Talk to a debt counselor toll free:800-300-9550
Our Clients Rate Us Excellent
Based on 3234 reviewsTrustPilot Reviews
A second alternative is to get a private debt consolidation loan from a bank, credit union or some other source. As a general rule credit unions offer loans at better interest rates than do banks. The reason for this is because they are owned by their members and are nonprofits. You can do comparison shopping for a debt consolidation loan at sites such as SimpleTuition.com and OvertureCorp.com where you can even get sample offers.
Another way to get money to pay off student loans is through a new form of lending called peer-to-peer lending. This is where you get funds directly from lenders and with no third-party bank or other financial institution involved. Two of the leading peer-to-peer lenders are Prosper and Lending Club. If you shop this type of lending carefully you might be able to get an interest rate of 12.5% from investors.
Change to an income-based repayment plan
If you have a Standard Repayment Plan, you might be able to whittle down your monthly payments by changing to the Income-based Repayment Plan. In comparison with the Standard Repayment Plan,, your monthly payments would be capped at 10% or 15% of your discretionary income – depending on when you got the loan. Of course, there is a downside to this, which is that you will rack up more interest over a longer payback period. On a brighter note if you make 20 or 25 years of consecutive payments on your Income-based Repayment Plan, any balance that you have remaining would be forgiven.
Where to get help
National Debt Relief recently launched a program to help borrowers find relief from student loan debts. It provides a consultation service that will match your specific student loan situation, employment conditions and financial capabilities with the right debt elimination program. It will also help with the paperwork that will allow you to enter into such a program. National Debt Relief charges only a one-time time flat fee that will be placed in an escrow account. There is no maintenance fee or additional charges. They will only withdraw your payment once you’re satisfied with the paperwork and the debt relief program they steered you towards.