Student loan - the best or the worst way to get money for education?

Student loan - the best or the worst way to get money for education?
February 11, 2009 - 10:09pm | author: kara deniz

Under the conditions of the global economic crisis it’s getting more and more difficult for students to pay for their college. So, according to survey conducted by Sallie Mae they have to get money for it from their parents – 32 per cent, borrowing money – 23 per cent, their parents borrow money – 16 per cent; getting grants or scholarships – 15 per cent, they can also pay out from their own savings – that is 10 percent of students; and finally some students can get their friends’ or relatives’ support – 3 per cent.
So it’s obvious that more than one third (or 39 per cent) of all money for students are obtained from the loans. This number will certainly be more challenging as student loans become more difficult to get. Add here the fact that parents’ income and savings will likely become strained with the tough economic times that we all face and we start to see that the sources are drying up.

Some students think of starting some part time job to continue their study but it reduces their concentration on their education and they fail in obtaining the exact results. Now the lenders have designed the Private student loans with no credit check that is an ideal way for the students to make their dream of education come true.

In fact, the private student loans with no credit check became a real miracle in the lives of students that let them get their education with ease. With the help of those loans, the students can easily pay their college fees, tuition fees, hostel expenses, avail book and other required things. Now the poor students can easily avail the higher education without any obstacle and can settle their bright careers.

Today the private student loans with no credit check are gaining more and more name and fame. It's because they can be availed without any pledges. Moreover, these loans are also accessible for poor credit people who are unable in arranging education for their children. The people suffering from bad credit record, CCJs, bankruptcy, arrears and even late payment are also able to avail loans with ease. These loans are available through many online lenders that deal with the loans, providing Private Student Loans with No Credit Check to the students or their parents with bad credit history; they can acquire enjoyment from a resource of this loan that lets them to study any course they like. To get private student loans with credit check, it’s just necessary to check various online lenders and their quotes. It would be helpful to explore the,loans at very slighter interest rate because due to cut throat competition the lenders offer loans at minimum interest rate.

But borrowing money is just a half of a deal - how to pay student loans off? A new federal program starting this fall promises relief and hope for millions of students and recent graduates taxed with big federal educational debts. It presents to be an enormous help to many thousands of borrowers. Those with federal student loans starting July, 1 can ask the government to limit their monthly payments on their federal student loans to less than 15 percent of their income. Many of those who qualify for the new Income-Based Repayment (IBR) program will pay much less than that: those who earn less than a base budget allowance of one and a half times the poverty level for their household (which was $10,400 a year in 2008 for a single person) won't have to pay a penny on their federal student loans. Everybody else who qualifies for IBR will have to pay 15 percent of the difference between their income and the base budget allowance.

Best of all is that those who earn a low income due to public-service jobs can have their remaining federal student debts forgiven after 10 years of income-based payments. Those who maintain low incomes and stay current on their income-based payments for 25 years can also have their remaining debts forgiven, no matter what job they have. Those who hope for public-service loan forgiveness should first consolidate their loans directly with the federal government, because private lenders can not offer that. Once that's done, they can apply for IBR. Then, they'll need to keep excellent records because the tax will be on the students to apply for forgiveness after 10 years of payments. They'll have to prove that they made all the payments on time and didn't violate any other rules of the forgiveness offer.