How to Reduce Old School Loans

You've long left the hallowed halls of higher learning, but the school loans that put you there are still following you around like an annoying salesman who doesn't know the meaning of the word "no." If you're tired of paying off your old school loans, but don't want to change your identity and go into hiding, explore your to legitimately reduce your student loan debt.

Instructions

1

Find all of your school loan payment information, including all correspondence between you and lenders. Student loans are sold during the life of the loan, so it's important to find the contact information of the current lender.

2

Contact your debt holder. Ask if you qualify for a reduction in your interest rate, Loan.com suggests. Time has passed since you graduated and your credit rating should be higher than when you first took out the loan. If so, it's possible that you could qualify for a new loan at a lower interest rate.

If you can't meet your obligations due to job loss, medical expenses or an emergency, some lenders will agree to a loan modification that reduces your interest rate or changes the terms of the loan so payments will be reduced.

3

Ask your lender if you qualify for an income-based repayment plan, the News & Observer of Raleigh, North Carolina, suggests on its website. If you do, your payment would not increase, but remain at a level that's calculated to be appropriate and affordable based on your family size and income.

4

Fill out any necessary paperwork for your lender and send it back promptly in the requested format. The sooner you send the information, the quicker the old school loan will be reduced.