To afford a college education, many individuals take out student loans. Once a degree is earned, the borrower has a specific amount of time to pay back the loan to the lender. Due to the job market and the need to pay for monthly expenses, many people have been slow to pay back student loans in full—to the point that this type of debt in the U.S. has reached $1.6 trillion. To start managing your student loan debt, follow the advice here. 

How to Get a Handle on Student Loan Debt

1. Choose a Repayment Plan

If you have a considerable amount of debt backed by a federal loan, signing up for a repayment plan is a viable option. Repayment plans are often open to individuals who owe more in student loan debt than what they make in a yearly salary.

Monthly payments will be based on the income you generate, which means you will still be able to manage other expenses. By making payments on time for a specific period, the lender might dissolve the remainder of the debt.

2. Consider Loan Consolidation

If you’ve taken out several loans, consider consolidating them. This way, all loans are combined into one with one manageable monthly payment to keep track of instead of several. Through consolidation, you can have up to 30 years to pay back the loan.  

3. Set Up an Auto-Debit Account

Many lenders offer borrowers the option to pay back student loans via auto-debit transactions. The payments are taken directly out of the borrower’s primary checking account, which can help avoid late fees for missed payments. As an incentive to sign up for this option, some lenders offer a significant drop in interest rates, which could amount to hundreds of dollars in savings.

For legal advice regarding how to manage your student loan debt, contact the Mobile, AL-based attorneys at Padgett & Robertson, Attorneys at Law. Serving southern Alabama for over 40 years, the lawyers help their clients get out from under the financial strain of student loans, medical bills, and credit card debt. Visit them online to browse their services and call (251) 342-0264 for a free consultation.

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. We are a debt relief agency. We help people file for Bankruptcy relief under the Bankruptcy Code.