Talk to a debt counselor toll free:800-300-9550
Our Clients Rate Us Excellent
Based on 3234 reviewsTrustPilot Reviews
You have two choices in terms of the interest on your loans during forbearance. You could pay the interest or you could let it accumulate. In the event you decide to let it accumulate, it may be capitalized. This means it couls be added to your principal balance and you will end up paying interest on it as well.
Change your repayment plan
If you're struggling to make your student loan payments and can't qualify for either deferment or forbearance, you may be able to negotiate a change in your repayment plan. To do this, you will have to contact the company that services your loan to discuss options for repayment. Before you do this, you might want to use the Repayment Estimator that's available on the Studentloans.gov website. This would give you a look at the various repayment plans and see estimates of what your monthly payments might be.
Consolidate your payments
In the event you have multiple loans from different sources, you might be able to save money by consolidating them with a Direct Consolidation Loan. This would simplify things for you because you would then have only one payment to make each month. However, there are both pros and cons to one of these loans. For example, one of these loans would likely have a 30-year term, meaning you might be well into your 50s before you had it paid off. Plus, when you increase the term or length of a loan you'll pay a lot zmore in interest. This means you should definitely compare this new payment to your current monthly payments to make sure a direct consolidation loan would be your best option. However, if the idea of a Direct Consolidation Loan appeals to you, here is a list of the student loans that could be consolidated with one.
• Direct Unsubsidized Loans
• Direct Subsidized Loans
• Unsubsidized Federal Stafford Loans
• Subsidized Federal Stafford Loans
• PLUS loans from the Federal Family Education Loan (FFEL) Program
• Supplemental Loans for Students (SLS)
• Direct PLUS Loans
• Federal Nursing Loans
• Federal Perkins Loans
• Health Education Assistance Loans
• Some existing consolidation loans
Finally, there has been a growing movement to forgive student loan debts. Here’s a video that discusses forgiveness and why it might not be a good idea.