| Student Loan Consolidation Program |
| Written by Antione Brown | |
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Can you believe it!? Your final year of school is just around the corner. One more year and you’ll be free! Free to do what you want, when you want, and with whom you want. You dream about everything that goes with a cool lifestyle - the clothes, the car and the apartment. Then suddenly, reality strikes a hard blow. You’re not going to get there without further study, and you keep reminding yourself how determined you’ve always been about obtaining a worthwhile qualification; and of course your parents have been reminding you of the same thing… relentlessly! But don't forget about looking for a student loan consolidation program.
Parents should encourage children to explore career opportunities as early as the 7th Grade. Start by discussing their interests, abilities and where their talent lies. Emphasize the importance of choosing a subject package that will suit their eventual career choice. For example, if he/she plans to study engineering, a first class pass in mathematics is essential. Make an appointment to visit teachers to ascertain which subjects he/she is good at, and equally important, those which he/she struggles with. It goes without saying that the subjects that a teenager enjoys and excels in, is going to play a major role in their future career. The career guidance counselor at your teen’s school will have invaluable advice to help your teen plan for his/her future. The counselor will explain about post-secondary opportunities such as college, university and apprenticeships (trades). Find out if career planning is discussed at school and, if so, obtain as many booklets or newsletters that cover all options. Ask if experiential learning opportunities exist; for example, hands-on experience at a business that your teen is interested in pursuing as a career. It’s a good idea for your teen to spend time alone with the career guidance counselor to discuss career planning. These discussions will include progress in the classroom. Students know that these sessions are confidential and will therefore feel free to express problems they may have with other students and/or teachers. The career guidance counselor may also advise that extra tuition is needed, and will assist in devising an effective study timetable. Once the school-leaver and his/her parents have decided on further study, the next step is to choose the institution that will cater best for the career choice, and the subjects necessary for qualification. Now, the big question is: who is going to finance this further study? And you can be sure it’s going to cost a lot! There will be application fees, entrance exam fees, enrolment fees, books, and accommodation; the list is endless. Paying for further study is very daunting in today’s current economic climate, but there are organizations and private companies that offer solutions, in the form of a student loan. Federal student loan consolidation programs are an excellent ways to meet and manage monthly repayments. With a fixed interest rate, these loans reduce the financial stress of having to make multiple payments. Your consolidated monthly payment will be calculated to suit your budget. Unlike other loans, consolidation loans have a fixed interest rate until the loan is repaid. Consolidating loans through the student loan consolidation programs is also more convenient and there’s a lot less paper work involved. You can choose a monthly repayment period between 10–30 years. If you choose to repay the loan over a long period of time, you will pay more interest at the end of the day, but because of the fixed interest rate, your repayments will remain the same. To qualify for a loan, the student must be a United States citizen or permanent resident. If not, a permanent resident will need to co-sign the application. The applicant, and co-signer, must be at least 18 years of age. Application should be made as soon as the student receives an acceptance letter from the institution at which he/she will study. The loan will not be approved unless the student has been officially enrolled at the institution. The credit history of all parties involved in the application will be checked. Before signing up, it is important for parents and students to understand some basic facts about consolidation. No matter what type of student loan you choose, a set fee of around $50 will have to be charged. The most popular choice is the standard repayment plan. As previously discussed, this offers a fixed interest rate as well as a fixed repayment for the duration of the loan. The lender will explain all other options to you, for example, should you want to change to another type of loan, or apply for a top-up. If you choose the standard repayment plan, you are quite at liberty to make larger payments. Also, should you wish to settle the loan in full at any time, you will not be charged extra costs. |
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