2008 April Online Education Journal

Many of the government given student loans are not easy to pay off. There are also times that a bankruptcy student loan is not enough to get rid of them. In this situation, a student is left with a single option and that is to prove a financial hardship, which is actually not easy.

To be able to file a bankruptcy student loan, one needs to show proof of your inability to pay off the student loan that you have. This may be caused by the repayment schedule. In this kind of situation, it is best to be honest with your creditors. Tell them that you do not have sufficient funds, or even if your have enough income from extra efforts, there is no assurance that it will last until you have paid off all of your debt. Side jobs or second or third jobs are not long term jobs, and it’s not like you have a job that will give you a raise every so often.

Luck is also seen as a factor, and in some cases affects the decision of the judge. When a bankruptcy student loan is filed, a bankruptcy lawyer will handle the case. As other people say, you are lucky if you get a decision that appears to be in your favor. There are ‘very lucky’ people who get decisions that will eliminate the entire discharges. Some are happy to have a part of the discharges removed. The bankruptcy judge’s decision is needed before trying to apply for a new loan.

To those who are blessed with this kind of ‘luck’, they can help themselves reduce other unsecured credit. The money they get to save with the bankruptcy student loans can be used to pay off other debts.

The use of the Chapter 13 Bankruptcy may relieve you a little from hard line collection acts on student loan bankruptcy. It is possible to put the issues of the borrower and lender regarding the repayment monthly bills. The borrower can ask the court to oversee to bring the monthly payment in line with your income. Just the same, the debtor can also petition for larger payments if the person has increased their income. Chapter 13 bankruptcies gives the court trustee permission to decide a monthly bill during the repayment terms through an elimination of debt plan, which is usually five years long. This is recommended to students with student loan bankruptcy, instead of simply letting them not to pay off their credit.

The bankruptcy law, after viewing the student’s family’s income, can decide to discharge the loans if the loans can cause hardship and more debt. It is also possible that portion of the loan can be eliminated through court proceedings.

If you are lacking information regarding student loan bankruptcy, consult the school personnel handling the school loans or a lender. They can provide assistance in finding a suitable solution for your monetary problems.

The transfer of a student loan between schools is not possible. In case that you need to transfer to another school, you need to re-apply for a federal monetary funding by submitting a Free Application for Federal Student Aid form with the name of the school you will be transferring to. If you want to pay off the loan you received from the first school, and have applied for another one from your new school, submit a form for deferment. When a student stops attending school, the loan must be repaid after the six months of grace period.

All educational institutions have school codes regarding the application. When you want to continue using a student loan in your new school, you should verify the school’s code before applying for a financial aid. It is necessary to meet the requirements of both schools, the school where you transferred from and to.

A student transferring to another school must know the following.

  1. Inform your current monetary aid administrator. If circumstances push you to transfer in the middle of a school year, cancel all remaining disbursement loans. It is highly suggested that you personally see the academic advisor when trying to obtain a transcript that you need to forward to the school you are transferring to.
  2. Get in touch with the monetary aid staff at your new school. Prepare documents that will serve as proof of the scholarships or educational awards in case they need a supporting document while deciding whether or not you can continue to receive monetary assistance. Inquire about the financial aid programs offered by the school. Get the deferment form signed by your new school’s registrar’s office before sending it back to your credit holder. Also, learn the application process in requesting for a federal student loan in your new school.
  3. Before you transfer, inform your current lender about your intention of transferring to another school. As if there is a way to avoid the grace period, or status of repayment. Study hard, even if you have transferred to a new school. This way, your lender will continue to assist you with your monetary problems. Inform your loan service provider with the following.
    • Date of your transfer
    • Name and address of the new school
    • Expected date of graduation
    • Show your lender a deferment form as a verification of your enrollment

Student loans are important means of monetary assistance. It is easy to acquire one, but in order to avoid problems, contact your lender when you are about to do something that will affect the financial aid you are receiving, and your credit history.

College is no joke, financially speaking. There are so many expenses like class fees, room, books, school supplies, food and projects. In the United States, the expenses of one college student total to at least $40,000. In other countries, there is a big difference in the amount, but like everybody else, parents usually cannot afford this much. To help support themselves, more and more students are turning to a student loan.

The following are the important steps in filing for a financial support and applying for a student loan. Unlike what most people think, student loan application itself is simple.

Submit an application to the Federal Student Aid, which is free of charge. The Federal Student Aid determines if a student is eligible for student support programs, private funding and scholarship programs. Even those who have doubt about their own qualifications are encouraged to apply. There are many factors that affect the results of the qualification process.

There are two classes of student loan. They are the government student loans, which are also called the Stafford Loans that are recommended to parents, and private student loans.

A Federal Unsubsidized Loan is granted to those who are proven to possess the qualifications. A co-signer is not needed in applying for this loan. A Federal Subsidized Loan, on the other hand, requires fundamental criteria that are established by federal government personnel to be met. A student needs to submit a Free Application for Federal Student Aid to request for this loan.

The government helps making the application procedures easy and simple. Furthermore, the Internet doesn’t only assist in making process easy, but it is also a good means to find a student loan provider in case you want to get a private loan. Through the internet, you might be able to find credible scholarship programs. Some offer 50% coverage of the tuition fees, others cover the book expenses and a few offer a full coverage of tuition fees and book expenses. Remember though that the Internet is useful in finding lenders but it is also where many people fall as scam victims.

Even with good income, it is still possible for anyone to have a bad credit record. You can never be sure even with an excellent employment. No one can tell the future, and at times no matter how hard we try to avoid problems, unforeseen events occur and these may cause us bad credit history.

It is undeniably hard to get a loan with a bad credit history. A student in this situation will find it tough. The interest rate is based on the credit score. The higher the credit score is, the lower the interest rate gets. When the credit score decreases, the interest rate increases. Just as a regular home equity loan has bad credit home equity loan, there is also bad credit student loan for people with not-so-good-looking credit history. Though this type of special loans is helpful, it is a lot harder to get federal student loans with bad credit history.

A co-signer is needed for this type of bad credit student loans to guarantee repayment. The co-signer cannot be a family member or a friend. The benefit of a student loan with bad credit is that you can use it to pay off existing loans. You will be decreasing your credit balance and at the same time increase your credit scores. This will make your credit history look better. This is where many people get problems. A number of students have tendency to misuse the money borrowed from loans. Being young, they still do not know how to properly manage money, specifically borrowed money. Some are also careless, and they do not realize the problems they can get by paying late.

All is not lost even for students with bad credit records. Contrary to what many people say, it is not so complicated to get a student loan for people having grave credit history. Using the Internet will help you find many lenders offering this service. Research a little more on their backgrounds and compare them. Based on your comparisons, pick the top ten lenders offering this student loan service. Basing on the additional features of the service or experience, narrow down the list to a fewer number. Then, find the lender or lenders offering the most appealing interest rate and decide wisely.

The expenses for schooling nowadays are high. Debt is one issue almost always associated with those who want to develop their chances of doing well in the future through augmented education level. Many students often utilize student loans and credit cards to support their education, and they end up leaving school with a large amount of credit balance. The graduation is supposedly the start of living in the real world, but with their debt on their back, the earliest time of their career isn’t always easy. It’s like paying for these debts becomes your primary goal in working.

Try to consolidate your debts. You could be saving time and money when you combine your student loan, credit card debts, and other debts into one. Lenders and banks themselves offer a few number of consolidation plans for student loans which you can find a lot on the Internet. You might also want to consider manually searching for debt consolidation plan providers. In case there is a bank that you have established relationship with, try to inquire if they can offer you a debt consolidation plan with a better interest rate. On the other hand, their offer is not necessarily the best offer.

Find other offers from several other lenders. There are other consolidation plans that will better suit your needs in your current situation. There are other competitive consolidation plans if you really intend to find the best systems. Time and effort will be your principal investment in finding the most credible lenders that offer the best debt consolidation plans.

The interest rate isn’t the only important factor to be considered when looking for a good student credit consolidation loan. Appraisal, length of the repayment period, and the monthly repayment to be made are the other areas you need to check. Compare the consolidation plans with the factors mentioned above, and you will most likely find the best-offered debt consolidation plans. Study the background of the lenders. Check if they have experience in providing this type of service to other people, and try to get their clients feedback found in the Internet. Always be in watch for potential scams. You can never be too careful, especially for someone who has just graduated. A fresh graduate has the tendency to fall for scams. They trust easily and in case that you are a fresh graduate or if you know one, be advised or advise them to be very careful with making an agreement with money involved.


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