every student is eligible for a forbearance
So be responsible and utilize the benefits that come with your federal loan, that’s what they’re there for.
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