Forty million people in the United States hold student debt totaling $1 trillion. While other forms of consumer credit declined during the Great Recession, student debt continued to rise. As a result, student loans are now, after mortgages, the largest source of Household debt, outstripping credit cards and auto loans. Student loans have emerged as the biggest economical challenge in recent years. The total student debt of U.S which stands at a huge number of $1trillion has crossed the debt on credit cards as well.
However, apart from all these scary statistics, student loans are something we all somehow need at some point; to further expand the possibilities of a better future. But when it comes to borrowing money for your higher education, not many people know whom to consult. So voluntarily or involuntarily rush to economists to help us understand this painstaking process. What students should realize is that, they should not only consult economists for managing their stressful student loans.The advice offered by the, would consist more of economic terms which, becomes not just incomprehensible but also tacky. In this case, there are some other helpful desks that one must visit to get the desired consultation and know all about their loans, leaving the tiresome work for the consultant to deal with.
Here are some other options you can explore for student loan consultancy:
- Finance Department of the School or University:
Your College’s or University’s financial or student aid department can provide you with the entire required consultancy on your loans. When you enroll into a college or university, you are either provided with literature or given sessions to tell you all about the academia’s rules and policies. Among these sessions you are also given proper sessions to inform you about the intricate details of your loans. Not just this, but the department provides you with alternative options to keep you away from loans, like: scholarships or grants. However, there is one drawback about accepting consultancy from your own academic institution as they might provide you just the information you need to understand your loans but the department might not be helpful enough to deal with all other technicalities and/or the numerous calls you receive from your money lending organization or service. It still remains in a student’s best interest to consult their own college or university’s department as they know how to translate all those financial statements and conditions to the an easy and more understandable format.
Banks are more commonly known for providing all kinds of loans but with their other financial and banking services, they offer consultancy too. Loans offered by banks are generally private. They help students understand different kinds of loans available; thus, helping you in making the right loan choice and save money. The consultancy and loans are provided by both federal and state banks.
- Agents of the Finance Companies:
Finance Company agents provide their services to students and people seeking consultancy for various types of loans. They help you understand the entire process of your loans and later assisting you in understanding repayment policies and deal with all the technicalities and paper work. The core purpose of finance companies is to finance businesses and help them grow, in order to get this purpose fulfilled they provide loans and other services to business owners or joint stock companies. However in the case of students, there are a few companies providing loans to students with great future prospects.
- Government Loan Representatives:
Government Loan Representatives provide you consultancy for subsidized loans. Their subsidized loan and consultancy restricts individuals to not get into any business as they please. As compared to finance companies government loan providing companies only deal in federal loans and the loans given by them is only to be used for college or higher education. They provide aidin helping student repay their loans in the most feasible manner by giving them multiple options and relief programs to help ease their repayments.
- Loan Issuing Agencies:
Loan issuing agencies built with the sole purpose of providing loans and helping people understand the complicated nature of their loans. These companies deal with all the technicalities, thus providing you with an easy to understand loan plan. Generally, organizations which provide loan also provide students with debt relief solutions. They have a number of policies and programs made to provide relief with debt issues, repayment schedules, and various kinds of subsidized and unsubsidized loans. Since these companies specifically deal in loans and related issues, they are more aware of debt industry’s mechanics and procedures.
There are many other options available when you require consultation related to student loans and debt problems. Economists or independent consultants may sound as reasonable to those who themselves are aware about all the intricacies and have sound financial knowledge about loans and debt. As for general population who are not normally aware about loans, credits and debit need options which simplify this niggling process.