Student_Loan_Repayment_Tips

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					Student Loan Repayment Tips

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388

Summary:
USA Funds is headquartered in Indianapolis. It annually guarantees $9
billion in education loans in all fifty states. It is the guarantor for
Alaska, Arizona, Hawaii, and the Pacific Islands, Indiana, Kansas,
Mississippi, Nevada and Wyoming


Keywords:
loans, mortgages, finance, credit cards


Article Body:
USA Funds is headquartered in Indianapolis. It annually guarantees $9
billion in education loans in all fifty states. It is the guarantor for
Alaska, Arizona, Hawaii, and the Pacific Islands, Indiana, Kansas,
Mississippi, Nevada and Wyoming. USA Funds has a four step suggestion to
repay the student loan. The USA Funds asks students to prepare themselves
well in advance to repay their loans.

Students have a grace time of six months before their first loan payment
is due. Students take loan from the Federal Family Education Loan
Program. Carl C. Dalstrom USA Funds president and CEO says that a little
planning and starting off on the right track makes loan repayment easy.
The following four steps are suggested:

1.    Find the right amount to be repaid. Students usually are not aware
of the seriousness of a loan. A complete record has to be maintained. The
lenders and the school do keep reminding the students about the loan.
These papers have to be carefully filed. The right amount should be
calculated.
2.    Find the right amount of the monthly installment to be repaid. To
calculate the amount to be paid monthly, the annual starting salary
should be divided with 12, then multiply the result with 0.08 and also by
0.01. This will provide a maximum range for repayment. Graduates with a
salary of $25,000 can afford to pay a monthly loan payment of not more
than $167 to $208.
3.    Plan and devise a repayment strategy. Many online student loan
calculators are available. The student can take the help of these
calculators and find the amount to be repaid every month. The standard
repayment plan is generally taken up by many students. In this the entire
amount is divided into equal 10 monthly installments. Flexible repayment
loans are also available. Sometimes multiple loans are joined into one
single loan and the repayment period is extended. In this case the rate
of interest is definitely lower but the total interest calculated is
actually more.
4.    The students’ whereabouts should be known to the lender and the
school. Students move away to another place where they are employed. The
change of address should be notified to the lender and the school. This
is to prevent the student –loan default. In the case of improper
information, the notification of the lender does not reach the student
concerned and this may lead to loan default.