Parents can play a crucial role in paying off student loan debts – Know how
The total amount of student loans is about to hit 1 million this year and statistics say, this year the new graduates are going to take at least ten years to pay off their student loan debts. It’s quite a scary fact indeed. In fact FinAid, an online student loan help provider says, this year most of the students completed their graduation with a staggering $23,000. If your son is taking admission in a 4 year college program this year, make sure you take some proactive steps to bring your son’s student debt under control. All you need is a bit of research and some tactful steps and you can save your children’s future from the menace of student loan debts. Before you look for any debt relief programs to pay off your student loan debts, go through the listed points below.
Know more about Stafford and Perkins Loans
Federal government took up a number of measures to ease the student loan debt burden. One of them is the Stafford and Perkins loans. These Stafford and Perkins loans are meant to help those who are dealing with serious financial crisis. These loans come with an astonishingly lower interest rate and most importantly, offer a grace period to new graduates, so that they can take some time to find a suitable employment before paying back their loan amount.
Student loan aid- Parent PLUS Loan
A Parent PLUS loan is there for those parents, who need assistance to fund their children’s education. Federal government offers Parent PLUS Loan at a much lower rate of interest. However to qualify for a Parent PLUS Loan, you need to meet certain criteria. The student must be needy and must not cross 24. The student receiving the loan must have a parent, if not biological at least, adoptive or step parent. In order to obtain the loan, the parent must go to the university’s financial assistance office and process all the required official procedure there. As soon as the full loan is sanctioned and paid, the parents must start repaying it within a span of two months,
Go for Signature Student Loans
Signature Student Loans are another viable option to obtain student loans at a lower interest rate. Sallie Mae offers this Signature Student Loans. In order to qualify for these loans, the debtor must have good credit score. However, as most students lack a credit score, their parents can work as a cosigner here.
Last but not the least, those, who are going for trade or technical school can opt for Career Training Loans. These loans could be used not only to pay for the student’s education cost, but also to mitigate their accommodation charges and online courses. Borrowing a Career Training Loan has an added advantage. While paying off these loans students or their parents can pay $25 a month in the initial six months. However this amount climbs up in the long run. For Career Training Loans, one needs to have a robust credit score as well.
This article was written by guest blogger Amy.