10 Ways Student Loan Companies Help You Win at Finances After School
As soon as you get your diploma, it can feel like the world is your oyster. But that optimistic view comes crashing down when you realize just how much goes into surviving in the post-college world. See, there’s this not-so-little thing called money that will likely be a major source of worry for you. And if you took out student loans, that worry is only going to increase as you see how much you’ll have to pay back. The most important thing you should know right now is that you are not alone. You don’t have to figure out how to win at finances on your own. Student loan companies, like MoneySolver, can help you feel like a champion when it comes to money.
Here are ten ways student loan companies will help you win at your finances, no matter where you are with repayment.
1. Get an impartial review of your student debt.
Looking at your student loans can feel very overwhelming. Because they’re your student loans, you’ve got a very biased view of them. You probably think they’re pretty bad, huh? But when you seek student loan services and have a professional review your student debt, you’ll get a more realistic perspective on your loans. Got federal or private student loans? Subsidized or unsubsidized loans? Fallen into delinquency or default? No worries, professionals like our Student Loan Advisors have seen and solved student loan debt across the spectrum. They can prove to you that your debt is manageable.
2. No more dealing with your frustrating student loan servicer.
Who enjoys dealing with their student loan servicer? Not many. In fact, from September 2016 through Aug. 2017, the top complaint from student loan borrowers was dealing with lenders/servicers. It’s often an unpleasant task, and for good reason. Your servicer doesn’t always work in your best interest, but professionals like ours do. We’ll do the legwork on your behalf. So, no more needing to deal with confusing calls to your servicer. We’ll handle all the necessary conversations and let you know what options you have available to you.
3. Get back on track after delinquency or default.
Delinquency and default can set you back. And it’s not just you, there are about 4.7 million borrowers in student loan default. Falling into default can hurt your determination to free yourself from your student loans. Only about 26% of defaulted student loan borrowers believe that they’re likely to get out of default and repay their loans. The other 74% are either unsure of their future standing with their student loans or don’t believe they’ll get out of default and repay their loans.
If you’re in that hopeless 74%, we’re here to show you that there’s definitely a light at the end of the student loan tunnel.
4. Stop wage garnishment in its tracks.
If you’ve fallen into default and your loan servicer has started legally dipping into your paycheck, student loan services can stop this wage garnishment. Professionals like our Student Loan Advisors will tell you how to stop unfair garnishment and might be able to help remove the garnishment, depending on the situation. They will also teach you how to prevent your state and federal refunds from being taken and set up an agreement to keep the Department of Justice from pursuing you. They make sure that wage garnishment doesn’t continue to hurt your income, your job, and your life.
5. Regain your financial footing with forbearance or deferment.
If you find that you’re in an unsteady place financially, student loan services can help you seek forbearance or deferment. Our Student Loan Advisors can help you determine if forbearance or deferment is actually a good choice for you. If it is, then they can help you make the request and seek approval. If it isn’t a good choice for you, our advisors will tell you about better alternatives.
6. Figure out if you would qualify for forgiveness.
Maybe, just maybe there’s a chance you can have your student loans forgiven. The chances can be slim, considering that only 289 of the 28,913 Public Service Loan Forgiveness applications were approved.
But if there is a chance that you could be in that small pool of approved applications, our Student Loan Advisors can look into it and let you know what you’d have to do to achieve forgiveness. Your student loans won’t magically disappear, but forgiveness is the next best thing. From Public Service Student Loan Forgiveness to different types of student loan discharge, student loan services professionals can investigate all the forgiveness options that might be available to you.
7. Explore the benefits of consolidation.
If you have federal student loans, student loan servicing can show you if consolidation is a good option for you. It could help make bills simple, give you a fixed interest rate and make it easier to recover from default. But there are some downsides to student loan consolidation, like the potential of paying a higher amount during the life of the loan and resetting any forgiveness credit you’ve accumulated. A Student Loan Advisor can explain to you both the pros and cons of consolidation to ensure the benefits outweigh the risks.
8. Find out if refinancing is a good option for you.
Loads of student loan services offer help with refinancing. If you want to adjust your monthly payments or pay your debt off sooner with lower interest, refinancing could be a great option for you. As with anything, there are some downsides to refinancing (losing any federal student loan benefits, prepayment penalty fee potential, good credit score required, etc.). Many borrowers never consider refinancing, but the average savings from refinancing across a few different lenders that offer student loan refinancing (LendKey, CommonBond, Laurel Road, Earnest, SoFi) is $21,350. Student loan services can help you figure out if refinancing would help you save big on your student loans.
9. Update that outdated student loan payment plan.
If you have federal student loans, you are never stuck with the payment plan you originally selected. Life changes, so why should your payment plan have to stay the same? A Student Loan Advisor will walk you through your repayment plan choices. They’ll show you how to switch between plans and when is best to make a payment plan change. They can even help you find the lowest income-based repayment plan allowed by your loan servicer if you need to lower those monthly payments.
Have private student loans? Your repayment plans and how you’re able to change them will vary depending on your lender. Student loan servicing will look into your available payment options and walk you through which is the best fit for your unique situation.
10. Save yourself from high-interest rates.
Interest rates on loans are inescapable, especially if you have federal student loans. But if you have a private student loan and can pay off your loan faster and monthly, you can sometimes get a lower interest rate. A Student Loan Advisor can work with you to see if this could work out in your favor. Only have federal student loans? You likely won’t be able to lower your interest rate. But student loan services can help you set priorities in your repayment strategy to ensure you’re not racking up too much interest.
How do you find the best student loan services for your situation?
A quick web search will come up with many companies that offer student loan services. A small number of these student loan companies, such as MoneySolver, offer a free initial consultation. It’s wise to take advantage of these no-cost conversations before spending any money with a company you may not be able to trust. Be wary of scammers who want to take your money but have no intention to help you succeed.
If you find a student loan servicing company you like, make sure they:
- Are transparent about pricing
- Offer reasonable financing options
- Don’t try to sell you something you don’t need
- Make you feel comfortable and at ease
- Get a full picture of your financial situation (including taxes)
- Offer you a full review in writing of your current standings
- Are based in the U.S. and familiar with the U.S. education system and private lending systems
- Are trained financial professionals and not just salespeople
If they hit all these points, they’ll likely be able to help you bring home a big win when it comes to your post-college finances.
Disclaimer: The viewpoints and information expressed are that of the author(s) and do not necessarily reflect the opinions, viewpoints and official policies of any financial institution and/or government agency. All situations are unique and additional information can be obtained by contacting your loan servicer or a student loan professional.
