Back To School Time and Financial Aid

Students Face Financial Aid Debt

Back To School and Financial Aid DebtIt is that time of year again in Arizona and throughout America, when students head back to school. Students are ready to head back for another year of higher education in hopes of earning a degree that will prepare them for a career.

After graduating, students will pursue their dream jobs… or at least something that will provide a decent income. Unfortunately, the majority of students begin their life “in the real world” with the debt of financial aid they borrowed in student loans.

In some cases, the burden of a student loan payment can be damaging for a student’s financial situation, especially if the payments are late or missed completely. Some students are unable to obtain work once they get out of school and may not have the money to pay student loans payments when they kick in. Missing student loan payments quickly leads to bad credit, collection calls, and an adverse reflection on their credit.

Many college students need to take out loans in order to cover “higher education expenses.” It is imperative as a college student to practice for life after graduation: start a new school year by preparing a budget. It is a great responsibility as a student to know exactly where your funds are going, as you will be re-paying this debt. It may seem that when you get your loan money that you have instantly come into some much needed funds, but it is wise not to go on a shopping spree or make any impulse purchases. Making an itemized list of the cost of everything that will need to be covered by your loan: books, tuition, meal plans, housing, vehicle, etc. How are you going to ensure that your expenses as a student are covered this year or each month?

Filing for bankruptcy with the assistance of an AZ lawyer is the answer for many people and a helpful debt relief tool, however, student loans are not dismissible in a bankruptcy, so by planning now and knowing your financial situation as a student could help you from being in a serious financial crisis later. If you borrow money by a federal student loan: keep an accurate record of your loans. You should also keep a copy of the signed Promissory Note for the loans. If you receive any information regarding your loan from your school or loan holder, open and read it; make sure you understand it. You should never ignore your loan payments. If you are at the positive level of consistently making payments toward your loan, it is recommended to make sure that you are making your scheduled payments. If you are unable to do so, you could discuss repayment options with your loan holder. Always practice good communication with your
lender as it may be helpful in the long run.

Please remember, you do have responsibilities as a borrower, even if you are still “just a full-time student”. Make sure you are aware of all your loan obligations. You must repay your federal student loan, plus interest; even if you do not complete all of your education or degree program, or if you do are not able to get a job when you do finish. Also, you must inform your loan holder of any changes to your name, address, or schools/enrollment credits.

Understanding the details of what is expected of you as a borrower and knowing your rights should help to alleviate any misunderstandings that you may have when attempting to stay current on financial aid payments and student loans. If you do find yourself in the undesirable situation of not being able to make payment on your financial aid, consulting a trusted Arizona debt relief expert or bankruptcy lawyer may be a helpful solution to your financial woes.

Published By:
Candace Kallen, Attorney at My AZ LawyersMy AZ Lawyers

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2018-03-26T18:40:11+00:00 January 7th, 2015|Bankruptcy|