Student Loan Repayment Alternatives Suggest Straightforward Debt Retirement Strategy
For many college seniors who have recently graduated, college now is but a fading memory, and the prospect of getting that ideal job is ever present. Many parents relish their child’s commencement when they receive that college degree, a major symbol of not only the effort required for its attainment, but also an indication of even better things to come.
Perhaps your child already had received that great job offer and is just settling into the working world, learning about budgets, personal financial planning, and starting to consider the repayment of student loan debt.
Take Time to Plan Ahead
Whatever the case, many graduates and their parents do not look forward to the time when they are required to start repaying their student loans. However, according to NextStudent, a leading Phoenix-based education funding company, once borrowers receive accurate information on their repayment options and what is available to them, most find it easier than they originally thought.
Students probably are already aware that most federal student loans have a grace period. What that means is that the day after they graduate they do not have to automatically make that first payment. For example, for Stafford Loans, students may not have to begin repayment until a full six months following graduation. Perkins Loan repayment is not mandated until three months later, or a total of nine months after graduation. Repayment of PLUS Loans (Parent Loans for Undergraduate Students) and PLUS Loans for Graduates are different. Parents or students must begin repayment only 60 days after disbursement of the funds.
This grace period is the perfect time for parents to work with their children by planning for the future, such as establishing a budget, coaching their children about new living arrangements, adapting to a first real job, and getting their financial house in order.
Repayment Options Abound
There are many different types of repayment options with unique terms and requirements. A common option is deferment. Borrowers may qualify for deferment if they are experiencing economic hardship, unemployment or certain other conditions. Deferment allows the borrower to postpone payments usually in six-month or one-year increments. A borrower must apply for this option on a yearly basis, which may be extended to a maximum of three to five years. Since interest accrues on the account during deferment with the exception of subsidized Stafford Loans, it is wise to begin repayment at the first opportunity, or perhaps consider setting aside the funds monthly to cover interest accruals.
Consolidation Simplifies Repayment
Students may be burdened with a significant amount of college debt and multiple student loans that require several payments to different lenders or servicing companies each month. This is an exceptionally confusing prospect to face when looking at repayment. In order for students to know their obligations, it is best for them to contact all their lenders to find out the required payments, student loan balances, interest rates, and terms on all student loans.
With this information in hand, consolidation of all student loan debt may be a great way for students and their parents to simplify debt repayment, thereby eliminating the hassles and headaches of dealing with multiple lenders and payments that must be made monthly.
Many students realize rather quickly that student loan consolidation is a simple, easy process that allows them to reduce their monthly payment by up to 60 percent. With a NextStudent Consolidation Loan, parents and their children receive one of the most competitive packages in the industry, as well as personal, professional service. In fact, when borrowers contact NextStudent, they are personally assigned their own Education Finance Advisor who will guide them through the student loan consolidation process from start to finish, inform them of their best options, and address any questions they might have.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans at http://www.nextstudent.com/.
Perhaps your child already had received that great job offer and is just settling into the working world, learning about budgets, personal financial planning, and starting to consider the repayment of student loan debt.
Take Time to Plan Ahead
Whatever the case, many graduates and their parents do not look forward to the time when they are required to start repaying their student loans. However, according to NextStudent, a leading Phoenix-based education funding company, once borrowers receive accurate information on their repayment options and what is available to them, most find it easier than they originally thought.
Students probably are already aware that most federal student loans have a grace period. What that means is that the day after they graduate they do not have to automatically make that first payment. For example, for Stafford Loans, students may not have to begin repayment until a full six months following graduation. Perkins Loan repayment is not mandated until three months later, or a total of nine months after graduation. Repayment of PLUS Loans (Parent Loans for Undergraduate Students) and PLUS Loans for Graduates are different. Parents or students must begin repayment only 60 days after disbursement of the funds.
This grace period is the perfect time for parents to work with their children by planning for the future, such as establishing a budget, coaching their children about new living arrangements, adapting to a first real job, and getting their financial house in order.
Repayment Options Abound
There are many different types of repayment options with unique terms and requirements. A common option is deferment. Borrowers may qualify for deferment if they are experiencing economic hardship, unemployment or certain other conditions. Deferment allows the borrower to postpone payments usually in six-month or one-year increments. A borrower must apply for this option on a yearly basis, which may be extended to a maximum of three to five years. Since interest accrues on the account during deferment with the exception of subsidized Stafford Loans, it is wise to begin repayment at the first opportunity, or perhaps consider setting aside the funds monthly to cover interest accruals.
Consolidation Simplifies Repayment
Students may be burdened with a significant amount of college debt and multiple student loans that require several payments to different lenders or servicing companies each month. This is an exceptionally confusing prospect to face when looking at repayment. In order for students to know their obligations, it is best for them to contact all their lenders to find out the required payments, student loan balances, interest rates, and terms on all student loans.
With this information in hand, consolidation of all student loan debt may be a great way for students and their parents to simplify debt repayment, thereby eliminating the hassles and headaches of dealing with multiple lenders and payments that must be made monthly.
Many students realize rather quickly that student loan consolidation is a simple, easy process that allows them to reduce their monthly payment by up to 60 percent. With a NextStudent Consolidation Loan, parents and their children receive one of the most competitive packages in the industry, as well as personal, professional service. In fact, when borrowers contact NextStudent, they are personally assigned their own Education Finance Advisor who will guide them through the student loan consolidation process from start to finish, inform them of their best options, and address any questions they might have.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans at http://www.nextstudent.com/.
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