study loan

a new study indicates that the vastmajority of teenagers who take out loans to go to college don'tactually understand what the terms of the loans are.information revealed shows you how disastrous our current state of higher education is. theorganization that did this is known as a lendedu. >> if you are taking out a loanon your house, you put a lot of thought into it because you're going to have that loan forquite some time. even a small

movement in interest rates willaffect your money. but if you're getting a student loan, they arenot paying attention to how much their interest rate is. it ishard to tell someone to pay attention to something that isgoing to be relevant to you four years from now. even though the numbers aredepressing i am not surprised. >> bernie sanders' plan ofmaking public education free-for-all, if that happens and goes throughthat would solve quite a bit of

these issues. but let's say that doesn't happen. why don't wehave classes in high school that educate these teenagers about what a loan is? when i was outof high school i didn't know what an interest rate was? i hadno idea. these are issues you don't have to deal with untilyou are well into your adult years. now some students had totake out loans, they need to understand what the consequences are. let's have an electiveclass or a mandatory class that

high school students need totake so they know what they are getting themselves into. >> i don't know who i thoughtsallie mae was when i was 18. if you don't know, i hear you. butif sallie mae, whoever she is, is giving you a lot of moneythat you are going to have to pay back you shouldfind out who she is. >>yes. i don't blame thestudents. i can understand getting upset at students. justkeep in mind that when you are a high school student you are told

over and over again that the endgoal is to get a college degree. if a college education isimportant, but you are told and lied to as a teenager in regardto your degree, it doesn't work that way. you are going tograduate and you are not going to make a lot of money. you are not going to make a steadyamount of money and it will take you therest of your life to pay back the $150,000 instudent loan debt. stop lying to them and telling them they aregoing to be wealthy after they

get a college degree. it is a misconception that isconstantly told to you when you are young. >>there we have a slightdisagreement. you are right in general, as soon as you graduatethey don't throw rainbows and unicorns on you. at the sametime i believe you can get wealthy. >>but it's very rare. >>it requires a lot of work andit is not the most common

occurrence. bottom line is thatyou have to be a lot more realistic. only 28 percent ofstudents know that the government can take money fromtheir wages, social security payments, tax refunds, to recoupoutstanding loans. that is an important thing to know. only 37percent understood that if you declare bankruptcy, it isextremely hard to get rid of student loans. these are basicfacts that is incumbent upon us to teach people so that they areaware of life altering decisions they are making. just so youguys know, freddie mac is also

not a burger or a person. salliemae is a company. freddie mac, i don't know if you knowalso not a human being.

study loan for students

so the fafsa stands for the free applicationfor federal student aid. its a free a free service a free service the department of educationoffers. you can fill it out for free submit it for free its not that difficult to complete.with the fafsa you can qualify for federal work study for federal student loans suchas the grad plus loan or the stafford unsubsidized loan and the size of those awards are need based. and these loans are not just for to covertuition, these loans can cover your cost of living during school they can cover your housingfood, books, rent. i think everybody should fill out the fafsawhen they are looking at school i think it

should just be one of the things you do justcompleting the application. people are often surprised with what they do qualify for. shortof having a trust fund you know and even in some cases if you do i think you should fillout the fafsa. and once you get your aid offer letter, youalways have the option to only accept part of it or none of it depending on what youprefer. because you never know what might change whenyou are in school and filling out the fafsa just allows you in the middle of the yearsay if your resources change, to be able to get a loan whereas if you don't complete itin time, then even in the middle of the year if something changes you won't be able toget a student loan to cover the cost of school

and you may have to drop out or scramble forother options and it just gives you it just keeps your options open for financing youreducation. i think the governments trying to make iteasy for students to pay back their student loan debt by providing options like the federalpublic service loan forgiveness program as well as income based repayment. the incomebased repayment program really just ties the payments on your debt to your income so sortof a sliding scale. if you are taking out a federal loan and thisonly applies to federal loans not private loans, it allows graduates to repay a loan,but it is capped at fifteen percent of your discretionary income so it allows you to liveand yet at the same time repay your loan

the federal public service loan forgivenessprogram allows students who are working in the government or non profit sectors, aftera period of ten years, to have their loans forgiven and the way it works is that whenyou finish with school your debt is what is called what is consolidated in a way thatqualifies them with this program and then you as the borrower essentially make a hundredand twenty payments, so monthly payments over a ten year period which equals a hundred andtwenty and as long as you do that and you're still during that entire time working fora public service organization or a government entity you can have your loans forgiven, andthat includes the principal and the interest. and it was established in 2007 so we haven'tseen anyone walk away with the hundred twenty

payments yet but we have great hopes for itand it is something that we do recommend to our students to consider once they graduatebecause for a lot of our graduates that is the sector that they are going into. for folks in the social sector i think thisis particularly important because salaries are not as high as they are maybe in the privatesector or in finance or working in a traditionally well payed field, folks tend to be makingless in this field. i would definitely say do your research on the federal public serviceloan forgiveness program or income based repayment there are websites out there that summarizethese programs in as clear a manner as possible i think, and definitely read the fine printso that you're understanding what you are

getting yourself into. obviously read thefine print on your student debt to understand how it works and so that your going into itwith your eyes wide open.