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happy woman exults pumping fists Do you want about $7,000 to use as student loan payment?

If you answered yes, then pack your bags and make way to Niagara Falls New York side. Marketwatch.com shares that young people who are can take advantage of the offer to stay in the place in exchange for $7,000 subsidy on student loan saddled with debt payment. The borrowers would need to stay for about two years to get the fund.

This is an economical move for the place because data has shown that their population is on a decline while the Canada side is increasing. And latching on to the popular student loan topic, they intend to lure in young consumers who are just starting out to try the place and hopefully stay and have families in the area.

This will no doubt be seen as an investment which means that it will come out of taxpayers money. There is no amount of how much this program would cost but some consumers are looking at some of the government’s programs calculating how much the repayment plans are costing the taxpayer every time tax season comes.

One of the more popular repayment plans is the Pay As You Earn (PAYE) program after President Obama expanded the mechanics to benefit more student loan borrowers. PAYE will now compute for just 10% of the discretionary income instead of 15%. WSJ.com reports that this will cost the government $14 billion a year for the program.

With the new generation getting more and more indebted under student loans, it is now wonder that the lure of student loan payment support is a great come on for a lot of components of society. Lenders, towns, states and even jobs are using the debt to get young people in different places. Just like the Public Service Loan Forgiveness program which aims to drive young and promising talent over to the public sector in exchange for a forgiveness promise on the student loan payment.

Getting in line with  student  loan  payment

Once you get into repayment, you need to understand how to keep in line to prevent stepping out into delinquency and default. Once you get into these problem areas, there are still tools that you need to keep in mind that can still pull you back and your student loan payment into current status and continue with the payment.

  • Making the most out of a grace period. Federal student loan payment is not due while you are in school. You get to focus on your studies while your debts silently stay under the radar where some accrue interest payment but they are not required to be paid back. The best thing to do at this point is study really hard and if possible, make in-school interest payment on unsubsidized student loans which should not cost you more than a new pair of shoes. Once you separate from your school usually through graduation or if you fall below half time student status, the government still gives you a grace period before repayment. It can be anywhere from six months for most Direct student loans to nine months for Perkins student loan payment. While you are in grace period, your loan servicers will send you details about your debt and you need to consolidate all the data so you know all your loans that are soon becoming due. It is ideal to know how much the payment are before you go into the years of paying down debt.
  • Understanding your repayment plans. Once you already know how much your payments are, your next step is to look at your repayment plans especially for federal student loans. Private lenders do not offer the same breadth of choices compared to the government. According to ED.gov, there are about seven different student loan payment options for borrowers to choose from.The default plan is the Standard Repayment Plan where payments are spread out into  ten years. This has the highest monthly payment amount but the lowest interest payment over the course of repayment. There are other payments such as the Pay As You Earn where the monthly amount is computed on just a percentage of your discretionary income. These types of student loan payment plans are best for borrowers struggling with their finances.
  • Building your emergency fund. As you go through your student loan payment and find that you can make extra payments to pay off the debt faster, think twice before sending that check over to your loan servicer. This is because it is better to build up your emergency fund first to protect you from falling into further debt in the future when you hit a financial roadblock. If your refrigerator breaks down and you do not have any emergency fund to cover a new one, chances are you will be using your credit card which is essentially a loan with skyrocket interest rates.
  • Know how to postpone payments. This usually refers to deferment and forbearance and you need to understand the difference between the two to know which can best apply to your situation. Between the two options, deferment is better because the federal government can still shoulder the interest payment on subsidized student loans. So this makes it more ideal for long term financial hardship. But forbearance is best used for short term need because interest payment will accrue on all the loans while the account are enrolled under the program.

How about private student loans

Student loan payment on private student loans is a lot harder compared to federal student loans. This is because there are less repayment plans that borrowers can choose from. Forbes.com do share how some private student lenders are starting to look at payment modifications to help the borrowers who are struggling with repayment.

But there are really some student loan payments scenarios that are hard to meet that is why even Huffingtonpost.com mentioned the idea that there are borrowers who wait for default on their student loan payment and offer a settlement with the lender while some hope against hope that the loan goes past the statue of limitation. This is not an ideal solution to the student loan payment problem.

Defaulting on your student loans would mean your credit score would take a hit. As it plummets down, your future options for financial tools becomes limited. Lenders would be hesitant to approve mortgage loan application under your name because of your credit history. If approved, you might be looking at high interest rates to compensate for a big risk the lenders are taking on the loan.

Consolidate student loans

Consolidating your student loan payment makes the job a little easier because you the only have to manage a smaller if not one student loan account. But as you consider this options, think through the advantages and disadvantages of both loan consolidation for private student loans as well as federal student loans.

This is sometimes too much work for borrowers who are busy holding a steady job that is why some prefer to work with consolidation company for the expertise. It is ideal to read through student loan consolidation reviews to help zero in not only on the legitimate companies but also those that will be a great fit for your need.

Whatever your decision is, your game plan to meet your student loan payment must be flexible enough to compensate for unexpected challenges along the way.

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Being Smart When It Comes To Student Loans

Graduate Student with thumbs up signStudent loans are now a big part of higher education and for some, that is not a good thing. It simply means that the cost of college and post-graduate studies are so high and unaffordable that students and their families has to rely on taking out student loans just to  earn that degree. Cost of attendance is simply not something that a lot of American families can pay for with their current funds.

Much like taking out a mortgage loan to be able to buy a house or a car loan to purchase a vehicle, student loans has been so expensive lately that people have to borrow money just to get it. And one of the major selling points of student loans is that if you want to earn better in the future, you need to earn a degree and for most, this means being in debt now to earn more tomorrow.

The rising cost of attendance is not the only thing to look at when trying to decipher the need for student loans. The ability of American families to put together and pay for education the children deserve is something that is also falling short. If families were able to either save up or pay on the spot for college, then there would be no need for the student to use their future earnings as collateral for student loans.

This is one thing that the students do not realize is that regardless if the student loans, especially federal student loans are unsecured loans, their future income is already on the hook. For one thing, the federal government has a lot of tricks up its sleeves when it comes to collecting school loans. And if the borrowers think that they can run to bankruptcy courts to have the loans discharged, they are in for a surprise.

Discharging student loans in a bankruptcy court is not impossible but very hard to accomplish as reported by USNews.com. But succeeding in getting student loans discharged in bankruptcy would mean proving that the payments would bring about undue hardship to the student loan borrower. This of course is an alien concept to a lot of people.

In a nutshell, the borrowers need to prove three main points in order to have their student loans discharged in bankruptcy. Having a minimum standard of living threatened with continuous student loan payments is one. They also need to prove that their current financial situation will be for the long haul and that they have also tried to pay their student loans in good-faith.

How to handle student loans

Dragging student loans to a bankruptcy court should not happen to borrowers. Education is meant to provide a better way of life and bring in more money compared to people who are content to be a high school graduate or even those that only had a few years of college but debt to prove it. It is important to be smart about the choices you make in life starting with your student loans. Here are a few things you can look into to help you with student loans.

  • Lay out your career path end to end. Having a plan will always help you get to where you are to where you want to be a little more easily. In terms of student loan, it actually starts with a self-assessment on your interests and hobbies. You need to know what it is that you want to be involved in whether sports or business or arts or any other field. This will help you choose the degree that you need to take as well as the school you will go to. This is where the expense part comes in because you have to look for a school that can offer you what you need without robbing you of your future salary. As you have an idea of the industry that you will be going into after school, you will then have an idea of the expected salary you will get. This can help you manage the student loans you will take out.
  • Exhaust all federal financial aid. When you think of student loans, you need to understand that there are basically two types – federal and private. It is a great idea to explore all your federal options first and it starts with the Free Application for Federal Student Aid or commonly called FAFSA. This is your ticket to the numerous government assistance programs that can range from free money such as Pell grants and other school or state scholarships and grants to subsidy on interest payment to allowing your parents to take out PLUS loans for your college expenses. The reason behind this is that the federal program has lower interest rates, numerous repayment plans and multiple payment assistance programs that can help a borrower stay on course with the student loan payments.
  • Proceed with private student loans with extreme caution. Private student loans has been receiving a lot of flack lately for a number of reasons. There are some borrowers who were not given any support when they were struggling with repayment and in some cases, the death of the borrower just transferred the loan to the person who cosigned the loan. But private student loans are filling in a funding gap in the educational system. There are also a number of big private student loan lenders who are starting to put together a payment modification program for their borrowers in repayment. But the interest rates with private student loans are higher than those of federal student loans and even with the payment modification, there are still less repayment plans when compared to federal student loans.
  • Monitor student loans from day one. As soon as you take out a student loan, keep the documents on hand and always have a detailed list of the loan.It can be the date that yo applied, the date that the funds were disbursed, amount, interest rate, and even the loan servicer. And as you add student loans, update that master list. This is one way of monitoring your student loans while you are in-school. This can also be of great help when you start to prepare for repayment after you separate from school.
  • Make interest payments on unsubsidized loans. This is one great and effective way to mitigate the effects of interest payment accrual on unsubsidized student loans. But this means that the student would need to earn extra money to make those payments. The good thing is that this amounts nowhere near what the student loan payment would be. But still, this is an amount that is not budgeted for college expenses so other students take part time jobs to earn extra money while still in school.
  • Think twice before asking parents to cosign student loans. It is never  good idea to bring in and drag your parent’s credit score into your student loans. This is because in case you give up and decide that you do not want to or cannot make the payments anymore, they are in for a long repayment themselves. And this is something that they are not prepared for as they are already starting plan out their retirement and house payments.
  • Prepare yourself for employment. Take up extra curricular activities or plan out your internship properly to put you in a great position of landing a job after college. This is one of the most important things you can ever do to help make sure that you have a steady source of income after school.
  • Consolidate student loans. It is a smart move to consolidate student loans once repayment starts. If you are looking to work with a company to help you achieve this goal, try and look at student loan consolidation reviews first to see how one company fares up with another in terms of service and other programs.

Student loans is a hard pill to swallow for most because they have to take it in order to have a degree they can use in the future. The idea is to plan out your steps so you can manage your expectations and proceed with repayment as fast and as efficiently as possible.

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Getting Through College Minus Student Loans

Young college student sitting thinkingIt is hard to imagine higher education without thinking about student loans. With the way the economy is going and how families are preparing for college, students almost always has to take out school loans to pay for cost of attendance. This is one of the reason why the number of borrowers has increased over the years as well as the average student loan balance per borrower.

And to make matters worse, a good number of student loan borrowers are not too serious in monitoring their student loans. Theguardian.com shares that more than 50% of freshmen college students are unaware of how much exactly they have taken out in student loans. They paid for college through student loans but couldn’t even recall the amount they took out.

It is already challenging enough to manage student loans while in school and after separating from school. And not having an idea how much has been borrowed will not help in managing and repaying the student loans. It is best to have a detailed list of all your student loans from the first time you take one one up until the time that you graduate or separate from school.

There are even some people who are quick to point out how student loans are affecting how consumers are taking mortgage loans and even pursuing their dreams of putting up their own business. In fact, WSJ.com shares how people aged 30 and below are taking out less business loans to start a company.

Student loans has even been linked to some consumers postponing household formation because of the sheer amount that they have to repay. Couples trying to tie the knot are having to think twice because getting married is an expensive event. And for married families, adding another member in the family could also be taking a backseat because of the cost involved in having a child.

College without student loans

Projectonstudentdebt.org explains that in 2012, more than 70% of graduating four-year college students had student loan debt with them. As big as this percentage is, it also means that there are more than 20% who were able to get their college degrees without having student loans after separating from school.

There are a few ways to get through and graduate from college without having a single student loan account under your name. Here are some ways you can look into to see if you can also get your college degree without any student loan account under your name.

  • College fund from parents. The foresight that parents have plays a big role on how much student loans their children will have to take out to pay for college. It is never too early to start planning for college expenses by putting up a college fund for the children. One great way of doing is by putting funds in a 529 plan and CNBC.com reiterates just how helpful the tool is. This is a tax advantaged program that gives parents the option to pre-purchase college credits and lock in the present rates or invest the money that adjusts aggressiveness as the children nears college years.
  • Free Money from different sources. As you already know that Pell grants come from the federal government, there are other sources of grants and scholarships otherwise known as free money. There are other grant giving agencies that can help you pay for school and you just need to sit down and allot time for research. One good way to look at it is putting in time as you would for a part time job. You also do not have to put in all your efforts on those that are giving away big amounts. If you get it, well and good but apply also to those that are giving away small amounts. If you are able to get a lot of those small grants, you might be surprised with the free money you have on your hand.
  • Cash gift from relatives. If you do the math, four years in college means four birthdays and four holidays where gifts are being given and received. You can let relatives know that you are in college and unable to give gifts and if they are giving you one, you prefer cash for college. If you have about 5 people giving you cash two times a year for four years, this can add up and help you pay a portion of your college education.
  • Community college. It is no secret that community colleges are less expensive than big colleges and universities across the country. There are some college students who prefer to take up mandatory subjects before transferring to another school for major units. This way, they are able to save on the first two years of college and build up enough funds for the homestretch.
  • Get a part time job. While in school, some students take on part time jobs to pay for school. It is a tough challenge to simultaneously work and study at the same time putting in time and effort at the same time. Some burnout and fall out of school out of sheer fatigue while some are unable to show up for work and get fired because of school activities. Balance is key and being able to learn and earn at the same time can greatly help students graduate with minimal to a few student loan debt.

Making repayment as easy as possible

It is tough for students to graduate without student loans and for those that are able to, they are set for a great financial life ahead. But for the majority of college and post-graduate studies, here are a few ways to help make repayment of student loans as easy as possible.

  • Create an emergency fund. This is essential for a secure financial life and should come before aggressive payments on student loans. This is meant to protect you from financial struggles along the way. Imagine if you were putting all your extra funds on student loan payments and encounter some emergency expenses like your car breaking down or encountering some medical condition that your insurance cannot cover. You will find yourself using your credit card or taking out some loans to cover that unexpected expense. Whereas if you have an emergency fund, you can use that to pay for those unexpected expenses rather than taking out loans to cover them.
  • Use windfall money for student loans. As soon as you have an emergency fund, you can look for ways to pay down your student loans a little faster. And one way to do that is to use any unexpected money to pay down student loans. Tax refund checks can be used to pay for student loans as well as any cash gift you get from family and other relatives. You can also get performance bonus at work and you can use that money as well for student loan payments.
  • Stay away from further debt. Student loans is a debt that you have to repay for at least ten years for federal student loans and adding another debt item may not be a wise decision. At least if you are trying to make the payments on such a short budget. If you have no problem making the payments and still have plenty of income then you can think about other payments on your budget but unless you are in that financial position, you would be better off staying away from more debt.
  • Consolidate student loans. It is also a good idea to consolidate your student loans to help you manage the payment better. As you look for a reputable company to work with on consolidation your student loans, you can look at student loan consolidation reviews to see how one company is performing against another.

Student loans is a part of higher education but there students who are able to graduate without having to worry about student loan repayment in a few month’s time. There are ways to achieve this and each student must strive to accomplish a student loan debt free start to post college life.

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Young beautiful worried stressed woman in santa claus hat with fingers crossedIt is important to prepare for student loans before you even start taking them out. Imagine going into the stores to shop for gifts but not having a list of people to buy for or even setting a budget or each gift. You might be able to finish your gift shopping but walk out of the store with too many bags than you wanted and a maxed out credit card.

This goes the same for school expenses because if you are able to prepare for student loans, you are able to plot out your finances accordingly. You have an idea how much you need to borrow in comparison to how much you are expecting to earn after school. You also need to plan out the amount you are borrowing to manage your overall loan.

This is probably one of the reasons why Lancasteronline.com shared that a high school math teacher promoted an initiative to introduce financial literacy in math subjects. The objective is to share practical applications of math theories to prepare them for life like computing for student loans. This will come a long way in helping college bound students in managing finances.

As always, other people can only do so much and it is up to you to take the initiative to learn. To prepare for student loans, you need to set aside time to read about student loans. You can also talk to your parents because chances are, they also went through the whole student loan process and they can give you first-person point of view on how student loans are able to affect the life of borrowers.

Prepare for student loans over the holidays

As you spend time with family and friends over the holidays, you get some free time on your hands to take a close hard look at your finances particularly your student loans. Here are some things that you might want to look into as you spend holidays with your folks.

  • Start gathering FAFSA documents for next year. It is never too early to start preparing for the next round of Free Application for Federal Student Aid or FAFSA submission. This is because you need to apply every year if you intend to take advantage of federal support. You last year’s application does not carry over to the next school year. And the funds are on a first come first serve basis which means the earlier you are able to send in your application, the better are your chances in getting part of the free money like grants and even subsidy on student loans.
  • Check on your student loan levels. You need to set aside time to take a look at your student loans and assess if you are still on track. The free time you have over the holiday season can be used to see where you are with your student loans. For federal student loans, you can log in to National Student Loan Data System by visiting NSLDS.ED.gov. You can look at how much you have already taken out and even use a student loan payment calculator to see just how much your monthly payments would already be. For private student loans, you can get a free credit report and you will see there all your private student loan amount and even lender details. This is not meant to scare you but instead, give you an idea of your student loan level to allow you to make informed financial decisions in the future.
  • Do not hurt your finances by over shopping. One of the ways that the holidays can have a direct negative effect on your student loans is if you buy too much expensive gifts while you are trying to manage your finances for student loan repayments. It is better to create lasting memories with people that you love rather than give them temporary gifts that will put you deeper in debt. Try playing video games with your little brother or helping your younger sister pick out her clothes for dinner. You can also try and get your dad to teach you some basic car maintenance or wear an apron and be your mom’s cooking assistant. These memories can even help you get through tough times while you are away from family.
  • Use the time to look for free money. One of the things that can really help you get through higher education without much loans is free money. Looking for it does not mean asking your parents and other relatives money for college. There could be some industry associations or even your parent’s employer who gives out some amount of grant money for college students. Whatever amount helps because it means less student loans to take out.

Is in school repayment worth it

One of the things you might encounter during the course of borrowing student loans is that some borrowers are making in-school payments. This simply means that while they are still in school, they are already sending out some student loan payments for their lenders or loan servicers. Before you jump the gun and start doing the same, here are some things you might want to know about it.

  • Balance your time for school and work. You will need extra funds to be able t make in-school payments. Money that is more than what you need to survive in college. This usually means taking a part time job while you are still in college. The problem with this is that the income you earn might have to be declared in your FAFSA application and can go increase your income and lower your chances of qualifying for grants or even student loan subsidy. One work around is to see if you qualify for work-study program. This means that you get to work under the supervision of the school and with your work hours guided accordingly. This prevents overworking and sacrificing your grades over a part time job.
  • Look at your unsubsidized student loans. If you get the money to make payments on student loans while you are still in school, you have to be smart about it and apply the money where it will count – towards your unsubsidized student loans or private student loans. Your unsubsidized federal student loans are not required to be repaid while you are in school but your interest payment on the loan is accruing. It is slowly building up and will be added to the capital amount when you start repayment. This is why paying the interest as early as possible can save you few hundred dollars come repayment time.
  • Are you required to make payments. There might be some private student loans that will require you to make interest payments while you are in school until you graduate. If this is the case, it is best to meet these payments so you keep your payables current and it does not affect your credit score.
  • Interest payments or principal payments. This is an easy problem to solve because if you have unsubsidized student loans, it is better to pay down the interest so it does not accrue over time. If you have subsidized student loans, you can talk to your loan servicer how to go about principal payment on the student loan.

When you are starting to prepare for student loans, there is nothing wrong with listening to teachers, relatives and even your parents. They have gone through the process and can tell you about their own experiences. But you also need to take it upon yourself to prepare for student loans by taking initiatives like reading and researching about the loan.

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Keeping Vigilant Against Student Loan Scammers

Anxious woman biting her nailsStudent loan scammers exists on both ends of the industry spectrum. There are lenders who are trying to pull a fast one on student loan borrowers who are desperate to get out of their student loan debts. They try and take advantage of borrowers who wants to get out of their predicament so bad that they are willing to pay any fee just to relieve them of the debt.

Then there are also some student loan borrowers who tries to use the system to get absurd amounts of cash that they use for non-school related expenses. Some of them starts from actual student themselves who take out more than what they need to use the refund checks for trips in exotic places or even purchase expensive jewelry.

Triblive.com reported that a man is being charged for taking out fraudulent private student loans. Under the disguise of a student loan for his stepdaughter, he proceeded to deposit the money from the student loans into his business account. This is one prime example of misusing not only the student loan but the entire system as well.

On the other hand, Geneseorepublic.com shared that Attorney General Lisa Madigan has already filed lawsuits against student loan companies that are taking advantage and aim to exploit the borrowers current financial situation. They target struggling student loan borrowers who are looking for alternative ways to repay their debts in the easiest possible way.

This shows that the student loan industry needs safeguards on both ends of the lending program to protect the interests of the lenders and the peace of mind of student loan borrowers. Most people only see the need to put consumer protection and there is nothing wrong with that and it is actually something that a lot of borrowers would benefit from. But just as we are doing that, we also need to look out after the welfare of the lenders to enable them to continue providing financial assistance to students.

Giving out education in student loan management

One of the possible safeguards to the student loan industry seems to be right under our noses – education. Financial education to be exact and the challenge is to start them young enough that the students would be able to comprehend the gravity of student loans and it has a lasting effect on their finances well after they graduate from school.

Businesswire.com shares that this thrust on furthering financial education for students can be achieved on two fronts. One is to give them all the basic facts and how student loans will affect their lives prior to taking out the loans. This can be done earlier than the mandatory entrance counseling being given to federal student loan borrowers.

Another way to give out financial education is to catch the student loan borrowers as they are already trying to manage multiple student loan accounts. it is a great thing to teach theories on how student loans work and put ut scenarios to prove just how much of a hold student loans has over your life. But it is another to actually talk about something that they are already going through.

These can be given to student loan borrowers who are either already separated from school and within grace period or those that are already in repayment and blindly making out the checks with no concrete plan in mind. Financial education on student loans can be a great eye opener for borrowers who are making clueless payments on their student debt.

Student loan borrowers making repayment on their debt can be taught on how each federal repayment plan can benefit their monthly budget and their finances in the long run. It can also include a topic on possible tools to use when repayment becomes a little bit hard due to unexpected costs like medical emergencies or even car repairs.

Ignorance on student loans

One proof that students are not that knowledgeable about their student loans is a report by MoneyTalkNews.com on how accurate student loan borrowers are in keeping tabs on their student loan borrowing. Only about 52% of a research conducted at selected public universities were able to identify the student loan amount that they have taken out. But this is even at range of $5,000 more or less on their loans.

The same research shows that there were 25 percent of respondents did not realize that they had borrowed so much and underestimated their student loans. There were also 17 percent of student who thought they took out more and as a result overestimated their loan amount. The rest simply does not have an idea how much they have borrowed in student loans.

This research, although done in selected schools might be reflective of how most students see their student loans. Most of the borrowers might not be seeing the real effect of student loans in their lives. It is quite hard to be able to get a grasp of this because they are still in school and repayment does not start well after they graduate.

Lenders looking to protect themselves

There are also lenders who take legal steps to protect themselves from scammers. Madisonrecord.com shares that the National Collegiate Student Loan Trust filed a suit against a student loa borrower who borrowed $53,788.61 from them but has defaulted on the monthy payments.

There are lenders that are bringing borrowers to court because they are not making payments on their loans.  For some, they are asking for a court order to garnish the wages of borrowers who defaulted on their student loans but are holding regular jobs. Private lenders are not able to do this automatically compared to the federal government.

Student loan borrowers against scam companies

Student loan borrowers need to be vigilant as well in making sure that they do not fall into the trap of companies who are out to scam their ways into borrower’s hard earned money. Here are some of the things to be on the look out for when choosing to work with a student loan company.

  • Collecting fees. The number one telltale sign that you might be dealing with a scam company is if they insist on collecting upfront fees for the services that they have yet to perform. In fact, it is illegal to collect for upfront fees that is why some legitimate companies are assessing their fees only after the job is done.
  • Offering services you can get for free. You need to make a little research to know what programs you can qualify for without paying any fees. This is because some scam companies might be charging you for these free services. Take for example a Direct Consolidation loan, you can  apply for this program at no cost but some companies might offer to enroll you in the program for a fee.

As borrowers, you need to be vigilant against scam companies to prevent falling into deeper debt. Lenders are also on the defensive and offensive against student loan borrowers looking to take out a loan and run away without paying for their debt. Student loans are meant to help students achieve their dreams of higher education to prepare for their future but being vigilant against scam companies should be a priority.

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Taking out a student loan to be able to pay for costs in hTension Between The Federal And Private Student Loan Industryigher education has been the norm for a lot of students and their families. The ever increasing cost of attendance does not give families a lot of options when it comes to paying for school costs. There are some parents who were able to build up a college fund for their children but this is not the same for most of students.

One of the reasons why a lot of people pursue higher education is that it increases their chance at a better financial future. There is no assurance of a high paying job or even securing a job after separating from school but a college and even a post-graduate degree can have its advantages especially when compared to those that only had a few college units and high school graduates.

But this advantage comes with a hefty price tag especially for those that had to rely on student loans to pay for expenses in higher education. Just as with any type of loan, repayment is a responsibility that comes with the money that is borrowed. And getting a student loan repayment statement together with your pay can demoralize some borrowers knowing this will be the norm for years to come.

This is because the shortest repayment period for federal student loans is at ten years with the Standard Repayment plan. Private student loan lenders on the other hand base it on the amount you borrowed to put together your repayment period. Whatever the length of the repayment will be, borrowers will have to tough it out until they pay off their loan.

As they do this, there are a lot of borrowers who has both federal and private student loans. As they try to meet the repayments for both types of loans, federal and private student loan representatives have been going back and forth trying to dispute some of the statistics representing each industry. This can confuse a lot of borrowers and even some students trying to decide on the type of loan to get for school.

Federal and private student loan

WSJ.com came out with an article that highlights the tension between the two sides. Especially as Consumer Financial Protection Bureau (CFPB) student-loan advocate and ombudsman Rohit Chopra has been criticizing how private lenders has been treating their borrowers when it comes to repayment flexibility.

Here are some of the things that were highlighted in comparing federal and private student loans.

Default rate

Federal student loans has seen an improvement in the percentage of borrowers who are falling into default status. From 14.7%, it has gone down to 13.7% ending 2011. It still a big percent of borrowers who are having a hard time meeting their repayment obligations but a decrease in their number could mean that government efforts in introducing alternative repayment plans is working.

On the other hand, private student loan lenders are reporting only a 3% default rate on their student loans. This number shows that there are fewer student loan accounts in the private sector that are falling behind. But this is one of the items that are being closely looked into by some experts including Rohit Chopra.

One of the reasons people are skeptical about the private student loan is that the percentage of default borrowers takes out the hopeless cases and those that are already sold to and assigned to collection companies. There are some people pointing out that the default rate could be higher if those accounts were included into the survey.

Repayment flexibility

If you have a federal student loan, you can look at various repayment options, payment postponement options and even forgiveness plans to help you manage your payments. These are some of the advantages that federal loans have over private student loans and are hugely responsible for leading a lot more borrower to take out federal loans.

Private student loan lenders are slowly catching up though as some of the biggest lenders are slowly introducing payment modification initiatives for their borrowers. Some of which as lowering down the interest rates for the loans which can significantly lower down the payment amount for borrowers who are about to get into some financial challenges.

Student loan availability

This is one of the biggest differences between federal and private student loans. Federal loans is a need-based loan where the more the borrower proves that they have a big need for the loan, the more that the government will put in a financial aid packages that can include grants and even subsidy on interest payment.

Private student loan lenders take the corporate approach just as they would with almost all types of their loans. Private loans are credit-based where borrowers need to prove that they have the ability and and the record on making payments on their financial obligations. This is determined with an acceptable credit score for the borrower.

Student loan myths

There are some student loan myths  that you need to keep in check to prevent ruining your student loan repayment experience. It is also a good way of preventing the student loan account into sliding into further debt as you go along. Here are some of the myths that you need to know to be able to manage your repayment.

  • You are stuck with Standard Repayment Plan. If you did not choose any repayment plan for your federal student loan and your payment has already started, you will be automatically enrolled under a Standard Repayment plan by default. But you always have an option when it comes federal student loan repayment with the various plans available.
  • You cannot make payments during grace period. If you can make payments even while you are still in-school, you can also make payments even if your loan is still under grace period. This is more beneficial for those borrowers who are holding unsubsidized student loans because they lower down the interest that has accrued over the years before they ar added on to the capital.
  • Bankruptcy is always an option. The bankruptcy curst is very thorough in the process of discharging student loans in bankruptcy that it is almost close to impossible. But there are borrowers who are successful in using bankruptcy to discharge their loans but they needed to prove that making payments will affect their very existence due to undue hardship.

Student loans has really been a big part of society having affected millions of students in the country At present, there are 40 million people who has at least one outstanding student loan in their budget. As they all try to meet their repayment obligation on the loan, there are a lot of people who are pointing fingers on how federal student loan servicers and private student loan lenders are making the lives of borrowers harder than it should be.

There are even reports that the chairman of the Senate education committee and the appropriations subcommittee Sen. Tom Harkin (D-Iowa) has proposed a $303 million cut into the Pell grant as reported by HuffingtonPost.com. This will greatly reduce the extent of support the government can offer to students in need of funding support for college.

It is no secret that having a student loan will be a long time commitment in making sure that you are able to pay off the loan in time. Borrowers just need to understand what their repayment options are and how their lenders can help them pay off their loans.

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Looking For The Best Student Loan Partner

Woman having telephone conversationLooking for a student loan partner to help you with your repayments is tough job. There are a lot of student loan companies that can help you manage your payment. Most of them are qualified to help you assess and execute your student loan repayment. So it makes sense to get a student loan partner to help you in your repayments.

But the biggest challenge is looking for the best student loan partner that will be able to help you achieve your goals. The danger of partnering up with a scam artist can leave you high and dry and deeper in debt than when you originally started. Unfortunately, there are some student loan borrowers who has already fallen into this trap.

One of the ways scam artists lure in student loan borrowers is preying on their desperation to get out of their student loan predicament.With the promise of low monthly repayment amounts and an assurance of getting out of the debt fast, these borrowers take up scam companies as their student loan partner.

Because of this, a lot of borrowers are taking a step back because they are afraid to fall into a debt trap. As a result, some of them are making mistakes in their repayment and end up paying for it financially. This is one of the facets of having a student loan partner, they are able to dispense important pieces of advice when tackling student loan repayment.

Choosing the best student loan partner

There is wisdom in getting a company to help you manage your student loan repayment. This is because they can thoroughly look into your student loan accounts and lay out possible repayment options especially how loan consolidation can help you with your payments. Here are some of the things you might want to look into when choosing a student loan partner.

  • Transparency with the fees. This is usually where scam companies are able to victimize some borrowers. Some of them requires clients to make upfront payments even before any actual work has been done. This practice is actually against the law and one clear cut way to spot a scam company. Be mindful because some companies put fancy terminologies when referring to upfront fees. As long as you are being asked to pay something prior to actual work, that is an upfront fee. There are also some companies who are earning by adding a percentage for every payment. This might leave you with a higher payment down the line. What you want to look for is a company that computes their fees according to their performance. If they were able to help you with your goal, they collect their fees. That is how it should be done.
  • Background of customers.When looking for a student loan partner and someone who can help you consolidate your student loan accounts, you need to look for a company that has a track record of delivering on their promises. Look at how they were able to service previous and even existing customers to gauge how their service delivery versus their promises to help in consolidating student loans. You can easily research what people are saying about the company to see if they are worth taking up as a student loan partner.
  • Track record with industry affiliations. When looking at student loan consolidation reviews, one of the important things to look for is being affiliated with industry associations. For one, this helps you ensure that you are talking to legitimate companies. They need to be registered entities to become members which is one of the reasons why Sallie Mae lost a case versus a borrower because some of the company name suing was not registered according to TheGuardian.com. This lets you know that the company tries to make an effort to make sure their name is clean.

Looking at your repayment habits

Sometimes even with student loan partners, the borrowers themselves are to blame for their student loan repayment struggles. The repayment is challenging but it should not be the end of the world for the borrower. Here are some of the habits that you might not notice you are committing.

  • Limiting yourself on ramen to save on food. It is a good idea to be frugal about your living expenses. But this does not mean dumpster diving or eating ramen for the rest of your life until you pay off your debt. More than being unnecessary, you might end up with a bigger debt with health bills. Student loans does mean you need to make some sacrifices like passing up on a dinner with a group of friends because a restaurant opened up in town. It could also be going straight home instead of having a few rounds of beer after work. But it does not require you to fast on noodles just to save money for payment.
  • Overlooking other funds to pay student loans. Once you graduate and start living life on your own, you will also have to deal financial planning not just for your daily needs but for a financially better-off future. For one, this means that you would need to make sure that you have enough emergency fund to sustain you when you encounter financial hardship. This could mean minimum payments on student loans to be able to build your emergency fund. Taking advantage as well of a company matching for your 401(k) can mean your extra funds can be more hardworking when used to build up your retirement fund.
  • Forcing a repayment plan you cannot sustain. For federal student loans, even your student loan partner would recommend the Standard Repayment plan. This is because it offers the shortest repayment time frame and will save you the most when looking at interest paid over the life of the loan. This is true but you have to remember that this is looking at and comparing only the repayment plans. These plans are only as effective as your capacity to pay. You cannot force a high monthly payment when your budget cannot afford it. There are plenty of repayment plans for federal student loans to choose from that can match your payment capability. Private student loan lenders are also starting to look at payment modification for their borrower as reported by Forbes.com.
  • Not paying your loans at all. This is the worst thing that you can do when you have a student loan debt. Choosing to ignore the situation will not be recommended by anyone even your student loan partner. Delinquency and default brings so much devastation to your credit score and bankruptcy is almost always never an available option. The US Department of Education also has wide-reaching collection powers that can include wage garnishment for borrowers who has defaulted on their student loans but currently holds a steady job. The government can also intercept tax refunds and even lottery winnings.

Missteps in college

People all make mistakes but the important thing is to pick up the pieces and learn from them. But there are also those that choose to try and use student loans for other means. Credit.com reported how  Mindy Ritch of Texas was arrested for taking out more than $500,000 in fraudulent student loans under her name.

There  are a lot of decisions that can put you under a lot of student loan debt that student loan partners can point out to help you in managing loans. Borrowing more than what you need is one where you take out more than what you need and you use the refund check for other activities like a vacation or buying expensive non-school related gadgets. It is important to understand how repayment will affect you in the future.

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Student Loan Servicers In Hot Water

Woman looking worried in front of a laptopAs synonymous is college education to student loans, student loan repayment seems to have the same effect with student loan servicers. It is almost impossible to think of one without the other. Most people would now associate higher education with the need to take out a student loan. This is because not all American families are able to put up and build a college fund that can cover the whole ride.

Then when repayment is due after separating from school, it is hard not to think of student loan servicers as well. This is especially true for the almost 40 million consumers who are at least trying to balance one outstanding student loan according to Mainstreet.com. And with this number, the federal government is unable to carry the communication with the borrowers thus the need to outsource it to loan servicers.

With the $1.3 trillion student loan debt in the country, majority of this are federal student loans and a small amount are private student loans. It is no secret that federal student loans has more benefits and advantages over private student loans but when it comes to repayment, the loan servicers are taking some heat in how they deal with student loan borrowers.

Federal student loans have lower interest rates than private student loans and also has more repayment plans to choose from when the bill comes due. Federal student loans are also need based while approval and the interest rate to be used are all based on the capacity of the borrower to repay which is quantified by their respective credit scores. The higher the score, the bigger the probability of approval and getting low interest rates.

But the student loan servicers are getting a lot of attention right now in a not so good way. As the federal government loans money to students through the US Department of Education or ED, the actual servicing of these loans are outsourced to student loan servicers. These includes collection of payments and making sure that the borrower is able to understand his or her options in meeting their financial obligations on their college loans.

Student loan servicers’ collection practices are questionable

According to a report by NCLC.org, they are claiming that the government’s decision to use collection agencies are short sighted. This of course refer already to the existing loan servicers and those agencies that are tasked to collect on loans that already defaulted. This shows how the borrowers are still struggling with their student loan repayment.

According to USNews.com, there are over seven million borrowers in 2013 that defaulted on either their federal loans or private student loans. This means that they were not able to make a payment on their student loans for nine months or 270 days. This means that they could either have overlooked the account or are experiencing some financial hardships.

As these borrowers struggle, they would need to coordinate with their student loan servicers for options on how to best solve their problem. But as great as this maybe, some student loan servicers’ collection practices leaves much to be desired. This recently came to light are now the topic on student loans.

  • Inappropriate collection calls. There were some student loan servicers who made calls to borrowers either too early in the day or too late in the evening. These are forms of harassment and should not be tolerated. There was even one borrower who received 48 phone calls during the time of the survey. The collection calls should be done within decent hours in the day and not when the borrower is about to sleep or just getting out of bed. Granted that borrowers need to pay their student loans but these borrowers needs to be protected from harassment on collection.
  • Late fees on underpayment. As student loan borrowers rely on loans during school, they usually end up with a lot of student loan accounts that they have to repay. Oftentimes, borrowers have more than one student loan account with their loan servicers. With this, they just sum up all the minimum payments on the accounts and send one lump sum payment to their loan servicers. But once they send below minimum payment on one account, the student loan servicers applies the payment equally across the board. This can lead to underpayment on a lot of accounts and the borrower will be charged fees. Some loan servicers do this to be able to collect fees on the account
  • Minimum payment is more than necessary. There are some student loan servicers who seems to increase the minimum payment amount by adding the interest that are accruing on accounts that are on deferment. Although it can be paid and can help the borrower lower the amount to be paid in the future, it needs to be done with the knowledge and approval of the borrower.
  • Late fees in grace period. Just like in most payments, the borrower is given a grace period to be able to send in their payments after the due date. If the due date is the first of the month and there is a 15-day grace period after that, it means that the borrower has until the 16th of the month to send in the payments. This is the same with student loans where the loan servicers usually give borrowers a grace period to send in their monthly payments. But there are some student loan servicers who are still assessing late fees for payments received inside the grace period.

The government stands to earn from student loans

The Huffingtonpost.com shared that the federal government took in about $50 billion in student loans in 2013. This is with the help of student loan servicers who are collecting in behalf of the government. These companies has a big collection arsenal on their hands being able to utilize wage garnishment, intercepting tax refunds and even taking the benefits of the retired borrowers who still has payments on their student loans.

This begs the question if the loans are really meant to help the students or is a great source of revenue for the government. If it is the latter, then why are other foreign governments such as that of Germany able to waive off and offer higher education for free to students. They are investing on the future economic movers and shakers to be able to propel their economy forward.

Making the payments as easy as possible

As you tackle repayment hopefully with the help of your student loan servicers, here are some things to look into to help make the process as easy as possible.

  • Loan consolidation. If you are looking at multiple student loan accounts, consider student loan consolidation. You can look at student loan consolidate review websites to check the company that can help you achieve your repayment goals.
  • Understand your options. Your student loan servicer can help you look at your repayment options but it is better to have knowledge about it beforehand. This way, you are just asking about the benefits and advantages of the plan and not how it works. You will also be able to make informed decisions as you go along.
  • Make extra payments  This is not mandatory but if the budget allows for a few extra dollars to be paid to student loans, it will help you save up on interest payment and pull the pay off date closer.
  • Monitor your payment posting. You do not need to monitor your accounts every single day. Doing it once a month is enough just to be sure that you payment are posting on your account and they are being applied accordingly.

Student loan servicers acts as the extension of the ED and helps collect the payment on the loans. But in some cases, some of them uses questionable collection tactics that are not beneficial for the borrowers.

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Graduate looking at a picture of a houseA lot of people would tell you that student loans affect mortgage loans. This is for the simple reason that the more a person is in debt, the lesser their chance and even their drive to take out a mortgage loan for a house. This is a very valid argument and actually has some merit in being a factor in how mortgage loans are performing with the younger set of consumers especially the ones that are saddled with student loan debt.

At present, the student loan debt has ballooned to about $1.3 trillion according to BuffaloNews.com where majority of which is still made up of federal student loans. Student loans was at an increase even during the Great Recession where all others – mortgage, credit card and auto loan were on a decline because of market uncertainty.

There are over 40 million American consumers who are dealing with at least one outstanding student loan according to CNN.com. That number of borrowers is even bigger than the population of some countries combined. And the number seems to be getting bigger and bigger as time flies by. This is alarming because as new borrowers take on student loan, some older borrowers should be paying off theirs.

But even as the default rate on student loans went down by 1%, there are still a good number of debtors who are struggling with their student loan repayment. Even with the multiple repayment plans in federal student loans, there seems to be a struggle with borrowers meeting their financial obligation with student debt.

Student loan repayment problems

There could be a number of reasons why borrowers would run into repayment problems. According to ED.gov, there are about seven repayment plans for federal student loans to choose from. This includes the default Standard Repayment plan and others where the amount to be paid every month depends on the income of the borrower. With all these options for repayment, why are borrowers having problems with them? Here are a few things to consider.

  • Unable to find a job. Having finished higher education is a great advantage in looking for jobs but it is never advertised as an assurance. Indeed there are still some graduates who are finding the job market a little tough to crack. There are grace periods for federal student loans which gives borrowers a few months to look for employment before the bills start to come in. But this is not the case for private student loans. The longer the borrower is out of work, the more student loan repayment becomes a challenge.
  • Mismanaged student loan borrowing. This is the result of poor choices made during school. Students needs to have an idea on how much their field of study can fetch them in terms of income in the future. This is then a good basis to manage the amount of student loans that they borrow. A six-digit student loan for a teacher can mean that more than what was needed was borrowed for cost of attendance.
  • Lack of budgeting skills. As you start earning and paying bills. it is sometimes just the lack of budgeting skills. It could be that you will be a bit tight with your disposable income but you need to make sure that your loans and debts are first repaid monthly. Not listing down your income and expenses every month is a sure way to blow your money into useless expenses leaving you nothing for the essentials.
  • Bad decisions. At times, there are just some borrowers who makes bad decisions that ripple out on to their financial lives especially student loan repayment. Going on a cruise after graduation instead of looking for a job first or charging multiple big ticket items on a credit card because of an assurance of income are just some of the bad decisions that can lead to difficulties in student loan repayment.

Student loans has an effect on mortgage loans

With all these borrowers struggling in meeting their student loan repayment, some are quick to point out that student loans affect mortgage loans. It is easy to see the correlation between the two but some people fail to see beyond the obvious Here are some the reasons why young consumers are preferring to rent rather than get their own place.

  • Monthly budget. This is one clear example of how student loans affect mortgage loans. Getting a house is probably one of the biggest and most expensive financial decisions a person will make in their life. As such, the monthly mortgage payment is no joke and could easily shoot up to the top spot in the budget in terms of amount. This is one of the more obvious reasons how student loans affect mortgage loans, the borrower is still making student loan repayments and the budget might not be able to accommodate payments on the two.
  • Less expensive to rent. Getting a mortgage loan requires an aspiring homeowner to have an equity on the house. This means that they should put in a downpayment on the property. This could be anywhere between 20% or up. Less than this and the lender would put in an insurance that the homeowner would have to pay which is essentially a protection on the part of the lender in case the borrower defaults on the property. There are also taxes and insurance and other miscellaneous expenses that needs to be budgeted when buying a house. Renting on the other hand takes all these away from the renter and puts it on the shoulders of the landlord. This makes renting less expensive than owning a home.
  • Amenities offered in renting a place. There are a lot of consumers who go to the gym for a regular exercise or look for a pool to do some laps.There are also some who prefer the quiet ambience of a park to read their own book or to sneak in a yoga move. Renting gives these amenities that is already within their area.They do not have to go one place for a gym and another for a pool.They do not also have to look for a park just to get some relaxation.
  • Flexibility and options. Most young consumers are still figuring out life and this means that they need freedom to make decisions and to make mistakes. Student loans affect mortgage loans but there are some borrowers who prefer renting for the flexibility it offers. Getting a call to report for work in a different state is a quick decision when they are renting versus when they are already making mortgage payments.

Meeting the monthly budget for student loan repayment

This is one  of the first challenge a student loan borrower has to consider when faced with a steady income and years of student loan repayment.  Here are a few things to look into to help make sure that the student loans are repaid on time every time.

  • Do an audit of all your student loans. This is important because you do not want to miss out and overlook any student loans you have taken out while in school. Regardless of how small they are, it can quickly snowball into a massive debt because defaulting on a student loan could add a lot of charges on the account.
  • Consolidate your student loans. This is a great program to get a handle on the administrative part of your student loan repayments. You can look into student loan consolidation reviews to help you choose out the best company to work with to help you consolidate your loans.
  • Enroll in auto debit program for your repayments. if your lender offers such a program, it is worth exploring because it will not only make your monthly repayments hassle-free, there are some lenders that offers a reduction on the interest rate if the borrower enrolls in the program, This is an incentive given by the lender because they are sure that the payments will come in every month.

It is true that to a an extent, student loans affect mortgage loans. But there are other reasons why some consumers prefer to rent instead of taking out a mortgage and it is not always about the student loans.

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 young woman looking puzzledThere are a lot of college debt holders who wants to get out of student loan repayments. This pushes a lot of borrowers to aggressively pay down student loans as fast as possible. This does not only save them interest payments in the long run but also paves the way for starting early on some life opportunities like getting a house, getting married and having children.

As borrowers tread down this aggressive approach, they sometimes overlook some important funds that puts them in a tight spot down the road. There are borrowers who wants to get out of student loan payments that they put off building their retirement fund and even their emergency fund. These are some of the most important funds that should not be passed up for student loan repayments.

As Forbes.com shares that the total student loan debt amount is already at $1.2 trillion, more and more borrowers are struggling to meet repayments and are just eager to get out of student loan repayments. Sometimes all they need is a breather from the monthly repayment to get back on track while others are in dire need of a break due to financial roadblocks.

And there is now more American consumers who are holding on to student loans. There are now about 40 million people who has at least one student loan according to Mainstreet.com. There are a lot of people who wants to get out of college debt now more than ever. And because of this, scam artists are taking advantage of desperate borrowers who wants to get out of repayment.

Options to get out of student loan debt

The number one way in eliminating student loans is to actually pay it off. But this is always easier said than done especially when the borrower experiences financial shortcomings. It could be from losing a job or transferring to a new career. It could also be that the family experiences some medical emergencies that drains the budget down.

In these situations, it is best for the borrower to understand some of their options they have in order to temporarily get out of student loan payments.

  • Deferment on student loan payments. One of the best options for borrowers who are looking for a temporary postponement on their college debt payments. As ED.gov explains, deferment allows a borrower to put a hold on the principal payment and to some extent, even on the interest payment. The break on the loan is already a big help and non-accrual on the interest payment will help manage the repayment when the borrower gets back on repayment.
  • Forbearance on the payments. One way out of student loan payments is applying for a forbearance on the debt. It is similar to deferment with one major difference, the interest payment will continue and accrue on the loan. When the borrower gets back on the repayment, they will see a bigger principal amount because the interest accrued and was added to the principal amount. This can lead to bigger monthly repayment amounts.
  • Consolidating student loans. This is one of the most used repayment program of student loan borrowers and helps make the repayment a little easier. It combines several student loan accounts and makes the borrower focus on just one student loan debt. It can certainly help the college debt holder get out of student loan repayment by making sure that they are able to make the payments on time every time.
  • Forgiveness programs. Federal student loans has quite a number of unique advantage over private loans and one of them is their forgiveness programs. Most repayment plans of federal student loans has a forgiveness time element to it where it forgives debt that already reach the maximum repayment time frame. There is also a Public Service Loan Forgiveness (PSLF) program for federal student loans. This entices graduates to enter the public sector where 120 qualified monthly payments can help forgive student loans.

Preparing for college costs

As college graduates are entering repayment after months of grace period, there are high school students and families who are looking into college in a few months. As the ChicagoTribune.com shares that the 2014 college graduates are holding on to about $33,000 average student loan debt, the class of 2015 might just be able to overtake them based on historical and present data.

One way to approach college is to understand what you are getting into. Here are a few questions that you can use to help prepare for the college and the costs that goes with it.

  • What industry do you want to belong to? Asking this leads to one of the biggest decisions you will ever make before going to college, what degree will you get? Understanding the field where you want to work can help you focus on degrees that can help you get there. Your skills, talents and even hobby can also contribute a lot in defining the field of study that you can get into for college.
  • What type of school can you afford? This is the next big question after identifying the degree. There are a lot of colleges and universities in the country and they all range from community colleges to for-profit private schools. Look at the cost of attendance of the degrees you want to take up in each school and compare the prices. It is important to remember that your projected debt amount from college should be commensurate to your expected income in your field of work.
  • Are there any income opportunities in school? Try to see if there are part time jobs that you can explore while you are in school. It is even better if you will be able to get something that directly relates to your target field of work.  You get that much needed extra funds to pay for some college expenses and you also pile up months and years of work experience that is related to a future job. This can also be a work-study program that your school can offer to offset some school expenses.
  • Are there any ore sources of free money? After you fill out the Free Application for Federal Student Aid or FAFSA and get some grants and even scholarships, do not stop there. There could be other sources of free money that you can use to pay for your college expenses. There are groups, association or even your parent’s company who might be great sources of any amount of free money for college.

Attitude towards student loan repayment

As soon as college is done and you are headed into repayment, you need to be methodical in your approach to be able to get out of student loan repayments.

  • List down all your student loans. You need to make sure that you account all your student loans because if you have been taking them out year on year until you graduate, you are bound to end up with multiple student loan accounts. The last thing you want is to overlook one debt and let it enter default.
  • Understand your repayment options. Private student loans does not have much options but federal student loans have multiple repayment plans. Apart from the Standard Repayment Plan, there are options that will take into consideration your income when computing for your monthly payment.
  • Apply for auto debit. This automates the payment process and might actually save you a little on interest because other lenders use that as an incentive to apply in the program.

Getting out of student loan repayment is a tough situation. But keeping at it will eventually free you up in your payments.

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