One idea regarding student loan repayment is to wait it out until the federal government decides to issue another loan forgiveness opportunity. It is rumored that President Trump has the power to wipe out much student loan debt due to how many federal loans were disbursed and the high rate of interest some of them charged. So, if you’re about to start paying back student loans, should you wait to do so?
President Trump is working on some ideas on this now (read more about his plan here). However, until this is finalized, students who borrowed money for a student loan are still responsible for repaying it.
You can defer your loan debt for a certain amount of time due to temporary financial hardship under a forbearance agreement. If you return to school for at least half time, you may be able to wait before you start paying on it again. However, remember that interest will continue to accrue on these loans even when you are not paying on the principal.
You may opt to pay on the interest that is accruing during this time that you are under a forbearance or deferment. This will keep the interest from getting too high and adding to your overall debt.
Should you wait to repay your student loans?
Many are optimistic that the President will sign an executive order clearing much of the student loan debt for everyone. He recently stated that students owed far too much debt and it’s too much of a burden on them throughout their life. But this is not a good reason to avoid paying back student loans until this legislation is put into force.
You can, however, make alternative payment arrangements with the original lender or consolidate student debt into a more affordable plan that will make it easier to handle.
If you are a teacher or know someone who is, they may want to check out the teacher student loan forgiveness programs which are endorsed by the Federal Government and U.S. Department of Education.