I chose to research “options for repaying student loans,” because I thought the topic was interesting and I figured anything I learned from this would possibly help me throughout my education.
The first article I came across is about how some colleges are helping grad students repay their student loans if the student is planning on pursuing more low-income paying public service careers. The article states that there are at least seven Christian colleges that are doing this now to increase enrollment because they have found that more students are opting to get their education at lower-cost public institutions. One student that was quoted in the article, whose degree is in family and children ministries, says the loan gives her a safety net. If her job pays her less than $40,000 a year, the loan will pay the first year of her payments. The students do not pay anything for this benefit, instead it is the colleges who pay a fee per student, per year to LRAP Association, who uses the fees to repay loans for students.
Mary Beth Marklein. 06/13/2011. Colleges offer grads help repaying loans. USA Today. Retrieved from EBSCOhost September 14, 2011.
The second article I came across is about repaying your loans after you graduate. It goes on to tell you about the income-based repayment program, in which you can try to have your payments lowered to suit your income. The article also goes more in depth on the differences between forbearance and deferment if you are having trouble repaying your loans. The government can help by paying your interest on your loan if you are in deferment. If you are in forbearance, you may be eligible to put off payments for up to three years.
Sandra Block. 05/25/2010. In-debt grads with no jobs can sidestep trouble with student loans. USA Today. Retrieved from EBSCOhost September 14, 2011.
I found both articles to be very helpful to me since I get confused between the forbearance and deferment. It would be nice if University of Phoenix...