For many students, the Stafford student loan program has helped make it possible for them to pursue higher education. The average Kutztown University undergraduate student completes school with approximately $19,000 in Stafford loan debt. An increasing number of students owe even more by borrowing additional unsubsidized loan amounts when their parents have been denied PLUS loans. Also, the private alternative loan volume, with the student as the borrower, has surpassed two million dollars annually at Kutztown University, and is used by many students to pay for educational costs not covered by other sources of aid.
Add the enormous popularity and ease of availability of credit cards into this mix, and it stands to reason that an aggressive debt management program is necessary to help students keep their debt under control and their credit intact. From first-time freshmen to graduating seniors, many students rely on their parents to take care of the paperwork and are unaware of the magnitude of the debt they have acquired. Students need to be conscious of their debt and plan how to manage it from the first time they borrow.
STUDENT LOAN REPAYMENT
You have certain Rights & Responsibilities as a Borrower. You are responsible for repaying your student loans even if you do not graduate, have trouble finding a job or are dissatisfied with your education. Ask your lender or servicer about the following repayment options. Also, communicate with your lender or servicer to discuss alternatives if you are experiencing difficulties.Sample Repayment Chart has an estimated monthly payment based on a 10-year standard repayment schedule. You can also calculate what a monthly loan payment would be using standard and extended repayment terms using the Loan Payment Calculator.
All federal education loans allow prepayment or paying all or part of your loans at any time without penalty. The advantage of prepaying is that it will substantially decrease interest owed.
Consolidation permits eligible students who are finished with their education to combine repayment of various loans into one monthly payment.Advantages of Consolidation
Contact your lender or loan servicer for more information. These agencies provide loan consolidation:
HAVING TROUBLE MAKING PAYMENTS?
Deferment is an arrangement in which principal and/or interest payments are postponed.
Forbearance is a temporary postponement or reduction of monthly payment obligations due to financial hardship. Interest continues to accrue while the loan is in forbearance. A forbearance is typically granted in 12-month intervals for up to three years and is granted at the lender’s discretion.Types of forbearance
PHEAA’s YouCanDealWithIt.com offers information about personal finances, debt management, loan repayment, car shopping, budgeting tips and more. The site is a comprehensive guide to decisions and situations that students will encounter and resources to help deal with them.
Experian Information Solutions (formerly TRW)
Look in your bag after a visit to the campus bookstore and you’re likely to find a credit card application tucked inside. Most students find that securing a credit card is quick and easy. But before you accept the offer, ask yourself, do you really need a credit card? Click here to weigh the pros and cons of using a credit card and check out tips for good credit to be a smart consumer.
How much do credit cards really cost you? Click here to see how long it would take to pay off the average bank card balance of $1,100 while making only the required minimum monthly payment.
Click here find out how credit cards work, how much credit you can afford, and how to tell if you’re heading for trouble.
Information provided on this website is current at the time of inclusion.
As regulations governing student aid programs change frequently, accuracy of information is subject to the most current regulations in effect to date. For financial aid questions, please contact our front-line staff.
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