Is consolodating my student loan smart

If you are unemployed, you may be eligible for a deferment for up to three years.Other situations in which you may be granted a deferment are if you are enrolled at least half-time in college, during active duty military service, or in an approved graduate fellowship or period of service (e.g., Peace Corps).Most likely, the private lender will offer you an interest-only repayment plan for a certain period of time.This will significantly reduce your monthly payment, but you’ll end up paying more for the loan in the long run.He’s also no stranger to being overwhelmed with student debt.“I graduated in 2009 with about 0,000 in student debt from 16 separate loans and three different servicers,” Josuweit says.

There are several income-based repayment options available that range from 10 to 20 percent of your discretionary income.Your lender is required to grant you a forbearance if you meet certain criteria – for example, if you are in a medical residency, an approved teaching program, or the total amount you owe on your federal student loans is more than 20 percent of your gross monthly income.If you do not meet the criteria for a mandatory forbearance, your lender may still grant you a voluntary forbearance at their discretion.Last week I was talking with Andrew Josuweit about the best way for graduates to go about repaying their student loans.Josuweit is the CEO of Student Loan Hero, a free Website that helps graduates manage student loans.Here, we look at all the options for paying off student loans — from deferment to consolidation, and more.October marks the end of the six-month grace period on many federal student loans.For recent graduates, that means the free ride is over and you’ll have to start making monthly student loan payments.Whether you’re just beginning to repay your student debt or have been slogging through payments for several years, you’ve probably wondered “Am I going about this right?Federal student loan forbearance If you do not qualify for deferment, you can apply for forbearance.A forbearance will delay your federal student loan payment for up to 12 months.

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