Paying for College: Student Loans, Credit Scores, and Alternatives to Pay for College
Having a college education is something many people dream of. Unfortunately, getting a good education can be incredibly expensive and doesn't seem to be cheaper. Easy Solutions wants to help you get the best education possible without having to break the bank. This blog post will talk about what is offered for college and how you can qualify for student loans to pay it off and keep the loans down. Please read on to find out more about these services.
College is expensive, and it's not getting any cheaper. Easy Solutions wants to help you get the best education possible without having to break the bank. This blog post will talk about what Easy Solutions can offer for paying for college and how student loans consolidation programs can be an excellent way of making payments more manageable. We also want to talk about credit scores and how they affect students when trying to pay for school themselves. A good credit score can make a huge difference in qualifying for financial aid or scholarships, so we want everyone reading this article on Easy Solutions' website today!
Submit the FAFSA
Fill out the Free Application for Federal Student Aid even if you don't think you'll qualify, says Ben Miller, senior director of post-secondary education at the Center for American Progress. The FAFSA is your admission ticket to the world of financial aid. You will be considered for financial aid by submitting it, including federal grants, work-study opportunities, student loans, and some state and school-based aid.
Please fill it out as soon as possible because some colleges give out funds first-come, first-served basis. In addition to the FAFSA, some schools require you to complete the CSS Profile to be considered for financial aid.
FAFSA is your admission ticket to the world of financial aid. By submitting it, you will be considered for financial assistance, including federal grants and work-study opportunities, among other opportunities granted if you fill it out.
Use Your Savings Account
This one is not as viable an option for many as filling out a FAFSA form. But, it is still a viable option and one that many students overlook. To pay for tuition, room and board, and other college-related expenses, you'll most likely have to dip into your income and savings. If you or your parents have money or need to start setting it up soon, let Easy Solutions help you with these savings goals! Consider a monthly consultation to help prepare you and your family for this next big step in your child's life (or even your own if you return to school)!
It is Possible to Find Scholarships and Grants for College
Scholarships are an excellent option for paying for college, but they can be hard to find. There is over $30 billion worth of scholarships available each year. That is a lot of money that could make your education much more affordable! According to Fastweb, you have an 18% chance at getting a scholarship if you apply for two every time, and there are thousands out there waiting for you or your family. It's not a guaranteed solution but an option to consider.
Federal and Private Loans
If you decide to take out a loan, make sure you understand who is making the loan and the loan's terms and conditions. Student loans can be obtained from the federal government, a private institution such as a bank or financial institution, or other organizations. Federal student loans, which the federal government makes, typically have more benefits than loans made by banks or other private sources.
What kinds of federal student loans are there?
The William D. Ford Federal Direct Loan (Direct Loan) Program is the federal student loan program of the United States Department of Education. The U.S. Department of Education serves as your lender under this program. Direct Loans are available in four varieties:
Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of attending a college or career school.
Direct Unsubsidized Loans are given to eligible undergraduate, graduate, and professional students, but not based on financial need.
Repayment Plan Options
• Standard Repayment Plan:
With the standard plan, you’ll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you’ll have up to 10 years to repay your loans.
The standard plan is good for you to handle higher monthly payments because you’ll repay your loans more quickly. Your monthly payment under the standard plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time. For the same reason—the 10-year limit on repayment—you may pay the slightest interest.
• Graduated Repayment Plan:
With this plan, your payments start low and increase every two years. The length of your repayment period will be up to ten years. If you expect your income to increase steadily over time, this plan may be right for you.
• Income-Based Repayment Plan:
Under this plan, the required monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. The maximum repayment period under this plan may exceed ten years. If you meet specific requirements over a specified period, you may qualify for cancellation of any outstanding balance of your loans.
• Income Contingent Repayment Plan:
This plan gives you the flexibility to meet your student loan consolidation obligations without causing undue financial hardship. Each year, your monthly payments will be calculated based on your adjusted gross income (AGI, plus your spouse’s income if you’re married), family size, and the total amount of your Federal Student Loans.
What type of repayment plan is eligible for loan forgiveness?
To maximize your loan forgiveness benefit, you should repay your loans on the Income-Based Repayment (IBR) or the Income-Contingent Repayment (ICR) Plan, which are two of the repayment plans that qualify for loan forgiveness. Other qualifying repayment plans are the 10-year Standard Repayment Plan or any other repayment plan. Your monthly payment amount equals or exceeds what you would pay under a 10-year Standard Repayment Plan.
What is a Consolidation?
Loan Consolidation can be a great way to simplify your student loans. It’s the process of taking multiple federal education loans and combining them into one new loan with just one monthly payment, which often has more favorable repayment terms than what you may have had before. By consolidating all of your existing Federal Student Loans, you are giving yourself a chance to get on track to paying off your loans faster.
What are the Advantages?
There are many advantages of consolidating federal student loans, including lower monthly payment amounts and extended repayment terms. With a longer loan term, you’ll end up repaying total interest over time than if you had kept all of your original loans separate.
- Obtain a better repayment plan
- Lower monthly payments
- Lower interest rate
- Consolidate multiple student loans into one or two loans
- Improves your credit report & scores
- Reduce your dept to income ratio
- Reduce the total installment loans in your credit report
- If you are currently behind, get back on track!
If federal student loan payments are piling up and the payments are becoming too much to handle, then Golden Mountain Consulting has the solution for you. Submit an inquiry form to learn more.