Student debt is growing by leaps and bounds. This is breaking past all records previously held by other lines of credit. For the first time in the history of US, student debt surpassed credit card debt in 2010 and then it overtook auto loans in 2011. Finally, the Consumer Protection Bureau had to admit this March 2012 that student debt has swelled over $1 trillion mark. Therefore, students need to plan their finances to pay for their college fees since the debt relief programs provided by the government are very tough to qualify.
It is imperative for them to know about the types of loans since each of them has an eligibility criterion of their own and their repayment plans too differ from one another.
Kinds of student loans
Here is a brief overview about the 3 major kinds of loans:
Student may opt for any type of loan depending on their financial condition, but they must also have a plan well in advance that will guide them to repay the loans as soon as possible.
However, they have to learn how to get the most suitable ones for themselves before even thinking of repaying the loans.
Tips to get a suitable student loan
While preparing to locate funds for college, students should keep the following points in their minds:
In order to help students understand better, here is an example for them. Take for instance, a life science job can provide with an annual pay of around $47,500. Out of the total income, if a student pays approximately $20,000 as overall college fees, then he/she must have a monthly salary of about $230, for the full next decade. From the net income of about $2900, out of which 8% (or $7,600 along with the interest accrued) can be used for debt payments. Hence, this loan amount will be the most apt one for students who want to make life sciences their bread and butter.
Loan repayment plan for the students
Here is a comprehensive guide for the students to follow in order repay their loans comfortably:
Lastly, students should keep themselves updated with the latest trends and issues that are of global importance. This will give them an edge when facing an interview panel and clinch a well paying job. Through these initiatives students will hopefully become debt free very quickly.
Andrew Jackson, financial counselor associated with Oak View Law Group, APC for over 4 years. He analyses people’s financial situation minutely and advises on different debt relief options available to people. He also helps people managing budgets to keep an eye on their financial planning.
Posted in Advice for Candidates, Career Advice, Loan Consolidation, Paying for School, Student Loans | Tagged Tagged direct loans, financial plan, government endorsed student loans, private student loans, student debt, student loans
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