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Posted in Student Loans
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Question By
MirandaLee13

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Student Loan Help
I need some advice on my student loans. I had a representative from student debt relief contact me recently and give me some options for taking care of my loan. The option she is leaning toward for me is as follows:

Income Based Repayment Plan- Under this plan the required monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. the maximum repayment period under this plan may exceed 25 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance of your loans.

Months in Repayment 300
Initial Monthly Payment $21.19
Final Monthly Payment $329.22
Total Interest Payments $41,721.00
Total Principal Payments $0.00
Total Loan Payments $41,721.00

The processing fee is $699 and the bank charges a $15 fee, so it's $714 in total. As I mentioned it can be split into three payments of $238, and when you make the first payment Benchmark files for a forbearance on your behalf and they get started on your paperwork. It takes them 90 to 120 days for them to get your loans consolidated and during that time you will not be required to make any payments on your loans. The processing fee payments are spread over that forbearance period.

Does this seem like a logical thing to enroll in or are there better ways of handling my student debt? Thank you for your time! Any advice is greatly appreciated!!

~Miranda

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