People need to be smart and use common sense when applying for loans college expenses to cover, a local educator.
Sammy Redd "There are people who go to Wal-Mart to Kmart 25 cents on a roll to save toilet paper, but is willing Thousands mark" of dollars in loans they can not afford to pay the lender, said student coordinator for the University of New Institute (NCI).
a lecture entitled "The repayment of the loan and student loan policies" on the National Cancer Institute was taken on Wednesday. The presentation will be at 19 o'clock tonight to be repeated, in the conference room in the building of the Institute of Fayette Street in uptown Martins. Participation is free for students and parents.
Public universities are generally cheaper to attend private, Redd said. aligned Among private schools, especially the training of online students are often the most expensive, he said.
Before signing a loan, the fine print documents to read, Redd said. Many people do not do it, he found.
Payable When looking for help for any type of higher education ", avoid private loans definitely," Redd said, referring to the output of the banks as an example. They have higher interest rates and credit checks are needed, he said.
provided With so many types of low-interest loans from the federal government, "if you feel that need a private loan, you must pay the college you go plan to re-evaluate," he said.
The first step, a government is to obtain loans to go online to www.fafsa.gov complete the Free Application for Federal Student Aid.
"Everyone goes to school (University) must complete the FAFSA," says Redd.
Various types of loans are secured by the government.
These include subsidized loans. What are issued in the names of the students, for students - not their parents - they are ultimately responsible for repayment.
Many of the students ", especially those who had never $ 100 in his pocket," you do not recognize, Redd said.
No requirements check or credit receipts are involved with direct subsidized loans. The government pays the interest on the loan while the student is in school. The borrowed money is going directly to the university. The money to be paid by the students after school, room and board and other costs is provided in the form of a discount, by Redd.
"But the money must be paid," he said to the lender. not even "Many younger students that do not know".
There are loans without direct subsidies, for which no credit check or income is required. Interest accrues while the student is in school. Capital and unpaid interest, which means "the interest on interest is charged," says Redd.
"If you can pay the interest while you are in school, which is positive," he said.
Parents are encouraged to help their children by paying interest and after studying students must pay the borrowed amount, he added.
If parents want to pay for the marks of their children, there are special loans for Redd said.
Various types of payment options are also available. One is the standard payment.
"It's like buying a car," Redd said, the monthly payment conditions are set to 10 years, but a person can pay more than what every month is required.
"The faster you can repay the loan, the better," he said, because it means lower long-term interest rates to pay.
Progressive repayments have 10 years with payments start low and increase every two years. Redd said that this type of loan for borrowers may well expect their income to rise steadily after they find employment.
Prolonged refunds are only for students who borrow more than $ 30,000. There are fixed payments and interest. The conditions for 25 years, but a person can repay the loan as quickly as he or she wants, Redd said. This may be good for the students, have to make the smaller monthly payments, he added.
One way is relatively new plans related income borrowers with payment of financial difficulties. After Redd, monthly payments are based on income, the amount due is not. The payments are annually recalculated on the basis of information on the income tax. Conditions are 25-30 years.
Details on how these work plans are online, but they are "very difficult to understand," says Redd.
Private companies will go the students through the learning process on the plans, but expect a lot for the service pay, he said.
Students and parents should consider what are the loans and return options are best for them based on their personal situation.
But "never stop your student loan to pay" because it can be garnished your credit rating or your wages can ruin and / or your personal property can be occupied, Redd said.
The following options are available for people who do not pay their student loans.
Redd is one who speaks "public service loan forgiveness." If a person for a non-profit service agency and a payment plan is working based on income, which is due on the loan, he can be forgiven after 10 years said.
This option is available for people like teachers available, social workers and in some cases the nurses.
Ameri, Peace Corps and the military are often willing its members forgive their loans to help, added Redd.
For people who can not afford large loans or any type of loan, there are options, Redd said. NCI and community colleges are examples he mentioned.
The tuition for community college programs is usually lower than the classes at other colleges and universities. The National Cancer Institute, pay student tuition fees by the universities where that grant diplomas, but those who live in the region, have no costs such as accommodation and meals.
"You can go without debt to college," Redd said. "But it's like Burger King does not. You can not have your way."
For example, he said, it may not be possible to visit a person College of State when he or she can not afford a larger loan to cover tuition fees more high outside the state.
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