Blog Archives

Repayment Of Student Loans

November 16, 2011

Repayment of Student Loans

Repayment Of Student Loans

Before we get into the details or repaying student loans, if you happen to land on this page searching for methods on paying off your debt fast, or just want to check out debt elimination methods after you are done reading the article, you can check out this link: Repayment Of Student Loans.

Repayment of student loans usually begins with most lenders, after the grace period that they grant you, which can be anywhere from 3 to 9 months after either the student graduates, or after dropping out. There are various student loan repayment methods that you can use, depending on several factors, and consist of:

  • Standard Repayment Plan – Repayment of student loans through the standard plan is for those who are looking to get out of debt fast, with the repayment timeframe usually being 10 to 12 years, where at the end you are completely out of debt with that particular lender.
  • Graduated Repayment Plan – This student loan repayment methods allows one to start out with low payment, payments which can be as low as 5 dollars a month, and as time goes by the payment gradually increases. Increases in repayment amounts happen ever year or two, which can be a great option for those who are searching for a job and need small payments but will be able to afford to pay larger payments later on in their career.
  • Extended Repayment – Repayment of student loan debt through the extended repayment plan allows one 25 years to pay off their loan, and can be combined with the graduated repayment plan, which is used for the sole purpose of lowering your monthly payment but coming with the price of staying in debt longer.
  • Income Based Repayment – Also known as “income sensitive repayment”, this method is where the individuals monthly payment is based of of how much their earn each month, the payment being around 10 to 15 percent of what their monthly earnings are. If in the event that the individual hasn’t paid the debt off completely after the 25 year term has concluded, then whatever is left on the total amount owed will be considered as taxible income.
  • Income Contigent Repayment – With this plan, if income is below a certain level, payments can actually be $0. The amount individuals pay through this repayment of student loans method is up to “20 percent of their discretional income”.

Repayment Of Student Loans Through Forgiveness

Repayment of student loans can also be done through the likes of student loan forgiveness. Student loan forgiveness can be found through different methods, but the most popular forms of forgiveness are found through:

  • Federal Student Loan Forgiveness – This is where one will work a public service job that at the end of 10 years, the rest of their loan debt will be forgiven. This requires the individual to repay 120 on time payments over the course of the 10 years in order to qualify. There are also designated programs for; teachers, lawyers, nurses and other professions with similar rules.
  • Community Service – Repayment of student loans through community service work forgiveness can be found through organizations like VISTA, Peace Corps and Americorps, where they offer either a lump sum after each year of service which is to be used to pay off student loan debt, or will pay off a percentage of your loan for each year of service, usually 15 to 30 percent each year.

Forbearance Of Student Loans

September 4, 2011

Forbearance Of Student Loans

forbearance of student loans

Forbearance of student loans of essentially when a lender refrainins from enforcing the montly payments on your student loans. Forbearance of student loans can be an excellent option for if you are in a tough position financially as it is usually offered for up to 12 months, although there are other things that forbearance applies to. Forbearance of student loans not only can get you out of paying loan payments each month, it can also take away any delinquincy if you have it on your loan account.

If you qualify for forbearance, you do not have to pay a fee, but your interest will continue to build up on your loan, which you can pay each month, or pay later.  There are 6 different types of forbearance that can be used, discussed right below.

Forbearance Of Student Loans Requests

You can request 3 different types of forbearance for student loans, which are:

  1. A specific time in which you make no payments at all, which is usually a up to 12 months but sometimes it can be extended by 3 years.
  2. Extending your repayment period is another method of forbearance. This method will help save you money by allow you to pay your loans off from what is usually a 10 year period to anywhere between 12 to 30 years.
  3. The last student loan forbearance method is that you can request to make smaller payments for an certain time frame.

The Different Forbearance Of Student Loans Methods

You are able to receive forbearance for student loans if you fit certain requirements. The requirements are:

  1. If you are willing to pay your student loans but due to personal problems you are unable to do so. This method is for people who are making an effort and not skipping out.
  2. Serving in spefic internships as well as residencies like in the medical or dental feild.
  3. If you are in the military, you are also qualify for forbearance for student loans, as well as the possibility to receive forbearance if you have been in the military already as well as planning to enroll in the near future.
  4. If you are volunteering your time with a community service program. This program must be enlisted under the National Community Service Trust Act.
  5. If you are teaching as well as participating in a forgiveness program designated for teachers.
  6. You an also receive forbearance for student loans in the event that you are paying loan payments that equal 20 percent or more of your income.

Forbearance Of Student Loans Conclusion

This is a parital list of different forbearance for student loans options, which are more of the widely used methods. If the above doesn’t apply to what you though might grant you forbearance, the best thing to do would be to contact your lender as they can provide more information related to your specific information.

Student loan forbearance also should be requested in the event that you are not eligible for student loan deferment, as deferment should be your first choice. Deferment is similiar to forbearance for student loans arance in which you are able to postpone your payments for a certain amount of time for various reasons.

 

Deferment of Student Loans – Different Methods of Deferment

September 3, 2011

Deferment Of Student Loans

Deferment of stuent loans can be used in many different ways, but just to give you a feel for what it means, deferment of student loans is when both the borrower and the lender both come to an agreement that the borrower is going to postpone their payments on their student loan debt for a certain amount of time. Deferment of student loans is also a way that one can stop paying student loan payments without being penalized as well as sued. As said before, a person can use student loan deferment for many reasons, those reasons are listed right below.

Deferment of Student Loans

Deferment of Student Loans Methods

  1. Educational Reasons – This method of student loan deferment is where most if not all loan lenders allow you to wait until school has concluded to begin making your payments, usually this applies to those who are enrolled in at least a half time schedule. This method also applies to the 6 month grace period in which most lenders offer where for 6 months after you either graduated or dropped out, you do not have to pay monthly payments.
  2. Disability – Deferment of Student Loans is also offered to those who are disabled. The guidlines to obtain student loan deferment is that the injury is going to take you out of work for at a 60 day time period. There are other types of disability deferment of student loans like; complications during the birth process, taking care of a loved one which will take you away from work for at least 90 days as well as if you are attending rehab or something similiar to the above options.
  3. Unemployment – With this method of deferment, you must prove that you are unemployed as well as it requires that you have been actively searching for work. Other requirements for this deferment of student loans option is that you must be working with an unemployment agency as well as searching for work for the entire time of the deferment period which is usually around a 6 month timeframe.
  4. Economic Hardship – Deferment of student loans can also be applicable for those who are truly in a financial pinch. The requirement to be accepted to this type of deferment is that you are either working at least 30 hours at minimum wage rate, receiving public assistance, are making payments on a loan in which your monthly payment is 20 percent of your income or greater, as well as offering community service or intend to do so soon.
  5. National Service – Deferment of Student Loans through offering national service like through the military is also a great way to receive deferment. This option is great for those who are looking to go serve their country as well as be able to get most or their entire debt wiped away.
  6. Family Matters – This option is available for mothers who are have just given birth and need to attend to their children, parents who are either just going back to work or just leaving work to attend to newborns, pregnancy as well as attending to a newly adopted child.

Deferment of Student Loans Conclusion

These different deferment of student loans methods are some of the most used ways when it comes to stalling your payments for a while. If you need the deferement of student loans that you have, the best thing to do now would be to contact your lenders and set up a meeting with them where you will need to verify one of the above options. If the student loan deferment methods above didn’t touch on something else that you think it may grant you deferment, the best thing to do again would be to inquire about it through your lender.

 

Dept Of Education Student Loans – Loans Offered

September 2, 2011

Dept Of Education Student Loans

The Dept of Education student loans are offered to students as a way to make the insanely pricey option of college a lot more affordable. The Department Of Education has three different categories that one can choose from when it comes to student loans which are: Direct Loans, Stafford Loans as well as PLUS Loans which consist of both loans that parents can take out their children as well as their Graduate PLUS loans that are at the graduate and professional level. Dept Of Education student loans can be applied by anyone at no cost through the FAFSA application form which stands for Free Aplication for Federal Student Aid.

Dept Of Education Student Loans

 

Dept Of Education Student Loans – Loans Overview

DIRECT LOANS

  1. Subsidized – These Dept of Education student loans are rewarded to the most financially needy. To qualify for this option you must prove different specifications such as low income or unemployed etc. This one is interest free while in school as well as during its 6 month grace period. Interest rates are often as low as 3 percent which is a fixed interest rate meaning that it will never change.
  2. Unsubsidized – These loans are the opposite of subsidized as they are offered to anyone regardless of their financial need. This one is much easier to qualify for but makes one pay interest while in school, but not during the 6 month repayment period. Interest payments are usually a bit higher with unsubsidized Dept of Education student loans but are fixed like subsidized.
  3. Direct PLUS Loans - Like it was said before, these Dept of Education student loans are for parents who are taking out loans for their dependable child, as well as for those who are going into grad school or professional students as the borrowing limits are much higher. These loans both have low fixed interest rates and provide benefits like deferrment options, you don’t have to have a cosigner to qualify and you monthly payments are considered tax deductable.
  4. Direct Consolidation – This last option allows you to combine all of your federal student loans into one lump payment instead of paying on multiple different payments each month. By doing this you can get a lower montly payment as well as lower interest payments.

STAFFORD

  1. Stafford loans are offered to both undergraduate and graduate students and is the most used loan program around for federal loans. These as well come with low interest payments and can be used for anything related to school like tuition, books, transportation and more. These Dept Of Education student loans offer a fixed interest rate as low as 3.4 percent, and up to 20,5000 dollars per year in borrowing funds depending on where you are at in you schooling.

Dept Of Education Student Loans – What Should You Do Now?

This is what there is to offer as far as the Dept Of Education student loans go, but it is highly suggested that you exaust your free financial aid resources first, like scholarships and grants which can be inquired about through the college you are going to attend as well as on the internet. After you have exausted your resources when it comes to free financial aid, then it is suggested that you start looking into the Dept of Education student loans and private loans.

 

 

Department Of Education Student Loans Major Overview

August 27, 2011

Department of Education Student Loans

There are 4 different types of Department of Education student loans, that many are now using to remedy the high prices of schooling. They are known as Direct Loans and are famous for being lended at every low interest rates and a lot of them do not require that you have a cosigner. The best part about these loans is that for the most part, your credit score doesn’t affect your acceptance when it comes to getting the grant money you need. This is just a background, below will be more information on, how to qualify, the different Department of Education student loans programs that are avialable along with the major details that encomapss this information.

Department Of Education Student Loans

Department of Education Studetn Loans – Overview

First off before we get into the different types of Department of Education student loans there are, you will need to first fill out a FAFSA which is a Free Application for Federal Student Aid. This program will take into account any help you are currently recieving like scholarships, grants, help from you parents, if any of these, and whatever the difference is that is left, when it comes to having enough to pay for school will be the amount of money you will be eligible for.

Qualifying for any one of the Department of Education student loans that are avaialable require you to meet certain criteria, those being that you can prove the following:

  • US citizenship or permanent resident
  • Provide a valid Social Security Card
  • Present either a GED or Highschool Diploma, or your two year degree if you are transferring from community college
  • Prove that you the finances are needed
  • Be maintaining what they call a “good standing” academically, legally and financially.
  • Lastly to qualify for Department of Education student loans is that you have to agree to maintain a certain grade point average while you are in your schooling

If you can prove the above, you will be deemed eligible for one of the Department of Education student loans, which the types of loans are discussed in the next section.

Department of Education Student Loans – Differnt Types

There are 4 differnt Department of Education student loans options that you can consider when searching for the right one for you. These loan options are offered through three different grant programs, those being The Stafford Loan which currently has the lowest interest rate, around 4 percent, The Perkins Loan which has a higher interest rate, but is a lot easier to qualify, and The PLUS Loan which is for parents to apply for when helping their child obtain eligibility for loan money. Below are the different categories in which Department of Education student loans are offered.

  1. Direct Subsidized Loan (DSL) which is interest free during the time that you enter college through the the completion of your degree. These Department of Education student loans are given according to financial need, and is given a grace period of what is usually six months after college where you don’t have to pay, leaving you time to find a job.
  2. Direct Unsubsidized loan (DUL) is the next type that is offered by the Department of Education student loans and unlike DSL loans, they are not based on financial need, meaning pretty much anyone can qualify. They also charge interest while you are in college.
  3. Direct Plus Loan (DPL) which explained above is the one where parents take out a loan under there name for their children.
  4. Direct Consolidation Loan (DCL) is the last type of option that the they offer and this is for those who are looking to combine multiple loan programs into one payment.

Department Of Education Student Loans – Conclusion

This is a main overview of the Department of Edcucation student loans program, one that offers billions of dollars per year for students to go to school and attain their degree. They are an excellent organization to go through that is funded by the government so you know they will be legitimate. Hopefully this information on the Department of Education student loans was what you were looking for, and all the best of your application process!