Dec 29
Unless you plan on being a student the rest of your life, student loan repayment is inevitable, and the ins and outs of student loan repayment can be confusing and overwhelming. The financial advisors at NextStudent, a leading Phoenix-based education funding company, would like to help clear the murky waters by defining terminology and laying out your student loan repayment options.�
Understanding Your Student Loan Repayment Options
A grace period is a pre-determined amount of time allotted to student borrowers after they leave school or drop below half-time enrollment before they must begin repayment of their federal student loans. Grace periods vary in length based on the type of student loan: Stafford loans have a grace period of six months; Perkins loans have a grace period of nine months. PLUS, Grad Plus and Federal Student Loan Consolidation loans have no grace period.
Deferment allows you to temporarily postpone your student loan payments (in most cases, up to a total of three years over the life of the student loan) if you’re unemployed or experiencing economic hardship. You can also request in-school deferments on your federal student loans while you’re enrolled at least half time.
While you’re in a grace period or in deferment, the interest on your Perkins and subsidized Stafford loans will be paid by the government. But you’ll be responsible for the interest on your PLUS, Grad PLUS and unsubsidized Stafford loans—any unpaid interest that accrues on these student loans during grace and deferment periods will be added to your principal loan balance for you to repay once repayment starts or resumes. If you want to avoid interest being added to your principal loan balance while you’re in a grace period or in deferment, you can choose to make interest-only payments during that time.�
Forbearance also allows you to temporarily postpone your student loan payments. When you’re in a forbearance period, you’ll have to pay any interest that accrues, even on Perkins or subsidized Stafford loans.��
Repayment Plans
Perkins, Stafford, PLUS and Grad PLUS loans have a standard repayment period of 10 years. If your standard monthly payment amount is higher than you’d like, you have three other repayment plans you can choose from that may make your monthly payments more affordable:
Extended Repayment is available to you if your federal student loans total more than $30,000 and if you received your first federal student loan on or after October 7, 1998. Depending on your student loan amount, you could extend your repayment period up to a 25-year term.
Graduated Repayment allows you to make lower payments at the beginning of your repayment term and gradually increases your monthly payment amount over time.
Income-Sensitive Repayment bases your monthly payment amount on your monthly income. You have to submit documentation of your income to qualify, and you have to requalify each year.
Student Loan Consolidation
If you’ve taken out any federal student loans, you’re eligible to apply for a Federal Student Loan Consolidation from NextStudent, which might give you more time to repay your student loans and could substantially reduce your monthly student loan payment.
The repayment term on a student loan consolidation will range from 10 to 30 years, depending on your total outstanding student loan amount. Student loan consolidation loans generally have the standard federal deferment and forbearance benefits.
When your student loan consolidation is in deferment, the government will pay the interest on that portion of your student loan consolidation loan that was originally a Perkins loan or subsidized Stafford loan. During deferment, you’ll only be responsible for paying the interest on that portion of your student loan consolidation loan that was originally a PLUS, Grad PLUS or unsubsidized Stafford loan. When your student loan consolidation loan is in forbearance, you’ll be responsible for paying all interest that accrues.
You can consolidate one or more qualifying federal student loans and take advantage of one easy-to-manage loan with a single monthly payment. Our online applications are fast and easy, and there are no fees to apply for a student loan consolidation.
NextStudent believes that getting an education is the best investment you can make, and we’re 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.
By: Jeff Mictabor
Tagged with: Consolidation Loans • Deferment Periods • Deferments • Federal Student Loan • Federal Student Loan Consolidation • Federal Student Loans • Forbearance Period • Grace Period • Grace Periods • Loan Repayment Options • Murky Waters • Perkins Loans • Principal Loan Balance • Student Borrowers • Student Loan Consolidation • Student Loan Payments • Student Loan Repayment • Student Loan Repayment Options • Subsidized Stafford Loans • Unsubsidized Stafford Loans
Dec 18
The old time has been passed when the students had to consider about their parents income before going to college. But now, the students don’t need to think. They can go to college through federal student loans, which can help the students pay until they observe under graduate, graduate or post graduate. There are numerous sorts of such loans, which are availed simply by the students. The Stafford Student Loans are just one of them. Stafford Student Loans are granted fixed interest rates in the form of subsidized Stafford Student Loans and unsubsidized Stafford Student Loans. Attaining the subsidized Stafford Student Loans is no complication to the students because the federal government reimburses for the interest charges of the loan during the completely period while the student is studying in school until grace period of 6 months after completion graduate, under graduate or post graduate. There are few definite formalities for the subsidized Stafford Student Loans, and one of these is the family revenue. Unsubsidized Stafford Student Loans can be attained from a bank or credit union, or directly from the department of education. The interest rates of unsubsidized Stafford Student Loans alter class after class of the student. These rates are still very lower than the private student loans. The student who is unable to qualify for the subsidized Stafford Student Loans then he/she is to be enabled for the unsubsidized Stafford Student Loans. In this matter interest rate due on the loan builds up from the day the amount is paid out until the day that the loan is paid off and interest charges can boost at rapidly. Striving to take out interest payments can be a problematical business, especially if you have a sequence of diverse loans cut out over 2 or 3years in college, because, while interest is quoted as an twelve-monthly shape, it is intended monthly and adjoined to the loan standard as you go along with interest in subsequent months being charged on the increasing shape. Stafford Student Loans can be used assorted impulses such as reimbursing tuition fee, institution fees, living expenses, medical insurance costs, books and supplies, transportation, amusement, and purchasing computer that is the that is the essential thing for the modern education. Stafford Student Loans basically carry low rate of interest to compare private student loans. Stafford Student Loans can be paid back within 10 or after completion education or after receiving job.
By: Andrew Peterson
Tagged with: College Loans • Department Of Education • Federal Government • Federal Loans • Federal Student Loans • Fixed Interest Rates • Formalities • Going To College • Grace Period • Interest Charges • Interest Payments • Interest Rate • Old Time • Post Graduate • Private Loans • Private Student Loans • Sorts • Stafford Loans • Stafford Student Loans • Unsubsidized Stafford
