One of the biggest expenses that young people have today is their monthly student loan payments. These large expenses can get overwhelming during times of hardship, especially for borrowers who are out of work at the moment.
Fortunately, there are a number of different methods for getting help with paying student loans.
Federal students’ loans are currently being granted a student loan forbearance period that extends until August 31st, 2022. During this period, borrowers who have federal loans do not have to pay their student loans if they cannot afford them or if they do not want to pay for the time.
Additionally, federal loans will also be lowered to percent interest during this administrative forbearance period. You are encouraged to contact your loan services to see if you are eligible for this forbearance.
Note: This does not apply to student loans serviced by private lenders.
If your student loans are from a private loan company, there are many similar student loan assistance options available to you through your servicer. For example, you may want to consider refinancing your student loan if you are still accruing interest on your current loan.
Refinancing can be especially helpful during a recession because you may be able to reduce your overall monthly payments.
Another option for federal student loans is to consider refinancing to a lower interest loan once the administrative forbearance period has ended. If you are wondering whether a student loan refinancing can be a good choice for you, consider checking out different online lenders.
Tip: Most online lending services will verify if you qualify and can provide you a quote for a student loan refinance without any impact on your credit.