Assignment on Student Loans
Added on - 20 Sep 2019
STUDENT LOANS[Document subtitle][DATE][COMPANY NAME][Company address]
LOANSStudent loans are borrowed amount provide for education purpose where repayment includeinterest. Often loans are of two type’s federal and private loans. Government funded loans arefederal 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 creditcheck and collateral need over there. Consolidation of both for repayment plays an importantrole upon graduation. Plus loans are considered as parent loan for undergraduate.Private loans has its various types1) Credible has unique place in private loan.2)Sallie mae offer loans available to both students and parents, most flexible option where acosigner 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 helps7) Ascent student loans provide undergrads with no cosigner.8) Community lenders Lend Key provide loans through credit unions and banks (Gross, J. P., etal 2019).Interest rate vary in private loans and fixed for federal one. Forbearance is way for repaymentbeyond given time constraint for shorter period only (Delisle, J. D. (2018).After such span oftime 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 andfederal loans took out by numerous college students (69%) with average debt of $29,800whereas 14% of their parents took out an average of $35,600 in federal Parent Plus loans. UScitizens 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 $3935) 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 LoanDefault: 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 LoanRepayment.American Enterprise Institute.