So you’ve finally graduated from college. Congratulations! It’s a huge accomplishment!
But now that all the pomp and circumstance are complete, you’re faced with one pesky thing. That’s right paying back those obnoxious student loans.
Even if you’re lucky enough to have a job lined up right out of the gate, student loans can wreck your bank account.
Student loans can haunt you for years. Not only will they take a financial toll, but the stress of making payments on time can take a mental toll as well.
So, you may want to consider lowering your student loan payments. We’re sharing why you should lower student loan payments in this post!
You Recently Graduated
As you make your way into the adult world for the first time, you likely have all sorts of post-graduation plans. But this is when it’s important to learn one cold, hard lesson. Life gets in the way.
Suddenly, those plans have to be put on hold indefinitely so you can afford to pay rent.
You may be thinking to yourself, ‘I spent all that money so I could make money! Now I can’t even afford student loan payments?’
It’s true those with a college degree make more money. But it’s also true that more graduates than ever are struggling to pay back their loans.
Hey, there’s no shame in struggling financially right out of college. Heck, even if you’ve been out of college for a decade you might find it difficult to pay back student loans.
It’s important that you realize this is normal.
There’s no shame in needing to lower student loan payments. Right out of the gate, there’s a lot about the world you’ll have to figure out. Therefore, lowering your student loan payments may be the best move for you.
You should have a six-month grace period before payments begin depending on the type of loan. If payments are still too lofty after six months, go ahead and lower your student loan payments.
You Can’t Find a Job
This is another unfortunate but common scenario. The workforce is fickle, to say the least. Since the job market is volatile, graduates may find themselves jobless following graduation. This is more common than you’d expect.
In fact, graduate unemployment has steadily risen over the past decade.
As you fill out application after application, the last thing on your mind will be paying back your loans. In fact, you may find yourself regretting going to college altogether.
Joblessness is one of the most common reasons people need to lower student loan payments.
If after you lower student loan payments, you still can’t make regular payments, don’t worry. You’re not out of options.
Instead of trying to lower student loan payments, even more, it may be time to look into getting a deferment.
If you qualify for a deferment (also known as forbearance sometimes), your payments will be suspended for a short time. After a certain period, usually a few months, it’s expected that your payments will resume.
You’ve Found a Job, But You’re Still Not Making Enough
Or perhaps you’ve found a job, just not the job you dreamed of. If you’re a recent graduate, your first job out of college may not be as glamorous as you hoped.
You may remember a few posts ago when we mentioned the stagnation rate amongst wages. Unfortunately, it doesn’t seem like this is going to change anytime soon.
There’s always the chance that you’ve found a job but still need lower student loan payments in order to pay for rent.
If this sounds like you, consider looking into an income-based repayment program. In short, this plan consists of precisely what it sounds like. Your monthly income is evaluated to find a monthly payment that works for you and your budget.
Switching to an IBR plan can be helpful if you’re still trying to establish yourself within your profession.
You can also check if a pay as you earn program would fit your needs. Qualifying for a PAYE program can be a bit trickier than an income-based solution. Often, you’ll need more extensive proof of financial hardship.
On average, roughly 10% of your income will go toward your student debt if you qualify for either program.
You’re Looking at Making a Big Investment
There’s always a chance you’re looking to lower student loan payments for a happy reason!
Maybe you’re getting ready to close on the home of your dreams. Or, you need the money to finance that car you’ve fantasized about since you were a kid.
After all, it’s estimated that closing fees can be up to 5% of a home’s total value. But that doesn’t mean you don’t deserve to become a homeowner.
Student loan payments aren’t pocket change — they add up. And quickly, at that.
Perhaps you’re looking at making a massive life change. Finding simple ways to lower student loan payments will put that extra cash in your pocket and let you live the life you want.
Don’t let lofty student loan payments get in the way of your happiness!
Unforeseen Consequences Make Your Payments Impossible
Remember earlier how we mentioned life getting in the way? You can cruise along the highway of life only to suffer a proverbial flat tire. Now making that loan payment may as well be a pipe dream.
Expensive medical bills or sudden car repairs will always need to take priority in your life. Odds are, your loan company will understand these circumstances and allow you to lower student loan payments.
The Final Word on Seeking Lower Student Loan Payments
Sometimes, paying back student loans isn’t as easy at it sounds. But the situation doesn’t need to be as scary as it may seem. Whatever your situation, you’re not alone!
It’s time you own your life and bank account again! So get in touch today to see how we can help you lower your student loan payments.
After all, there’s no reason to put your life on hold just because of expensive student loan payments!