Pay Off Christian College Loans

If the thought of having to pay off Christian college loans is intimidating, here is some information to consider. First of all, if a student hasn't applied for loans yet, he or she has several options. Even if the student has not been offered scholarships, an Internet search can yield a list of places to get money for obtaining a college education. These include scholarship opportunities and gifts from specialized private organizations for educational use. These options are the best, for the money does not have to be repaid.

It is true that the cost of college is prohibitively high these days. However, if a person is determined to get further education and improve the outlook for future job opportunities, he or she need not despair that having to pay off college loans will prevent someone from attaining these goals. In fact, it is nearly always possible to do so. Compromises may have to be made concerning the way this is accomplished, yet the goal is attainable, even for those with limited finances. Consider choices which can enable the student to succeed. For example, one may have dreamed of attending a certain prestigious institution of higher learning. Instead, one may have to attend a community college for a year or two in order to obtain needed credits at lower expense. Later, perhaps for the junior and senior years of college, the student may transfer credits earned to the college of choice and emerge with a diploma from the institution he or she had originally planned on attending. This option will take planning in order to assure that classes will be transferable. It is wise to deal with these matters far ahead of time, so that time and money are not wasted on duplicate classes. Yet this is one way of attaining goals without accumulating a mountain of debt.

Perhaps it is worthwhile to mention that, in general, potential employers are not impressed only with a candidate who has a degree from a well-known university. For certain fields of endeavor this may still be an important factor. However, most employers want to see that a potential employee has had training in a field which is at least related to the current job situation. The institution at which this has been accomplished is usually not as important as having the needed background. In some cases, work or volunteer experience in the field is just as important and desirable as college training. Also, one other factor which could be involved in employers requiring a college degree of their employees is the fact that this attainment shows that the person has a certain amount of discipline and perseverance -- in a word, the maturity -- which will be needed for the job at hand. Some missions organizations require candidates to pay off college loans before going to the field.

Some lenders offer incentives for students to pay off college loans. This may include a rate reduction for those who choose to have payments deducted electronically or who have managed to make payments on time. Sometimes certain fees are waived, the principal is reduced or cash refunded as a bonus for timely payment. However, lately certain changes have become visible in the student loan niche of the lending market. These loans are guaranteed by the government, but financed by individual banks. Stricter guidelines and regulations have caused some banks to discontinue offering some or all of their 'bonuses' to student borrowers. Because a bank may find it is not profitable enough to issue student loans under the new regulations, some have discontinued federal student loans altogether.

If a borrower already has a student loan, but is having difficulty paying it off, there are still options. The borrower can contact the present lender to speak about restructuring present loans to a more manageable payment amount. Although the borrower will pay more overall in interest costs, this lower payment may help in a crisis situation until a better solution can be arranged. Students can obtain a federal consolidation loan, although these may have certain new restrictions. The loans have a fixed interest rate, and the length of the repayment may be extended, which lowers the monthly payment amount. Other lending institutions may offer their own student loan programs. With any loan, be sure to read all of the terms carefully before signing. Check to see if there is a penalty if the borrower wants to pay off college loans early, or if the originally lower payment will balloon after a certain period of time into a sum which is likely to be unmanageable.

Defaulting on a federal loan can have some undesirable consequences. There may be the legal action and collection charges (sometimes including attorney fees) which are assessed. Wages may be garnished to pay off college loans. A person in default will not be eligible for tax refunds, further loan deferments or other federal student programs. Negative credit reports to credit bureaus can also have a paralyzing effect on possible future plans, such as the purchase of a house. No wonder, then, that Paul in Romans 13:8 urges the Christians to Owe no man any thing, but to love one another; for he that loveth another hath fulfilled the law.

Instead, try to arrange a loan with reasonable payments based not on fantasy plans but on realistic considerations of what can be repaid. Some student loan programs have certain deferments for those who are going on to graduate school, or who can not find a full-time job after graduation. Loan consolidation may be a consideration for some students, although care must be taken to pay off college loans before one accrues further debt. Some employers offer to pay off college loans as a recruitment bonus. Certain organizations will pay teacher's educational costs in return for the promise of teaching in low-income areas for a period of time. Also, if one meets the income requirements, a portion of the interest paid on higher education loans may be tax deductible. Check with your accountant about this and other programs which may reduce the tax burden.

Christian Student Loan Debt Elimination

Student loan debt elimination is the goal of any and every college student who has become inundated with educational debts. The cost of attending a four year university or private college has increased every year due to the cost of living, salary increases for professors and maintenance costs. With the increase of costs annually it becomes a full time pursuit for the college graduate to repay educational debts. To achieve student loans debt elimination of monies owed, the graduate must exhibit extreme determination and dedication to this goal.

While state community colleges and four-year universities have a manageable tuition, private institutions have annual salaries as their bottom line cost. Tens of thousands of dollars are charged for many private colleges each semester, and even the best financial package will not cover the entire cost. Student loan debt elimination for the higher end will take years to pay off, but if the student starts with consolidating all the financial disbursements, the actual monthly payment can be managed or an optional repayment plan can be set up with the lender. The truth is the lender wants the graduate to succeed in repaying them, so they will give and take a little to make sure the process will work for both parties.

Lenders of Stafford financing for instance, will provide the documents compiling all Stafford subsidized and unsubsidized loans into a total amount to be repaid. These will be amortized over the appropriate period of time that the student loan debt elimination qualifies for, usually 20 - 25 years, based on the consolidated total.

The repayment process will offer graduates several options to choose from. The equal monthly repayment; an option of paying only interest for the first two years at a reduced payment amount then converting to a slightly higher amount on the third year; another option will do the same interest only payments for the first two years, a slightly higher student loan debt elimination payment from years three - five, then a bit higher payment from year six. For student loans debt elimination that require special attention, there are a couple of other options through Income Sensitive and Extended Repayment plans.

Repaying the costs of higher education can be one of the higher debts a person ever repays. But the benefits of a higher education are well worth all the effort student loans debt elimination requires. It is important to first realize the seriousness of the debt when first signing the financial aid request. The debt will be waiting for the graduate when they complete their schooling and as Christians, it is important to repay debt of any sort: "Render therefore unto Caesar that which is Caesar's; and unto God the things that are God's." (Matthew 22:21) There is no excuse for shirking the repayment of any loan, even a student loan.

Student consolidation loans are often the smartest move a borrower can make if over laden with college debt. A student consolidation loan is designed to help students who have borrowed to simplify their repayment by combining several types of federal aid with various repayment schedules into one balance. The entire amount is then given a fixed rate with one monthly payment. Student consolidation loans can lower the total interest paid and possibly save up to 60% on the monthly payment. Some rates are as low as 4.750%, giving a savings of up to 1.25% and can be locked in for the life of the repayment. In addition to monthly savings, this option may be able to rescue the borrower if in default on borrowed financial aid.

Based on personal circumstances, these conjoined accounts can help match a repayment plan and term to fit an individual's ability to repay them. Student consolidation loans are available for most federal aid such as Stafford and Perkins, NSL and Direct Student Loans. If private lenders' assistance funds are used to finance an education, generally, they cannot be consolidated along with federal aid. Student consolidation loan rates are not available to include private education assistance. There are, however, private programs for other options available.

When considering which Christian lender to use, it is important to shop around as there are often special discounts offered for electing electronic payments and for several years of payments on time. When looking for the best deal on a student loan consolidation, first find out if the interest rates are fixed, as variable rates can cost more over the life of the repayment period. With fixed payments on a student consolidation loan, the certainty of regular payments is guaranteed.

One year, college enrollees and parents took out 1.6 million in financial aid borrowed totaling 43.7 billion dollars, according to figures from the United States Department of Education. Student consolidation loans are almost always the best way to go. If the graduate has an employer such as law enforcement or some of the health industries that is willing to repay their financed college aid, then that is the only time a student consolidation loan wouldn't be in the borrower's best interests."The eyes of your understanding being enlightened;that ye may know what is the hope of his calling and what the riches of the glory of his inheritance in the saints" (Ephesians 1:19).

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