What are Federal Student Loans?
The United States Government offers financial aid for higher education of its citizens. This aid could be in the form of scholarships, grants or loans. Of these, the most popular form of government aid is a Federal Student Loan. It is estimated that close to 60% of America’s college-going population borrow from the government every year. Many questions arise in the minds of users of these loans, on subjects like eligibility, disbursement and repayment. Read below where Experts have answered questions regarding these loans.
Does filing for bankruptcy discharge one’s need to repay a Federal student loan?
The US Government is fastidious about repayment of student loans for the simple reasons that (a) it is the taxpayers’ money and (b) repayment ensures that future students get funded. Unpaid Federal student loans do not disappear, or stay static, but multiply with interest the same way private loans do. Even filing for bankruptcy does not discharge the loan. The Government can take repayment by garnishing Federal payments like Social Security or income tax refunds.
Can hiring a lawyer help in a Federal student loan waiver?
It is possible to hire a lawyer; however, laws have been formed very well to cover all attempts at write-offs. Using a lawyer may only defer the repayment, but the amount keeps rising because of interest. Even the statute of limitations would not apply in cases when the borrower has not made payments for a long period, especially if can be proven the borrower was evading or was a willful defaulter.
Can someone consolidate both Federal student loans with private loans to help lower payments?
Consolidation of student loans is possible; however, in most situations, only loans of a similar nature can be consolidated. Usually, if a student loan is a federal loan, it is not permissible by the financial institution to consolidate with a private student loan. Since this is the case, more than likely trying to consolidate mixed loans will not benefit the borrower when it comes to lowering payments, it can, however, help by reducing interest on private loans.
Is there a specific GPA that is needed to be approved for a Federal Student Loan?
Academic performance and sometimes even work experience can be criteria for a student to be accepted by a college, and even to continue his or her education there. The State, however, considers one eligible for a Federal student loan once the college accepts the student for admission. After that, other standard criteria for eligibility are scrutinized, but academic performance isn’t usually one of them.
A Federal student loan is not a scholarship, a grant or an aid. It is a loan which has to be paid in the stipulated time with the agreed interest. In conclusion, one may say that Federal student loans are an excellent facility provided by the US Government to students, and families of students wishing to pursue college education. However, it is important to pay back the loan once the students start earning. The State disburses its responsibility to the Tax payer and the future students by being serious about recovery. When unsure of one’s eligibility for a loan or a waiver, it is always best to get Experts to evaluate the particulars of the case.