Student loans are generally considered to be "good debt" because they are an investment in your education and future earning potential. By borrowing money to pay for your education, you are increasing your chances of getting a good job and earning a higher salary in the future. This is especially true if you are pursuing a degree in a field that is in high demand, or if you are attending a college or university with a strong reputation.

While it is true that student loans do need to be repaid, the long-term benefits of a college education often outweigh the short-term burden of debt. Studies have shown that, on average, college graduates earn more money over their lifetimes than those who do not have a college degree.

On the flip side, student loans can have a big impact on a person's credit score, particularly if the loans are not being repaid as agreed. When you take out a student loan, the lender will report the loan to the credit bureaus, which will then include the information on your credit report. If you make your loan payments on time and in full each month, this will have a positive effect on your credit score. On the other hand, if you miss payments or default on your loan, it will have a negative impact on your credit score.

Missing student loan payments or defaulting on your loan can lower your credit score because it shows that you are not able to manage your debts responsibly. A low credit score can make it more difficult for you to obtain credit in the future, such as when you want to apply for a mortgage or car loan. It can also result in higher interest rates when you do borrow money, which can increase the overall cost of your loans.

If you are having trouble making your student loan payments, there are several options available for restructuring your repayment plan. Here are a few options to consider:

  1. Extended repayment plan: This plan allows you to extend the term of your loan, which will lower your monthly payments but increase the overall cost of your loan.
  2. Graduated repayment plan: With this plan, your payments start out lower and then increase over time. This can be a good option if you expect your income to increase in the future.
  3. Income-driven repayment plan: These plans base your monthly payment amount on your income and family size. There are several different types of income-driven repayment plans available, including Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE).
  4. Consolidation: If you have multiple student loans, you may be able to consolidate them into a single loan with a single monthly payment. This can make it easier to manage your debt and may also lower your monthly payment.

To apply for a different repayment plan, you will need to contact your loan servicer and request a change to your repayment plan. Your servicer will be able to provide more information on the different repayment options that are available to you.

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