Studies show time and again that a college degree greatly increases your earning power throughout life. Colleges seem to have figured this out as well because they certainly seem to charge a bundle these days. If you are going to attend, taking out student loans is a must and that ultimately means they need to be repaid.
They say graduation day is one of the happiest in your life. I think this is a crock. Personally, I would have preferred to have stayed in college another 10 years or so! This feeling was reinforced all the more when that first student loan invoice came in. -What do you mean I have to pay the loan back? Already?!- It was not a good moment.
The pain involved in paying back loans is in direct proportion to the amount you borrowed. Let’s just say I borrowed what I needed to pay for the critical things like tuition, books, an apartment, a tab at the local sports bar and so on. Ah, it was pure bliss. The repayment period was not.
There are three basic ways to deal with your loans in the long run. The first is to not pay them. This is only an option if you pretty much intend to live like a hermit. Since I didn’t, I had to look at the other two. The other two involve how to pay them off. One approach is to add an extra $25 to each loan payment. This will cut down the total payment time by years and save you a bundle in interest. Frankly, it was to depressing for me since the amount owed seemed to drop far too slowly each invoice.
I went with the second approach. I react well to motivation. To get it, I lined up my various loans and picked the one I owed the least on. I made the minimum payment on the others, but tried to do everything I could to double up on the monthly payment on the smallest loan. This resulted in it being paid off fairly quickly, which made me feel less dire about my overall loan situation. I then moved on to the next one and so on.
Was there any mathematical benefit to this approach? Maybe. I never looked into it. My primary goal was just mental. The sooner I could tick off some loans as paid, the better I felt about the possibility of paying them all off one day and the future in general. It might just work for you as well.
Thomas Ajava is with USStudentLoanCompanies.com – learn more about the types of student loans available after the government takeover of the market.
It has now become very common to take student loans for education in order to get their desired career but most of the students fail to repay their loans leading to Defaulted Student Loans. It has to be noted that the number of defaulted cases has increased to such an extent that the government and other agencies are suffering losses. Therefore there is a need for some rules and regulations so as to fight with the problem of Defaulted Student Loans. It is very important for the lending authority to know why the borrower is not repaying the loan in a proper manner following all rules and regulations and not by force or harassment. If the borrowers have any serious problem they can seek Defaulted Student Loans assistance.
The consultants and experts will provide such advice that they can easily come out of the Defaulted Student Loans status because nobody wants to live with a black patch on their credibility. Overcoming from Defaulted Student Loans is not a difficult task if appropriate steps are taken at the right time. Wasting time and not repaying the loan may lead you in serious trouble. Therefore you can seek help from the experts who provide defaulted student loan help.
There may be situations when the loan taken by you is not sufficient to meet your college expenses and you had to take more than one loans but now it is becoming difficult to handle all the loans together. There is only one thing that can help in such a situation that is Private Student Loan Consolidation. Private Student Loan Consolidation is of great help for those who have taken multiple loans from different financial sources and are not able to deal with them.
In Private Student Loan Consolidation all the loans are combined together into a single loan and also help to reduce their monthly payments. This enables them to save some amount of money every month which they can use for other purposes. Moreover, Private Student Loan Consolidation simplifies the life of the borrowers because paying regular installments to one lender is simpler than paying to different lending sources and thereby makes their life free from financial burden so that they can concentrate on their studies. However, it is really important to choose a relevant source for Private Student Loan Consolidation where you find the best deal.
Thus, in order to overcome the problems related to Defaulted Student Loans opt for loan consolidation or Private Student Loan Consolidation.
So what if you are not financially stable? That doesn’t come
on your way to reach your professional goals. The federal Government is
there to assist you in furthering career advancements. You might have
heard and read a lot about unpaid student loan that has landed the
borrower in trouble. Are you stepping back since you don’t want to be a
sufferer? Think again, there is enough for you to learn before you drive
into a conclusion.
From Student Loan delinquency to Defaulted Student Loan- the Phase in Between
Before you quit the idea of pursuing a Federal student loan you must
look into the matters involved. Deferring a payment won’t land you up in
a defaulted status unless you are unable to make payments for more than
9 months time. So, have you heard about delinquent student loan? Well,
it all starts with your inability to make payments. Your delinquency
period starts as soon as you miss out on your payment.
to comply with obligations stated in the contract may also lead you to
experience a defaulted status. Once you declare delinquency the lender
has certain obligations to fulfill. Within fifteen days you will be send
a written notice. The notices send to you during the delinquent period
will inform you about the span that is left with you to clear your
However, it is to be noted that if the delinquency
last for 9 months or more, you will be stamped as a student loan
defaulter. Student loans in default add to the misery of many who are
unable to repay the amount. On the contrary if you are finding it tough
to make the payments, you can readily request the lender to allow you in
postponing the same.
The student loan defaulter has to confront with a host of difficulties like the ones stated in the following lines:
tax refunds: The Federal Government has the right to seize you tax
refunds. This may happen till the time you don’t pay off the outstanding
Salary cut: The Government may even slash a portion of
your salary if you are a defaulter. The amount slashed from your salary
may exceed to 15% of your gross income.
benefits: The Government may also seize Federal benefits from the
borrower as reimbursement for the outstanding amount.
Get Sued: As a defaulter you might get sued by the Government. Lawsuits against defaulters are common.
There is often confusion between federal student loan debt relief forbearance and deferment programs. Because both programs postpone scheduled payments debtor confuse them as the same program.
In order to be eligible for deferment, a postponement of federal student loan payments, a debtor must be:
*A full time student in a graduate or fellowship program
*Enrolled at least half-time in an eligible post-secondary school.
*In an approved disability rehabilitation program
*On active duty in the service with the Army or National Guard
In most instances, a deferment request must be made to the loan servicer along with documentation proving eligibility has been met. For those students who have gone back to school at least halftime, the enrollment process will automatically place the loans in deferment. You will be notified of the deferment status.
Any person who is in default on their loan will not be eligible for either a deferment or forbearance. You will have to set your loans right by making payments in order to be eligible for student loan debt programs.
For those people who cannot afford their scheduled student loan payments but do not qualify for deferment, a forbearance is the next best thing. You will temporarily be relieved of loan payments, temporarily make smaller loan payments or extend the time to make a payment. All options work in your favor as far as keeping your debt out of default.
Common reasons for requesting forbearance are:
*Serving in a medical or dental residency
*Refer to your loan servicer for more examples.
You may be given an automatic forbearance under certain circumstances: processing a forbearance or deferment, cancellation, changing payment plan, consolidating or if put on active duty in the military.
Interest payments are often paid by the federal government during loan deferment. It saves debtors lots of money, but in order to receive this additional student loan debt help, the loans must qualify. The government may pay the interest for Federal Perkins Loans, Direct Subsidized Loans and/or Subsidized Federal Stafford Loans. If your loans are unsubsidized, your interest will not be covered by the government. Instead, interest will be added onto the total loan amount, building up the total loan amount each month.
If you are hoping to get into a loan forgiveness program, you will be required to make payments. Instead of looking at a forbearance or deferment for federal loan debt relief, you may want to consider a income-based relief program. These relief programs will work towards the 120 mandatory payments quite affordable.
Before you do anything, find out what help programs you loans qualify for. Income-based programs are extremely helpful in getting a head start on expected loan payments. Find out what your payments may be in one of these relief programs before you sign up for deferment or forbearance. Student loan relief services offer a free consultation for you to understand the proper direction to take in order to be eligible for student loan debt help.
Student Loan Consolidation is a really useful repayment tool that gathers all your federal student loans and puts them into one loan, also significantly reducing your monthly payment. Student loan consolidation is one of the most popular used methods for reducing and paying off student debt. Student loan consolidation is a powerful financial tool which has the backing of the federal government to help you lower your payments by extending your repayment term. Student loan consolidation also gives you the opportunity to lock in at a low interest rate, which can save you a huge amount of money over time.
Federal student loan consolidation amalgamates all your existing loans into one single loan which will show a good future payment history, which will help you improve your all important credit score. These student loan consolidation benefits could save you hundreds, even thousands of dollars in additional interest over the term of your loan. Federally funded loans are initially administered through the US Department of Education’s Federal Student Aid programs, and are usually the easiest to get student loan consolidation services for.
After student loan consolidation, the variable interest rate becomes a fixed interest rate for a set period of time. Many people suffer from bad credit and this can cause problems with trying to obtain that all important college loan consolidation funding but if you utilize services of a federal-based company, they don’t do any credit checks and the top benefit of all, student loan consolidation is considered as good debt and will be more appealing to any future lenders. The Federal Student Loan Consolidation Program lets anyone with more than $7500 in outstanding Federal student loans (including PLUS loans) to reduce their monthly student loan repayments and lock in a low fixed interest rate.
Federal loan are sent to the controllers office at your school, you then sign it over to the school and it is applied to the balance owed to the school. Federal Loans and Private loans cannot be merged when you opt for student loan consolidation. Federal student loans offer low interest rates and deferred payments. Federal student loans are some of the most affordable loans available to students and families, with interest rates lower than most other forms of financing and deferred payments (principal and interest) until after graduation.
By consolidating your federal student loans first and improving your credit score, you could get a better interest rate. Anyone with outstanding non-federal education-related expenses is eligible to apply for a Students can consolidate while still in school, during the six-month grace period immediately following graduation or during the repayment period.
A student loan consolidation program is a lucrative and efficient way for students to deal with student debt.