Student Loans Repayment Options

By Michael Carter

Many college students and graduates are looking for a options for repaying their student loans. While borrowers may be having difficulty paying back loans, there is help available.

What causes difficulty in paying back student loans?

New college graduates may find that it takes them longer to find a job than they expected. While there's a six month grace period from the time students graduate until repayment begins, sometimes it takes six months or longer to find a job.

Many recent graduates who are employed are underemployed -- working part-time or temporary jobs until they find a permanent position. During this time they may need help in making loan payments.

New college graduates can use several strategies to help with student loan repayment. Taking on additional part-time jobs or freelancing may be an option.

It is also wise to keep living expenses low the first few years out of college. Graduates can live with a roommate, or downsize into a smaller apartment. If new graduates are still looking for a job, it may be a good idea not to move until permanent employment is found. Then it will be easier to move to an area closer to the job.

Applying for a forbearance may help during times of difficulty making loan payments. A forbearance is temporary period of suspension of payments on a federal or direct loan after repayment has begun, and if the student does not qualify for deferment.

This means that if a student has already started paying back loans, they can apply for a suspension of payments on the grounds of financial hardship. A forbearance must be applied for through the lender. Being able to hold off payments for a few months can be a big help during a time of financial hardship.

Another student loan debt strategy is to consolidate payments. Unless consolidated, each student loan is accounted for and paid separately. When a student graduates they will receive paperwork and payment slips for each loan. 2, 5, 12... no matter how many loans were taken out, they will be billed separately. Adding up all of these individual loan payments could total $300-$1000 per month or more! Not many students can afford such payments.

That's where consolidation comes in. Consolidation is a process that combines all of the student loans into one loan. Borrowers can dramatically reduce monthly payments of student loans by consolidating. Average monthly payments could be less than $100 to around $250 per month. This is just an estimate. The monthly payment depends on the total amount borrowed, the interest rate and the way that loans are consolidated.

Consolidating through The Income Contingent Repayment plan is designed to help make repaying student loans easier for students who intend to pursue jobs with lower salaries, such as careers in public service. The monthly payment amount is adjusted annually, based on changes in family size and annual income. This program is only available through the US Department of Education, not a lender or bank.

Finally, the Graduated Repayment Plan starts the payments at a low level (usually interest only) and gradually increases the payments until the balance is paid. This is helpful for graduates because payments are low when the first graduate, and increase as earning power increases over the years. This plan is available by consolidating through a bank or other lender.

It is important to note that according to current regulations student loans may only be consolidated once. So borrowers who have already graduated and consolidated with a standard plan cannot take advantage of the income contingent or graduated plans. For borrowers who have already consolidated, a forbearance may be the best option for temporary relief of student loan debt.

Use the student loan repayment calculator from finaid.org to find out what loan payments could be using different types of consolidation.

College graduates can find student debt relief using one of the strategies mentioned above. Discuss loan repayment options with your lender and see what can be done to help repay education loans.

About the author:

Michael Carter is a contributor at College Financial Aid Guide, an online informational resource for educational funding, scholarships and student loans. Learn more about paying back student loans:

http://www.collegefinancialaidguide.com/graduates/paying-loans.htm

How To Get Your Bachelors Degree Online

By Amba Dubois

Getting a bachelors degree online can be a fast and easy way to further your career. But before you enroll, there are a few important things you need to know.

First, you'll want to make sure that the college that offers the online degree is accredited. School and universities are accredited on a state or national level. This accreditation means that a board of education has researched and approved the schools curriculum and course work.

Next, you will want to make sure that the school is highly recognized and that the bachelors degree is transferable. This helps because someday you may want to further your education by completing your masters degree and you will need to be able to transfer your bachelors credits.

Prerequisite to getting a bachelors degree from any university, you must first have at least a high school diploma or a G.E.D. It also helps to have some college or previous work experience under your belt. If you have previous college credits, then they can be applied toward your bachelors degree program and shorten the length of time that you will need to be enrolled in school.

Without previous college credits, most bachelors degree online programs take up to three years to complete. This time frame is based on an individual that takes at least twenty hours of course work a week. With prior college credits, or by spending more time on course work each week, some individuals can complete their bachelors degree online program in as little as one year.

To decide which college or university to enroll with, it is best to decide what type of degree program you need. Many colleges offer these programs but some specialize in different fields. For example, a person who wants a bachelors degree in business night want to go with Ashworth College, while a person that wants an education degree would want to go with Penn State University.

Once you have chosen a bachelors degree online program, you need to research its class schedule. Many online programs allow you to download the course work and complete it on your own schedule, but some programs require that you log on to the Internet for virtual class sessions a few times a week at a designated time.

About the author:

Amba is the owner of http://www.on-line--education.coma website that contains all the latest resources and information relating to on-line degrees.

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