Three Ways To Lower Student Loan Payments

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Student loan debt can be overwhelming, but you’re not alone. Forty-three million Americans have student loan debt, and it adds up to a whopping $1.1 trillion dollars. With so much debt, it can be tough to pay the monthly student loan payments. About 16.3% of student loan borrowers are in default, which could have serious repercussions for their credit history. But student loan burdens don’t have to keep you from achieving your goals, such as buying a house, small business practice, or growing your savings.

If you’re having trouble making student loan payments, don’t lose hope. There are ways to lower your payments so you can strategically manage your budget around your loans and still pay them off. Here are three options for lowering your student loan payments: CHANGE YOUR FEDERAL PAYMENT PLAN The type of repayment plan you choose determines your monthly student loan payment amount, how many years it will take to pay back what you borrowed, and how much interest you will pay over the life of your loan. Keep in mind, the longer it takes to pay back your loan, the more interest will accrue and increase the overall cost of your loan. The three types of payment plans available for those with federal student loan debt are standard, extended, and income based repayment plan.