When Repaying is a Nightmare: Student Loans and Alternatives

There are a number of ways to consolidate school student loans. You may have three separate student loans that have all come due, totaling a substantial amount of your income that makes it unaffordable to pay student loans, rent and other living expenses. Smaller payments are possible as is managing better.

Consolidating student loans can be done through the US Department of Education under the William D Ford Federal Direct Student loans program. There's a variety of repayment plans for student loans including income contingent that fluctuates to suit your yearly income. Their number is 1-800-848-0979. 

For a stay-at-home mom who faces default if she doesn't pay her student loans immediately, you have the option of adding yours to that of your husband's school student loans. The monthly payments then decrease for the total student loans amount. You can also apply for economic hardship forbearance. Your income is reviewed once a year and monthly payments based on it.

The only other option could be to pay your school student loans with a high rate credit card. Forbearance, deferments and income contingent repayment for student loans plans are available in several options. Find out from your student loans holder what your options are. But remember that during forbearance and deferment, interest accumulates.

Sallie Mae is a good choice to consolidate federal student loans into one easy payment. Income sensitive, forbearance and other options are offered with a 15-year period to pay back. Your interest rates will be combined and averaged into a new one which though possibly higher than the current student loans can be as low as 6%. Contact Sally Mae for Smart Student Loans about qualifying at 1-800/524-9100 or www.salliemae.com. Eligible school student loans are combined into one new student loan with new terms and single monthly payment. The lower payments are due to Smart Student Loans account extending repayment of student loans term based on the amount owed, up to 30 years. Payments can be further reduced with interest-only payments for a few years. There's also a Flex Repay account.

When your student loan payments are more than you can afford, your student loans issuer can offer you options from consolidation to a step payment plan where you repay your student loans based on a percentage of your current income. While consolidation may be great, the repayment period of your student loans could take as much as 15 to 20 years according to the amount owed. Then there are temporary financial hardship forbearances when you can afford to pay nothing. The disadvantage is the accumulation of interest that continues while the student loans are in forbearance. It's best to find out from your student loans issuer whatever you options may be. But whatever it is, never default.

In a situation where you can't afford living expenses by paying student loans, ask the lender about hardship deferment to buy more time to increase income. Based on circumstances ask about forbearance too. What you need to avoid is default as it will give your children a next to zero chance of school student loans when they need them.

Most lenders dealing with borrowers are always willing to work out a method to be paid back. Not paying them will be a loss for all involved. A borrower expressing willingness to pay even a less amount or at a later time, is considered far better than the borrower who doesn't communicate at all. Therefore in case of difficulty, let them know.

Regular payments need to be made somehow or the other. Though toughest, financially it proves best in the long run. The more you pay now, the sooner you'll be free of debt. It's handy for buying you time to get other needs taken care of to be able to better afford student loans payments in the future. There may also be the option of interest-only payments to keep the interest from inflating your student loans amount. If your student loans debt is above a certain percentage of income, hardship forbearance at the very least can be filed for.

Several student loans can be consolidated into one student loan, usually with lower payments, particularly given low interest rates. But it may take a longer time to pay off. An address, phone number or even a form in your payment book or a bill to find out more details on the options offered. Also visit www.usagroup.com website for details of the options and calculators to work out the exact amount of savings possible.

Student loans consolidation or consolidation student loans is combination of different student and parent student loans into a bigger student loans from a single lender, which pays off the balances on the other student loans. Most federal student loans are covered including FFELP (Stafford, PLUS, and SLS), FISL, Perkins, Health Professional Student loans, NSL, HEAL, Guaranteed Student loans, and Direct student loans. Lenders may offer consolidation student loans for private student loans too.

With consolidation student loans the monthly payment is often lowered by means of an extension of the student loans term beyond the 10-year repayment student loans plan, a standard with federal student loans. Depending on the amount of the student loans, the extension may be from 12 to 30 years. The reduced monthly payment makes it easier to repay student loans for some borrowers. But in extending the student loans term, the total interest amount increases as well.

Graduated repayment of student loans makes payments lower for the first two years after graduation. With extended repayment of student loans, the term of the student loans is extended without consolidation. Each of the options raises the total interest amount paid but this difference is less than what consolidation offers.