How to repay the loans received under financial aid?
Loans contribute to form a significant part of the funds that come under financial aid. As all loans do, the financial aid loans also need repayment. However, as they are being offered to a student who hasn’t yet started full-fledged earning lifestyle, the government makes sure to provide them with the best possible terms. For a student receiving these loans, it is important to understand how these prices could be cut-down, forgiven or changed according to convenience.
Quite a few repayment plans are available that offer flexibility. Initially, once you’ve signed up for a loan, you would be asked to choose a repayment plan of your choice which when not done in stipulated time will lead to you being placed in a standard repayment plan. The standard repayment plan is set to have your loans paid off in a span of 10 years. This plan can be changed by you at any point of time to suit your needs and conditions. The amount to be paid per month would be decided on the basis of how much you make.
All the money to be repaid regarding your student loan will be handled by your loan servicer to whom payments are made directly. The payment process is different for different services and the service provider would usually be ready to help you with any queries or flexibilities for making payments.
If you are facing a lot of inconvenience with the loan payment, there are options to change the due date for payments, change the plan of repayment or combining all your federal loans. Even if these options are not working out for you and it seems to be extremely difficult to make any sort of payment at the current time, you could apply for forbearance or deferment. Although, you need to know that the interest on these funds will accumulate during this period.
The loan can be completely forgiven in some cases like going for services such as public service or teaching. You would also be cleared of your obligation to repay in case you become totally and permanently disabled. In case you are looking to repay the loan for financial aid, keep these points in mind.