Your Alternative Student Loans Consolidation!

There is always a chance of when you cannot keep up with your student loans. If this occurs, you may need to find the right one of alternative student loans consolidation to cope with the problem. If you are still confused on where you should start, the following are pieces of information that may help you.

One of the first ideas for your option may be the consolidation loan program that provided by government. This may not significantly help the problem, because the simple fact is you also still need to pay the loan, but at least it may help reduce the payment that you need to pay for each month. Like most things in consolidation loan type, this option will help put your existing different loans into one loan program which then may also help give you a lower interest rate.

Before considering the consolidation loan program, you should consider some of the following options:

1.      Forbearance – it is a condition of when the lender allows their consumers to reduce the monthly payments temporarily due to certain conditions such as when you have a financial hardship. To qualify this option, you usually need to prove that you are working for part-time and your monthly income is less than twice the federal minimum salary.

2.      Rehabilitation option! It usually requires submitting a new plan of payment to with the lender once the consumer is in default. This new plan entails consumer to deal with some consecutive on-time payments. But however, you still need to responsible for both the new and old loans.

3.      Deferment, a situation of when consumer put loan on hold while she /he is still in studying, having financial hardship, becomes disabled, or cannot find a job. For this option, the government can make interest payments (typically in the case of loan called ‘Stafford loans’) or the loan that you have still accrues interest.

4.      Discharge option! If you choose this scenario, the lender can cancel your loan. In other words, you don’t have responsibility for the balance that you have before - but only under certain circumstances such as when you take on certain teaching assignments, become disabled, got fraudulent loan application, you die, etc.

5.      Income-based option of payments! This will allow you to ask your lender to review your income yearly and make it to be adjusted accordingly. It is recommended if you have variable incomes or low monthly incomes.

If those options mentioned above don’t answer what you need, private and federal student loan consolidation with low rate may be your option. Discuss with a professional financial adviser if necessary for more advice about your best alternative option!