What is a Student Loan?
Student loans are financial aids made for students to enable them pay off their educational expenses, ranging from tuition to living expenses and books.
Statistics have shown that among the most common government loan programs are;
- Student Loans.
- Housing Loans.
- Business Loans.
Student loans come with the criteria of interest attached to the amount the student is to pay back, just like with almost every other kind of loan.
Find out some of the best student loans offered.
Pros of a Student Loan
- They assist students with educational expenses.
- Students can afford to attend better colleges.
- The amount taken can be used for other expenses other than educational expenses.
- They can be paid back over a period of time.
Cons of a Student Loan
- Repayment might be difficult with little income earned as a student.
- There is always the awareness of being in heavy debt.
- Debt may cut into other life plans.
- Defaulting on payment may cause a mark on your credit.
The government is not completely out in dealings concerning students, their loans and their debts. The federal government does provide help in the ways it can, even though some people are not fully aware of their programs.
Loans offered by companies and banks could be backed by the federal government, with the government standing as a guarantor to repay the money if the borrower in some way fails to meet up with it.
The government standing behind a student loan of course gives the companies more of an incentive to give out the loans, and even offer loans to students who would otherwise not qualify in any way for a student loan.
Government programs are the most sensible for students to take loans out from and, should be fully considered before turning to private companies and lenders. The private lenders might seem friendlier with more enticing features and rates but, eventually, the government loans win with an easier qualification clause and, more generous loans.
Eliminating Student Loan Debts
There are multiple student loan programs and repayment plans available for students but, the problem is often finding the most ideal one and taking full advantage of it.
1] Federal Student Loan Forgiveness Programs
People with Federal student loans can take advantage of this program. These student loans are usually in the hands of a student loan servicing company to, the Department of Education. Some of the programs offer student loan forgiveness to public service workers who have served for 10 years.
2] Repayment Plans
Students can find a repayment plan that best suits their ability to repay their student loan. The system automatically puts every student into the Standard Repayment Plan after graduation, which translates into a steady repayment plan spanning over 10 years.
Look into other repayment plans that are more suitable for you if you cannot keep up with the Standard Repayment Plan.
3] Earn more Money
If none of the two options work for you and you are still sitting on a huge pile of debts, you can work towards clearing them off by earning some more money. With the right incentive and tools, anyone can make an extra $100 each month.
That is, $100 more that you can funnel into paying off your student loan debt. The options for earning extra money are endless; you can start by brainstorming on your own natural abilities or, looking into online jobs like web designing and online writing.