Student Loan Calculator – The Truth About Student Loans That Your Loan Provider Will Not Tell You
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| Student Loan Calculator – The Truth About Student Loans That Your Loan Provider Will Not Tell You |
Even though most sites will advise you about how to pay your student loans back, how to use a student loan calculator, how to apply for a loan, and how to choose a repayment plan, even though they will they will tell you not to hesitate in asking your loan provider any question, just bear in mind that there are some things that your loan provider will not tell you, as a matter of fact, there are some things that student loan companies will never tell their clients. Surely, they will help you pay for college education, but you will almost need a genie to grant you the one wish of paying back the loan in a hassle free way.
- You Might Not Have To Pay The Loan Company All At Once – nearly 90 percent of the colleges offer installment plans to enable students pay off tuition fees in bits. This helps students a whole lot, because through these installment plans, the student can now pay a small amount every month rather than paying the huge tuition fees at the end of each academic year. In addition, these colleges do not charge interest on these loans. Installment plans like these may entail a few risks and might not be suitable for everyone, but there are however certain benefits that comes with it.
- The Higher the College Fee, The Cheaper The Loans – The government sponsored subsidized Stafford loan offers student loans at the most economical interest rates for each academic year, where the government pays for the entire interest payments until graduation and also for 6 months after graduation. The student should demonstrate sufficient financial need that is immensely reflected by the total cost of the school they chose to study in order to secure the loan. A candidate from a private, expensive school can qualify for a cheaper loan.
- If You Fault Your Loan Re-payments, You Get Stuck with the Loan Forever – humans will always be humans, we will always look for short cuts and even shorter cuts to pass up the repayment of our loans. Anyway, if you are one of those who think they can evade student loans by declaring bankruptcy, I am sorry, you are wrong. There was once a case where 72,000 federal borrowers filed for bankruptcy and only 29 were successfully declared bankrupt. Since that is not an option, what happens if you are unable to pay back the student loan? The federal government can scoop out a percentage of your cosigner’s wages and private lenders also does the same. Some private lenders may go as far as seizing the estate in case you or the co-signer dies, and the federal government can cut off your lottery winnings, and as well take 15 percent from social security benefits and income tax refunds.
- Your Co-signer could Do More Harm than Good – it is often common to find loan providers asking for co-signers before they can hand over bundles a loan to a student. As a matter of fact, nearly all private loans are co-signed by either a parent or a close relative. However, bear in mind that the reason most, private lenders ask for co-signers is because the students themselves don’t have enough credit history to secure a low interest rate. On the contrary, if your co-signers credit standing descends, you may continue with a lower interest rate as was given initially, but when you apply for the loan the following year, the lender will assess the co-signers credit worthiness and offer higher rates for missed payments, thus, leading to increased debt.
Chances are you will need some amount of student loans to help fund your education if you are planning on attending a college. Since the average college student will have to take out student loans, let’s go over some mistakes that you will want to avoid when considering student loans.
- The first mistake you should avoid is applying for student loans before seeking out scholarships and grants you may be eligible for. I don’t see any reason why you should avoid or pass up money for college that you will not have to repay. So ensure you take a look at all of your scholarship, grant and loan alternative opportunities before considering student loans.
- The second is borrowing more money in private student loans then you actually need. If you are doing this, make sure you have it at the back of your mind that no magic student loan calculator will get you out of the mess. Since private student loans are not based on need, many have the opportunity to borrow in excess of what their educational expenses actually cost. Like I would typically say, remember that all the money you borrow in private student loans will have to be paid back with interest.
