If you’re wondering how to consolidate student loans without paying them, you may be interested in what we’ve got to share about consolidating student loans with no payment. Surveys conducted recently by independent organizations say that more than one-third of Americans have been victims of some sort of scam involving student loan debt. Any good information science guru knows that anecdotal stories are valuable, but what actually qualifies you for student loan forgiveness is hard data, plain and simple. That is why researchers posed the question of what happens if you never pay your student loans in an unsolicited survey to a group of people who were already working to develop a new student loan forgiveness program.
The results? Not much. But what was revealed is disconcerting. While it’s easy to imagine how student loans could get out of hand when you see your payments stacking up like a mountain of overdue bills, what’s not so easy to understand is how student loans work. They’re the result of decades of borrowed money, and it would only make sense that student loans would be subject to repayment once you paid them off.
There are two parts to understanding repayment plans for student loans. Part one describes what happens if you don’t repay your debt. The second part describes what happens if you do repay your debt, but you use another lender to do so. You see, there’s a difference between a student loan with a regular repayment plan and a repayment plan that’s not tied to a particular bank. To fully understand the consequences of not repaying your debts, you need to understand how student loan debt works.
Forgiveness: When a student loan repayment plan includes student loan forgiveness, it means you’ll owe only the amount of what you initially borrowed, plus interest. Repayment on this type of student loan is possible. Your student loan servicer will advise you in writing as to the repayment plan. In some cases, you will just have to wait until your grace period ends; in other cases, you will be required to begin repayment on the date you would have finished your education. Either way, it’s easy to forget about the original loan. Once your grace period ends, you must begin repayment immediately or face serious penalties.
Penalties: You may have never heard of student loan services, but they are the people who handle your money once you sign up for it. In most cases, they work for the credit card companies. Credit card companies are always eager to give their customers good deals. Student loans are just like credit cards. The more you use them, the more you pay back. Most lakes loans are unsecured, which makes repayment more difficult.
How To Apply: If you are thinking of signing up for great lakes student loans, contact the Consumer Services Department at your bank, credit union or credit provider. They can provide you with the necessary instructions on how to apply for your federal student loan. If you are still unsure on how to proceed, your loan servicer will be happy to assist you in any way.
Repayments: Great Lakes student loans offer several repayment plans. Your loan servicer can help you understand the differences between these various repayment plans. There are two types of repayment plans that federal loans offer – standard repayment plans and income-based repayment options. With standard repayment plans, students are expected to make their initial payments on the date that they receive their first federal student loan payment. Federal loans also have grace periods before payments must begin, and students are required to work part time while in school.
Income-based repayment plans differ from standard repayment plans. With an income-based plan, students will pay interest on all federal student loans that are not paid in full during the grace period. Loan repayments may be affected by a borrower’s current income and family situation. For example, a borrower who is currently making minimum payments may find that his or her minimum payment amount is raised. On the other hand, a borrower with good credit may find his or her interest rate lowered because of creditworthiness concerns of the federal government. Your student loan servicer is the best resource you will have when deciding which repayment option is best for you.