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Defer Student Loan Payments to Stay Afloat
Tweet Share on Facebook December 29, 2010 Comment (4)Need to postpone paying back your student loans? There are several different student loan deferment options that allow borrowers under certain circumstances to put off paying back their loans. A deferment can help by suspending your monthly student loan payments before you get really far behind. But remember: A deferment has to be in place sooner rather than later, because you are not eligible for a deferment if you have already defaulted on your student loans.
Examples of deferment options available for federal student loans are in-school deferments for students enrolled at least half time; unemployment deferments; economic hardship deferments; and military deferments. Perkins loans have some special deferments including for full-time law enforcement officers and volunteers in programs such as the Peace Corps.
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Pick From the Federal Student Loan Smorgasbord
Tweet Share on Facebook December 22, 2010 Comment (42)If you need to borrow to finance your education, federal student loans should be first on your menu. Congress and the U.S. Department of Education regulate federal student loans, setting maximum interest rates, borrowing limits, and other important loan terms. These loans come in loads of different flavors. Here's a taste of what you might borrow:
Perkins Loans are for borrowers demonstrating "exceptional financial need" and can be used for undergraduate, graduate, or professional school. These loans are made through schools' financial aid offices, and schools get help with funding from the government. Perkins Loans are delicious if you can get them, because they have no fees and low interest rates.
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Manage Student Loans Via Income-Based Repayment
Tweet Share on Facebook December 15, 2010 Comment (2)My mama always told me that you can't get blood from a turnip. True enough. Even so, when student loan borrowers graduate, we're told we have to start paying back our loans. That can be tough, especially for graduates still looking for work in this sluggish economy. There are lots of different repayment plans for borrowers to choose from, but if you're struggling to manage your student loan payments, consider the benefits of the Income-Based Repayment (IBR) option.
[Learn more about paying off your student loan with help from Uncle Sam.]
IBR caps student loan payments at a reasonable percentage of income. Payments are based on income and family size, with most people paying 10 percent of their income or less. Repayment of student loans under IBR is limited to a maximum 25-year period, after which the remaining balance is forgiven. All federal student loans can be repaid through IBR, even if the loans were borrowed a long time ago or the federal loan was borrowed from a bank or private lender through the Federal Family Education Loan (FFEL) program.
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You Need Private Student Loans Like You Need a Hole in the Head
Tweet Share on Facebook December 8, 2010 Comment (8)Need money for college? Go for federal student aid. If you have to borrow money for college, federal student loans are your best bet.
What's good about federal student loans? Fixed interest rates and flexible repayment plans are just a few things. Federal loans have discharge, deferment, forbearance, and forgiveness options that provide an important safety net for borrowers and their families. Additionally, federal loans typically carry lower fixed interest rates.
