Losing your job can play havoc with a number of different things, including paying back your student loans. In fact, losing your job can be a real emotional trauma. You should do everything in your power to get control of your finances while you are looking for new employment. One of the things most directly affected by job loss can be staying on top of your loan payments.
From Paycheck to Reality Check
You may be in shock, upset, and even panicking about your future prospects. It is desperately important that you try to keep your head. At this critical and emotional time, you should be considering student loan forbearance. Student Loan forbearance is a program where you can ask to either temporarily stop paying your loans every month or to make reduced payments in the event of financial difficulties, change in employment status, medical expenses, or other hardships. This program covers federally generated loans including direct loans, FEEL program loans, and Perkins loans. For private student loans, the terms may differ by lender, or forbearance may not be available at all. There are also specific circumstances that apply to forbearance that you should know about before you apply.
● For Perkins loans, interest does not capitalize during the term of forbearance which is limited to three years.
● Interest will accrue on Direct and FEEL loans, and will accrue over the course of the forbearance.
● Granting forbearances at the discretion of the loan holder, and they will decide for what dates it will apply.
● Another forbearance may be requested if you are still experiencing financial hardship.
● There is also a program called mandatory forbearance that can be granted and must be granted if you can prove that your loan payments are eating more than 20 percent of your monthly gross income.
Having your loans and forbearance can help you to reduce your monthly expenses and give you some breathing room. Of course, it’s very rare that student loan debt is the only debt that you have in your portfolio. All too often there is an automobile loan to consider, credit card debt, and sometimes even a mortgage, and monthly expenses related to your home such as homeowners insurance. It is very important to prioritize your expenses, and even get on top of your debts with a strategic and timely bankruptcy filing.
With the new Trump administration, circumstances surrounding student loans are changing rapidly. If you feel your loans are out of control, or you are unable to keep up with your payments, call us and schedule a free initial consultation at our Fort Lauderdale or West Palm Beach office. Don’t be ashamed to admit that you need help, thousands of other people have come to us to find relief from an unmanageable financial situation. We can help you to tame your student loans and all of your other crushing debts, and help you to get back on top of your life
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