Private Loan Monthly Payment Too High? | 05.27.10
Private student loans are a great way to cover some of the excess costs of going to college. But repaying a private student loan can be difficult. Interest rates are generally higher than with a federal loan, and if you didn’t get much help from the government, you might have taken out an exorbitant amount in private loans and now can’t afford to make your monthly payments. Fortunately, there are options.
First, if you have multiple private loans, you should consolidate. Consolidation stretches out your payments giving you a lower monthly payment. Be sure to do consolidate federal loans as well.
Attempt to lower your federal payment. While you unfortunately can not consolidate private and federal loans together, there are ways to lower your federal payment if paying back your loans becomes an issue. If your federal loan payment is more than 10% of your monthly income, you may be eligible for income-based repayment. You may also look into graduated repayment, which starts you off with lower monthly payments that gradually increase over time.
Talk to your private loan lender. Your lender may be able to offer repayment options that assist you if you are having difficulty making your monthly payments. For example, you could request making interest-only payments for awhile, or try reconsolidating with a co-signer for a lower interest rate.
5 Most Recent Student Loans Blog Posts:
The Student Loan Help blog is sponsored in part by: