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Exploring AES Student Loans – What You Should Know

About AES Student Loans

American Education Service or AES is a loan servicing company that provides student loans to students or their parents to assist them in financing college education. AES student loans are offered by the U.S. government through the Federal Family Education Loan Program (FFELP). To be able to use services offered by AES, you have to register online and after that you can take advantage of their numerous helpful alternatives that include: loan repayment, account administration, options for the loan deferment and various additional tools. With convenient online applications, AES makes the complicated process of student financial aid management easy. AES offers management services for both federal and private loans, such as Federal Stafford Loans, Parent Plus and Graduate Plus.

Eligibility Requirements

To qualify for AES student loans, an applicant needs to be a US citizen or eligible non-citizen. Furthermore, the borrower must be enrolled in school that participates in the FFELP at least at half-time basis and he must not have previous education loans. Students whose loans are into default are not eligible.

To get one of the loans through AES, you have to fill out the FAFSA (free Application for Federal Student Aid).

AES Student Loans Benefits

The main benefit of AES student loans is that it makes the complicated process of applying for student financial aid and private student loans more convenient for students and their families.  All affordable types of student loans can be obtained through the online applications of AES. AES assists in the whole borrowing procedure, from loan application to loan guarantee, from choosing loan repayment schedules and repayment modes to actual loan payment.

Secondly, the interest rates are low and vary from 5.6% to 8.5%, depending on a loan option. In addition, there is a six-month grace period offered. Also, there is no penalty for early paying off a loan early.

Additional advantage is the ability to administer the whole user account. It’s valuable option because it’s simple. For instance, when a client logs in, he or she is able to see the overview of an account, she can make payments or read important notification. He could also keep informed about your loan details, view loan rates and check the loan balance.

Ways to pay AES loans and Repayment Options

There are different ways of paying off your AES student loan available, and the following three are the most common: direct debit, internet payments and check payments.

Direct Debit

Direct debit is the most convenient way to make your student loan payments. Automatic electronic transactions imply your payment is always on time, so you don’t have to worry each month would you make your payments on time.

Internet Payments

You can authorize a one-time electronic loan payment to your account. You can do this by using your account numbers and your banking institution’s routing number.
You should note that this is a one-time payment; using it does not authorize an electronic payment every month.

Check Payments

You can choose to mail your check or money order to AES’ payment servicing center. Be sure that you include your AES account number on your check.

There are also five different repayment plan offered for federal student loans borrowers.

Federal Loan Repayment Options

Repayment plans for federal student loan borrowers include: Level Plan, Graduated Repayment Plan, Income-Sensitive, Income-Based (IBR) and 25-Year Extended loan repayment.

  • Level Repayment Plan – This plan allows you to make smaller monthly payments and the monthly repayment amount remains the same throughout repayment period.
  • Graduated Repayment Plan – the monthly payment is usually interest-only for a certain time and it varies during the repayment period.
  • Income-sensitive Repayment Plan – The monthly installment is based on borrower’s monthly gross income and student loan debt.
  • IBR Plan – The monthly repayment is based on borrower’s monthly income and its family size. IBR helps borrowers who may be experiencing financial hardship to deal with their monthly payments.

Teacher Loan Forgiveness and Discharge

ABS student loans provide partly or full loan forgiveness options for teachers who have been working for at least five consecutive academic years on full-time basis in low-income schools.

There is also a loan discharge option available. You may qualify for discharge if your school is: closed; have signed your name without your authorization; failed to pay a tuition refund or untruly certified your ability to benefit from education.

Student Loans without Cosigner

AES student loans offer a no cosigner student loan option. Student Loans without Cosigner alternative is available for students who have an established credit record and a good credit history.

It is unusual for students to be eligible for private student loans without a cosigner, since most students lack a good credit score or have no credit history, but there are few ways for students to find a private student no cosigner loan options, so in case you have established your credit record and have a good credit score, you can try to get a no cosigner student loan.

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10 Great Tips on How to Repay your Student Loans Quickly

Going to a college or university undeniably is a good investment. Millions of students today take federal or private student loans in order to finance their education. According to some reports, the average amount of debt a student holds upon graduation is about $20,000.

I’ve Just Graduated! What Now?

You have just graduated. You are excited and proud of yourself holding your degree in one hand. And you are worried and anxious holding your debt in another. You are starting your new life with a student loan of approximately $15,000-$20,000 and wondering how to get rid of it in the shortest period of time.

Here are some useful tips on how to repay your student loans quickly. First, let’s list a few things you should pay attention to before taking your student loan.

1. Think about the Amount of Your Loan

The golden rule is: the less money you have to borrow, the better. Try to minimize the amount you are borrowing. Keep in mind that your monthly payments shouldn’t go over 10% of your anticipated monthly income without deductions such as tax or regular expenses once you graduate. This will allow you not to hording in debts. Moreover, it will be of assistance to repay your student loans quickly.

2. Be Familiar With Your Rights and Responsibilities

Be aware that you are responsible for repaying your student loans on time even if you don’t complete your education or fail to find employment. Complete entrance counseling prior to receiving the first disbursement and exit counseling before leaving school. It answers many essential questions about student loans and explains what will happen when you fail to make payments. It can give you helpful suggestion on how to manage your student loan payments. Student loans will not be excused in a bankruptcy proceeding, so it is vital that you put effort on paying them off as quickly as possible. Be informed about your rights as a borrower.

3. Don’t Wait Until You Graduate

Start paying off your student loans while still in college, even in case this requests you to find a part-time job, because this will save much money in interest. Keep in mind that as soon you start making money, the soon you will repay your student loans and start to make your capital.

4. Develop a Plan

Build up a plan to repay your student loans within certain amount of time. Don’t set them up paying off in next 20 years. In case you have some smaller debts like credit cards, clean them all up before taking your large student loans, which will allow you to focus on your loan repayment and will save you money.

5. Control Your Career

Be sure you choose a college that can place you in job after graduation. Carefully choose your mayor and pay attention to jobs available in the labor market, companies hiring and salaries offered. Keep learning and upgrading your skills to make yourself a valuable employee. This will increase your salary and consequently, help you repay your loans quickly.

6. Check for Available Repayment Options

Before entering your student loans, you should take into consideration all repayment options accessible, since they offer different conditions of paying off. For example, Biweekly Repayment Plan allows you to pay half of your monthly payments every two weeks instead one large payment. This will reduce the time needed repay your loans. With private student loan lenders you can negotiate favorable repayment conditions and choose from different repayment options according to your finances.

7. Don’t Change Your Lifestyle After Graduating

Once you have graduated, you don’t have to change your habits. Keep living like a student, stay in your affordable apartment, and use public transport. In that way you won’t increase your cost of living. Instead, use your newly earned income to pay down the loan principal and prevent it increasing with compounding interest, since your loan is not going to start accumulating interest during the grace period.

8. Arrange Your First Job Offer

Once you have your degree, use it as soon as possible. When you settle your first job offer negotiate your salary.  You will have six months grace period after graduation (or more under PLUS loan and private student loan plans) which is intended to allow you time to find your first job before you have to make payments. As soon you start to work, soon you will start paying off your loans. However, you should contact your student loan company to ensure that you are in the grace period, since you maybe wouldn’t be automatically put into grace period.

9. Keep in Touch with Your Lender

Update every change of your address, telephone number and any other change of your personal data that may occur. Don’t ignore bills and problems related to your debt.  Failing to do that can end up costing you a bunch of money.  Open and read every paper mailed from your student loan lender or you might miss out on a important deadline or vital information you need to act on concerning your student loans. If there is information you do not understand or if you have any concerns, ask for help. Remember, it is essential to ask if things doesn’t seem clear to you to avoid any troubles with your student loans repayment.

10. Don’t Panic

If you are having difficulty making your payments because of some unexpected financial issues, unemployment or health problems, remember that diverse student loan plans offer different repayment options like deferments and forbearance, which can help to avoid delayed fees and other penalties. If you use these options, you can also prevent a negative mark showing up on your credit report. If you have any difficulty making your student loan payments contact your student loan company to give you assistance in this matter.

Different federal and private student loan plans give assistance to millions of students in order to gain their academic education. This leads to better employment opportunities, which is worth every dollar invested.  If you had to take out student loans to support your education, there is no reason why the loans should not be managed appropriately. Just be sure to be economical and find out the very best way to cope with your student loans while still in college.

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Paying Off Student Loans and Available Options

Paying Back Student Loans Alternatives

Student loans are intended to help students pay for university education and all related costs like books, living expenses and other. Because these loans are often supported by the government, they tend to be lower and with more flexible repayment plans than other loans, for instance, credit cards. These favorable conditions encourage many students to take out a student loan. Student loan repayment usually begins from six to twelve months after a student leaves school, regardless of he completed his degree program or not.

With increasing costs of education in many countries today, it is not unusual for young people to hoard student loans while still in school, especially if they have their student credit borrowed from multiple lenders. However, there are numerous repayment options to prevent the cluttering in debts. Here are some useful guidelines on repayment plan and record of available alternatives for paying off student loans to help you make a good repayment strategy.

• Be Familiar with How Much You Owe

If you have borrowed from diverse lenders very useful would be to make a list of all the lenders you are with, how much your debt is, and when the payment is due. Information will set you in position of power.

• Refinance

Another available strategy may be to consolidate your student loans by transforming multiple loans into one monthly payment. This can be beneficial in the terms of getting a better interest rate than you receive in the time of imbursement. Additionally, refinancing can cut your payment significantly and make the loan more inexpensive.

• Standard Repayment

This method is the most simple of all the repayment options available and it means that the lender will take the total you owe, include interest rate and then reimburse it over the time of the loan. After that, they will divide this amount by the monthly payments you have to pay.

• Income-Based Repayment

With income-based strategy your payment will be based on your salary and family size. This repayment plan is created in the way that fits your income. This is a good option if you are just starting to work and your income is low. As your earnings rises, so does your repayment. Major advantage from this plan is the possibility of loan forgiveness, which can be achievable if the scholar works as a volunteer or for a non-profit organization. A drawback to the IBR may be that you have to fill new documentation every year that indicate your current income and family size.

• Income-contingent and Income-sensitive Plans

For self-employed individuals who have their income fluctuated, income-contingent or income-sensitive repayment plan can be most advantageous solution. According to this plans, as the borrower’s income rises and falls, the amount of their loan also does. In fact, income-contingent and income-sensitive plans are very similar to previous IBR and can be considered as it variations.

• Deferring Loan Payment

Deferring loan payment means that repayment term is being repelled without maximizing the interest. This putting repayment off have virtually no negative aspects, besides the fact that you will be delaying your payment due date for unknown amount of months.

• Tax Breaks

Scholars can also benefit from tax breaks. The Government offers help for taxpayers with active student loans and this plan allows you to deduct the interest that you pay up to maximum of $2,500 per year. To qualify for deduction you must meet certain income requirements limits –this limit is less than $65,000 annually for single individuals and $130,000 for couples that have a joint loan.

• Biweekly Repayment Plan

With this arrangement, students will pay half of their monthly payments every two weeks which allows them to make smaller payments instead one large on monthly basis. This mean that you are going to make one more total payment at the end of the year, but that will reduce the time needed to pay your loan off and save you some money on interest.

• Extended Repayment

Another available option is pay off method that will allow you to extend your loan for nearly 30 years. Advantage of extended repayment plan is that you will have to make much smaller monthly payments. On the other side, you will end up paying a lot more in interest during the years. In addition, it will considerably add to the amount of time needed to repay the student loan.

• Graduated Repayment Alternative

With this plan, student’s monthly repayments will be small in the amount at first and then increase over the years. In this way your payment is going to rise every two years.

• Private Loan Repayment Plans

There are a large number of private lenders who offer their programs relating to paying you your debt with student loans. They usually will offer you the standard repayment term, but they also might suggest another plans like extended, income-based, income-contingent or graduated repayment options.

• Another student Loan Repayment Options

Besides all the above listed, there are some other repayment options available for students today.

You can apply for different grants and scholarships to help you out repay you debt with academic loans. The major benefit of them is that you never have to pay them back. Furthermore, you can apply for diverse financial aids like special schooling waivers and grants which many universities and college offer to its students. Though, you may be eligible to qualify for this repayment option only if you have assurance that you are going to work in public interest jobs.

Before Entering Repayment

There are some steps students should follow before they start paying of academic loan, to make this process easier and more successful.

  • Contact your lender to consolidate your loans. Your monthly payment will be taken from the bank account into which they were at firs deposited. In case there is no money into that account, your loan will be considered delinquent and will already be heading toward default.
  • Apply for repayment support. Check out if you are eligible to defer or considerably decrease you monthly payment.
  • Consider loan forgiveness options, for example, for those who are going to join army after the graduation, volunteer in different non-profit organizations, work in social services or teach in low-income communities.
  • Learn about different repayment options like those listed above. You will have a six months grace period after graduation to decide which repayment plan is the best for you.
  • Make a budget and plan your spending to save more money.

These have been some of the most popular alternatives that can be of assistance repaying your student loans. Take time to figure out which one is the most appropriate for you and choose the plan that will help you to pay off your student loan in the way that you consider to be the most convenient.

 

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