Private Student Loan Case Study

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There are a number of different ways to fund a college education. The federal government offers a few loan options and an array of financial aid services for students in different situations, and there are many different grants and scholarships available. The financial aid office at your school can help you find out which of these may be available to you. After federal funding, if you still need more money to pay for your education, you need to start looking into private loans. Many different companies offer many different services, but let's take Chase student loans as a case study. One service Chase and many other lenders offer is to help you through the process of applying for federal Stafford and PLUS loans, for undergraduate and graduate…show more content…
When these sources are insufficient to cover the price of tuition students may need to turn to private student loans to fund the difference. Private student loans are quite different than student loans offered by the government. This overview of private student loans provides information on borrowing private money for higher education. What Can A Student Do With A Private Student Loan? Private student loans can be used towards any recognizable college expense, even the cost of living. Some lenders will send the funds directly to the school and any funds left over can be disbursed to the student. Some lenders will send the funding directly to the student. However, it's the student's responsibility to get the money to the school to cover direct tuition costs. The money the student receives after expenses are covered can be used for housing and school supplies. Where Can A Student Receive A Private Student Loan? Students are turning to their banks and credit unions for private student loans. These lenders usually have various processes and programs. They may require a credit check and current employment, while others may not. Some lenders want to see a student enrolled in school for at least a half time status. There are a few different payment options issued through private loan lenders. There are also various interest rates. Most will issue a loan based on…show more content…
A number of students after graduating from college have difficulty earning much money in the beginning. Yet what to do with student loans is confusing. And then there's just the unexpected curve balls life itself can throw you. An older person with kids could lose their high paying employment and never go back to making what they were making before. Or one could get permanently disabled. Yet those holding student loan debts are often told nothing can be done. This is far from the truth. If you're having difficulty paying student loans, the first thing to do is call the issuer of the student loans and explain. You can apply for a student loan deferment or forbearance . Deferment or forbearance is especially useful for recent college graduates who have yet to find gainful employment, or for those who were working and lost their employment. Your student loan issuer may need proof of economic hard times such as proof that you're on unemployment or on a welfare program. Deferment lasts one year at a time, depending on the type of deferment. Once you start earning enough money again, you should notify your loan issuer and work out payments with them. Certain types of professions, such as working for the government, education or non profit sectors never pay much money. In these cases the government doesn't want to saddle borrowers with debt for the rest of their lives. If one has worked in education,
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