- 1). Extend your payment term. Repayment terms for student loans vary. Opting for a shorter term helps pay off the debt sooner, but this also increases monthly payments. Speak with your lender and ask for a longer repayment term to help reduce monthly debt payments.
- 2). Get a lower interest rate. Ease the financial burden by requesting an interest rate reduction. A good payment history and credit score helps you acquire a better rate, and some federal student loan lenders offer a 0.25 rate reduction when borrowers sign up for automated payments.
- 3). Inquire about forbearance. Student loan forbearance helps borrowers who undergo financial hardships and can't make their payments. Request a forbearance over the phone and provide your lender with a brief reason for the request. Forbearance lengths vary according to lender; however, it's possible to suspend payments up to one year. Once your forbearance period ends, you can contact your student loan lender and ask for an extension. Interest accrues on the loan throughout the forbearance period, which increases your balance.
- 4). Consolidate debt. If you have multiple federal loans with different interest rates and payments, apply for a federal student loan consolidation to combine your debts into one loan and simplify your finances.
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