In an article published in December 2011 in the financial portal "Business Insider" stories of real life have been shown in people who have taken loans for their studies.
These stories of student debt give a clear idea of how borrowers have difficulty lifting the crushing burden of student loans from his shoulders.
All these cases represent a variety of situations that the student community facing financial difficulty.
A summary of some of the stories on the site are:
Case 1:
A borrower obtains a loan to study art and design of the game and ended because $ 100,000 of debt.
Case 2:
Original loan amount was $ 80,000 this person has risen to a huge $ 135,000!
Case 3:
A loan was taken from a leading bank in 2005, and the repayment terms can not be negotiated. Demand even after the borrower negotiate the loan was sent to one of the banks of collection agencies.
Many readers can easily identify the three cases mentioned above. These are some of the most common borrowers facing due to job loss, bankruptcy, medical bills or heavy scenarios. These cases constitute an obstacle for people, so it is difficult for them to pay their debts and get rid of financial responsibility.
Other factors in student debt
In addition to current financial conditions, other factors that may cause the student debt. It could be due to multiple loans with variable interest rates that come, the capitalization of interest or interest payment options only. Over time build a huge amount.
There are many borrowers who have not missed payments on your credit card debt, auto loans or mortgages. They even have a good credit score. However, for the reasons mentioned above, are never able to repay their student loans.
One of the best solutions to these borrowers in getting relief from debt is to consolidate your various loans into one loan. Thus, it is only to make a single monthly payment to a revised interest rates.
How to Consolidate Student Loans
A borrower who can not afford to pay their debts can consolidate multiple student loans through the Federal Direct Consolidation Programs and regain control of your financial situation.
By consolidating loans, borrowers should not combine your federal loans with the private sector. The Ministry of Education does not allow consolidation of private loans.
Relief services federal debt students are a great way to get the maximum benefits of federal loans. Consultants for debt relief for students to provide a suitable solution, because they have the experience necessary to match each payment plans eligible loans.
Some large companies offer comprehensive support and advice to borrowers for a single reasonable price. In this way, they can find a solution without problems and achieve peace of mind.
Consolidation plans Student Loans
Payment plan based on income
Unlike traditional lending practices, the only factors involved in determining a monthly payment borrowers are annual adjusted gross income and family size. The credit score and the loan amount is not taken into account.
Only available borrowing under the Family Education Loan Program (FFEL) Program and the Federal Direct Loans William D. Ford are eligible for a payment plan based on income.
Income contingent repayment
This plan is designed for those who are not eligible for reimbursement of the revenue base (IBR) or Pay As You Earn plans. Subsidized, unsubsidized, PLUS and direct loans eligible for this plan direct consolidation direct loans.
basic plan
With this plan, student debt can be paid as soon as possible. A fixed monthly payment be for a period of 25 years is required.
Graduated Repayment Plan
Under this program, the initial monthly payments are low. The payment amount was then increased by 4.25 per cent (approximately) every year.
In addition to consolidation, another quick way to delete all your student loans is eligible for a program of debt relief.
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