Bad Credit Student Loans

Is it fair to be buried under giant loans before one gets enough opportunity to earn?

Loans getting tougher day by day to live in this expensive world. Higher education costs are touching the sky and it becomes difficult for middle class people to afford such. Thus, a need to raise student education loans arises. Student education loans are those amounts, which are raised to support the studies of students. These are generally low cost loans in order to seek help to the studies offered by government.

Student education loans are a part of the financial aids provided to the students. It also involves the grants and scholarships offered to a student on merit basis and are not to be repaid. These student education loans offer a wide variety of loans in United States:

  • Student Education loans to students directly: the amounts are limited to be offered in under this category. No payments are to be made till the half time enrollment status. If a student drops before the half time, the account is transferred to the grace period of 6months. The student again getting enrolled and then dropping does not put the account to any grace period.
  • Student Education loans provided to parents: the amount limits are higher as compared to other loans. The catch lies in the immediate payment structure of this loan.
  • Private student education loans provided to both, students and parents:it posses the feature of higher limits available. The payments are not made till graduation, however, interest to be paid start accrue immediately. These private loans can be used for and of the purposes related to studies, the tuition fee, college fee, books and study material expenses, computers etc, all can be re-imbursed by this loan.
  • As such there are two types of students' loan available in US:

  • Education loans: They are provided by government and are authorized under title IV of the higher education act as amended. It possesses several categories. It facilitates providing of loans to parents along with the direct loans available for students. These are available to college and university students in the form of grants, scholarships and so.
  • The main motto behind these loans is to motivate students to be educated and help them to get better education. They are generally provided on subsidized rates to the students. Other category of loans that are provided to parents has high limits and the re-payments of installments start soon.

  • Private Education Loans: The private loans provided by other financial institutions and banks in the economy. These loans can be used for all academic expenses ranging from computer to study material.
  • In case of non-repayment of student loans, tends to lead bad credit student loans. The undue hardships and measures to get the loan repayment vary from jurisdiction to jurisdiction. Generally, the repayment of loan is to be made by student once he graduates.

    It is very difficult to make payment of each installment in full amounts for a fresher on job. The added surcharges for late payment and increased interest rates tend a student and his family to be trapped in loans. However, student loan faces many criticisms.

    The huge amount of defaults and penalties attached to the bad credit student loans lead to guilt-edged lives. The non- refinancing of the students loans and unfair means to get the repayments lead to further chaos to the lives of the borrowers already facing financial crises.

    The measures like wage garnishment, tax garnishment, social security garnishment, withholding the professional certificates and termination from employment adds to the problems of the lives of the people.