It’s great that you are looking for the best way to repay a student loan. That means that you are a responsible person and want to do the right thing! Let’s take a look at loan repayments when it comes to student loans.

Two Ways to Repay a Student Loan
Majority of Americans have been struggling to settle different types of loans and debts such as mortgage, home-equity, credit card and vehicle in the last few years. But, these are not the only loans that Americans are having problems with. According to the Federal Reserve Bank of New York, student loans are also significantly increasing. Moody’s Analytics support this information by saying that there is no improvement in the rates of delinquency of student loans and the future outlook for borrowers are troublesome. If you are one of the many individuals who are experiencing challenges in settling your student loan, do not be tempted to ignore them. Take note that not paying your loan will have a huge negative impact on your future paycheck, tax refund and credit rating. Here are two ways to repay your student loan.

Serve an organization that can help you settle your debt.
There are many organizations that you can work for to obtain loan forgiveness. These include the United States Military, AmeriCorps and Teach America. Also, full-time public sector workers such as police officers, public school teachers and public defenders are qualified to have their debt balances cancelled after making 120 payments on or beyond October 1, 2007.

Seek a leniency application
If you took a Federal Stafford loan, you are allowed to defer your repayment up to a maximum of three years under the condition that you are unemployed, you are going through difficult economic challenges or you pursued grad school. You can also request forbearance from your lender.
Aside from suspending your payment up to three years, you can also make small payments for your federal loans in the first couple of years of your payment period. Moreover, you can also ask for an extension of your repayment term. Another option is to qualify for a repayment plan that is based on your income. This plan lets you link your income and your payment.

Related articles
Enhanced by Zemanta

Incoming search terms:

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Related posts on loans for people with bad credit:

  1. A Government Option For Obtaining Student Loan Help In an effort to provide relief, or student loan help, and some hope to students and graduates alike, the government has instituted a new program that will be available this fall. Beginning July 1, actually, a new income based repayment program will be available. If you qualify, you can request...
  2. Student Loan Consolidation Companies And The Simple Loan Turn Around When you start dealing with student loan consolidation companies you are going to find that there are a great many people that are willing to help you, work with you, and figure it out with you. There are more student loans that are outstanding at this time than any other...
  3. Student Loan Consolidation Walkthrough If you are a current or former student with school loans, you have probably been bombarded with mailed and online solicitations to consolidate your debt. The loan application process can seem overwhelming, particularly if you have more than a couple of loans issued from a number of lenders. However, it...
  4. Student Loan Debt Taking Over Mortgages Credit Cards and Car Loans The Continuous Increase in Student Loans Americans are accumulating more debts for college payments. This is the case despite records showing that in the past three years, they have been cutting on other types of loans such as mortgages, credit cards…...
  5. Getting Easy Student Loans For A Better Education Prices of things go up every year. This is called inflation, we all know this. Most people think that things are getting more expensive, but the truth is that things are really the same price that they were a few years ago, it is just the value of our currency...

Tagged with: • • • • • • •

Filed under: Student Loans

Like this post? Subscribe to my RSS feed and get loads more!