LOANSStudent loans are borrowed amount provide for education purpose where repayment include interest. Often loans are of two type’s federal and private loans. Government funded loans are federal loans and they contain Stafford, Perkins and federal plus loans as their major types. Stafford and Perkins loans are given to students at low interest rates, no requirement of credit check and collateral need over there. Consolidation of both for repayment plays an important role upon graduation. Plus loans are considered as parent loan for undergraduate. Private loans has its various types 1) Credible has unique place in private loan.2)Sallie mae offer loans available to both students and parents, most flexible option where a cosigner release and tend to take loan on its own. 3) When it comes to repayment College Ave is best. 4) Citizen Bank is best from a point of view of major bank. 5) Grades evaluation to discover student loans also used. 6) Options offer to choose way of repayment Common bond helps 7) Ascent student loans provide undergrads with no cosigner. 8) Community lenders Lend Key provide loans through credit unions and banks (Gross, J. P., et al 2019).Interest rate vary in private loans and fixed for federal one. Forbearance is way for repayment beyond given time constraint for shorter period only (Delisle, J. D. (2018). After such span of time one can make payment with accrued interest. Deferment is also help to reduce the payment, it differs in this case favored the person not to pay accrue interest. However, repayment is uniquewith these loans repaid in regular interval.Year 2019 going to witness more significant carry load of debt. In the year 2018, private and federal loans took out by numerous college students (69%) with average debt of $29,800 whereas 14% of their parents took out an average of $35,600 in federal Parent Plus loans. US citizens tend to increase in trillions in student loan debt, 45 million borrowers among themselves.The total debt cross when compared to credit card debt over $521 billion in case of student loan. According to recent reports there is: 1) U.S student loan debt of $1.56 trillion in total. 2) Number of American student loan debt bearers are 44.7 million. 3) Percentage wise 11.5% of students loans comes in a category of default.
4) Excluding deferment cases average monthly student loan payment is around $393 5) Excluding deferment case median monthly student loan payment is around $222References:Gross, J. P., Cekic, O., Hossler, D., & Hillman, N. (2009). What Matters in Student Loan Default: A Review of the Research Literature.Journal of Student Financial Aid,39(1), 19-29.Delisle, J. D. (2018). Graduate Schools with the Lowest Rates of Student Loan Repayment.American Enterprise Institute.
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