Find ways to get help with paying your student loans and debt

There are a variety of government programs that can help you with repaying student loans. Below are a list of resources, answers to some questions on student loans, as well as many of the various options you have to get assistance. Also, learn about the latest federal government student loan assistance program, known as income-based repayment, which is a plan that limits the monthly payments a borrower needs to make to a percentage of the borrower's total monthly income.

What are the Consequences of Defaulting on Student Loans?

• You will not be able to receive any additional financial aid.
• The creditor can demand that the entire student loan be paid in full, and be paid immediately.
• Collection costs and fees of up to 19.5 % could be added to your student loan bills and debt.
• The student loan you defaulted on will appear on your credit report for a period of up to seven years (try buy a house, leasing a car, or now, even getting a job with that!)
• Your employer could be served a legal garnishment notice that requires them to forward up to 15% of your take home pay towards repayment of your loan.
• Your income tax refunds could be withheld by the government and applied to your student loan repayment.
   

In addition to these steps on this page, find the top ways how to repay your student loan from one of the best non-profits.

2. You Need To Review Your Student Loan Repayment Options. They include :

• Level Repayment Schedule - The monthly installment you pay will remain the same throughout the repayment schedule, although some minor changes in the monthly installment bills you need to pay may occur for student loans that have a variable interest rate if the annual interest rate increases. If this installment amount does not fit into your personal budget, call your loan servicers to ask for help, and you need to get estimates for the following repayment alternatives for your student debt.
   
• Graduated Repayment Schedule - This student loan repayment schedule was created knowing that borrowers should have a higher salary and make more money as they progress in their careers. Student loan payments are initially lower and then they will increase later in the repayment schedule.
   
• Income Sensitive/Based Repayment - This is the most flexible payment plan, but it can also be the most expensive in the long run, and you must reapply annually for this help. The monthly bills you receive, and the amount you are responsible for paying, will be established based upon your student loan debt and gross monthly income. You provide your servicer/lender with needed information about your total gross monthly income that is received from all sources. Your income information can’t be more than 90 days old. If married, you do not need to include your spouse's income when asking for this help with paying student loan bills. More.

If the student loan repayment options above also do not fit into your budget, contact your servicer or lender to see if you qualify for what is known as the 25 Year Extended Repayment Plan.

Once you have picked the right repayment plan for you, sign up for direct debit when you begin paying. This is the easiest way to make your student loan payments and you never need to worry about late fees or paying for postage stamps!

3. Apply For A Grant
In addition to free federal government grants from, many private organizations and other government agencies offer numerous grants that can help with student loans. More.

4. Change Your Due Date.
If you fall behind because you are paying you student loan in the same week as the mortgage bills, car payment bills, and other big bills, you need to contact your lender or servicer and ask them for help in changing the due date of you student loan payment. They will usually adjust it by a matter of days or weeks.

5. Consider Loan Consolidation.

• Lower your monthly payments
  Consolidating your bills and loans can help extend how much time you have to pay off student loans to up to 30 years. This extension can really help reduce your monthly payments, even by as much as 50% or more.
   
• Combine all your student loans
  One company will takes over all your student loans and debt so that you only get one bill, and you only have to deal with one company and not lots of lenders. One bill you need to pay, one monthly payment, easy...
   
• Do some homework
  Once you have consolidated your student debt and loans, you are allow to consolidate again only if you have an eligible student loan that was not included in your previous consolidation for some reason, or if you received a new eligible student loan that was presented or disbursed after your loan consolidation.
   
• Use a debt elimination or a debt management plan
  There are other debt reduction and debt elimination plans offered by credit counseling agencies and others. More on these debt reduction plans.

6. Speak To A Consumer Counselor
A consumer counselor can advise and help you on ways to save on your bills and reduce your debt, including student loans

7. You may qualify for a deferment or forbearance.
These programs can help you delay the repayment of your student loan debt. More on student loan deferment and forbearance.