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Does Financial Aid for Paying Back Student Loans Exist?

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January 27, 2011


You’ve finished college and now that your student loans are due, you’re in more financial difficulties than ever. So as a student in financial trouble, you need help. Can you get financial aid for paying back student loans?
The truth is, no. It doesn’t exist. But you do have some options, and there is some financial help available from the department of education as well.
If you’re having trouble paying off student loans, one of the basic options is consolidation. If you want to play this card later, you can get through temporary financial difficult by deferring or forbearing payment. Stafford loans offer deferments but some private lenders do not; they are generally granted for unemployment or other economic hardship, or if you are still studying.
During deferment, you can either pay the interest only, or you can capitalize the interest, adding it to the total debt and paying interest on the interest after the deferment period. If your loan is subsidized, the government pays the interest during the deferment. If your loan was a need-based subsidized federal loan, you will receive help in this form if you have trouble paying back your loan.
Lenders may or may not allow a forbearance due to extreme circumstances. Generally they last 12 months, and interest continues to accumulate in every case.
Avoid defaulting a student loan. You can lose access to financial aid or social security services, your wages can be garnished, your tax returns withheld, and your professional title suspended or revoked. Continue reading …
Article by, Adam Hefner and courtesy of Associated Content, Inc.

Originally posted by Candice A

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