Yes. There are many programs available that could help you lower your payment, depending on which ones you qualify for. When federally backed or issued student loans become due after graduation (or after you leave school), they are put into a ten year, fixed payment plan.

However, young people starting out in the world do not make much initially, and that fixed payment can seem insurmountable. This is especially true if the total debt is high.

Graduated Payment Plans

Graduated Payment Plan. This is a plan whereby you have a ten (10) year term for the loan, but the monthly payment starts out low, and then increases every two years. This allows you to pay it off in the same term, but with the payment increasing (hopefully) with your income.

Extended Graduated Plan. Sometimes the amount borrowed is so high that you need more time to pay it back. Therefore the Department of Education may extend the payment term to 25 years (30 years for loans prior to July 1, 2006) if the total loan debt is over $30,000. As with the graduated plan, the monthly plan starts out low, and then increases every two years.

There is one catch, though, but not a big one. The monthly payment must be in an amount that covers all accrued interest on the loan for that month, or $50, whichever is higher.

You can also look into a payment plan based on your income through the Income Based Repayment and Income Contingent Repayment plans.

So What Do I Do?

If you are looking for a solution to your student loan problem and wondering if there is one, then there is a great way to find out for free! Just click here to provide me with all the details on your loans. I will then, for free and with no obligation on your part, look at your situation to see if I can provide you with a way to deal with them. If there isn't one, it didn't cost you anything. If there is, then I will contact you to schedule an analysis session with my office to lay out a plan of action.

If you would like more information about student loans, you can dowload my free book, I Graduated; Now What? A Guide to Dealing with Your Student Loans.

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Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.