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Options for Paying Student Loans

Serenity Liessmann

Posted on February 27, 2019 22:55

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Resources and better insight into how you should approach your student loans.

Student loan debt is a huge problem for many in America. Many finish school with thousands of dollars to pay back to the federal government. Between inflation and companies pushing their customers to choose the option that would gain the company more money, many people are drowning to pay their loans back.

It doesn’t help when companies like Navient are making it harder for their customers to pay off their student loans. Navient used many tactics like pushing their employees to help as many customers as possible, which resulted in their customers not getting the help they need. They also would push their customers to do a forbearance payment plan rather than an income-based repayment (IBR).

Forbearance allows its customers to not pay their interests immediately, which helps with any immediate financial crisis. Although this helps it actually makes paying off their student loans harder to pay off in the long run.

If the student took out a 10 thousand dollar loan they would pay this off first, then after their initial price is paid off they would begin to pay back the interest. This results in the interest payments being very high as opposed to paying a percentage of it off every payment.

The alternative payment plan is income based. This is a rate made according to the amount of income that you are making and the interest rate is tacked onto each cycle, which will result in less money being paid back overall.

Now the question may come up if you should switch your servicer if this has happened to you. It is definitely a possibility although this may be difficult as the federal government chooses who your servicer is, so you can look at the possibility of refinancing your student loan if necessary. You can learn more about this here.

Before starting payments, or even taking out a student loan, look at your options of payments. Make sure that you are truly choosing the best option that will save you thousands of dollars.

If you’d like to learn more about the Navient lawsuits and other topics covered in this article you can watch Hasan Minhaj’s new episode of Patriot Act here.

Serenity Liessmann

Posted on February 27, 2019 22:55

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NEW YORK — One of the nation’s largest student loan servicing companies may have driven tens of thousands of borrowers struggling...

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