The student debt is more than the college tuition and fees combined. Some of the expenses that may be incurred during the studies are the cost of books, the rent of the accommodation, the transport of the equipment and the equipment and the food and lodging of the students. These are not to mention the additional expenses that come along with living on campus.
Students should be prepared for such unforeseen circumstances and can take help from various institutions that provide the financial support. If they do not have a choice, the best thing to do is opt for the student loans or the FAFSA. There are different options of loans available and one can choose the one according to their needs. There are many benefits associated with these student loans and you will enjoy such advantages.
The students have to make monthly payments towards the interest and the principle which will depend on the tenure of their loan and at a certain amount that will be decided by the lenders. This loan does not come with any type of penalty and therefore students who have a good credit score will be given the loan without the need for any kind of hassle.
The only problem that comes with this loan is the high rate of interest. The interest rates may go up as much as 50% if the borrower fails to pay the loan back. If the students can afford it, they can opt for consolidating the loans with the help of the student debt consolidation loan.
This way, they can avail a loan of lower interest rate and in order to save on the cost, they can take a single loan. In the case of students, the best option is to use the federal Stafford loan scheme.
This federal student loan scheme is made to be very easy for the students who are unable to pay off their high interest rate loans. The loan amount also has a lower rate of interest and thus the students who are having a poor credit score can apply for this federal student loan scheme and get the lower interest rate.
There are different types of loans under the federal student loan scheme. The most common loan is the Perkins loan and this loan can be availed by almost all the students.
If the students want to take a single federal loan but still they have no choice, then they can opt for the FAFSA. but this is more expensive than the other two loans. The only disadvantage that the students have with this loan is that the interest rates cannot be waived.
If the students cannot pay the interest on the Federal loans they will have to wait for six months and at that time, they will have to file for bankruptcy. The other option is the subsidized loans and the government can provide them with this loan to pay the interest on the Federal student loans.
But there is another option which is student debt consolidation. In this case the students do not have to repay the consolidated loan, and if they wish to opt for a single loan, then they can do so.
The advantage with student debt consolidation is that the interest rates are low and hence, they can repay it faster and the repayment period is longer. and the burden of repaying the consolidated loan is less.
One should keep in mind that there are many factors which determine the interest rates and so the students should compare the rates of the student debt consolidation. There are two ways of getting the consolidation loan. the first one is direct loan and the other is the indirect loan.