Chances are, all the college graduation parties are long gone and the celebration of recent graduates’ noteworthy achievements is yesterday’s news. Along with the receipt of the college degree come bigger responsibilities, like getting a job, finding a source of ongoing monthly income, maturing into a responsible adult, and meeting financial obligations. In the midst of transitioning from the campus lifestyle of a college student to that of a working individual comes the repayment of college student loans.
According to NextStudent, a leading Phoenix-based education funding company, for many parents and their children who have seen their college dreams fulfilled, repaying student loans is not a popular topic largely because many are unaware of the repayment process and accompanying options.
Grace Period Gives ‘Buffer Zone’
For most student loans, before repayment begins there is a grace period, which varies depending upon the student loan type. Students who have taken out Stafford Loans have six months following graduation before they have to begin repayment. Those with Perkins Loans have a full nine months before they must make their first payment. The only exception is those parents or graduates who have taken out PLUS Loans (Parent Loans for Undergraduate Students) or Graduate PLUS Loans, who already should have started repayment, required only 60 days after fund disbursement.
Virtually anyone who qualifies may defer their student loans in six-month increments for up to a total of three or five years. Borrowers may qualify for deferment if they are experiencing economic hardship, unemployment, or certain other conditions. Borrowers must apply for each deferment period. Since interest accrues during deferment, with the exception of subsidized Stafford Loans, it is wise to defer student loans only when borrowers cannot afford to begin repayment at that time.
Consolidation Among Repayment Options
Student Loan Consolidation is an excellent way to roll all student loans into one easy-to-manage package. With student loan consolidation borrowers are required to make a single payment once a month, instead of having to juggle multiple student loans, payments, interest rates and repayment terms. Through student loan consolidation many borrowers reduce their student loan payments by up to 60 percent and eliminate the headaches and hassles of dealing with their student loan debt in one easy step.
When borrowers consolidate with NextStudent, they will receive some of the best benefits and terms in the industry, along with customer service that is tough to beat. All borrowers receive their own personally assigned Education Finance Advisor who will explain the student loan consolidation process, outline their best options, and address any questions they might have.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.
Well, though it is possible, there are many misconceptions regarding this subject and what many people don’t understand is that you are either entitled to a discharge or not. Let’s make things a little clearer.
It is important to distinguish discharge from forgiveness or cancellation. These are two different concepts that imply diverse things. And though the effects of both may be similar, the circumstances or conditions under which you can qualify for loan discharge or loan forgiveness are completely different and are attributable to diverse causes.
As regards to consolidation, it is a completely different concept with distinctive effects and causes.
Loan Forgiveness Explained
Loan Forgiveness is the cancellation of the debt when the lender considers that the debt has been satisfied by other means than regular repayment of the loan. Federal student loans can be forgiven under certain circumstances either partially or in full. There are selected criteria that the lender may decide that makes you eligible for loan forgiveness. In order to find out you’ll need to consult with the lender. When it comes to federal student loans there are some particularities.
Federal student loans can be forgiven among other reasons if: you carry out volunteer work in predetermined areas or fields (Since the work you do is not paid, at least, the government forgives your debt). If you carry out military services you can also be eligible for partial or full forgiveness of your student debt. And Finally, you can also obtain forgiveness of your loans if you practice medicine, law enforcement or teach in certain areas or for selected underprivileged groups.
Loan Discharge Explained
Loan discharge is the annulment of the loan contract with the cancellation of the debt when you are legally (by law or contract) entitled to it. There are many reasons why you can have the right to claim the loan discharge but probably you don’t wish for these conditions to happen since the law grants this right as means to repairing a damage that has been done to the borrower one way or another.
In order to show some light over this obscure concept we will give some examples of the situations that grant you this right: death or disability of the applicant, liability of the school due to fraud or certain lack of fulfillment of the contract, a forged signature or other counterfeit, bankruptcy (when the repayment of the loan causes hardship as declared by the court).
An Alternative: Student Debt Consolidation
Chances are that you won’t qualify for either discharge or forgiveness of your student debt. If you still want to bring some ease to your financial life, the smartest thing to do is to consolidate your student debt. By consolidating you can obtain up to 30 years to repay your debt and consequently obtain significantly lower monthly payments that you won’t have problems affording. Moreover, by consolidating your federal student loans you can lock the interest rate thus avoiding rate variations that would otherwise cost you thousands of dollars.
After almost two years of reporting on the latest in student loan legislation, federal financial aid policy changes that affect college students or those that are college-bound, and a myriad of other topics that make life easier for students, the NextStudent Student Loan Blog will celebrate it’s two-year anniversary at the end of this year. During that time, the blog has delivered relevant content and news updated daily that keeps college students and their parents informed on current issues and such changes as student loan interest rates that affect the college experience and the planning process.
With so much confusion abounding regarding the issues, NextStudent’s Student Loan Blog is a clear voice that cuts through the chaos and explains what is happening in a succinct manner, even in the midst of hot issues that generate heated debate. In fact, the blog is a key resource for college students and their parents, helping them keep track of crucial student loan deadlines, new developments within the Department of Education, student loan consolidation information, and serves as an educational tool for the industry.
Weekly Format Explores Pertinent Issues
Each day, the focal point is a slightly different angle on student loans as follows:
Monday: “Student Loan News”
Tuesday: “This Week in Student Loans”
Wednesday: “Student Loan Legislation”
Thursday: “Student Loan Advice”
Friday: “Campus Life”
Helpful Topics Educate Students
While not just about financial aid and student loans, many postings center on helpful campus life topics such as conducting job searches, getting an ideal internship, and other savvy subjects like online social media. Some of the recent postings:
“From Classes to Cash: Landing the Gig that Pays the Bills after College”
“Student Internships: Pay to Get Paid What You’re Worth?
“Give Yourself the Best Shot at Federal Student Aid: Submit FAFSA Soon After Jan. 1”
“Failure Is for Freshmen, Success Is for Seniors: What I Learned at College”
“Should Undocumented U.S. Residents be Eligible for In-State Tuition Rates?”
“‘MyNews’ for MySpace Coming Soon”
“Starbuck’s New Record Label?”
Commitment to Education Extends to Customer Service
NextStudent believes in educating parents and students with online communication tools such as with the Student Loan Blog. This commitment to education extends to its dedication to excellent customer service as exhibited by personally assigned Education Finance Advisors who take clients through the entire financial aid and student loan consolidation process from start to finish. Whenever new clients contact NextStudent, they receive their own personal representative who will address their questions and assist them in getting the funding they need for school.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about student loans, private student loans, and student loan consolidation at NextStudent.com.