Student loans can disrepair families and ruin lives. Whether it’s the sight of being confronted by the bailiffs – and the consequences of that confrontation – or the realization that you barely have enough money to provide sufficient food for your kids to be nutritionally healthy; severe economic problems are a burden we all fear to the utmost. In the midst of the complete absence of hope that student loans bring for many people however, there are a few things that can be done to help alleviate the stress and, temporarily at least, help repair the situation.
The first bit of advice that one could possibly give the sufferer of financial stress is to stop spending. This may seem rather obvious. However, for many it is much easier said than done and these peoples inability to be disciplined enough to stop spending is a large part of the reason they find themselves in financial difficulty.
The inability to stop unnecessary spending is a disease and one that can only be cured through the incentive of the sufferer to say ‘no’ to his or her desire to spend. A rich spendaholic is more of a financial liability than a financially shrewd poor person and so; the one in economic difficulty that cannot stop spending is particularly damned.
The first step for many is thus to be insightful enough to acknowledge the nature of their spending addiction and to find the strength to go against it.
Consider a Payday Loan
Now when in debt, the last thing you’d want to do is rack up even more debt through a loan with a ridiculously high interest rate. However, depending on the brevity of your financial situation you may be left with no other option.
Payday loans are a short-term solution to financial distress and must only be considered as a last resort and if you’re sure you can pay the money back within a month. If this is not guaranteed than it’ll likely leave you in even more debt.
If you’re guaranteed to receive money at the end of the month, then a payday loan may be the best option.
Don’t Let it Affect Your Mental Health
Financial difficulties can have severe effects on the psyche of a human being if you let the stress get on top of you. Known to be a cause of depression and even suicide, economic problems must not prevent you from enjoying your day-to-day life. Furthermore, if one has children, they’d most likely also suffer due to any depression spotted within you, and so you must therefore force yourself to never stop being happy regardless of what problems you face.
Unfortunately in the West, due to the security we have grown to get used to, financial problems have much more of an impact on health than in third world countries where they already have much less than us at our worst. Furthermore, those that seem to suffer most from economic stress are those who’d belonged to the middle or upper class.
You must remember that regardless of your situation, there are millions of others around the world much worse off than you and learn to be grateful for what you have. A man with a loving family and no money is a lot more fortunate than one with money but no loving family.
Student Loans – Yea or Nay?
With these tough economic times and the cost of tuition and other expenses skyrocketing, paying for college puts enormous pressure on the shoulders of both parents and students. Sometimes, even after your parent’s contribution to your college fund is made, and you have received all the deductions due to financial aid and other grants, you still have a gap between the amount you have on hand and the amount you need.
Fortunately, there are many ways to bridge this gap. For example, you could get a part time job to help fund your college costs. You could defer going to college and either get an associates degree or work full time to save the remaining amount of money that you need. You also have the option of taking out student loans, which help you pay for your expenses more quickly.
Student loans are designed to help you pay for university costs, such as tuition, and for other expenses such as books and living expenses. Since it is a loan, it is not free, and it does not have minor conditions like maintaining a certain grade point average attached to it like scholarships might. Unlike a grant, you have to repay your loan based on the terms and conditions specified in your loan.
These days more and more students are taking out student loans to pay for college. The average student debt has risen tremendously throughout the last decade. If you find yourself in a gap and need extra funds for college, should you take out a student loan? Before you make any decisions, you want to know what are the advantages and disadvantages of student loans?
Stafford loans are federally backed, meaning that they give more leeway to the student. They do not require any credit ratings or credit checks since most students haven’t established their credit yet. Stafford loans usually have interest rates that are lower than any other financing option. They also have a deferred payback period. You will only start paying back the loans about six months after your graduate, alleviating some of the pressure of finding a job the moment you graduate.
Private loans are processed more quickly than other types of student loans. This is because the loan is not processed through the university or college. Instead, the loan is processed directly from the lending institution to the student.
Plus loans dole out huge amounts. If you want, you can apply for the entire amount of your college education. This is a good option for people who have large gaps between the amount that they have and the total cost that they need to pay.
Many kinds of student loans offer flexible payment plans. This means you can choose the payment plan that is a proper fit for you. Not only can choose when the payback period starts, you can also choose the length of the payback period and your monthly amortization. Some loans also offer income based payment plans, which means the amount you pay is based on a percentage of your income. So, if you a have a low-paying job, you won’t be overburdened by a large payment.
Stafford loans, while having many advantages, cannot cover the entire amount you will probably need. The loans are in limited amounts, usually maxing out at $3,500.
Most students require multiple borrowings. That means you have to apply for a new loan every academic year. Approval will be on a year to year basis. However, you often have the option to consolidate your loans in the future.
Many loans require a credit check. That means that the when you apply for the loan you have to have a credit rating and history. Since most students do not qualify due to the criteria, you will often end up needing someone to co-sign the loan for you. Normally, that would be your parents, but if they are not eligible to co-sign the loan for you, this avenue will be blocked.
Non-federal loans from private lending institutions usually have high interest rates. By the time you get a job and start repaying your loans, the amount you owe has increased by a significant amount, adding more pressure and worry.
Many students use their student loans to pay for something that has also already been borrowed and already accruing interest. When using student loans to pay for credit card debt and car payments, you actually end up paying for something financed with another financing plan. You will end up paying for two interest rates.
How to Cancel a Student Loan and Why
Educational loans and student loans are thought to be the next big bubble that explodes in the economy. Many students are worried about their student loans, and many are not familiar with the terms and conditions. These student loans are to be repaid by the students themselves one day. So having less debt from the get go is always helpful.
You can do this by returning the loan amount that you no longer require, and there are a lot of reasons why a student might want to cancel their loan. Some may have an improved financial condition, and others might not need the loan any more. These people may want to cancel their loans but just don’t know how. In this article, I will be exploring how to cancel part or all of your student loan, and why you might want to cancel such a loan.
Going through the loan documents, you will see that before your loan amount gets sanctioned and deposited to your account, you can cancel part or all of the loan amount. This can be done by contacting the financial office of your school or university. Cancelling a loan is not difficult, and it can be completed quickly. Now, many universities and colleges in US are providing a 120 day window to cancel your loan. This means that if you want to cancel your loan by returning the loan money, you have 120 day to do so.
These methods only work when you take student loans provided by the Government, and the procedure to cancel this type of student loan is as follows.
Contact the financial office of your school or college
This is the most preferred and easy way to cancel your loan. Just go to the financial services officer at your school and ask them to cancel the part of loan you do not want. This method is only helpful when the loan money has been released into your student account but not to your personal account. Only then, the school authorities can take back the money and return it to the government.
Contact the Federal Direct Loan Servicing Center
Follow this procedure only when the loan money has been released into your personal bank account. When you contact the officials in this center, they will provide you with instructions on how to return the money. They will most probably ask you to pay online or send payment to a particular address. After they confirm your payment, they will cancel your loan amount and consider it as returned.
A student may want to cancel his or her loan due to a number of reasons. Some of the most common ones are listed below.
Because you took out too much money from the loan
Taking out too large of a loan will increase your debt, and you will have to pay more in interest. More debt also means a longer repayment period. Therefore, when you realize that you have taken out more money than required from the loan, you should always try to return a part of the loan and cancel it so that you can have less debt. You should return the money rather than squandering money you don’t really need in clubs, bars and so on. Don’t forget that this is not “free money”, and you will be required to pay it back soon.
Because you are now getting extra money by doing work after school hours
One more reason that you as a wise student might want to cancel your loan is if you have just landed a job that brings in some extra bucks. When you are getting extra money, it is always recommended to cancel part or all of your loan since you don’t need as much loan money any more. This will help reduce your debt greatly, and it will prove to be helpful in future. You should remember that you are the one who will pay the loan amount after some time. In some cases, you can save yourself a lot of money by simply canceling or returning the money you no longer need.
Because you have other sources of income
Financial conditions may improve unexpectedly. When you get more money from any source and you have a student loan, it is better to return some or all of the loan. This will make it easier for you to repay the remainder when the time comes.