To counter effect the burgeoning cost of contemporary studies 'Student loan employed' have come up as saving grace students by funding their education. Student loans can also supplement scholarships, grants and personal savings.
Types of student loans
1.Government Student Loans - These are issued by the Department of Education itself with very low interest. Students have to repay it once they finish their education course. The amount is decided by lender.
2.Parent Student Loans - These are issued to the parents of dependent students. So the parent has to make the repayments after completion of his/her child's study.
3.Private Student Loans - These are issued by private institutions with high interest rates which have to be repaid after completion of course.
4.Other Loans - These are grants and scholarship.
Private student loans are almost equal to government loan with bit high interest rates. It's beneficial to international students as they can acquire this student loan with the help of Co-signer.
Student loan consolidations
It works just like other loan consolidation. Unemployed student can apply for both secured or an unsecured debt consolidation. Unsecured debt consolidation can be used for smaller amounts which are below ?25,000. Secured debt consolidation can be used to get larger amounts about ?25,000-?75,000. Repayment time for secured unemployed debt consolidation is 10-30 years and the interest rates are lower than the unsecured debt consolidated loans.
Advantages of student loan consolidation
1. Avoids several payments by a single monthly payment.
2. Overall monthly payment is less than the sum of the earlier installments.
3. No credit check or processing fees.
4. The interest rate is lower than the earlier rate
Student loans are also available online. Unemployed parent/student is eligible for student loans. Student loan also helps you in managing tuition fees, books, computer etc. There is no specific age limit for student loan and it is funded if you're under graduate, graduate to post graduate. Unemployed student can repay while still in education or six months after completion. The repayment at most can be postponed taking in consideration that he/she still in search of jobs. Student loans are issued with low interest with more benefits.
