If you’re in college, then you know how pretty expensive getting a good education is. That is why it does not come as a surprise that there is currently $1.48 trillion worth of debt being owned in student loans in the U.S. That number is bound to increase in a couple of years and colleges may still be just as expensive. While you may be more concerned about the present, there are several options for private loan forgiveness which will get your debt cleared.
How to Get Private Student Loan Forgiveness
Have you ever imagined how your debt disappears or turn into a $1 debt? Then there is a chance that it can come true. What are we getting at? There are several ways to get your debt forgiven which saves you from worrying your head and bank account about it. These are:
1. Contact a Lender:
A lender has good knowledge about the financial market and will be in the right position to give you sound advice. If it is a student Federal loan, then you can get forgiven using a repayment program that has been offered in your state. If it was a private loan, on the other hand, then you could get a forbearance. The latter seeks to give you a break from paying monthly interest for a while and it’s only for a limited about of time.
2. Refinance and Consolidate Private Student Loan:
Your debt may not be entirely cleared in this case, but you can reduce the interest rate that is threatening to break your bank. All you have to do is find a private lender that is willing to pay off your debt while creating a new one with a better interest rate. Consolidation will require the merging of your loan into one to form a new one.
3. Optimize your Federal loans:
It might be a good thing at this point for you to have had private and federal loans. If you do, then you could take advantage of the repayment options in the federal loan. They can help to reduce the cash you have to dish out every month to cover that particular loan, while you handle your private student loans. With the private loan, you can consistently target paying more of it since its interest is higher. Doing this will also help you pay its principal faster.
4. Increase your income:
One more way to finance your private student loan is to increase your source of income. Put in a few hours online for a freelancing job that is not so demanding and you would’ve generated enough to cover your monthly loan. You could write, design platforms, and do a lot of other stuff on sites like Fiverr, SEO clerks, Upwork and so on.
5. Get in Touch With Your Lender:
Who offered you the loan in the first place? then that’s who you should be talking to in a bid to ascertain if there are other options for you. Is it in terms of consolidation, refinancing, or a repayment program? they will know what’s out there. Therefore, reach out to them.
Our list to the options for private student loan forgiveness as outlined above can do so much for you. You can clear your debt in no time and have the cash to save up for other things if you actually get a debt reduction through forgiveness. Try one of these and see how it turns around your debt into a better deal.