Pay Off Student Loans - The Bills.com Blog
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Pay Off Student Loans
Question: I need to Pay Off Student Loans? Should I consolidate my $50,000 in student loans - I can't keep up with the payments. HELP!
Answer: Seeking help and advice on your student loan problem is a good first step, and I can tell you that you do have options.
Unfortunately, you have found yourself in a situation experienced by thousands of Americans every year. The risingcost of higher education, coupled with the increased demand for a college degree in the American workplace, has caused a large percentage of students to incur tens of thousands in debt to finance their education. When they graduate, and are not able to find a job with the salary they expected, many are left unable to repay their loans. It sounds like this is the situation in which you have found yourself.
I can offer you the advice to consolidate (and dramatically lower your monthly payment) any existing student loans. If you want to compare rates and terms to consolidate your student loans, you can get matched with several pre-approved lenders, by applying here:
https://www.bills.com/studentloan/loan/
When you consolidate your student loans as a method to pay off student loans, you can frequently lower your interest
rates, lock in a fixed student loan interest rate, and extend the payback period -- which could combine to lower your monthy payments by over 50%! Hopefully that solves your short term monthly payment stress.
You could also consider a debt consolidation loan–the Bill.com Savings Center is a great resource to find a debt consolidation loan that may fit your needs.
There are basically two types of consolidation loans–unsecured and secured. In your case, I doubt that an unsecured loan will be of much benefit, since your current interest rates on your student loans are probably better than a bank could offer you on a standard unsecured loan.
If you are a homeowner, a debt consolidation loan secured on your home may also be an option, though you should be careful before you borrow money against your home to pay off student loans; you would be converting what was previously
unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your mortgage payments. If that is an option, or to explore this alternative, you can apply with Bills.com's network of home loan refinance providers by applying here:
Mortgage Refinance Quote
Thanks for writing; please don’t hesitate to write again with any follow-up questions you may have - or check out the information at: http://www.bills.com/student-loans/
Sincerely,
Bill
If you would like more information, please visit us at: http://www.bills.com
We hope that this helped you to Find, Learn, and Save!
Bill.
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Thomas Livengood on Monday 3rd March 2008 22:19
I have been dealing with Next Student Student Loans. At first they were helpful, but as of late, I have found paying my loans very confusing, mainly because I was never clearly told when or how to go about paying. After several miscommunications through phone and email, I am frustrated by the fact that they are saying that they are sending me to a collections even though I had defered payment 4 months ago at least via email as I had done in the past. What do you suggest I do in this situation and is there any easier ways to get my student loans structured into a plan that won't wipe me out completely?
2. Posted by pbrees on Tuesday 4th March 2008 12:56
Being very familiar with the student loan industry and all its players, I empathize with your situation. As unfortunate as your situation is, it is actually not that uncommon. Putting a loan in deferment or forbearance is not always as easy as sending an email. Of course, the customer service reps do not convey this information to you. In many cases, you may need to fill out paperwork demonstrating why you are asking for deferment. It also sounds like you deferred your loans in the past. You may have exceeded your deferment cap. There is a maximum amount of time a loan can be placed in deferment. Once this has been exhausted, your only option is to continue making repayments. Unfortunately, once your loans are in default, you must contact the lender or collection agency directly to work out a payment plan to rehabilitate the loans. Be prepared to deal with aggressive collectors. Collectors know there are no third party interventions available with default student loans. They also know these loans are not dischargeable in BK leaving you no other option other than repayment. Once you have rehabilitated the loan back into repayment status, you may be eligible for a consolidation. If the loans are federal, and you have not previously consolidated, you may contact another lender to help lower monthly payments. If the loans are private, try to find a co-signer with worthy credit and consolidate the loans for a lower monthly payment. Good luck man.