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Government programs, debt consolidation may help pay down student loans
By Peggy Stillwell on Apr 8th, 2010
Some consumers may find that they have to take out student loans to pay for their higher education, only to find they can't pay off the debt.
In a recent piece for her website, financial expert Liz Pulliam Weston printed a letter from a 38-year-old mother of two who had chalked up $73,000 in student debt. Now the mother is trying to plan for her children's education and doesn't know what to do.
"There are programs to help young, single people but nothing for people like me, and it is frustrating," the reader wrote.
Pulliam Weston noted there are government programs for student debt forgiveness. For example, people who make a career in public service can have their student loans eliminated after 10 years, while others may be able to do so after 25. There are also plans that cap student loan payments at 15 percent of a person's monthly income.
Consumers who are in trouble with student loans should make sure to take care of the problem as soon as they can. Along with the plans put forward by the government, some people may be able to use debt consolidation to help them reduce their educational debt.
However, consumers should keep in mind that loans from private lenders must be consolidated separately from those originated with the government.
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