The Student Aid

I am a student like you and getting financial support for college education is  a common problem for us. The primary sources of money for educational expenses are either support from our parents, or financial aid from privately funded or  federally funded student loan programs, or scholarship grants. So continue reading this blog and find out the information for college education financing.

This blog is an informational guide for current college students, working students, and prospective college students on where they could get resources and other information for private and government funded student financial aid. I hope this blog would encourage students and other people to share information and materials on where and how to get financial aid for current or incoming college students.

Types of Student Financial Aid

The main types of student financial aid in the United States are private student loans funded and backed by private banks or lenders, federal student loan programs that are subsidized and guaranteed by the federal government, and scholarship grant programs offered either by the federal government or private businesses or organizations.

A student loan whether it is government or privately funded must be paid back by the student or guarantor, while a scholarship grant would never be repaid. The main disadvantage of a private loan is the high interest rate compared to a federal student loan that has a fixed interest rate.

Private scholarship grants could be obtained from companies, private foundations, and non-government organizations. The federal government offers several grant programs that could be distributed directly to the student.

Steps on How to Avoid Defaulting on Student Loans

In the United States, the defaulting on a student loan is usually described in which the former student or borrower has not made any payments on his student loan for at least 270 days for privately funded student loans, and 270 to 360 days federally funded student loans. There are serious consequences for the borrower if he defaults on his student loan regardless if it is a private student loan or a federal student loan.

Take note that defaulting on a student loan would result in long-term consequences such as the record of your defaulted student loan appearing in your credit history for the up to seven years even after the defaulted loan is paid in full. Therefore, if you are a student planning to apply for a private or federal student loan, or already a current borrower for a student loan, you should know the general steps or guidelines on how to avoid in defaulting on your planned or current student loan. Knowing how to prevent in defaulting on a student loan would spare you from the serious consequences that you would experience.

The basic steps for avoiding a student loan default:

ñ  You should understand the options and responsibilities under the proposed loan agreement or contract. Read and understand the specific terms and conditions of the loan contract.

ñ  Borrow only the amount that you need for your educational expenses. A borrower would usually have a grade period of six months after graduation before the first loan repayment starts so you should take into account the possible income you would earn when you get a job.

ñ  Keep all the documents and other records of your student loan. You should make copies of the loan contract, checks, and other written records related to the loan. Make your repayments on time especially if you have a job with a regular income so you could set aside a part of your monthly income as loan repayments.

Basic Tips For Repaying Student Loans Without Difficulties

 Many university and college students in the United States would not have been able to obtain higher education if they had not obtained any of the three primary types of student loan programmes in the country. The three types of student loan programmes: subsidized loan programme that is guaranteed by the federal government and the government pays the interest for the loan for the student; unsubsidized loan programme that is guaranteed by the federal government, but the government does not pay interest for the student, and instead, the interest accrues for the duration of the student's college studies; and privately funded student loan programmes that are not subsidized and guaranteed by the government.

When the student has graduated from his courses, he is expected to start repaying his student loan regardless if he is financially capable or not in paying off the loan. That is a problem confronting recent college graduates especially if they do not immediately obtain jobs especially if the interest on their loans start accruing. If you are currently financing your college education through a student loan programme, it is important that you know the basic tips on how to repay your student loans without much difficulties.

The basic tips for easily repaying student loans:

·    Repay your loans automatically by setting up automatic withdrawals from your bank account. Automatic withdrawals from your bank account would reduce the chances for late or missed payments, which could result in interest penalties.

·    Follow a target of 10 years in repaying your loan since 10 years would be the ideal repayment term set by most student loan programmes. Most of the student loan programmes could allow you to renegotiate your repayment terms and stretch them to 20 years. But the disadvantage of stretching your repayment term would be paying more in interest. Hence, it is better in completely paying off your loan within 10 years.

Importance of Preparing a Student Budget

Preparing a budget is necessary for students for personal finance purposes, applying for student loans  and applying for foreign student visa, among others. As a student, you need to know the state of your personal finances. In the aspect of applying for student loans, you need to show the financial institutions that your financial position is feasible for the loan and your studies can be continued. The government agency issuing student visas also need to make sure that your finances are feasible before they permit you to study abroad.

Entries – Your student budget should include tuition, housing or rent, meals, health insurance, books, technology fees, transportation, communications, clothing, personal items, family expenses, personal expenses, recreation, travel and taxes among others.

Estimates Set by Government and Financial Institutions – The government agencies and private financial institutions who require your financial budget have set standards which are usually reliable and accurate. International students are expected to have their finances planned well and meet the standards set by the government. Financial institutions also require applicants for student loans to be able to give them correct budget figures so that they will be able to extend loans which can help the students not only in the aspect of defraying their expenses but also in the aspect of paying the instalments.

International Students – The budget is very important because international students do not usually get more financial aid by the time they start the school term. Thus, for example, a graduate student who is in an assistantship should understand its provisions as they would involve out of pocket expenses.

Scholar loanword failure

The pupil loanword and personal bankruptcy is an interesting subject. Failure is one manner in which of combating debts they would not open to settle, however, since 1 September 2004 a loophole was closed making the student loan non-provable in bankruptcy. Basically this suggests any outstanding student loan can not be claimed in bankruptcy and it stays the duty of the onetime educatee to settle. 


That's why an advanced alumnus or a scholarly person and here are seeing failure it is of the essence to take helpful advice as you certainly will still cost you with debts nevertheless had comments failure. 


Right there are twice several types of scholarly person loan. The 1st type was useable to pupils who started their courses of study between Sept 1990 and August 1998 and is characterized by the unmediated debit entry method acting of refund to the educatee loans companionship. It is known as "mortgage vogue loanword". The 2nd character was uncommitted to pupils beginning in Sept 1998 onwards and is unremarkably also called as "income detail loan". It is characterised by refund during the tax system. 

Mortgage expressive style  financial products will have been non-provable in failure, nonetheless, for a time period the fresh design of loanword was n't. As a outcome more and more trainees and graduates in England and Wales frequented bankruptcy to wipe their scholar mortgages right until the The School Act 2004 was wont to close the loophole. 


Today all student loans are repayable despite if failure.