IRVINE, CA / ACCESSWIRE / March 11, 2019 / SL Account Management says student loan debt continues to increase, pushing the total owed to more than $1.5 trillion. This is pushing more students to figure out the best options for paying off these loans, and SL Account Management helps wade through the various programs and select the one that fits each student's financial situation.
The Department of Education has different programs that could help you if you're burdened with student debt, but the problem says SL Account Management is that each of these programs is accompanied by strict guidelines. In many cases, students choose the wrong program, only to learn it's too late to change options.
Several programs include:
Payment plans based on income - the amount of your monthly payment is based on the money you earn. Representatives at SL Account Management say payments can be as low as $5 dollars, but there are qualification guidelines.
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 enter into specific professions, have certain disabilities, or if your school was determined to have 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.
And according to SL Account Management, if you have private student loans, you usually have fewer options.
Why These Two Programs Confuse Most Debtors
Most people choose to consolidate their student loans or enter a rehabilitation program after defaulting. When you consolidate these loans, you're essentially combining several loans into a single loan. Generally, this is a way for people to simplify and lower their monthly loan payment or consolidation can also help 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. You're able to enter into a new loan package.
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. But you could lose benefits and government protection, so it's best to speak with experienced representatives to see if this program would best serve your interests.
When you enter into a student loan rehabilitation program, your creditworthiness is restored after making nine monthly payments. Depending on the type of loan and the delinquency period, different additional terms and conditions can be obtained for the rehabilitation of the loan. These additional terms and conditions can be confusing, say reps at SL Account Management, so before entering into a new agreement, it's best to consult with qualified professionals.
Student loans don't have to become a burden because there are many programs to help with a reasonable repayment, say SL Account Management representatives, but you must understand all the conditions of these programs because it could adversely affect your credit.
SOURCE: SL Account Management