Different Ways to Schedule Student Loan Payments
There is already enough unfair treatment in the world and there is a lot of prejudice towards people who are not rich. When these people try to improve their life but face the problem of not having enough funds, they come across the solution of using loans. By choosing to use a loan, a person is caught up in the task of paying off the student loan.
This can take a significant toll on someone’s life, because they can become stressed about how they are going to repay the borrowed money. But, the purpose of the loan in the first place (especially when it comes to college student loans), is to help a person complete their goals so that they can ultimately have a more comfortable life. It is highly biased to base a person’s ability to succeed on the amount of money they have in the bank, but with the option of loans, there is always a larger group of people who will have a chance based on their achievements, rather than of your financial situation.
The standard plan is a method to follow. Another route is the extended plan. For people who cannot choose a career that pays significantly, the extended plan is a better option. Some people choose professions based on moral goodness and ethical character, rather than wealth and status. However, these professions can still be expensive and the person will still have to deal with paying off the student loan.
Under the extended plan, individuals have 25 years to pay; and two payment options. These two contrasting plans are fixed and graduated. Fixed payments are the same amount each month, which is similar to the standard plan, while graduated payments start at a lower rate, but increase every two years, which is similar to the graduated plan.
This plan is good for people who need to make smaller payments each month on top of the amount owed. However, you may be paying more in interest because you are taking longer to pay off loans, thus affecting your student loan repayment rate.
Federal student loan payments refer to the many government-funded loans out there. These include, but are not limited to, Wells Fargo, Sallie Mae, Citi, PNC, Citizens Bank, Discover, Charter One, and Suntrust.
The problem of having a high monthly student loan payment has led Congress to give a positive response. His creation of a new program, offered to a select few to ease student loan payments. With this new advancement, people can worry less about paying off student loans and more about the rewards they will earn. Loans are a great way to overcome the wealth bias, but paying off student loans can put some people back in the same boat. However, individuals must choose a plan that works for them to be successful in repaying their student loan.