Tuesday, December 25, 2007

The Ins and Outs of Student Loans

Student loans are unlike almost any other kind of debt.

These are loans offered to students to assist in payment of the costs of professional education. Over the years these loans have proven themselves to be a very reasonable solution to paying for school. They are quite unique in that they are specifically designed to help students meet the costs of a higher education.

Through the availability of these financial arrangements more students have access to higher education and are able to fulfill their dreams. They are used by both the middle class and lower income families and are common at community colleges and proprietary schools as well as among students in traditional baccalaureate programs, but the heaviest dependence on loans and the highest debt levels are among students at private colleges.

It must be stressed and realized up front that student loans are most definitely financial obligations that must be repaid. Federal student loans are the most affordable loans available to students, with best interest rates and deferred payments (principal and interest) until after graduation. This type of federal financial aid is based largely on the ability of the student to demonstrate financial need (except for the PLUS loan), and if you fall in the category of "not poor enough for aid, not rich enough to pay out of pocket", federal financial aid may be no help at all.

Act Private Student Loans are available to students attending any TERI-approved school, including more and more private and non-traditional educational institutions, giving you the freedom to pursue whatever path in life you want to follow.


Repayments on a federal student loan is usually deferred until six months after graduation. Repayment on these loans is guaranteed, so student loan debt cannot be “discharged” even if you file for bankruptcy. Your payments will normally start six months after leaving school (or attending less than half-time) and is generally set at small payments on a ten-year plan.

Stafford loans come with fixed interest rates that are lower than most other forms of consumer financing, there are no application fees or credit checks, and repayment is postponed until you’ve left school or dropped below half-time enrollment Need a Federal Stafford Loan. No matter which option you choose, the general goal of repayment is to avoid default, and to make the best possible use of resources. You just need to make sure you understand the repayment requirements before you take on a loan.

About the Author: Please help a professional counselor whom is a single father of two repay his outstanding student loans. God Bless


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