Information about Student Loan Assistance Programs (Federal & Private)

The free flowing nature of the financial institutions opened the gates for the financial crisis in a large scale. Very few had overestimated the large scale crisis that we are facing today when the banks were emptying their vaults to help the young aspiring students to reach their dream destination. The prediction has come true. Today, a large number of students are beginning to face the harsh consequences of the defaulted student loan status. With literally no hope of any suitable job, they are now seeking some different ways to repay their loans that has become the outstanding debt.

There are some beneficial ways which help a student to get back the firm ground to start the loan repayment process. The programs are applicable for both government and private student loans.

Consolidation

This consolidation program is highly regarded as one of the best loan repayment programs. It helps a student to combine all the different student loans which a student took to meet the financial management needs of the education institution. But little have they thought about the different interest rates which have doubled with the course of time. The increased interest rate is a serious issue and needs solution.

The program consolidation simply brings down the interest rates by making the student a single creditor of all different loans. This way the monthly installments get reduced and students find the new monthly payable amount easy and affordable. The interest rate will surely get decreased in federal student loan program whereas for the private student loans, it depends on the credit score of the student.

Extension

This is another great way to make the loan repayment procedure easier. Generally extension is offered by the lenders to the students who are presently going through economic turmoil. The program most of the times, buys time for the students to arrange the loan amount within the extended period. If any student fails to produce the loan amount within the extended period of time then he eventually becomes a loan defaulter and further restricts himself from getting other financial benefits.

Rehabilitation

Rehabilitation is a significant default student loan assistance that helps a student to arrange nine consecutive payments at the beginning to buy a minimum of ten years time to pay the remaining debts. If anybody breaks the chain then he won’t get the extended period to pay the outstanding loan amount. It is advised to continue with the consecutive payment process till you get the extended period to pay the remaining loans.