Student loan debt impacts millions of people. In fact, around 50% of Black adults have student loan debt and approximately 83 percent of non-homeowners say it prevents them from buying a home. With this type of debt clearly impacting finances, here are some ways to better manage it.
#1: Federal Student Loan Repayment Plans
Federal Student Aid offers various repayment plans for federal student loans. They offer an income-driven repayment plan that allows people to pay based on what they earn, their family size, and other factors.
#2: Loan Refinance
Loan refinancing can be an option for federal and private student loan borrowers. There are various private entities that provide refinancing options. It’s important to remember, however, that refinancing a federal loan into a private one makes it no longer eligible for federal income-driven repayment plans or federal loan forgiveness.
#3: Loan Consolidation
Many Americans have multiple federal loans and consolidation provides the option to combine them into one. This will help prevent paying interest on multiple loans. The FSA offers loan consolidation. Some private entities offer consolidation as well.
These options can give you more tools at your disposal when fighting off student loan debt, and help you be more financially flexible throughout life.