Q: I’m having trouble making my student loan payments. What should I do?
A: If you’re having trouble making student loan payments and can’t trim expenses elsewhere you have a few options to ease the burden. Depending on your situation you might be able to obtain a lower payment, deferment, or forbearance. You can lower the payment by lengthening the repayment term, making graduated payments consisting of lower payments now and higher payments later, making interest only payments, or paying on a percentage of your monthly income. You can obtain deferment for economic hardship, unemployment, enrollment in school, or other similar situation. Forbearance lets you suspend your payments for certain circumstances and for specified periods. You receive statements and have the option to pay the accrued interest. Any unpaid accrued interest is added to the balance. While these might help you in the short term to get through a financially difficult period you will pay more in the long run and should be used only if you can’t reduce other expenses.
Crystal Faulker is a C.P.A. with Cooney, Faulkner, and Stevens, LLC - Certified Public Accountants | Business Advisors.
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