Student Loans
Once you have graduated from college, sometimes it seems that the easy part is over and the hard part of dealing with the student loan debt, has just begun.
There are basically two types of student loans. One is a federal student loan and the other is referred to as a private loan. Choosing the right loan, before you begin college, can become very important, after graduation.
Federal student loans offer the best options when compared to private loans, options that include, deferrals, forbearance and forgiveness as well as lower interest rates. Some federal student loans (subsidized) can be deferred without interest for periods of time (six months) after graduation. Some federal loans and private student loans you can ask for, forbearance to delay your payments for periods of time (six months) but you will still be charged the interest.
There are some instances where you can receive loan forgiveness on a federal student loan, depending on certain requirements or conditions. Some of those conditions are: if you are in the military, if you practice medicine in certain areas, or they involve public services, in some way. The criteria for federal student loan forgiveness, will sometimes involve full time employment with a, not for profit, public service.
If you do not meet these requirement or criteria for loan forgiveness it is possible that a student loan consolidation may be the best option. A student loan consolidation is where you combine all of your student loans, all for the same interest rate. You can usually have the consolidated loan extended for longer terms, thereby lowering your monthly payment, although this will increase the amount of interest you will have to pay in the long run.
Private student loan consolidation is rarely advised due to the fees associated with the consolidation and usually the higher interest rates that comes with it.