I understand that the government considers “financial hardships” when determining eligibility for income based repayment plans. Do they include private student loans when making these consdirations. I have two hefty private student loans with very high interest rates in addition to my government issued loans.

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Posted by Madison (MONEY FORUMS: 4, Answers: 0)
Asked on March 12, 2016 9:11 pm
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Unfortunately, income-driven plans are only for federal student loans. For private loans, talk to your loan servicer about options, but typically they aren’t as flexible

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Posted by Melanie Lockert (MONEY FORUMS: 0, Answers: 66)
Answered: March 19, 2016 2:03 pm
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You should consult the student aid.ed.gov website, and better yet, call your loan servicer to find out what all goes into the hardship calculation. My hunch is that the government is NOT likely to consider your private loans. I think you might want to contact your private servicer first and talk about renegotiating your terms. While you are in touch with them, find out if you have any prepayment penalties. If you don’t, then there are several operations that you can contact to try to refinance your private loans on better terms. Check out this article: https://studentloanhero.com/featured/5-banks-to-refinance-your-student-loans/

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: March 13, 2016 3:31 pm