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How The Student Loan Debt Relief Programs Can Help Graduates With Outstanding Credits

Smiling-Female-College-StudentSmiling-Female-College-StudentIn a Forbes article last 2009, a 2008 College Board study showed that two out of every three undergraduates will leave their college or university with some kind of student debt. And a more terrifying research shows that an average college or university’s graduate’s loan debt is around $ 26,000.

With such statistics, education really can be a very expensive commodity nowadays. And though education is always said to be a “right” for everyone, the sad reality today is with the costly course fees alone, education is becoming more and more of a “luxury” now.

The young ones, on their own or supported or encouraged by their families, still do strive and work hard to complete a college degree. And in the USA, they do this by applying for and using either a federal or private student loan, and sometimes, even a combination of the two.

In case a student decides to go for a federal loan, the federal government will subsidize or pay the interest on the loan while the borrower is still in school. In a federal loan, the interest rate is mostly fixed and it will permit the borrower to limit the amount to be repaid monthly based on his or her earnings. If the student decides to take out a private loan, the funds will be provided by a bank, credit union or any financial institution. Private loans, unfortunately, do not come with flexible repayment terms or any kind of protection, such as an insurance, that are typically included in federal student loans.

To help graduates ease the burden of exorbitant and multiple student loan repayments, several programs were initiated. Students and graduates with federal loans can enroll in alternative repayment programs, such as Income-Based Repayment. This program will help them get a more affordable plan using the student or graduate’s income as percentage for their loan repayment.

Lastly, borrowers, more often than not, will have more than one student loan to their name. And because of this, they will have a hard time keeping track of each one and ensuring on-time payment of all these loans. To assist graduates with these financial difficulties, they can avail of any of the available student loan debt relief programs so that they can also have loan consolidation. Loan consolidation means that multiple loans are combined into just one, single loan. And because there is only a single monthly payment to keep track of instead of several, a borrower can have a much easier time managing the repayment of his or her loans.

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