Whether you’re currently repaying student loan debt or you’re contemplating a student loan, the following are some little-known student loan facts that can be helpful to know:
Do you work for a public service agency? As a government employee, you might qualify for loan forgiveness after making 120 monthly payments. A lot of different industries qualify, including some positions with certain non-profit organizations, so check with your lender to see if you’re eligible.
Large amounts of debt
Many college graduates will eventually admit that they didn’t realize what they were getting into when they initially began taking out student loans. But the fact is, a lot of graduates are in way over their heads. In fact, approximately 10 percent of recent graduates have monthly student loan payments that exceed a quarter of their income! Before taking on this amount of debt, be sure to explore your other options first.
Making a payment every 269 days will keep you out of default
There are some serious penalties for defaulting on a student loan, such as ruined credit, withheld income tax refunds, and even wage garnishment. To avoid going into default for your federal student loans and facing such consequences, don’t go longer than 269 days without making a payment.
Pursuing higher education can be extremely costly, but at Peachtree Financial Solutions, we want to see you succeed. If you have the qualifications and the determination to get into a prestigious program, it’s a shame to let money be the only thing standing in your way. There’s always the option of student loans, but why not explore your other options? If you’re receiving long-term payments from a structured settlement or annuity, you can sell some or all of them and receive that money in the form of a lump sum. Receiving that money in a lump sum opens up doors and allows you to pay for things that might otherwise be out of reach, such as expensive college tuition. Contact us today for more information and to receive your free quote!
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.