Dealing with Student Loan Debt

Even after graduation many people must deal with student loan debt. There are various sources of college loan debt most of which are either federal or private loans. Federal loans are provided by the U.S. Department of Education and include Stafford loans, Perkins loans and PLUS loans. Examples of private loans include the Signature Loan from Sallie Mae. Banks, credit unions and other lending institutions provide these loans based on credit worthiness.


The most common source of college student funding is federally provided loans. The subsidized Stafford Loan is limited in amount based on grade level and cost of attendance. The unsubsidized Stafford Loan is not need-based but does have limitations. Perkins loans may be awarded to students with unsubsidized Stafford loans that need more funding. PLUS loans are for parents, graduates and professional students. With the rising costs of a college education, more students are carrying multiple loans which can be challenging to repay.

Many government loans can be deferred, which means you are granted a period of time where you do not have to make payments. This can take some financial strain off students or recent graduates who are working towards a higher paying career or dealing with the inflating costs of living. Regardless of your reason or need you can apply for a loan deferment. The period of payment deferral depends on what kind of loan it is and other specifications. Speak with a student financial advisor or call the lender directly to learn more about deferment programs.

Another popular method of managing student loan debt is consolidation. This means some or all of your loans are paid off by one big loan. This gives you only one payment per month instead of multiple payments to make. Also depending on the interest rates and terms of the consolidation loan, you may save money on the amount you're paying and the amount of money paid each month. In addition to deferments and consolidation, you may want to find creative ways of repaying your loans. Some employers will foot the bill if you commit to a certain duration of employment with them. You may also want to consider moonlighting as a temp or trying something like Ebay sales to raise extra money to pay down debt.



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Inquirer Editorial: College costs too much - Philadelphia Inquirer

Inquirer Editorial: College costs too much
Philadelphia Inquirer
A nation that keeps telling its children they need more than a high school diploma to succeed in this increasingly high-tech world shouldn't make it so hard for them to pay for college. Obama wants to boost the Perkins federal loan program from $1 .

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Consider Student Loan Debt Carefully - Memphis Daily News

Consider Student Loan Debt Carefully
Memphis Daily News
So, are student loans to be avoided? Not always, but they should be considered carefully and shopped for thoughtfully. Keep in mind that college graduates earn an average of $1.3 million more over their lifetimes than those whose education ended with .

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Jason Alderman: Easing Student Loan Repayments
If you're having difficulty paying off your student loans and want to avoid defaulting, Income-Based Repayment and other options are available that might help...


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'Pay As You Earn': What students need to know
For families struggling to pay for college, 2012 won't be pretty. This year, interest rates on some federal loans will increase, tuition will go up, and it will become harder to qualify for a full Pell Grant. But there is also some good news...



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