A college degree is an essential part of the American Dream, but the high price tag can be discouraging. The average student loan debt is $30,000, and for those who attend professional or graduate school, the average debt can be six figures.
Too much student loan debt can prevent you from saving for retirement or buying a home, but there are several ways to lower your monthly payments while still saving money.
This article covers how to get rid of private student loan debt.
How to Get Rid of Private Student Loan Debt in a Legal way
Federal student loan forgiveness application.
The Biden administration on Monday officially launched the application for student loan forgiveness for millions of Americans.
The application can be accessed at studentaid.gov. To see if they qualify for up to $10,000 in federal student loan debt relief or up to $20,000 if they received a Pell Grant and earn less than $125,000 a year, applicants will need to fill out their name, Social Security number, date of birth and contact information.
Dec. 31, 2023 is the deadline for this program.
During a news conference at the White House on Monday, Biden said that the commencement of the student loan forgiveness program is a “game-changer” for millions of Americans. He went on to remark that building up the website in such a short period of time took a lot of hard work.
Despite the application’s availability, the Department of Education has been named in a number of lawsuits challenging the student loan forgiveness program.
According to CNN, a U.S. district court that heard a preliminary injunction motion last week may rule soon on whether to temporarily block the show. As a result, the forgiveness program may be halted until the matter is resolved.
Private Student Loan Debt: Consolidation
You can combine your school debt to lower your monthly payments and lengthen the duration of your loan.
Consolidating may help you get a lower interest rate because the rates offered by private student loan lenders are based on the borrower’s creditworthiness. If you adopt this method, you may be able to get a lower interest rate.
If you have both private and government student loans, consider merging them into a single monthly payment.
To do so, you would need to combine all of your debts into a private loan. Numerous benefits, such as forbearance and income-driven repayment plans, would almost certainly be lost as a result of this.
If you have both federal and private student debts, you must consider merging them separately.
You would need to convert your federal debt into a Direct Consolidation Loan in order to do this.
This approach can prevent you from losing access to federal benefits even if it would result in two distinct payments.
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Private student loan