Ways on How to Manage a Severe Student Loan Debt

Many are riddled with student loan problems on a regular basis and the number of cases revolving around it seemed to be increasing as of date. You may have already heard about reports that talks about students who owe a huge amount of money to their lenders with regards to their student loans and are having problems paying them off. Such cases are indeed a reality especially today where the cost of education is a steep high compared back then. Thomas Caufmann shares the same sentiments and concerns with students who are troubled with their debts. Discussed below are ways on how to survive severe student loan debt.

Careful Planning

You can start thinking of paying for your debt right away without careful thought and planning. This applies well especially to those who have debts in different sources aside from their student loan. You may need to decide the order priority of your debts depending on how severe each ones are. Applying for loan deferment and at the same time focusing on paying off your other debts can be a viable option to consider. Either way, 

Thomas Caufmann advises students to think things through and refrain from spending any unneeded luxuries and items for the meantime. A budgeting calculator may be of great use to individuals who have severe student loan debt by helping them manage their budget in a timely and effective manner. Fortunately, these calculators are easily available over the internet for quick and easy access and use and Thomas Caufmann encourages students to use such existing technology today.

Choose Which Ones to Pay First

As mentioned earlier, debts can come from different sources and it can be quite hard to pay them off one by one. Some may choose to pay the highest interest debt first while others choose to start with the smaller debts. Aside from student loan deferment, one can centralize their payment options and help survive with their severe student loan debt by consolidating their loans. This allows for a more simplified approach to loan repayment as your bills will be centralized, meaning students will only receive and pay off only one loan. In addition, consolidating student loan helps a lower overall interest rate to the entire debt load providing a huge amount of convenience on the borrower’s end.

Sometimes a student may seek help in financing their college education through private loans as well with federal loans. It should be noted that consolidating private loans and federal loans altogether is possible through refinancing. This means that students can apply for a new loan which is used to pay off your existing loans and are given a new interest rate in the process.

Other Viable Options to Consider

Students can also apply for an Income Based Repayment program which works by making sure your payment is no more than 15% of your income minus an allowance for your family size. Such programs can really help lighten your burden and loan especially if one already has their own family to support with. Public 

Loan Forgiveness programs are also a great way of reducing your student loan debt by looking for jobs that revolve around the field of public service. Thomas Caufmann loves the idea of gaining experience by working in public service while also shedding some costs with one’s overall debt.  

Things don’t always come easy when one has a severe student loan debt to pay for. With that being said, Thomas Caufmann was able to assist several individuals in finding a way to effectively manage their debt.