One common practice to help you manage your finances while you are in college is to defer payment on your student loans until you graduate; your payments often won’t start until six months after your graduation date – giving you even more time to plan out your budget. In some cases, this deferment can last even longer. For example, if you are struggling to find a job or are underemployed after graduation or departure from college, you may find that you can have your loans deferred for even longer than the six month grace period that most government and private institutions offer to borrowers.
But what if you are fully employed and still can’t comfortably afford the payment amount? There are a number of repayment options for people in just this type of situations. Many of these repayment plans are pay as you earn, meaning that you only pay a percentage of your monthly or annual income to your student loans, typically ranging from 10 – 20 percent of your income. In some cases, once you pay this amount for a set number of years the remaining balance will be wiped and you will be debt free. This makes it easier for you to maintain a comfortable standard of living, and to prevent you from being overburdened by student loan debt.
The bottom line is that there are many different ways that you can receive help with your student loans from both the government and from private institutions. Your college degree is supposed to open new doors for you – not close them due to financial difficulty. If you are in the San Fernando Valley and would like to talk to someone about your student loans, contact our offices today. Our attorneys would be happy to meet with you to discuss your situation and help you get help with your loans; we can help you set up a payment plan, look into deferment options, or even help you eliminate part of your student loan debt.