Can a Student Loan Be Eligible For the Loan Modification Program of the Government?

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Young professionals are mostly still paying off from their student loans. With the prevailing economic situation of the country, it's not surprising for them to seek ways to stall the payment period longer. The idea of loan modification might come to their mind too. However, the question is, is a student loan eligible for loan modification?

The answer is a big no! A student loan cannot apply for a loan modification. However, the department of education has considered also that certain hardships are apparent reasons for difficulty of loan payment. And there are several programs that might be invoked to avail certain degree student loan forgiveness.

An extended repayment program may be availed if student loan balance, a principal amount plus interest exceeded $30,000. The payment period may be fixed or graduated, with 25 years as the maximum limit for such cases. This is in a way, availing a loan modification. However, take note that the interest from a principal will also increase relative to an increased payment period.

However, this scheme may be good enough considering that due to amount for the loan is lower. For the time being, getting back to a financial strength is eminent. On the other hand, there is also another way of solving this problem. Financial institutions also offer a debt consolidation programs to individuals.

With mounting credit card debts and unpaid student loan, this will qualify for consolidation. Since a college scholarship loan is basically not eligible to a loan modification scheme, one should find alternative options. The bottom line will still be the same, either stalling payment or lower due to amount. And if you are lucky, pay them to one institution.

If this young professional doesn't have debts besides student loan, then seeking advice from the department of education is strongly recommended. Especially if it didn't fall under the amount mentioned earlier. Perhaps he or she can avail of the public forgiveness program of the department. With today's prevailing economic problem, chances are a considerable repayment scheme will be agreed.

The most important thing is to find ways on how to avail certain degree of loan modifications. Be it from debt consolidation of financial institutions, or from seeking public forgives due to incapacity to repay a loan. Whatever, just try to find possible but legal ways.

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