• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • CONTACT US
  • All Essays
  • JEE Main 2022

Study Today

Largest Compilation of Structured Essays and Exams

  • Essay⯆
    • Freedom Fighters
    • Leaders
    • Events
    • Festival
  • JEE Main
  • Scholarship 2022
    • Class 1
    • Class 2
    • Class 3
    • Class 4
    • Class 5
    • Class 6
    • Class 7
    • Class 8
    • Class 9
    • Class 10
    • Class 11
    • Class 12
  • Speech
  • History
  • General Knowledge
    • Things to Know⯆
    • Blog

Educating Yourself about Student Loans: Things to Understand

May 24, 2019 by Study Mentor Leave a Comment

According to www.forbes.com, 29.1 million students, under 39 years, have student loans. 71% of the Americans are under the immense pressure of student loans after they have graduated from college, and they have the idea that paying these loans is not an easy task. The standard plan of clearing the loans is set in such a manner that the students have the option of clearing them within 10 years of graduating. Unfortunately, all the students are not capable of reaching that particular goal. Few students take around 20 years or even longer in order to clear the loans. This means that the debt amount is going to hang over the heads for a really long time.

Given below is a list of the things that you should know about student loans.

Table of Contents

  • You will be able to get relief from the loan
  • Refinancing the loans
  • Understand the grace period
  • Forbearance is capable of offering financial relief
  • Your debt will not disappear
  • Serious consequences are associated with not completing the payments
  • Conclusion

You will be able to get relief from the loan

It has been observed that most of the times the loans tend to stack up much more than what had been intended when the student was in school. Maybe the student needed to take more loans for covering the entire expense of the school. There can also be a chance that the student has ended up taking extra two years for graduating. This is what is going to be a burden for the students when they have finished their graduation. However, there is a piece of good news, which you should know about. There are numerous relief options, which are available.

If student loans are federally driven, you can make use of the repayment programs, which will get the loan repayment at specific percentages of the monthly income, which depends on the discretionary income as well as the financial needs that you have. If you work with the private lenders, you can contact them for experiencing the relief in the efforts of repayment. However, you need to keep in mind that if you are taking a lot of time to clear the payment, chances are that the interest rate is also going to increase. Therefore, clearing the payments as fast as possible is mandatory.

Refinancing the loans

If you have good credit as well as an excellent financial standing that has been built after you have completed your graduation, there is good news that you need to know. You are going to get to refinance the student loans. In numerous cases, this can be responsible for lowering the rates of interest and hence, you will have the option of making payments easily. A federal loan can be financed as well into the primary loans for making the payments easier. However, if you are making use of the income-based plan for repaying your student loan or you have deferred the loans temporarily, refinancing the loans is not going to be an option for you.

Understand the grace period

Taking students loans is undoubtedly one of the best ways for paying for your college. This is because college is extremely expensive and most of the students are not capable of generating enough income when they are studying. Unfortunately, the student loans have to be cleared within a certain time period. Most of the students’ lenders know that it is not possible for the students to clear the loans right after they have graduated. This is why the lenders offer a grace period before the students start clearing their loans. For the federal loans, the grace period is of 6 months after the student has completed graduation.

The private loans are known to have different terms. It is also important to understand that as soon as this grace period on the loan ends, the initial payment has to be made. During the grace period, the students have the permission to make certain amounts of payments on the student loans. This is going to help in reducing the interest rate, which you will have to pay on the loans later on. To know more, you can visit the reputed website of https://www.libertylending.com/.

Forbearance is capable of offering financial relief

If you are paying the student loans constantly for years, it is obvious that you are trying to reduce your debt amount. However, if any financial hardship interferes with this payment, things are going to become a little difficult. For instance, medical bills can pile up or a student can lose his job all of a sudden. During this period, it is going to become impossible to continue making the payments on the student loans.

The interest rate is going to keep accruing and also, most of the companies are known to provide forbearance only for a short time. You need to understand that if you are purchasing your car or taking a mortgage out, it is not going to be considered a financial hardship in most of the cases.  

Your debt will not disappear

It is true that there are going to be certain instances, during which you can opt for the forgiveness of your student loan. However, these circumstances are rare. When you are taking out the student loans, they are going to remain intact. In fact, if you encounter a senior, who has graduated long back, you will find him still paying the loan. You need to understand that your loan will not disappear. Even if a particular student is unable to complete his graduation, he has to repay the loan.

Serious consequences are associated with not completing the payments

If there has been a time when you do not have the fund for repaying your student loan, there can be serious consequences. These consequences can include the negative mark on the credit report. Defaulting on the loans as well as continuing to skip the payments can also result in wage garnishment, collection calls, and most importantly, you are going to lose the ability to receive federal aid in the future. There are various other consequences that you might have to face as well.

Conclusion

Before you are opting for a student loan, you need to understand everything that is associated with the loans. Ensure that you consider all the things that have been mentioned above so that you get a clear understanding of the various aspects of student loans.

Filed Under: Blog

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search for Essay

Top Engineering Exams in India

  1. JEE Main

Get Benefits in Click

Best Scholarship for Students

  1. Scholarship 2022
  2. Apj Abdul Kalam Scholarship 2022
  3. Ashirwad Scholarship 2022
  4. Bihar Scholarship 2022
  5. Canara Bank Scholarship 2022
  6. Colgate Scholarship 2022
  7. Dr Ambedkar Scholarship 2022
  8. E District Scholarship 2022
  9. Epass Karnataka Scholarship 2022
  10. Fair And Lovely Scholarship 2022
  11. Floridas John Mckay Scholarship 2022
  12. Inspire Scholarship 2022
  13. Jio Scholarship 2022
  14. Karnataka Minority Scholarship 2022
  15. Lic Scholarship 2022
  16. Maulana Azad Scholarship 2022
  17. Medhavi Scholarship 2022
  18. Minority Scholarship 2022
  19. Moma Scholarship 2022
  20. Mp Scholarship 2022
  21. Muslim Minority Scholarship 2022
  22. Nsp Scholarship 2022
  23. Oasis Scholarship 2022
  24. Obc Scholarship 2022
  25. Odisha Scholarship 2022
  26. Pfms Scholarship 2022
  27. Post Matric Scholarship 2022
  28. Pre Matric Scholarship 2022
  29. Prerana Scholarship 2022
  30. Prime Minister Scholarship 2022
  31. Rajasthan Scholarship 2022
  32. Santoor Scholarship 2022
  33. Sitaram Jindal Scholarship 2022
  34. Ssp Scholarship 2022
  35. Swami Vivekananda Scholarship 2022
  36. Ts Epass Scholarship 2022
  37. Up Scholarship 2022
  38. Vidhyasaarathi Scholarship 2022
  39. Wbmdfc Scholarship 2022
  40. West Bengal Minority Scholarship 2022

Advertisement

Students Big Search Today

  1. Speech about Family
  2. Women Safety Essay
  3. Autobiography of a Pen
  4. About Haritha Haram
  5. Mahatma Gandhi Essay
  6. Clayton Rule
  7. My Favourite Cartoon
  8. Clayton Rule
  9. Importance of Trees Essay
  10. Directive Principles of State Policy
  11. My Favourite Teacher
  12. Speech About Family
  13. My Father Essay
  14. Honesty is the Best Policy Essay
  15. my favourite book

Footer

Top Trending Essays in March 2021

  1. Essay on Pollution
  2. Essay on my School
  3. Summer Season
  4. My favourite teacher
  5. World heritage day quotes
  6. my family speech
  7. importance of trees essay
  8. autobiography of a pen
  9. honesty is the best policy essay
  10. essay on building a great india
  11. my favourite book essay
  12. essay on caa
  13. my favourite player
  14. autobiography of a river
  15. farewell speech for class 10 by class 9
  16. essay my favourite teacher 200 words
  17. internet influence on kids essay
  18. my favourite cartoon character

Brilliantly

SAFE!

studytoday.net

Content & Links

Verified by Sur.ly

2022

Essay for Students

  • Essay for Class 1 to 5 Students

Scholarships for Students

  1. Class 1 Students Scholarship
  2. Class 2 Students Scholarship
  3. Class 3 Students Scholarship
  4. Class 4 Students Scholarship
  5. Class 5 students Scholarship
  6. Class 6 Students Scholarship
  7. Class 7 students Scholarship
  8. Class 8 Students Scholarship
  9. Class 9 Students Scholarship
  10. Class 10 Students Scholarship
  11. Class 11 Students Scholarship
  12. Class 12 Students Scholarship
  13. Class 11 Students Scholarship
  14. Class 12 Students Scholarship

STAY CONNECTED

  • Facebook
  • Instagram
  • Pinterest
  • Twitter

Resources

  • About Study Today
  • Contact Us
  • Privacy Policy
  • Terms & Conditions

Scholarships

  1. Apj Abdul Kalam Scholarship
  2. Ashirwad Scholarship
  3. Bihar Scholarship
  4. Canara Bank Scholarship
  5. Colgate Scholarship
  6. Dr Ambedkar Scholarship
  7. E District Scholarship
  8. Epass Karnataka Scholarship
  9. Fair And Lovely Scholarship
  10. Floridas John Mckay Scholarship
  11. Inspire Scholarship
  12. Jio Scholarship
  13. Karnataka Minority Scholarship
  14. Lic Scholarship
  15. Maulana Azad Scholarship
  16. Medhavi Scholarship
  17. Minority Scholarship
  18. Moma Scholarship
  19. Mp Scholarship
  20. Muslim Minority Scholarship
  21. Nsp Scholarship
  22. Oasis Scholarship
  23. Obc Scholarship
  24. Odisha Scholarship
  25. Pfms Scholarship
  26. Post Matric Scholarship
  27. Pre Matric Scholarship
  28. Prerana Scholarship
  29. Prime Minister Scholarship
  30. Rajasthan Scholarship
  31. Santoor Scholarship
  32. Sitaram Jindal Scholarship
  33. Ssp Scholarship
  34. Swami Vivekananda Scholarship
  35. Ts Epass Scholarship
  36. Up Scholarship
  37. Vidhyasaarathi Scholarship
  38. Wbmdfc Scholarship
  39. West Bengal Minority Scholarship

All Rights Reserved Copyrights @ 2020 StudyToday.net