5 Legal Ways To Lower Your Student Loan Payment

Do you often find yourself struggling to afford your expensive student loan payments? If so, you’re certainly not alone. Thankfully, there are ways to get relief from the burden of your student loan payments. In this article, we’ll cover five simple, legal ways to lower your student loan payments and help you get back on track.

Table of Contents

• 1. Make the Most of Your Military Service
• 2. Use Student Loan Repayment Assistance Programs
• 3. Put Some Time into Refinancing
• 4. Make the Most of Federal Programs
• Q&A

1. Make the Most of Your Military Service

Serving your country is one of the most meaningful experiences in life. You have been given a unique opportunity to have a positive impact that will be felt for years to come. Here are some tips to help you :

• Do your job with excellence.
• Be a leader. Your years of service will give you the confidence and skills to be a leader in any field you choose.
• Set goals. Your military career can provide you with the opportunity to take charge of your future and make your mark in the world.

You will also have the opportunity to learn valuable life lessons and invaluable skills. Utilize the education and professional development opportunities available to you in the military. Take advantage of the chance to network with individuals in various branches and backgrounds. Improve your communication and critical thinking skills, and gain greater confidence in yourself.

2. Use Student Loan Repayment Assistance Programs

As you start your journey of student loan repayment, it’s important to know about all the assistance programs available to you. Taking advantage of these assistance programs can help to ease the burden of loan payments, freeing up your cash flow for other needs or goals.

When looking for the right program, consider both federal and private lenders. With federal student loan repayment assistance programs, you could qualify for modified payments, loan consolidation, loan forgiveness, or even a full discharge. Here’s a list of assistance options available:

• Income-Driven Repayment Plans: This type of plan adjusts your payment amount depending on your current income and family size.
• Extended Repayment Plans: These plans extend the repayment period to up to 25 years, resulting in lower monthly payments.
• Deferment and Forbearance: You may be eligible for temporary deferment or forbearance options in times of financial difficulty.
• Loan Forgiveness: If you work in certain sectors such as public service, you could qualify for loan forgiveness.

If you’re unable to qualify for these federal programs, you may not be out of luck. Private lenders may still offer assistance programs as well, such as interest-rate reductions or payment extensions. While every lender’s terms are different, it’s definitely worth looking into for some extra relief.

3. Put Some Time into Refinancing

If you’re tired of paying too much money in interest on your mortgage or loan each month, refinancing could be a great option for you. You can lower your monthly payments, reduce the amount you owe in interest over time, and even shorten the overall terms of your loan. Here’s how to get started:

• Check Your Credit Score. Before you apply to refinance, you’ll need to make sure your credit score is in good standing so you can get a better interest rate.
• Gather Your Documents. Review the loan documents you originally signed to determine how much you owe and what the original interest rate was.
• Shop Around. Look for lenders that offer attractive refinance rates. Also, get quotes from several lenders to compare terms and fees.
• Understand Your Options. Do some research to determine which loan type is right for you, such as a fixed rate or adjustable rate.

Once you’ve decided on a lender, the refinancing process is fairly straightforward. While it may take a few weeks, it is worth the effort in the end. Taking the time to put some effort into refinancing can save you money in the long run and help you make sure your loan remains on track.

4. Make the Most of Federal Programs

If you’re looking to save on taxes, there are a range of federal programs designed to help you out. With the right strategy, you can put them to good use and benefit from a range of tax advantages.

Before you apply for any government program, analyze your circumstances and the tax deductions available to determine if you qualify or not. Here’s what you need to keep an eye out for:

• Investment Tax Credits – Pay less tax if you invest in certain areas of business, such as clean energy.
• Tax-Deferred Retirement Plans – You can delay paying tax on your savings until retirement age.
• Federal Tax Credits – Take advantage of credits, such as the Earned Income Tax Credit for wage earners.
• Consolidation Loans – Combine several debts into one with a lower interest rate.

You can also apply for federal grants, scholarships, student loans and other forms of financial assistance. Eligibility may depend on a variety of factors, including household income, type of business you run, the number of dependents, or the purpose of the loan.

Q&A

Q: What are some legal ways to lower my student loan payments?
1. A: There are several ways to lower your student loan payments and make them more manageable. You could look into income-based repayment plans, deferment, and forbearance, consolidating or refinancing your loans, or applying for loan forgiveness. All of these strategies are legal ways to lower your student loan payments.

Q: How does an income-based repayment plan work?
2. A: An income-based repayment plan adjusts your loan payments to fit with your current income. These plans often mean lower monthly payments and the amount of interest you pay over the life of the loan.

Q: How do deferment and forbearance work?
3. A: Both deferment and forbearance allow you to temporarily suspend or lower your student loan payments. While your interest will continue to accrue if your loans are unsubsidized, payments do not need to be made until you resume them.

Q: What is loan consolidation and refinancing?
4. A: Consolidating or refinancing your loans is when you combine several loans with different rates and terms into one loan with one rate and payment. This option can be a good choice if you are able to secure a lower interest rate and reduce your total payments.

Q: What is loan forgiveness?
5. A: Loan forgiveness is when your loan is cancelled or discharged by the government, your lender, or an approved third party. Depending on your field of study or your occupation, you may be eligible for loan forgiveness or cancellation.

Whether you’re enrolled in a university right now, have recently graduated, or are considering going back to school, you now have five legal ways to make your student loan payments more manageable. With options ranging from loan forgiveness and consolidation to refinancing options, you don’t have to fear the financial future – you can take control and empower yourself to manage your student loan debt.