To help college graduates handle crushing student debt levels, many lenders are now offering services to help young Americans handle loan repayments. In today’s job market, many college graduates are finding it difficult to find employment and pay off these debts. However, if you find a job, but still need some extra financial assistance in an emergency, you may be able to utilize a payday loan until your next paycheck arrives.
According to student loan lender Williams Mie, the average young American is now on the hook for $23,300 worth of student debt, CNBC reports. Meanwhile an estimated 10 percent of students owe more than $54,000.
These debt levels have surged nearly 500 percent during the past 15 years. To complicate the situation, tightened lending standards have made it harder to qualify for these lines of credit. Meanwhile, young Americans who have any missteps in their early stages of repayment may experience swifter consequences than in the past.
One of the biggest obstacles making it difficult for college-bound students to qualify for loans is a lack of credit history. However, according to the news source, this is only half the battle. Even those consumers who qualify for student loans, managing their debt afterward has proved to be a larger issue.
To curb this issue, Experian has teamed up with Consumer Action, the Jump$tart Coalition and other financial institutions and nonprofits to give students the needed skills to manage their debt.
Specifically, many families are being urged to consider federal student loans, rather than those from private lenders. These options are often more affordable and come with lower interest rates.
Additionally, to attract more borrowers, certain private lenders now offer incentive programs to make student loan repayments more affordable. For example, Wells Fargo may reduce interest rates if a student graduates or is consistent with their payments.
However, even if it gets more affordable to pay back student debt in the near future, you should still formulate a sound repayment plan that fits your financial lifestyle.
Reduce The Burden Of Student Debt
To stay on top of your student loan payments, consider enrolling in automatic transactions. This could make your life much easier. If a payment is late, or you forget to make one altogether, this could have a negative impact on your overall credit score.
By enrolling in automatic payments, you may be able to qualify for a slightly lower interest rate. Since payment is guaranteed, your lender could consider you less of a risk, according to Real Simple.
This perk is available through most federal programs and certain private lenders. A quick phone call or email to the company could save you a considerable amount of money over the lifespan of the loan.
Consolidate Your School Loans
Consolidating your student loans can also be a smart move. By rolling multiple loan balances into one, you will only have to deal with one interest rate and one monthly payment. However, this may only be an option on government student loans.