The amount of most tertiary education debts in America has been increasing over the years, posing a big problems for millennials on top of their struggle to find a job after graduating. It was reported that around 70% of newly grads are facing this problem, wherein each individual has an average of $30,100 deficit. With this amount, it is not surprising that many lag behind for quite some time in terms of paying it down.

Fortunately, students can now avail of several assistance programs to help them handle their arrears. These aids may depend according to your employment or present situation, and may even possibly wipe out the whole figure altogether.

Number one of these is known as deferment. It is basically a postponement of compensating for your debt , meaning your are not required to pay for interest or principal parts of the amount for a certain span of time. This can reduce your stress as it gives your more time to prepare for it financially. However, this service is subject to criteria such as:

  • enrollment in a vocational educational institution

  • unemployment

  • presence of financial conflicts

During this period, it is the government who takes care of the interest in your loans, but in cases where it is unsubsidized, you will have to take charge of it during your deferment time but it may be incorporated as well in your principal balance which will let you repay it gradually.

There are also types of loans such as direct ones which will require you to contact you servicer to request for the service.

There is also what is called as forbearance, which delays your fees for up to a year but leaves your responsible for the interest incurred overtime. There are two types of this offering:

  • Discretionary: for this kind, the decision on whether to grant you with the help will be up to the lender. It may also be based on specific conditions that may hamper your from paying the arrears such as illness or economic difficulty.

  • Mandatory: this, on the other hand, has to be permitted by the lender. It is also under particular conditions such as:

    • A monthly fee more than 20% of your gross income

    • Involvement in medical internship

    • Having a teaching profession

    • Being in a service post and have received an award for your role

Lastly forgiveness programs are available for individuals in certain fields. These are teachers and public workers, who are eligible to have their debts reduced or completely removed. For educators, their arrears can be slashed by up to $17,500 so long as they have practiced their job for five years and have taken out all their federal loans.