With every positive they are a lot of myths. Some serve as scare factors and send may of us into shock.
With parents earning substantially more today than before and with the media grabbing for headlines, many are led to believe many half truths and often get engaged in myths that surround student loan program. They are many myths that fills the home, hallways and even dorm rooms as people are discuss issues surrounding student loans and student loan consolidations. I would like to debunk some of these myths that are popular among students, parents and friends:
Myth #1: You must demonstrate financial need.
The Unsubsidized student loans are unrestricted and anyone can apply for them and qualify, loans like the Strafford Loan fits into this class and makes it possible for you to get a loan. While they are loans that cater to specific income brackets, it is possible to get a loan even if you are not able to demonstrate a need.
Myth #2: Student loans are hard to get.
With current economy crisis we know that private loans are not easily acquired. This does not mean they are hard to find. Once you complete the FAFSA filling with the Financial Aid Office, you will be able to access the funds you need for school.
Myth #3: Bankruptcy wipes it all away: Student loan, credit card
Sorry, but filing bankruptcy is not a solution to your education and you are unable to have students loans dismissed when filed. While credit cards might be dismissed, student loans must be repay.
Myth #4: Student loan consolidation will lower my interest rate.
The main reason to consolidate student loans is to better manage your monthly payments. However, while this is the key, it also can be difficult since each loan has its own interest rate and with loans being the way they are, the focus should be on the principal. It is possible for you to lower your monthly payments, but to guarantee an interest rate reduction depends on a number of factors.
Myth #5: If I don’t make enough money after graduation, I’ll be stuck with my loans forever.
They are of programs that aid students stuck with student loans and many organizations and path gives students a chance to even get relief from their loans. Repaying your student loan is a way of showing fiscal responsibility while it also offers you a chance to be able to acquire one of the best assets a great education. The repayment can take as much as 25 years but if managed it can also be done sooner.
A sound education is what everyone desire and while it comes with a price tag, it also has opened many doors and given us options in this world. While some are able to find it difficult to pursue education, we have been granted the blessing of a student loan that came with its commitments. While many rumors and myths surround the student loan program, I hope the information provided would dispell the myths surrounding this that is faced my many.