Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Student Loans
Profile Image

Question By

0 Contributions
0 People Helped
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!!


Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.