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Deferred Student Loans Can Take A Lifetime To Pay Off

For many students their only chance at financing college is to turn to deferred student loans. This is not a problem as there are many options to help. Choosing the right kind of financing can be a decision that will affect the rest of their post graduation lives or at least a good part of it.

Some of the lucky students will qualify for a grant, whether it is a full grant or partial, this will make a huge difference in how their life begins after graduating college four years later. Other students who are forced to receive deferred student loans to finance four years of college will find it tough after they graduate. Deferred loans are simply loans that do not have to be repaid until the student either finishes or drops out of college. There are certain stipulations on the amount of classes or hours a student must attend to be considered a full time student. These stipulations can potentially vary from different lending institutions so it would be wise for the student to be aware of these rules before taking the loan.

Certain deferred student loans are accumulating interest for the four years the student is attending college. There have been instances where a $10,000 loan turns into a $21,000 debt after graduating. Depending on the students needs to finance college, such as the type of college or university, whether it is local or the student has to live on campus, can obviously affect the amount of loan needed. Multiply the %10,000 loan by four years and the students debt upon graduating can be over $80,000. This debt will ad pressure on students to find the right job as soon as possible after finishing college, as payments towards the loan usually start within a maximum six month grace period.

Students who graduate college are typically ready to start their lives. Many are ready to leave home after obtaining their first job. The starting salary of most graduates can leave little money left over to make student loan repayments. There is typically more debt incurred after graduating as well, there are expenses such as cars, housing and maybe starting a family. Even a few years after graduating the debt can still be sitting at a high level accumulating more interest. This can affect many decisions and options for graduating students such as the ability to purchase instead of rent, starting a family or not or starting a business or not.

There is the option of consolidating loans a few years after graduating which is very easy for someone with decent credit and is an option many take advantage of. This will usually ease the terms of repayment but increase the length of the original deferred student loans the students were forced to take. Some consolidation loans can be over ten or twenty years and a lot of people will consolidate more than once in their lifetime. This makes the decision to take any kind of loan for college a monumental one that can affect the rest of their lives.

Rex Steel has been involved with helping students obtain loans for over 25 years.

His knowledge has helped countless students obtain their dreams of an education. To read more about the resources he recommends please visit his new and informative website.