You may think that your credit is ruined by your student loans, especially if they are in default. You'll never get a new loan, right?
Wrong. Student loan help is not just for those with good credit. In fact, many lending institutions will work with you without running a credit check at all.
One option is to refinance your student loans. This type of student loan help is much more available than you might, and requires little or no qualification. There are many reasons to consolidate your loans.
Consolidating your loans does three things for you. First, it may buy you a month before you have to make another payment. Second, it can often lower your interest rate, especially if you got fixed rate loans while rates were high. Finally, by having only one loan you can save money by avoiding costly finance charges on each individual loan.
For many people, loan consolidation is the only way they can manage their academic debt. Med students especially have problems with paying on as many as thirty-two student loans taken throughout their academic career! Consolidating these loans into one is the only way to manage them effectively without going broke.
Another option you may not know about is economic deferment. Getting through med school was tough, but residency doesn't pay much, and even with roommates expenses can be tough. If you are like most med school graduates, you know how hard it can be to make ends meet while trying to pay off the mountains of loans taken out to get through school in the first place.
An economic deferment may be available based on your financial situation. This allows you to wait six months to one year before you must start paying on your loans. It will allow you time to get through that first bit of financial hardship that you go through after graduation.
Typically, you can only qualify for an economic deferment if your expenses are equal to or more than your income. For this reason, this type of student loan help for med students is generally limited to those who have already started their families, or those who must support existing families.
