The student loan problem has become one of the biggest issues of our times. People get into massive amounts of debts to have the education they desire, and then have to repay nearly for the rest of their lives. Every year more and more students try to learn how to apply for student loan forgiveness. As the interest rates continue to increase every year, we can understand why. The student loan forgiveness programs try to find solutions to the problem. If you also want to know how to apply for student loan forgiveness, you can learn a thing or two from this article. We are going to discuss the student loan interest rates and the possible ways to handle them.
The importance of education does not need to be discussed. But not everyone is ready to borrow significant sums of money to afford their university expenses. However, you should not get discouraged for only financial reasons.
The student loan problem
The student loan issue has always been a problem in the United States, but in recent years the problem has become catastrophic. Education is one of the most needed tools to have a better future and to pursue a better career. But to have the desired education is not easy at all. The student loan interest rates increase every year and make it even more significant burden on the economy.
Most of the students start looking for solutions and ways how to apply for student loan forgiveness after graduation, or sometimes even while they are still studying.
Loan forgiveness and loan relief are designed to help students with their debts. If you are interested to see which ones can help you, you can research online. There are a few of them, and each one is designed differently for the specific groups of people.
While the student loan problem makes it difficult for students to focus on their studies, the parents also worry about the future of their children.
The interest rates rise more and more every year. As the interest rates get higher, the debts of the students get higher as well. This vicious cycle results in students to default on their loans. The majority of students who default are most like to be from lower income families.
How do the interest rates change
There is no secret that interest rates rise gradually every year. The new interest rates for the year 2018-2019 regarding the bachelor degree rates became 5.05 percent. The former students that already graduated now have to pay their debts at 6.6 percent, even though that number was 6 last year. Even though the rates for federal student loans are fixed, this system still concerns everyone. Because every year they come back and now they have to pay even more than previous years. Now that interest rates are not stable, how to know your average estimated student loans?
One of the most useful tools to calculate the estimated interest rates is the Weighted Average interest rate. To see how your federal student loans and private loans can be reduced with the right payment and financing, you can use the weighted average interest rate calculator.
You can make your own calculations and decide according to the weighted average interest rate how to apply for student loan forgiveness.
You can also lower your student loan interest rates by doing the followings:
You can refinance your loans
The statistics show that t the student loan crisis is out of hand. That’s why we need to take action now. One of the several ways to ease the burden of student loans is refinancing. Refinancing means you put all of your credits at multiple rates into one possibly lower rate debt. It is very beneficial for the students to reduce interest rates and make them pay a bit less than before. But before applying, you should be aware of some requirements:
- You should have excellent or good credit scores in order to be considered eligible to apply. You should pay attention carefully to this requirement
- If you are considering the refinancing option, you should also know that it is better if you have comfortable monthly income so you wouldn’t get into stress paying the new debts.
You can research on and find the best lenders for your refinancing plan. It might not help to eliminate your problem completely, but better some help than none.
Sometimes you can also see student debt consolidation options online or somewhere else. They are more or less the same thing, but there are also some differences. You can find suitable programs for yourself and apply for the consolidation.
Refinancing student loans are beneficial for multiple reasons. Some of them are
- You can have a better interest rate. Usually, the new interest rate is much lower than the sum of the previous ones.
- You can save some money. By not paying more significant amounts to pay off your debts, you can save some money for your future.
- A single monthly payment. Rather than paying multiple fees, you can have separate monthly payments.
- You want to get rid of your student loans soon. We can understand that people want to pay off their debts faster so they can relax. Refinancing your student loans might help you in this process.
These are only a few reasons to consider the refinancing option. If you are not satisfied with those, you can always look for how to apply for student loan forgiveness.
The loyalty discount
Some lenders are offering a discount based on your loyalty. If you couldn’t find any other options, you can always consider this one too.
For example, Wells Fargo has a loyalty discount program. They offer 0.25 % discount to the students or graduates who have an account at Wells Fargo. There are also other companies offer discounts if you have an existing account in their companies.
It’s somehow unlikely, but let’s imagine that you haven’t found any useful option for your student loan interest rates. What to do now? Remember, you always have a choice.
If you were unsuccessful in finding a way to handle the increasing interest rates, you could take some actions to help the situation. For example, you can work a part-time job. There are tons of jobs for students who want to contribute to their living expenses. You can save some money by applying to those. You can also apply for scholarships. Actually, you should ask for the available scholarships as much as you can. Scholarships are a great way to reduce your tuition fees and student expenses.
The other option is loan forgiveness programs. If you want to know how to apply for student loan forgiveness, all you have to do is a little bit of research. There are a few options for forgiveness programs, and you can choose the best one for yourself and your situation. Getting an education is some people’s biggest dreams. And it might not be the most comfortable journeys out there. Student loans, expenses, difficulties might seem horrible, but don’t let them discourage you from having the career you always wanted. There are many options available if you are willing enough.