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You, not your employer, are responsible for paying off your debts. Student loans come due when you are no longer a student. Once you get a job you need to begin setting aside some of your earnings to repay your loan. If you don't repay your loan, and it is a federal loan, the IRS can (and will) deduct your loan amount from any tax refund you may have coming.
Wiki User
∙ 15y ago
Wiki User
∙ 12y agoStudent loans are an important investment in your future, but unfortunately many people feel that paying off high student loan debts requires working long hours for many years at jobs they hate.
Consider working in the public service. Under certain programs, including the government's Income Based Repayment program, working for a non-profit organization or certain governmental agencies may qualify you for reduced loan payments, and ultimately tax free loan forgiveness. The total value of this loan forgiveness can be considerable for those with a large amount of student loan debt, and should be a part of your job search criteria.
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When is it right to start paying a student car loan?
Well, there is no such thing as a "Student Car Loan", but there are student loans and there are car loans. Both are serious financial obligations that accrue interest, so you should start paying them as soon as possible.
What is the best way to avoid student debt?
You can try to avoid student debt by paying off your loans right away or as soon as possible. Save up and don't splurge on unnecessary items and foods. Try to be thrifty.
Don't Put Off Your Student Loan Payments?
A great way for students to get a handle on finances is by taking care of student loan debt as early as possible. By taking care of this great burden as early as possible, a student will make his or her life easier later on. A person will be able to possibly save thousands of dollars by paying off student loan debt as early as possible. The longer a student waits to make federal student loan payments, the more interest he or she will accrue on such loans. A student should always seek to pay off student loans right after graduation, rather than postpone paying off such loans. There are even government programs students should research that may potentially cover the cost of student loans, if a student takes a public service job for a certain number of years. For example, the government will pay off the law school student loan debt of students that take on a public service job for a certain number of years after graduation. This can be a great way to pay off debt in an easy way and it will allow a student to save money.
What should every student know about student loans from the US Dept. of Education?
Here's a link to a website that offers information on student loans from the US Department of Education, and if it's right for you or not. http://www.ed.gov/
How can you apply for a federal student loan?
With a large number of sites dedicated to student loans, choosing the right one is a whole lot easier than it used to be! They all vary, some of them require you to be a full time student. And there are others that let the casual 1 day a week student get a loan without any hassle.
What is a direct loan and what are the benefits of it?
Direct loans are federal student consolidation loans. The government pays off your various student loans, then you pay the government directly, one payment each month. This is very convenient, for rather than making several payments each month for your student loans, you just make one, right to the Department of Education.
Where can I get a student loan?
You can get student loans from many banks. Your best choice is to go to your favorite bank and talk to a financial advisor about loans and how much you want and need. They will help you make the right choices so that you do not get overwhelmed in debt.
Would it be smart to consolidate student loans right now?
Consolidation of student loans would have to be based on your current repayment terms. Currently, yes, interest rates are at historically low levels, and generally it is a good time to discuss financing with your bank.
Tips on Consolidating Student Loans?
If you are like many recent graduates, you are probably trying to figure out how you will pay back your student loans. If you have multiple student loans, one option you have is consolidating student loans. Doing so can actually lower your interest rates and lower your monthly payments. This can be helpful as you are trying to get started living on your own for the first time. There are some tips that can help you figure out if consolidating student loans is right for you.Know Your DebtThe first step you need to take is to identify how many student loans you have, how much you owe on each loan, and who the lender is for each loan. Once you do this, you can check your current interest rates to see how much interest you are paying on each loan, and how much you are spending each month on your student loan payments. If these loan payments are too high or your interest rate is too high, you should consider consolidating student loans.Deciding to ConsolidateIf you decide to consolidate, call your lenders first. One of your lenders may be able to help you consolidate at a great interest rate. If that is not the case, you can contact a private company that specializes in consolidating student loans. No matter which way you choose to go, you must compare interest rates. You want to choose a company that offers the lowest possible interest rate to keep your monthly payment low. Just be careful that you read the loan terms carefully to make sure you understand the fine print. Do Your ResearchOne last tip is to do your research before you sign a loan agreement. Make sure that you are not eligible to have your student loans forgiven. If you meet your lender's requirements to have your loans forgiven, you should not consolidate. You will give up your right to have your loans forgiven if you consolidate student loans.Student loan consolidation can be the right choice if you need to lower your monthly payments.
Advantages of Federal School Loans?
Going to college for some people often only appears to be a dream due to the financial costs associated with attending any type of college institution; however, all potential students and existing students should be aware that there is federal assistance that can be obtained when it comes to paying for college expenses. The federal government provides students with plenty of options as far as school loans go when wanting to attend a college. Below we will look at the advantages of obtaining subsidized and unsubsidized federal school loans. For starters, one of the most advantageous aspects of obtaining federal school loans is they are accompanied with fixed interest rates and free insurance. The free insurance benefits kick in if a student becomes disabled or deceased; this applies no matter if the student is currently attending college or has already graduated. Payments on the loans can also be deferred while a student is enrolled at least half-time in a college institution. College institutions include any type of community, vocational or university schooling facilities. Students that graduate from a college and then enter into a low paying job or any type of public service job also have the option to have their loan repayments set up through the Income-Based Repayment program. This program enables a student to not have to pay more than 15 percent of their monthly income towards their student loans upon graduation. As of right now students with low income that are paying on student loans can have their federal school loan balance deleted after paying on the loan for 25 consecutive years; after 2013 the time period will be reduced to 20 years. Many times students forget about applying for federally funded school loans and opt with acquiring private student loans. While private student loans do offer their advantages, these advantages only kick in once a student has exhausted all the federal school loans they qualify for. Most private loans will require a student to pay an early repayment penalty if they choose to pay off their school loan before the final repayment date is reached; however federally funded school loans are not associated with any type of early repayment penalty fee.
How to Avoid Defaulting on Student Loans?
It's almost impossible to imagine getting a college education without getting a student loan, and while most students make a concerted effort to repay the money that they borrow, some students for a variety of reasons have loans that go into default. Defaulting on these loans can have serious consequences. There are a few things a student should keep in mind if he feels he's nearing default on a loan, which can help save him future grief and get him back on the right track.Student Loan Default Quick FactsStudent loans are one of the few debts that a person cannot discharge through bankruptcy. It doesn't matter if the student has completed his degree program or hasn't yet found a job after graduation. A student's loans go into default between 270 and 360 days after the due date if he has not paid on them. To avoid this, the savvy student should seek financial counseling before he embarks on his school career. A financial aid counselor in his school should be able to tell him what to expect when his loans are due and what his options are if he cannot pay.Default ConsequencesNot paying back a student loan can wreak havoc on a student's post-college life. Among the steps that the federal government can take to get the student to repay his loans are wage garnishment, suing the student for the whole amount of the loan and withholding social security benefits. Additionally, the default of student loan will affect the student's credit rating for many years after he defaulted, making it difficult for him to purchase necessary big ticket items like a home or a car in the future.Getting Loans Back on TrackStudents can defer paying on their loans if they are not employed or under employed after graduation. Additionally, some students are eligible for modified repayment plans based on their income, which allows them to pay their student loans back in smaller monthly amounts. Before a student begins his college career, he should sit down with a school financial aid counselor to get guidance. This school administrator can introduce the students to alternative methods for paying for school as well as educate him on how to borrow responsibly.To learn more, visit FinAid.Org [http://www.finaid.org/loans/default.phtml] or the Federal Student Aid website [http://studentaid.ed.gov/PORTALSWebApp/students/english/index.jsp].
No Interest Student Loans?
Choosing the right student loan is not a decision that should be taken lightly. The truth is that getting an education is a big investment; one that a student will have to commit to for years after graduating. Applying for private student loans, made by banks and credit unions is a popular choice, as well as applying for Federal Student Loans. However, no interest student loans are becoming more popular, as they could potentially save students thousands of dollars in the long run.Are no interest student loans worth considering? What are the benefits and where can students find them? Below are the answers to these questions.A Great DealNo Interest Student Loans are without a doubt a great deal. Students will be able to save thousands of dollars in interest that they would've had to pay if they had gotten Federal or private loans. The interest alone in some loans, especially private ones, could result in students paying tens of thousands of dollars more on top of the total amount of their loan.Where Can They Be FoundThere are many charitable organizations, foundations and even certain colleges that offer interest free loans. Some religious organizations also provide these types of loans, especially to students whose religion prohibits them from paying interest. Doing a little bit of research, a student will be able to find several of these organizations and learn about the specific requirements needed to apply.The NegativesAlthough no interest student loans are a great deal, there are still some negatives that students should consider before applying. Many of the charities require students to write extensive and difficult essays, and to go through several personal interviews in order to be considered. This could result in a long and tedious process that could end in the student not being approved for the loan.Other charities will require an adult with good credit to co-sign for the student, in order to ensure payment of the loan. Finding a person with good credit willing to co-sign for them could be a difficult task, since it would be a big risk on the part of the adult.ConclusionNo interest student loans have without a doubt many benefits. Students should weigh the pros and cons of applying for these types of loans and make a conscious decision based on their personal circumstances.
