You took out private student loans to help you pay for an education that would help you land a successful career. After graduation, you might have found that the job market wasn’t what you expected, or that your promotion wouldn’t come for another year. Suddenly, you find yourself with no way of paying off your private student loans.
If this sounds like you, you’re not alone. Read more to learn about private student loan debt relief options.
Student Loan Debt Statistics
Student loan debt is higher than ever before, and is second only behind mortgages (meaning student loans cost more than credit card debt or auto loan debt).
Borrowers face over $1.5 trillion in student loan debt, and affects graduates of every demographic and financial background. There are generally two reasons it’s so difficult to pay off student loans:
- Lack of Financial Resources: You may not be able to get your dream job after graduating. If you took a job that paid less than you expected, you may not have the money to pay your student loans.
- Lack of Financial Knowledge: Unfortunately, many students are never taught the financial behaviors necessary to lower their student loan costs. Instead, most students are encouraged to take out loans in order to take care of college expenses immediately for that term or year. After graduation, they’re left with no knowledge on the best way to tackle loan payments.
Student loan debt –especially private student loan debt– can quickly skyrocket. Most students don’t start paying their student loans until after college, with many not realizing that interest often begins to accrue as soon as the money was sent to their school. That could leave them with four years’ worth of interest costs added to their loan right at the start of their repayment period.
How to Get Relief from Private Student Loan Debt
Private student loan debt resolution from a trusted debt relief company (like Accredited Debt Relief), can increase your chances of successfully negotiating with creditors. Depending on the amount of debt you have, you may want to consider:
- Debt Consolidation loan: Debt consolidation loans take multiple student loan payments and merges them into one monthly payment. You’ll reduce the stress of having multiple creditors, payment due dates, and payment amounts.
- Debt Settlement: Settlement, often called debt resolution can be helpful for graduates with high amounts of private student loan debt. Debt settlement works by having a debt negotiator work with your creditor on your behalf. The goal is to have your total amount of debt reduced. If successful, you’ll make one consolidated payment into an account that’s set up in your name. Once you reach the new total you owe on your loans, your loans are paid from the money in the account.
- Credit Counseling: If you have the ability to pay off the total amount of your debt, but are unsure where to start, credit counseling might be a good option. A credit counselor works with you to help you establish a budget and set up a personalized plan to pay off your debts.
Benefits of Private Student Loan Debt Relief
A professional debt negotiator working on your behalf could be the difference between paying off your student loans more quickly and being hit with more interest. Consolidating multiple private student loan payments into one monthly payment can also help you manage your debt. That consolidated payment eliminates the need to login to different loan websites to make a payment.
Should You Start Debt Relief for Your Private Student Loans?
Consolidating your private student loans and resolving your debt through a debt relief program isn’t for everyone...here are some questions to ask yourself to determine if you should consider student loan debt relief:
- Will I ever realistically be able to pay off my loans?
- Is my mental and physical health taking a toll from the stress of my student loan debt?
- Is more than half my income going toward loan payments?
Ways to Lower Your Student Loan Debt
Aside from student loan debt relief programs, here are a few other options that can potentially lower your loan payments:
- Applying for a new repayment plan based on income.
- Checking for private student loan assistance programs in your area or through your employer.
- Asking about discounts for automatic payments.
Accredited Debt Relief can help you pay off your debt quickly, so you can finally take the first step toward financial freedom. Get a free consultation today!