Answer about help with student loans please? My son has approximately $38K debt in two Stafford federal loans :
Unless things have changed very recently, he should be able to do both. If he only has one option, I’d say extend it to 25 years. I did both (though I went with 15 years rather than the maximum 25) and it was an extremely simple process. I don’t think many students are able to pay off their loans in 10 years this day in age.

He may also want to call and actually talk to the company servicing the loan. They hear this stuff every day. They may offer other options that aren’t on the brochure or website. Sending the loan to collections doesn’t do them much good, especially if he has no income for them to go after. They’d rather work with him and get their money.

Notice I am saying “HE,” though. The best thing you can do for him is offer him advice but make him figure out his own dilemma. The lender is probably not going to want to talk to Mommy anyway.

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In addition to lowering monthly payments, we are proposing to keep the total cost of loan repayment manageable by forgiving all remaining debt after 20 years of payments, or 10 years of payments for those in public service work.  As Mark Kantrowitz, the publisher of finaid.org said, the “acceleration of the loan forgiveness will ensure that borrowers are not still paying back their own federal student loans when their children enroll in college.”

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The House of Representatives approved legislation implementing the president’s plan, but the matter has stalled in the Senate.

Undeterred, Obama highlighted the issue as a key priority in his State of the Union Address Wednesday.

“This bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans,” Obama said.

McDonnell was selected to give the official Republican response to the State of the Union, providing the governor a national platform for the first time.

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This section will shine a light on other sources of student loans with bad credit. There are a number of major lenders in the student loan consolidation market. It is best to expire search for student loan consolidation centers, expire minimal interest rates. A student is qualified for a period not exceeding 1 per cent discount on interest rate habitation, if he pays on time for thirty six consecutive payments. While still attending school, students, expire direct federal loans are in a position to consolidate to expire by the consolidation of the federal program provided by the government. Even student loans with bad credit options can be a challenge, to repay.

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TWO top officials at the Student Loans Company quit today after a damning report into this autumn’s loan and grants delays, it was announced today.

Both Wallace Gray, the Student Loans Company’s (SLC) ICT director, and Martin Herbert, marketing and customer services director, have resigned, the firm said today.

But SLC chief executive Ralph Seymour-Jackson, who faced calls to resign in the wake of the fiasco, will remain in post.

Tens of thousands of students faced delays to their loan and grant payments this year as the SLC struggled to keep up with demand.

The company has its English headquarters in Darlington.

A damning report into the delays, published earlier this month, found there had been conspicuous failures which had had a far-reaching impact on students.

In a statement announcing the resignations today, John Goodfellow, chair of the SLC board offered his apologies for the problems again and said there would be a restructuring of the senior management team.

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Federal student loan default rates are on the rise, but there’s no need even in this weak economy for you to fall into arrears on your loans.

That’s because when it comes to repaying an education loan, no one – except maybe Mom or Dad – is more lenient than your Uncle Sam.

Can’t find a job? Or, the one you have barely pays the bills? Maybe you have decided to go back to school to wait out the recession. Whatever the situation, the government has options to provide relief – sometimes for years – from federal loan payments while you get your finances in order. You might even have your loans forgiven over time.

“If students are conscientious about it and they explore their options, there shouldn’t be any reason they would be in default, even if they don’t have a job,” says Mark Lindenmeyer, director of financial aid at Loyola University Maryland.

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More than one in five borrowers of federal student loans who attend for-profit colleges default within three years of repayment, new figures made available by the U.S. Department of Education on Monday show.

Historically, the government has reported such figures in terms of how many students default within two years — a figure that stands at 6.7 percent of student borrowers overall and about 11 percent at for-profit schools.

But the new three-year numbers, though preliminary, give a clearer picture of whether a student at a particular school will default, so the government will soon begin using them to help decide which colleges qualify for taxpayer-supported student aid programs.

Currently, schools with default rates over 25 percent for three straight years can be disqualified, but experts argued that schools were gaming the two-year figures. So starting in 2012, colleges will be judged on how many students default within three years of starting repayment, though the new threshold default rate for sanctions will be 30 percent instead of 25 percent.

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