Loan Advice

USA United Cash Loans Offers Complimentary Student Loan Advice

With the global recession continuing to impact the ability of recent graduates to earn an income commensurate to their level of education, the ability to pay back their student loans has become significantly reduced. Recognizing it as a problem that impacts both students and lenders, USA United Cash Loans has offered some suggestions to help those who are feeling the burden of the financial crisis.

Since there are several different types of student loans, the potential solutions depend upon each individual situation. For students with a federal loan, there is a very valuable program that is being incredibly underutilized: Income-based repayment. Also known as IBR, income-based repayment allows borrowers to make loan payments based on a percentage of their current income, usually no higher than 15%. It also allows borrowers to extend the repayment period from ten years to up to twenty-five years, after which any remaining balance will be forgiven by the government.

A representative with USA United Cash Loans had this to say about the IBR program: “It is a great opportunity that many recent graduates are not taking advantage of. Some of these graduates are paying up to 75% of their income toward their loans when they do not have to. It is a solid program.”

It is important to note that by extending the repayment period, there will be more interest that builds up over time. However, by basing the monthly payments on the percentage of income, it makes paying back student loans manageable.

Another thing USA United Cash Loans helps with are issues for those with private student loans. Most private lenders will also adjust the repayment period and agree to extend the time period in which the loan is repaid. The same issues arise as with the federal loan extension, as there will be a longer time in which interest will accrue. “Communicating with your lender can make a huge difference. There are aspects that a lender can adjust that may make loan payments easier. Lenders can tailor the adjustments to meet the needs of the individual,” said the representative from [USA United Cash Loans __title__ USA United Cash Loans].

There are other methods to simplify student loans such as consolidation or Public Service Loan Forgiveness, a program designed for graduates who are employed in a public service position for ten years or more. The key seems to be communication and research. “If you do your homework and speak with your lender, you can make your loans much more manageable.”

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