Debt Consolidation

Custom Search
 

Debt Consolidation
Debt Relief
Mortgage
Credit
Bankruptcy
Credit Card Debt
Student Loans Can’t
Senate Passes New
New Bankruptcy Legislation
How To Avoid
What Does A
How Do You
Do It Yourself
Questions to Ask
How to Choose
Future Secured? Oh
Debt Settlement :
Different Ways Of
Repair Bad Credit
New Bankruptcy Law
Debt Getting You
Debt and Financial
Credit Repair? It's
Corporate Debt Management
The Road to
Fast Track Out
Is Independence Overrated?
How Do I
How to Reduce
5 Options Toward
Don't Drown Your
Your Ticket Out
Debt Negotiation and
Pay Off Your
Getting Past The
Your Secret Weapon...
Secrets to Why
British Families and
Debt Settlement
Establish Money Saving
Sitemap
Debt Consolidation
Debt Relief
Mortgage
Credit
Bankruptcy
 
Student Loan Debt
by Max Bellamy
Student loans are financial aids taken for the purpose of education. They have to be repaid with interest once graduation is completed, and the repayment schedule begins from six months after graduation. Loans are disbursed to either students or t

Student loans are financial aids taken for the purpose of education. They have to be repaid with interest once graduation is completed, and the repayment schedule begins from six months after graduation. Loans are disbursed to either students or their guardians by the federal government, banks, private moneylenders or the school itself. Most loans have 10-year repayment periods and their rates of interest change on the 1st of July every year.

There are different types of loans available to the students – Stafford loans, Perkins loans, PLUS loans and private educational loans.

Stafford loans are disbursed by the federal government. To be eligible, the student must be enrolled in an accredited educational institution at least half-time. The student begins repayment after completing graduation. Stafford loans may be subsidized or unsubsidized. In a subsidized loan, the interest is charged only when the student begins repayment; but in an unsubsidized loan, the interest begins from the day the loan is disbursed. Commencing from July 1, 2005, the rate of interest on a Stafford loan is 5.30% for the repayment period and 4.70% for the grace period.

Perkins loans are disbursed by the school rather than the federal government. Again, a student must be enrolled in an accredited education institution at least half-time to be eligible for it. A Perkins loan charges lower interest rates than a Stafford loan, about 5%.

PLUS loans are loans taken by the parents for their children’s educational needs, if the children are dependent. The student must be enrolled in an accredited educational institution at least half-time to be eligible. Parents are responsible for the repayment of PLUS loans. A Perkins loan is a low interest loan, charging rates of interest from 4.17% (it may go up to 6.10%, depending on the period of repayment).

Private loans are given by banks and private moneylenders. They charge a high rate of interest and there is less flexibility in their repayment methods. The rates of interest differ from one lender to another.

Students can take different types of loans for their education at the same time. Several loans can be consolidated into a single loan with a single repayment plan to avoid confusion. These consolidated loans also help in reduction of interest rates.

In the United States of America, at least 66% of the undergraduate students are using some kind of student loan to complete their educations. In the year 2003-2004, undergraduate students borrowed $19,202 per annum on an average in Stafford and Perkins loans. The average came to $23,814 if PLUS loans are also taken into account. The average figures for graduate students were even higher. Every year there is an estimated 3% increase in the amount of average loans taken.

Student Loan Debt provides detailed information about student loan debt, student loan debt consolidation and more. Student Loan Debt is affiliated with Debt Consolidation Loan Online.

 
The site is not responsible for any content in it. E-mail: alldir[at]gmx[dot]com
debt consolidation, home loan, mortgage, debt free, debt help, refinance, equity loan, unsecured, secured debt, bankruptcy, credit card , bad credit, payday, cash advance, cash settlement, line of credit, student loan, interest rate, borrow money, car loan, adverse credit, compensation, quote, credit score, consolidate debt Speed Wabash Wyomissing borough Olin Montrose Victor Balance of Jefferson County Choctaw Westfield Santa Paula Sauk Valley township La Farge village Central Valley town Bend Clyde Knott County Northwood Southside township Ridgeville town Carrollton town Brunswick township Balance of Union township Chenoa township Monmouth Greene County Balance of Trimble township Ash Grove Lakeside Pembroke town Sullivan USA UK Australia Canada Turkey Saint Helena Svalbard Antarctica Midway Islands Guyana Ross Dependency Peru Aland Jordan Kent Tyrone Aberdeenshire Stirlingshire Glamorgan Rutland Rutland Cornwall Cumberland Cumberland New Hampshire (NH) Iowa (IA) Wisconsin (WI) Vermont (VT) Wisconsin (WI) Maine (ME) Pennsylvania (PA) Illinois (IL) Kansas (KS) Maine (ME) Mississippi (MS) Federated States of Micronesia (FM) Mississippi (MS) Montana (MT) Delaware (DE) Virginia (VA) Northern Mariana Islands (MP) Maryland (MD) Kentucky (KY)