Student Loan Payment Assistance For the Understood “C” Part
A student loan is simply a form of loan made available to assist students pay for college education and the related expenses, including living expenses, books and supplies, tuition and other educational fees. It is almost impossible to go through college without taking out at least one student loan, because college is expensive! Even those who have not earned a bachelor’s degree or higher, can qualify for federal student loan aid. The Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan Program (FDLP) both offer great student loan options.
The U.S. government student loans generally come from either the Department of Education or the Federal Family Education Loan Program. Direct loans are those that you obtain directly from the lender, while FFELP loans are those that are provided through financial institutions such as banks, credit unions and other lending agencies. Federal Direct loans are usually available in the following repayment options: subsidized, unsubsidized, subsidized with a government-paid interest and for students who don’t qualify for subsidized loans; for students who qualify for subsidized loans; for students who qualify for subsidized loans but for whom an interest-only loan is offered. There are also special education loans available through the Department of Education.
There are many benefits of doing business with a student loan servicing company. They will negotiate with your lender to lower your interest rate, lower your monthly payment, forgive late payments, change your payment due date and even reduce your loan amount. The federal student loans income-driven repayment option will reduce the amount of time you need to repay the loan by decreasing the number of months that you need to repay the loan and by decreasing the amount of interest you will need to pay. Your loan debt will be consolidated into one manageable monthly payment.
You will not qualify for the income-driven repayment option if you already have an outstanding student loan from another lender or if you have defaulted on any previous federal student loan. Another significant benefit of working with a student loan servicing company is the possibility of federal student loan forgiveness. If you are having difficulty paying your student loans because of circumstances beyond your control – such as unemployment or death – you may be able to work out repayment arrangements with your lenders that will result in federal student loan forgiveness. The federal government offers student loan forgiveness to struggling students in the form of deferred payment programs.
Obama’s policy of student loan relief is not brand new. This is part of his efforts to reduce the cost of higher education for the American people. Over the last few years Congress has passed several laws designed to make it easier for student loan borrowers to make payments while they are enrolled in school. In addition, the Federal Family Education Loan Program (FFELP) has implemented new, stricter guidelines for student loan borrowers who wish to consolidate their federally held loans. President Obama has announced today, as part of his student loan policy, that he is also implementing new loan relief strategies for parents who wish to consolidate their student loans. As usual, this announcement has caused a lot of confusion among student loan borrowers.
There are two main types of student loan debt relief grants and one main type of student loan debt relief scholarship. There are many ways to pay for college: you can borrow money, obtain a loan, or obtain a combination of both. Students can borrow money to pay for tuition, books, room and board, and any other related expenses such as transportation, healthcare and other miscellaneous education costs.
If you do not have enough money to pay for tuition, you can apply for subsidized and unsubsidized federal student loan aid programs. Subsidized aid programs require you to supply the government with proof that you cannot afford to pay your loan in full at any time during the life of the loan. Unsubsidized aid programs do not require you to supply the government with proof that you cannot afford to pay your loans. Both types of programs offer a variety of financial aid options. No matter which type of financial aid program you choose, you should carefully review all the details and then submit a free application for federal student aid.
Private student loans offer a variety of repayment options to those borrowers who do not qualify for federal aid. If your student loan payment may be too high due to your current financial circumstances, you may want to consider private student loans. Private loans offer much more freedom in choosing a repayment plan; however, if you are considering borrowing more than the maximum amount allowed by the federal government, you should seriously consider working your student loan payment into your budget by making a small monthly payment to the lender. The lender will forgive you the loan interest and will forgive the principle.