Student Loan Programs - 1116 Words

Student Loan Programs The beginning of a college education is an eventful and exciting chapter for America’s youth. Beginning college is also when responsibilities begin to kick in as well. Students must plan ahead how they intend to finance their education during their time at college and after completing their academic careers. Almost seventy percent of college students nationwide take out loans to help finance their education. Like any other loan, student loans must be paid off in a timely manner to avoid hurting personal credit for future investments. The government has various student loan programs to assist students with not only paying for college, but also with paying off these loans after college. The most common type of†¦show more content†¦It may feel like free money to the pockets when receiving the refund checks, but all of it needs to be paid back at a point. This is a common mistake made by students during their college careers. Managing finances when in school is a crucial part of building a credit history because student loans tend to be the first type of credit for those in college. It is also the first type of real debt incurred by many. Late loan payments seriously harm credit records and ruin a credit history for years. This is why paying off these loans is the safest way to go when building a positive credit history. Late payments that add up often pose as obstacles when taking out auto loans and mortgages as well. This is only fair, because if a student fails to carry out the responsibility of paying back a student loan, then they are not proven responsible when it comes to other types of credit either. (smartmoney.com) Late loan payments indeed take a toll on an individual’s credit history. When a loan payment has not been made for two hundred seventy days after it was due, that student loan is considered to be in default. The defaulted loan is turned over to a collection agency, and the government notifies every credit bureau. This in formation remains on an individual’s credit report for seven years. Not paying the defaulted loan as soon as possible means having federal income tax refunds withheld and added toShow MoreRelatedThe Federal Student Loan Program Options Essay1009 Words   |  5 Pagesdiscusses the Federal Student Loan Program options currently offered, and attempts to recommend the President a feasible policy alternative to redress the program’s currently expensive budgetary expenses to the federal government. Executive Summary The Federal Government offers Student Loans for higher education through two different subsidized programs that are administered and funded in similar yet different ways: the Federal Family Education Loan (FFEL) program guarantees loans made by private lendersRead MoreThe Student Loans Consolidation Programs1400 Words   |  6 Pages apply and get loans. Students do not even find it problematic and the need also urges them to obtain a number of loans. Besides covering the high cost of education, they have to take into account the expenses on books, accommodation and sometimes living expenditure also. After graduation it is the biggest problem that people face and find it confusing and crushing to pay off their loans. If you too are facing the same problem, consider suntech student loans consolidation programs. Suntech can beRead MoreStudent Loan Program Should Not Be Paid781 Words   |  4 PagesPresident Barack Obama s budget last month sparked growing concerns that student loan forgiveness - specifically for graduate school student debt - will cost taxpayers much more than originally estimated. As the Student Loan Ranger discussed previously, the president s budget shows a shortfall of approximately $21 billion for the federal student loan programs, in large part due to a projection of more borrowers taking advantage of loan forgiveness after making 10 to 25 years of income-based payments. AccordingRead MoreStudent Loan Consolidation Program And The Borrower1427 Words   |  6 PagesCollege students who have multiple loans in their names understand the nightmare involved in making the repayments once they finish off their studies. The government also understands the problem and hassle that the students have to face and so programs on student loans consolidation federal has been designed and created. Though student loan consolidation programs were always into existence, they have been simplified and made comfortable in the present day. These programs are designed and createdRead MoreFinding The Lowest Student Loans Consolidation Program1536 Words   |  7 PagesFinding the lowest student loans consolidation program is very important as this will decide your financial future. You should take this process very seriously and find out ways to search for the loan consolidation program that imposes lowest charges and interest rates. This will not only save you a lot of mone y but also help you lead a better life where you can pay attention to other necessities and luxuries of your life too. When a person is deep down in debt he does not think anything else unlessRead MoreFeedback and Evaluation for a Federal Program to Give Student Loans674 Words   |  3 Pagesunsubsidized student loans. However, over the years the cost of a college education has increased and has become a financial burden for some families as their debts began to rise. The U. S. Department of Education amended the Title IV of the Higher Education Opportunity Act of 1965. Student loans are a form of financial aid that a student can receive while in college and consist of federal loans and private loans. The Internal and External feedback mechanisms A high number of students are graduatingRead MoreStudent Loan Is The Most Powerful Weapon1302 Words   |  6 Pagesso powerful, conventional weapons break down, fail, and can be taken while knowledge cannot be. Sadly student loan debts are increasing at an alarming rate. The days of working all summer or part-time throughout the school year in order to pay tuition are long gone and private student loans are the only viable answer for many students aspiring for a professional career. I believe that student loan forgiveness is an issue of the utmost importance in regards to making education more accessible and affordableRead MoreStudent Loan Program Has Good Intentions And An Honorable Aim1753 Words   |  8 Pagespoor Americans by providing more support and financial resources through student loans to lower-income students pursuing a higher education. Unfortunately, more than fifty years later, that divide continues to grow. Due to rising tuition costs and rapid increases in student loan burdens, the college aspirations of teenagers coming from working and middle-class families are progressively being discouraged. Student loan program has good intentions and an honorable aim: to provide an equal opportunityRead MoreOverview (Salinas):. Kean University Is A Public University1694 Words   |  7 PagesKean University offers many different services to their students enrolled, including one of the most popular department on campus, The Office of Financial Aid. The Office of Financial Aid is devoted to offering different services and information to students attending Kean. Located on first floor of the Administration Building, The Office of Financial Aid is open Monday through Saturday and offers phone hours Monday through Friday. Students can schedule an appointment, where they will have a chanceRead More The Importance of Budgeting to Avoid Defaulting on Student Loans2168 Words   |  9 PagesDefaulting o n Student Loans Students defaulting on their loans will always be a problem for the government as long as there are students taking out loans. There will always be a few that don’t pay off their loans. There are many reasons why students default on their student loans. According Ms. Farrell, the author of â€Å"Reducing Student Loan Defaults: A Plan for Action,† in the Office of Planning, Budget, and Evaluation Survey, said â€Å"The main reason that students default on their loans is that