Manageable Student Loans

Manageable Student Loans


Manageable Student Loans
Ryan Patterson
FP/101
April 15, 2013
Katrina White, MAFM

Manageable Student Loans
Federal student loans must be repaid, so it is important to understand the options and responsibilities. Federal student loans is money borrowed to pay for educational expenses and must be paid back with interest. The interest on a federal student loan is usually lower than what a bank or private institution offers and the government allows for flexible repayments options too. Another factor in reducing the amount borrowed is to only borrow what is needed for school and do not get greedy with taking more then what is actually required. It is a smart thing to apply for scholarships and financial aid depending on the availability of funds at the college in addition to help with unexpected expenses. In some cases, the need to borrow more funds to cover emergencies that could cause the student to drop out of school may be necessary but not to blow monies on items that are not essential should be avoided. Exploring the different options available to students vary depending on the need. If you qualify for financial aid and the less money a student makes allows for more assistance, so the payment plan can be flexible on how much is owed and how your finances are budgeted. Staying in contact with your lender is the best way to stay on top of managing the account. In order to avoid delinquency and default, pick a payment option suitable to the student's lifestyle for example: a standard repayment plan allows for a fixed amount of at least $50 per month for up to ten years, graduated repayment plan starts out low at first and then will increase over time, extended repayment plan is the same as a standard plan but spread out over twenty-five years and more interest to pay, income-based repayment plan (IBR) is calculated based on monthly income and family size, income-sensitive repayment plan is based on the annual income which can go up or down depending on that...

Similar Essays