[thirdeye]

Hi everyone,

I was recently doing a thorough research on the topic "Cause of rising Student Loan". I managed to gather lot of important data on this topic. Since i am very closely associated with this forum i decided to share this information with the community.
I hope this will help you all.

Recent survey, reports that an average undergraduate student owes about $,000 in debt when he leaves school. The average unpaid balances on their credit cards are usually $,00. On the other hand graduate students, has an average balance of $,00 as debts. Many students go unaware of their debt until it is too late.

Cause of rising Student Loan

Rising costs of higher education is making it a compulsion for most families to borrow money in order to meet up with the educational costs. But before it is too late you need to know how to get started and get yourself free from this financial hassle.

The financial aid and the repayment process might be different for individual students depending on the debt amount. However, debt consolidation is the right and the most popular approach while journeying towards being debt free.

How is debt consolidation helpful to a debt-struck student?
Student loan consolidation is one of the most popular methods for reducing and paying off student debt. Student loans are one of the most difficult debts to be consolidated. However, some good companies do help you in this matter.
Debt consolidation is beneficial for student loans because:

1. Debt consolidation allows you to roll your existing federal loans into a single low-interest loan. This in turn will lower your monthly payment by $100 or more. The extra savings can be used towards paying the principal amount on your loan. By doing this you will be able to move ahead of your debt burdens much faster.
2. With the interest rates currently at a historic low, now is the appropriate time to consolidate your student loans. Debt consolidation simplifies and makes your debts more concise, and this helps you to get lower interest rates in general. Moreover, when you go for a consolidation youll pay one interest rate, and not multiple rates.
3. While consolidating the loans some lending companies offer rate reductions for students while they are in their grace period. However experts caution you to avoid companies that demands immediate payment after the grace period. There are financing companies which does not restrict you on this issue. Try and opt for them.
4. Some companies also offer additional reduction rates at 1% a year if you are regular at your payments for consecutive two years. Initially this might seem less but when you calculate it over a longer period it saves you hundreds of dollars.
5. Consolidation can also lower your payment by combining loans. Most consolidation lenders, however, will not consolidate less than $7500 total in student loans.
6. The repayment period of most of these loans is usually 12-30 years. The process can have a fixed monthly payment or it gets graduated over time. If the extended repayment period takes longer it is obvious that the loan gets costlier. With consolidation of the loan the payoff gets accelerated within a reasonable period and does not elongate the loan for the full period.
7. Student debt consolidation also saves you a great amount of time and effort. Managing one monthly payment is much easier and hassle free when compared to managing multiple payments.

Guidelines to help you choose the right debt consolidation company


Experts caution that not all student loan consolidation products are alike. Enquire thoroughly on issues mentioned below before you make your final selection.

1. Whether the lender offers an interest rate reduction for on-time payment.
2. Whether your lender is flexible enough to fix your payment plan keeping in mind your present financial ability or if he is capable to arrange the payment in case you want to pay more and clear your debts.
3. How good is the customer care or help desk of the company you opt for?
4. Does the lender offer a range of plans to meet your specific income and financial needs? Do you have the choice of multiple plans to debt repayment keeping in mind your financial needs and capability?

Some smart and calculative market research can save you from a lot of unnecessary hassles, along with a considerable amount of time and money.

I hope that this information helps those who are struggling with outstanding student loan.

Regards
thirdeye

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Hi thirdeye,

Thanks a lot for the information. Rising student debt is a big problem nowadays. The hike in the tuition fees, especially in medical and management studies, is definitely a cause of student debt problem.

I think we should look for some scholarships and grants instead of loans. That can take us to a better place, though the threat of 'over-award' is still there.

buddy

I recieved a s/l in1987. I defaulted on the loan and for several years my Fed. income tax refund was applied to that loan. How do I prove that my loan has been cleared?

[SOAPLADY]

You get a tax offset notice....there would have been a phone number on there to call your guarantor. If you are paid in full they also send you a paid in full letter. You dont get to prove anything really....they are the ones who determine if you still owe.

thank for good info : )