For decades, credit card debt has been the biggest contributor to consumer debt.
But recently, student loan debt has topped credit cards for the #1 spot in consumer debt, with almost $1.2 trillion total in outstanding balances.
Though these grey clouds are looming over student loan borrowers, there is a silver lining shining through.
For starters, in comparison to credit card lenders,
Student loan lenders offer a much more flexible attitude with you during repayment.
Credit card lenders traditionally have sky-high interest rates, and can penalize you for late payments by imposing even higher rates for the slightest mishap.
Additionally, they expect you to make your payments right on time, every single month. Otherwise, they unleash the wrath of interest rate hikes (up to 30%) and late fees that can exceed your monthly payment requirements.
Fortunately, student loan lenders are not that wicked.
Since the federal government is involved in student loan lending –
There are many, many repayment assistance options available.
As an added bonus, the feds often impose all kinds of complex regulations that are usually long-winded, in fancy legal lingo and generally really confusing. The reason these complicated regulations are a bonus is because –
Loopholes are created. And when understood properly, they can be applied in your favor.
Some More Good News
You probably know of some of the assistance available to you, such as the standard deferments and forbearance. And you may also be aware of the income-based repayment options available. These methods of repayment assistance are widely available to every single borrower who qualifies.
But, what you may not be aware of is that there is assistance available, without concerns of qualification. In other words:
There is repayment assistance available for student loan borrowers, that does not really consider whether you qualify for it or not.
There are also administrative processes that work in your favor, and methods of repayment which will save you money in interest. These methods and administrative processes only apply to federal student loans.
In sum, when you truly understand the wide array of options available for your student loan debt repayment, you can devise a money-saving strategy for your repayment – one that can be significantly more flexible (and affordable) than any standard, one-size-fits-all repayment would ever be.
To learn more about the repayment assistance options that are available for your student debt portfolio, click here to schedule a free consultation with me.
It’s my (very rewarding) job to point every borrower I speak with in the right direction, especially when it comes to helping you make your student debt repayment experience be the BEST it can possibly be.