Student Loan Stories
If your primary borrower starts missing payments or payment due dates however the lender will contact you. Normally by the time the lender is contacting you the loan youve co-signed is already past due and your credit rating may have already taken a hit. Keep in mind too that any legal remedies a lender has at its disposal for pursuing a loan debt can also be applied to the co-signer. These legal remedies include assignment of the delinquent loan account to a debt collection service and a possible court action. For delinquent federal education loans the government may seek to garnish your wages or seize any income tax refunds you have coming your way. In addition delinquencies or a default on any loans on which youve co-signed will appear on your own credit report with all the same adverse effects as on the primary borrowers credit report.
As a borrowers income rises the income-based repayment cap will also go up. If the income-based repayment cap reaches a level higher than what a borrowers monthly payment would be under a standard 10-year student loan repayment plan the borrower will no longer qualify for income-based repayment for her or his student loans. Borrowers whose adjusted gross income falls below 150 percent of the poverty threshold wont be required to make any payments on those student loans that qualify for income-based repayment. Even if no payments are due however interest will continue to accrue on those college loans . Unpaid interest will also accrue if a borrowers income-based monthly payments arent sufficient to cover the full monthly interest on the qualifying college loans.
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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.
However the lender will be interested to know the specific degree program that you are enrolled in the income of your parents and lastly the school that you will be attending. According to the government every parent is required to contribute to the education of their children. As such they will use the income to ascertain the extent in which a given parent will afford to pay for the tuition fee in a year. After this the government then decides exactly how much money they are going to give the student. Basically federal loan covers for books and tuition and sometimes the student housing cost will also be included in the package as well. However the student must be residing in the campus for the housing cost to be covered by the loan. Where the student opts to live outside campus he or she will then be required that they look for other alternative options for meeting the cost of rent.