There are multiple avenues that student can take to reduce the amount of money that they need to borrow to cover their education costs. Two of the most popular ways would be to apply for grants or scholarships. These two options are the best to try because these do not need to be re-paid back. Applying for scholarships and grants are very easy and usually require you to write an essay stating why you feel you should get the scholarship. Another option is to use money from your savings account. The more money you put into your education, the less you will need to borrow toward your education cost.
Because of my current financial situation, I thought that I had no choice but to borrow more than what I wanted to cover my education expenses. I had no money in my savings account and had a real hard time trying to find scholarship that I was qualified to apply for. I am still having ...view middle of the document...
It is also important that we make sure that the payments are not delinquent or go into default. To make sure this doesn’t happen is quite simple. We need to make sure that we make our payments on time. Now the question is how do we make our payments manageable so that these issues do not arise? While there are many different types of payment options, these options suit different people and different situations. For example, people who want to pay off the loan quickly and can make a fixed payment every month then a standard repayment option would be the best option for them. They will be able to save more money in the long-term and pay less in interest. For people who expect their income to steadily increase overtime, the graduated repayment option may be the option best suited for them. By using this option, you can control your monthly payments based on your increase of income.
Now even though you pick a repayment option that works for you, you may still come across problems with repaying your loans. If this happens, there are a few options that you may want to consider. One option is loan consolidation. By doing this you can put all of your student loans into 1 loan payment. This helps if you are to have problems with paying multiple loans at once. Sometimes by doing this, you can get a lower interest rate on your loans as well. Another option is by changing your repayment plan. You can change your repayment plan once a year. This will only work if the maximum term of the new plan is longer than the time period that you have been repaying your loan already. The last two options is to file for a deferment or forbearance. Under certain circumstances you can file for a deferment which will temporarily stop your payments. If you do not qualify for a deferment then you can file for forbearance. Under certain circumstances this may also stop payments on the loan. It may also extend your repayment time, or even enable you to make smaller payments on your loan. Keep in mind that no matter what, your interest will still accrue.