The 411 on Dealing With Student Loans | Richard Banks & Associates, P.C.

$1.48 trillion.

That’s what Americans currently owe in student loan debt. If you are one of the 44 million or so borrowers, you may be wondering if your student loans will ever be paid off. Or perhaps you’re wondering how to make ends meet while paying your loans back. Trust our team when we say you’re not alone.

According to Student Loan Hero, class of 2016 graduates owe an average of $37,172, which is up 6 percent from the previous year. The average monthly student loan payment for borrowers aged 20 to 30 years is $351, and there is currently a delinquency rate (90+ days delinquent or in default) of 11.2 percent. Ten states have been hit especially hard where the student loan crisis is concerned, including New Hampshire, Pennsylvania, Minnesota and Colorado.

Student loans can certainly feel overwhelming, but there are three steps to take which will help keep them manageable.

1. Know how much you owe and what your interest rates are for each loan. Remember, interest rates can vary depending on the type of loans you have. Too often, college students and recent graduates don’t understand the types of loans they have taken out and can be caught off guard when it comes to repayment.

2. Find a repayment plan that works for you. You can visit studentloans.gov to figure out which type of repayment plan will work best for you. Plans include options such as: Pay as You Earn (PAYE), Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR). Your student loan provider can help provide further info on your options, too.

3. Pay above the minimum when you can. We know this is the last thing you want to hear if money is tight. As much as it might hurt, you’ll want to be able to pay more than your minimum payment as often as possible. It might not seem like much, but every little bit helps—especially when there are interest rates working against you.

We know how stressful student loans can make life and hope that these few tips can at least make them seem more manageable.

Unfortunately, student loans are extremely difficult to include in bankruptcy cases. But if you’re swamped by other financial burdens, such as credit card or medical debt, Richard Banks & Associates is always here to help!