Unless you plan on being a student the rest of your life, student loan repayment is inevitable, and the ins and outs of student loan repayment can be confusing and overwhelming. The financial advisors at NextStudent, a leading Phoenix-based education funding company, would like to help clear the murky waters by defining terminology and laying out your student loan repayment options.�

Understanding Your Student Loan Repayment Options

A grace period is a pre-determined amount of time allotted to student borrowers after they leave school or drop below half-time enrollment before they must begin repayment of their federal student loans. Grace periods vary in length based on the type of student loan: Stafford loans have a grace period of six months; Perkins loans have a grace period of nine months. PLUS, Grad Plus and Federal Student Loan Consolidation loans have no grace period.

Deferment allows you to temporarily postpone your student loan payments (in most cases, up to a total of three years over the life of the student loan) if you’re unemployed or experiencing economic hardship. You can also request in-school deferments on your federal student loans while you’re enrolled at least half time.

While you’re in a grace period or in deferment, the interest on your Perkins and subsidized Stafford loans will be paid by the government. But you’ll be responsible for the interest on your PLUS, Grad PLUS and unsubsidized Stafford loans—any unpaid interest that accrues on these student loans during grace and deferment periods will be added to your principal loan balance for you to repay once repayment starts or resumes. If you want to avoid interest being added to your principal loan balance while you’re in a grace period or in deferment, you can choose to make interest-only payments during that time.�

Forbearance also allows you to temporarily postpone your student loan payments. When you’re in a forbearance period, you’ll have to pay any interest that accrues, even on Perkins or subsidized Stafford loans.��

Repayment Plans

Perkins, Stafford, PLUS and Grad PLUS loans have a standard repayment period of 10 years. If your standard monthly payment amount is higher than you’d like, you have three other repayment plans you can choose from that may make your monthly payments more affordable:

Extended Repayment is available to you if your federal student loans total more than $30,000 and if you received your first federal student loan on or after October 7, 1998. Depending on your student loan amount, you could extend your repayment period up to a 25-year term.

Graduated Repayment allows you to make lower payments at the beginning of your repayment term and gradually increases your monthly payment amount over time.

Income-Sensitive Repayment bases your monthly payment amount on your monthly income. You have to submit documentation of your income to qualify, and you have to requalify each year.

Student Loan Consolidation

If you’ve taken out any federal student loans, you’re eligible to apply for a Federal Student Loan Consolidation from NextStudent, which might give you more time to repay your student loans and could substantially reduce your monthly student loan payment.

The repayment term on a student loan consolidation will range from 10 to 30 years, depending on your total outstanding student loan amount. Student loan consolidation loans generally have the standard federal deferment and forbearance benefits.

When your student loan consolidation is in deferment, the government will pay the interest on that portion of your student loan consolidation loan that was originally a Perkins loan or subsidized Stafford loan. During deferment, you’ll only be responsible for paying the interest on that portion of your student loan consolidation loan that was originally a PLUS, Grad PLUS or unsubsidized Stafford loan. When your student loan consolidation loan is in forbearance, you’ll be responsible for paying all interest that accrues.

You can consolidate one or more qualifying federal student loans and take advantage of one easy-to-manage loan with a single monthly payment. Our online applications are fast and easy, and there are no fees to apply for a student loan consolidation.

NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.




By: Jeff Mictabor

There is no other place quite like college. The exchange of ideas, the different people you will meet and the education you will receive can change your life. But there is a catch, college is expensive. It can be hard for the average person to afford this wonderful college education. In this case, student loans might be your solution.

Student loans are loans offered to students to assist in payment of the costs of professional education.  Student loans are how most students are able to afford college today.  It helps you to get money which you can spend for good education.

Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS). (The median is $17,120. One quarter of undergraduate students borrow $24,936 or more, and one tenth borrow $35,213 or more.)

Student loans

Student loans provide you with the method and ability to improve your standing and future by going to college or other higher education.  Students can also apply over the phone by calling the number provided next to your desired private student loans lender.  Students should also consider the starting package of their salary after they complete their education.

You will also need to consider what your starting salary will be when you do get out of school and get a job. The student loan calculators can help you predict how much money you will need and some student loan calculator can help you predict what your student loan repayments will be.

Federal student loans

Federal and private loan programs are available for US Students who are studying abroad or fully enrolled in a non-US School.  Federal student loans are the most affordable loans available to students, with the lowest interest rates and deferred principal and interest payments until after graduation.

Education investment

Education is an investment in your future.  The Department of Education acts as a lender, providing funds for Stafford loans and PLUS loans in the same amounts as the Stafford and PLUS loans offered through the Federal Family Education Loan Program.  Private student loans, like the Chase Private Student Loan, can be used either alone or when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education.

For those who already have a Student Loan, the servicing site is the one-stop center for managing that loan. A borrower can make online payments, view account balances and payment history, get loan counseling, change billing options, enroll in electronic services, and more.

Do you know enough to make sure you can control your student loans as best as you can.  For more insight into what can, and likely will happen if you fail to pay back your student loan, please visit my student loan information site in the signature file.




By: Jimmy Chuang

There is no other place quite like college. The exchange of ideas, the different people you will meet and the education you will receive can change your life. But there is a catch, college is expensive. It can be hard for the average person to afford this wonderful college education. In this case, student loans might be your solution.

Student loans are loans offered to students to assist in payment of the costs of professional education.  Student loans are how most students are able to afford college today.  It helps you to get money which you can spend for good education.

Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS). (The median is $17,120. One quarter of undergraduate students borrow $24,936 or more, and one tenth borrow $35,213 or more.)

Student loans

Student loans provide you with the method and ability to improve your standing and future by going to college or other higher education.  Students can also apply over the phone by calling the number provided next to your desired private student loans lender.  Students should also consider the starting package of their salary after they complete their education.

You will also need to consider what your starting salary will be when you do get out of school and get a job. The student loan calculators can help you predict how much money you will need and some student loan calculator can help you predict what your student loan repayments will be.

Federal student loans

Federal and private loan programs are available for US Students who are studying abroad or fully enrolled in a non-US School.  Federal student loans are the most affordable loans available to students, with the lowest interest rates and deferred principal and interest payments until after graduation.

Education investment

Education is an investment in your future.  The Department of Education acts as a lender, providing funds for Stafford loans and PLUS loans in the same amounts as the Stafford and PLUS loans offered through the Federal Family Education Loan Program.  Private student loans, like the Chase Private Student Loan, can be used either alone or when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education.

For those who already have a Student Loan, the servicing site is the one-stop center for managing that loan. A borrower can make online payments, view account balances and payment history, get loan counseling, change billing options, enroll in electronic services, and more.

Do you know enough to make sure you can control your student loans as best as you can.  For more insight into what can, and likely will happen if you fail to pay back your student loan, please visit my student loan information site in the signature file.




By: Jimmy Chuang