10 Ideas for Getting Government Help with Private Student Loans

For students struggling to pay off private student loans, government help may seem like a lifeline. However, unlike federal student loans, private student loans are not eligible for government assistance programs such as income-driven repayment plans, loan forgiveness, or discharge.

Despite this limitation, some borrowers may still be able to access government resources to help them manage their private student loan debt. Here are a few options to consider:

1. Refinancing with a private lender: Although refinancing your private student loans with a private lender means losing access to federal loan benefits, it could still be an option to lower your interest rate and monthly payments.
2. State-sponsored assistance programs: Some states offer assistance programs for private student loan borrowers. For example, the state of Massachusetts has a Student Loan Assistance Program that provides up to $10,000 in loan repayment assistance to eligible residents.
3. Consumer Financial Protection Bureau (CFPB): The CFPB offers resources and information on student loan repayment options, including private student loans. They also have a student loan ombudsman who can assist borrowers with resolving disputes and complaints.
4. Negotiating with your lender: Although not a government program, negotiating with your private student loan lender could help you come to a more manageable repayment plan. Some lenders may be willing to offer forbearance or deferment periods, lower interest rates, or other options to help you repay your loan.

It’s important to note that private student loans are generally more expensive than federal loans, with higher interest rates and fewer repayment options. Before taking out a private loan, make sure you’ve exhausted your options for federal aid and consider carefully the terms and conditions of the loan.

In summary, while government help for private student loans is limited, there are still options available to help borrowers manage their debt. Refinancing with a private lender, exploring state-sponsored assistance programs, seeking guidance from the CFPB, and negotiating with your lender are all potential ways to ease the burden of private student loan debt.

10 Ideas for Getting Government Help

If you’re struggling to repay your private student loans, you may be wondering if there is any government help available. While there is no federal program specifically designed to help borrowers with private student loans, there are some options you can explore. Here are 10 ideas for getting government help with private student loans:

1. Explore loan forgiveness options: While loan forgiveness is primarily available for federal student loans, some private lenders offer similar programs. Check with your lender to see if they offer any loan forgiveness or discharge programs.
2. Look into loan modification: Some private lenders may be willing to modify your loan terms, such as extending the repayment period or reducing the interest rate, to make your monthly payments more manageable. Contact your lender to inquire about loan modification options.
3. Check for state-specific programs: Some states offer loan assistance programs for borrowers with private student loans. Check with your state’s department of education or higher education agency to see if there are any programs available.
4. Seek out non-profit organizations: There are non-profit organizations that offer assistance to borrowers with private student loans, such as credit counseling or debt management services. Look for reputable organizations in your area.
5. Consider refinancing: Refinancing your private student loans with a different lender could potentially lower your interest rate and monthly payments. However, be aware that refinancing may come with certain risks, such as losing access to certain borrower benefits.
6. Apply for income-driven repayment: While income-driven repayment plans are only available for federal student loans, some private lenders may offer similar programs. Contact your lender to inquire about income-driven repayment options.
7. Look for employer repayment assistance: Some employers offer student loan repayment assistance as part of their benefits package. Check with your employer to see if this is an option for you.
8. Check for military-specific programs: If you’re a member of the military or a veteran, there may be loan assistance programs available to you. Contact the Department of Veterans Affairs or your branch of the military to inquire about available programs.
9. Consider bankruptcy: While bankruptcy should be a last resort option, it may be worth exploring if you’re struggling to repay your private student loans. Consult with a bankruptcy attorney to see if this is a viable option for you.
10. Contact your elected representatives: Reach out to your elected representatives, such as your congressman or senator, to voice your concerns about the lack of government assistance for private student loan borrowers. They may be able to advocate for change at the federal level.

What kind of government help is available?

The government provides various types of assistance to help borrowers manage their federal student loan debt. These programs are designed to provide relief for those who are struggling to make their payments or facing financial hardship. Here are a few examples of government help for student loans:

1. Income-driven repayment plans: These plans are designed to make monthly loan payments more affordable by capping them at a percentage of the borrower’s income. There are several different types of income-driven repayment plans available, and borrowers must apply and provide proof of income to be eligible.
2. Loan forgiveness programs: These programs forgive some or all of a borrower’s federal student loan debt in exchange for meeting certain criteria, such as working in a qualifying public service job for a set period of time. Some examples of loan forgiveness programs include the Public Service Loan Forgiveness Program and the Teacher Loan Forgiveness Program.
3. Loan discharge: In certain situations, such as permanent disability, bankruptcy, or closure of the school where the borrower received their education, federal student loans may be discharged, meaning the borrower is no longer responsible for repaying the debt.
4. Deferment and forbearance: These programs allow borrowers to temporarily stop making payments on their federal student loans without going into default. During deferment, interest may not accrue on certain types of loans, while forbearance generally allows interest to continue accruing.

It’s important to note that these programs are only available for federal student loans, not private loans. Borrowers with private student loans may have limited options for assistance and should check with their lender to see what options may be available.

In summary, the government provides various types of assistance to help borrowers manage their federal student loan debt, including income-driven repayment plans, loan forgiveness programs, loan discharge, and deferment and forbearance. It’s important for borrowers to understand their options and eligibility requirements for these programs.