- December 21, 2020
- Posted by: Carter Davis
- Category: News
When you’re burdened with private student loans, you may see all the news about federal student loan forgiveness programs and can’t help but feel a little jealous. Seeking private student loan forgiveness is a fruitless effort, but private loans do come with their own fair share of reduction efforts, which are more difficult to do with federal loans. If you need to know how to reduce private student loan debt before it gets out of control, we have the advice you need.
Ask Your Lender About Their Options
The most crucial detail when you’re dealing with any kind of student debt is to stay informed about and connected with the lender whenever possible. You must be aware of the lender’s policies when it comes to forbearance, deferment, and payment assistance—especially since no two private lenders have identical policies. It’s unlikely that the lender will provide full private student loan forgiveness, but they may provide you with options for easier payments that you’d only be aware of by keeping in touch with them.
Consider Deferment or Forbearance
If you’ve hit a temporary speed bump with your income, finding a way to temporarily cease loan payments may be best. Talk with your lender about their deferment and forbearance programs, but keep in mind your loans will likely continue to accrue interest while paused. Deferment is preemptive, meaning your loans cannot be in default before deferring. Forbearance can happen after loans have defaulted, though it’s important to attempt to find a payment solution before loans get to this point.
Refinancing and Consolidating Private Student Loans
Having multiple private student loans from different lenders often results in you having to pay more money, whether it’s due to the interest rates or repayment agreements. Refinancing and consolidating private student loans into one easy monthly payment may save you money, especially if interest rates have gone down since you acquired the loan. Your new loan should have a lower interest rate, and you may even finish repaying it in less time than you had left on the original loans.
The professionals at Hope Credit are experts at negotiating with private student loan companies to refinance student debt. Take a moment to breathe as you discuss how to reduce private student loan debt with us, and trust us to handle your private student debt with the utmost care.