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After you graduate you will hopefully get the job that you were seeking when you started your educational journey. However, before you get too carried away, you will have to remember your student loans. These loans are the real killjoy to your graduation celebration. The bills for these loans tend to start coming in about six months after you complete school.
You cannot realistically get away from these bills. Student loans must be repaid. Many other forms of debt can be erased in bankruptcy court. However, most student loans cannot be forgiven. If you fail to pay them back, federal lenders will garnish your wages until the loans are paid back, even if that takes decades to do.
If you want to understand your student loan debt better, you need to first understand to whom you owe the money. Most people that receive loans these days receive them from the federal government or from some agency connected to it. These are Federal Subsidized Stafford Loans, Federal Unsubsidized Stafford Loans or federal Perkins Loans. The difference between subsidized and unsubsidized loans is the way that interest is applied. During the grace period, which is the time you spend in school plus about six months that follow your graduation, a subsidized loan will not send you bills. An unsubsidized loan will charge interest during the grace period but will not expect any payment on the principal during that time.
While the general rule is that you cannot escape paying these loans back, there are ways to delay, diminish or even erase some loans. For instance, joining the Peace Corps will not erase your debts but it might delay their repayment or defer principal. If you have become a teacher, there are loan forgiveness programs that will actually erase your student loan debt.
Consolidation is another means to improving your debt situation. If you have several loans, you may be eligible for debt consolidation, which will do a few things for you. It will bundle all your debt into one payment. That payment will be less than previous payments because consolidation usually extends the life of the loan and lowers the interest rate.
What else can I help you with?
Does repaying student loans build good credit?
Yes.
What is one of the features of student loans?
Students don't have to begin repaying until they're done with school.
What is one of the features of most student loans?
Students don't have to begin repaying until they're done with school.
If you have a student loan that's deferred can you open another student loan?
Yes, you can. Students do this all the time. Technically, your student loans are are deferred until 6 months after you graduate or drop out of school at which time you will begin repaying all of the loans.
Can a parent get a student loan for a child if the parent files bankruptcy?
Probably not. What the loan is for isn't the issue. His record of repaying loans is.
What companies offer private loans for students?
Some companies that offer international student loans are CIBC and RBC. Each will provide an agent that will sit down with the student and develop a plan for the loan and repaying it.
Is there a student loan payment calculator from Sallie Mae?
Yes there is a student loan payment calculator from Sallie Mae, you can find it here https://www1.salliemae.com/after_graduation/manage_your_loans/repaying-student-loans/estimating/
How do I go about consolidating student loans?
You can consolidate your student loans by consulting a financial planner or consultant. You can check out these tips for more information: http://www.forbes.com/2009/04/15/student-loans-moneybuilder-personal-finance-consolidate.html
How does not repaying student loans affect the college and other students?
It affects all of us that pay taxes or want to obtain student loans for us or our children. Theft of this funding for any reason should be criminal. Absolutely yes, it hurts everyone. Not paying these loans is stealing clear and simple.
Am I eligible for alternative student loans?
Most private student loans applicants are required to have a cosigner, especially undergraduates or students who don'tt have a steady income or credit history. The cosigner is required to sign the loan document, but the student is the primary borrower. By signing, the cosigner agrees to be fully responsible for repaying the loan if the student does not fulfill his or her obligations.
What are federal loans?
Federal education loan as name suggests are loans granted by the federal government. You will not be required to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time.
What are federal education loans?
Federal education loan as name suggests are loans granted by the federal government. You will not be required to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time.
