Student Loan Repayment Programs

To be highly trained personnel, federal student loans and private student loans are available. This high scale availability is becoming increasingly alarming obstacle for the U.S. government. 8 out of every 10 students said that the loan repayment programs are effective recruiting tool. Thus, increasing the size of student loans is becoming a threat to the U.S. government for recruiting and retaining the best people. So, there are several options for repayment of student loans in consolidation.

Option 1: Immediate repayment

• This allows the student to the highest savings over the life of the loan
  
• Students can pay principal and interest on fixed monthly basis starting from about 45 days after disbursement.

Option 2: Interest-only payments

• gives margin to students for the low payment during the academic period to avoid or reduce the overall debt.
  
• Students may defer principal and may pay only the amount of interest during school time to four consecutive years, provided that the student enrolled in the program. Interest may be given after 45 days of payment around. Repayment of principal begins after 45 days of graduation or withdrawal from school around.

Option 3: Deferred payments of principal and interest

• This allows the student to delay repayment.
  
• Students do not need to make any payments to the school or academic term to four years in a row (can be up to five, depending on the enrollment period). Repayment of principal and accumulated interest begins approximately 180 days after graduation or withdrawal from the program. Interest rates on loans are deferred capitalized quarterly and at the start of repayment.

In addition to these three options, there are other educational programs, loan repayment, as well. Some are given as an example here, and in a similar way, except loan repayment programs can take benefit from:

• Nursing education loan repayment program:

This competitive and effective program can restore 60 percent of the qualifying loan balance of registered nurses selected for this funding in exchange for two years of service in shortage subject. It can be given for the third year, and to receive an additional 25 percent of the qualifying loan balance.

• Federal Teacher Loan Forgiveness Program:

This program is intended to encourage students to take teaching as a profession or career. Student loan forgiveness of up to $ 5,000 may be given to students who serve in their primary or secondary education institutions that provide education to families with low incomes and who meet other qualifications. While in some cases up to $ 17,500 could be forgiven for principal and interest of their direct loan and / or Federal Family Education Loan Program loans and other loan consolidation.