Sometimes I believe 85% of keeping up with your student loans is just being “on top of it.” A lot of this concept is simply knowing the details of the programs available to you so that others can help you make the best decision for you.
Remember that your loan counselor for a federally backed loan only knows about federal programs. They cannot help without details about private or state programs. There was a recent conversation I had with a borrower that highlighted this point:
So a borrower called in and thought she applied for a deferment. After reviewing her notes it appeared she applied for and was approved for $30.00 a month income-driven plan. She didn’t want to do this IDR because “payment would barely scratch what was owed.” (I was confused by this versus a deferment that wouldn’t “scratch” any of it.)
After questioning her, borrower stated she had some forgiveness that after 3 years would have “all or some” of loans forgiven but wasn’t sure of details. However in case it was all her loans she didn’t want to make payments that weren’t necessary.
Clearly after having this conversation with her I had not the slightest idea how to help her. She couldn’t explain the forgiveness program or what the criteria was. Because she was insistent, we eventually placed her on a forbearance where after the year her interest will capitalize. I just hope she was right about total forgiveness.
The point overall is know what you are talking about so we can discuss your options. We love to help (at least I do) but we can’t give great advice without knowing all the information. So get your details, give us a call and let’s see what we can do!