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13. If the rational for excepting student loans from discharge is that the cost to students to obtain loans would soar this fact would seem to lay waste to that argument. In the wake of the slow march towards saddling our students with unshakable debt the government created a couple of ways to deal with government backed student loans outside of bankruptcy. In 2007 the College Cost Reduction and Access Act of 2007 added income based repayment which allows for a smaller repayment than income contingent repayment 15% of discretionary income and debt forgiveness after 25 years. 14. In 2010 the Health Care and Education Reconciliation Act of 2010 created a new version of income-based repayment cutting the monthly payment to 10% of discretionary income with debt forgiveness after 20 years. 15.
This new improved income based repayment plan is only for borrowers who have no loans from before 2008. Further those with loans in default will not qualify for income based repayment unless they first rehabilitate those loans. If you are interested in seeing if your loans qualify for income based repayment or income contingent repayment please visit student aid dot gov. Unfortunately none of these programs do anything to deal with private loans a growing problem currently at around $200000000000.00 (Two Hundred Billion) or around 16% of the total student loan debt. One of the options that students can take advantage of to pay for their tuition fees are student loans without co-signer. Sadly there are so many students out there without the relevant information on the best way to apply for these loans.
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The debt from any co-signed loans will also remain on your credit report as an open obligation until the debt is repaid (or written off in the event of a default). 4 Tips for Protecting Yourself as a Co-Signer on a Student Loan So should you co-sign on a student loan? You can never predict the future and unfortunate circumstances can derail even the best-intentioned and responsible student borrower. If you do decide to co-sign on a loan (or any other loan for that matter) make sure you clearly understand what your responsibilities are and under what circumstances you would be expected to take over the note: 1) Have a firm understanding with your primary borrower about the repayment plan -- you may even want to consider putting a signed written agreement in place between the two of you -- and stay in contact with the lender to make sure that the monthly loan payments are being received on time and as agreed. If your primary borrower misses a payment date contact her or him immediately to discuss the problem.
Here are some resources to get you started: FastWeb Scholarship Search College Board Fund Finder Scholarships.com LLC and Scholarship Search Sites Owned by Education Lenders scholarship central Award Database Next Student Scholarship Experts Broke Scholar College Data Wintergreen/Orchard House Scholarship Database College NET Mach25 and College View scholarship directory. 5. Military Student Aid is another valuable resource that offers exceptional scholarship opportunities: US Armed Forces Recruiting Programs Financial Aid for Veterans and their Dependents Veterans and the FAFSA HEROES Act of 2003 Books about Military Scholarships and Financial Aid for Veterans. Additional information can be found in the Education section of the Military.com web site.