Zack childress reviews student who pursues their under-graduate or post-graduate education will be applying for student loans. The students may or may not repay their debts. The main reason for payment default is increasing interest rates.
Zack Childress provides solutions for the investors to avail student loans without getting involved in a fraudulent activity.
Benefits of Federal student loans
To avoid such student loan scams and overcome inflation,federal student loans are offered with fixed interest rates. The solution is student loan refinancing. The borrowers have to save money in order to repay their student loans. The money can be saved by refinancing the auto loan or mortgage.
There is even consolidation option which helps the students to manage funds. Federal student loans offer cost-saving benefits. There are certain rules and regulations. You can avail a range of repayment loans. These loans are offered for a term for 20 to 25 years where you can even withhold your monthly dues if you are facing a financial crisis. As the rules are framed by federal law, there will be no scam related issues which provides security for the students.
Refinancing student loans
Refinancing federal student loans into private loan can be done as per the federal law whereas the other way is not possible.
Zack complains about the drawbacks of federal student loans.
- You cannot avail income-driven plans.
- Repayment assistance programs
- Disability and demise
- Rehabilitation problems
The pros and cons of refinancing have to be scrutinized before investing in federal student loans. The cost-saving benefits are one valuable advantage. The investors have to assess the tolerance of risk. The reality hits them hard when they receive the first bill after graduation which is the prime time for every grad student to pay their loans. When you get upgraded to a particular lifestyle and start living, you get used to it and when you face a pitfall, you cannot accept it.
- Undergraduate students can borrow between $5,500 and $12,500 per year
- Graduate students can receive up to $20,500 each year
Student loans are applied and with that money they have to manage the following,
- Tuition fees
- Travel expenses
- Car expenses
- Books ,laptop, phone
- Personal expenses
Keep track of your monthly expenses and fix a budget. Students who think these loans are expensive can go for a college charging less. Apply and avail scholarships if you are financially backward.
What if these students’ loans are not repaid?
The students have to work either part-time or take up some job to repay these loans. The payment default has caused a huge loss to nation’s economy as recent survey reports concluded that humongous debt is due which is to be paid by the students. The late payment results in additional costs like attorney fees, court fee and other costs. Co-signers are also equally responsible for the repayment. In the longer run, the credit score gets affected and you cannot avail loan at one point of time.
Loan forbearance is a condition where payments cannot be made for a stipulated amount of time. The amount spent on lodging can be saved if the students move to micro apartments which are totally affordable. There are many other types of properties in real estate where students can stay till they complete their graduation. To know more about co-signing and other private loans, you can check out REI Quick cash system where Zack Childress has written articles in detail.
Zack Childress reviews the repayment schemes so as to educate the investors.
How the loans can be repaid?
- The standard repayment plan: The amount is fixed; the term differs variedly from 10 to 30 years for consolidation loans. This is one of the best approaches to repay your student loan.
- Graduated repayment plan: The total amount will be higher than the standard plan.
- Extended repayment plan is usually extended for 25 years as some students may make defaults in their payment and require some more time to repay their debts.
- REPAYE is Revised Pay as you earn repayment plan, the monthly payment will be 10 percent of your income and it is calculated based on investor’s income and family size. Outstanding balance if any can be left unpaid which is offered for public interest and for financially backward people.
- IBR is income-based repayment plan is same as REPAYE, but consolidation loans are excluded.
- ICR is income-contingent repayment plan where monthly payment is less, 20 percent of income has to be paid.
- Income –sensitive repayment plan is usually for a term of 15 years.
Take the help of student loan financial adviser to know which repayment plan suits you. You can also talk to college grads to know what are the expenses expected every month and total amount spent for college education. Smart decisions are need to be taken to save some money after knowing the total cost.