Loans are of many types and meant for various purposes. But there are some loans that enable you to build a firm and secure future for yourself. They are student loans. Across the nation, college graduates cherish high aspirations and big dreams. However, within this huddle of dreams and aspirations, many students overlook one crucial factor. Very few students think or plan seriously about the financial aspect. They hardly give a thought as to how they are going to handle their student loans.
Student loan trends
- In 2002, the average public school student left college with $17,000 in student loan debt, and the average private school student left college with $21,200 in student loan debt.
- In 2001, the average undergraduate student carried a credit card balance of $2,327 and the average loan and credit card debt for graduate students in 2001 was $20,402, according to a leading provider of student loans.With undergraduate student loan debt steadily increasing in the last few years, the US Department of Education and other higher-education institutions have entered into a contract with private collection agencies to collect overdue student loans.
Financial aid or a student loan covers the education costs that you can't pay for. Most financial aid is offered to families on the basis of eligibility or need, which is determined by the school you attend. The amount of financial aid depends upon your ability to pay for your education and repay the student loan amount as allotted by law.
Just as students prepare for a career, they should also prepare to pay off their student loans. The following tips from ACA International can help students pay off their loans in a timely manner:
- Save: Well before graduation, open an extra savings account for student loan money only. Decide how much money you can afford to put away each month and stick to it. Just think- during four years of schooling, if you put away just $30 every month, by the end of college you will have almost $1,500 saved for your student loans.
- Budget: Many college graduates exceed their cost of living. Therefore, ACA suggests developing a budget and sticking to it. Determine what bills have to be paid (i.e. student loans, rent) and then calculate how much is left over for additional expenses and as savings.
- Ask for advice: Don't hesitate to ask your student loan representative or collector for a flexible payment plan. Most organizations are willing to develop a payment schedule that works for both the consumer and lender.
Even after being aware of all the rules and regulations, you may fall into a debt trap. Thus, if you wish to free yourself from financial pressures, then rely on us. Debt consolidation is a much better way to get rid of your debts and we expertise in this field.