Are you struggling to pay off your student loans? Debt relief companies will tell you that they can help you reduce the amount of your monthly payments or get a forgiveness for your loans. But after paying, your situation could get worse. You will not get the promised help – or get your money back. Also, if you stopped paying your loans, your credit could suffer a negative effect and the balances of your loans could increase rapidly. You do not have to pay to get help with your student loans. No company can do anything that you can not do on your own.
- Repayment and loan forgiveness
- Loan consolidation
- Signs of a scam
- Report a scam
the type of loans you have, you may qualify for another type of repayment plan or for your loans to be condemned. And to qualify to access these programs, there is nothing a company can do for you that you can not do on your own.
If you have federal loans (government loans), the Department of Education has different free programs that could help you, including:
- Payment plans based on income – the amount of your monthly payment is based on the money you earn.
- Deferment of payment or temporary suspension – you postpone the payments, but the interest that you apply may increase the amount you owe.
- Loan Consolidation – you combine all your federal student loans into a single federal student loan and make a single monthly payment. This would give you the possibility to make lower monthly payments during a longer repayment period. But in the long term, you could end up paying more in interest.
- Loan forgiveness or loan absolution – in some very limited circumstances, you do not have to repay some or all of your loans. You may access this option if you do certain jobs, have a disability, or if your school closed or committed fraud. In addition, under certain payment plans based on income, the remaining balance will be forgiven after 20 or 25 years of payments have elapsed. In some cases, you may have to pay income taxes on the amount forgiven or acquitted.
You will not be charged any fees to enroll in these programs. You can get more information about your options at the StudentAid.gov Department of Education website or by contacting your federal student loan administrator . You can also find more information on how to get up to date with your payments .
If you have private student loans, you usually have fewer options, especially when it comes to canceling or canceling the loan. To explore your options, contact your loan administrator directly. If you do not know who your private student loan administrator is, check out a recent billing summary.
student loans means combining multiple loans into a single loan. Typically, people consolidate their loans to simplify monthly payments or to get new repayment terms.
Loan consolidation is not a good option for all cases. The advantages of consolidating your loans will depend on factors such as the type of loans you have, your interest rates, when you got them and if the loans offered you benefits you do not want to lose. When you consolidate your loans you get a new loan with new terms.
The consolidation of federal loans with government loans is free. Private loans must be consolidated through a private lender. It could have a cost, but avoid companies that tell you that you have to pay advanced fees. Some debt relief companies and lenders offer the option of consolidating federal loans with private loans into a new loan to lower the amount of your monthly payments or the interest rate. Know that with this type of consolidation you will lose any benefits and protection offered by your federal loans.
Before consolidating your loans, find out what implications it could have for your specific situation. If you have private loans, talk to your loan administrator. For inquiries about federal loans, call the Department of Education’s Loan Consolidation.
For you to act quickly, scammers tell you that you could lose your qualification for repayment plans, loan consolidations or loan forgiveness programs if you do not decide immediately. Do not let yourself be rushed to make a bad decision.
The consolidation of federal and private loans has a cost.
Some companies will tell you that they can help you reduce the amount of your monthly payments or the interest rate by combining your federal and private student loans. But they may omit telling you that if you do, you will lose all the benefits and protections offered by your federal loans.
If you have a dispute about a federal student loan, do everything possible to resolve it on your own . But as a last resort, you can contact the Federal Student Aid (FSA) Ombudsman Group of the Department of Education – but only if you have federal loans.