CITE:2.ed.gov
Post graduation from college, a student can find himself way in over his head regarding student loans. When in college, many students get more money than they need for housing books, and tuition so that they can live on the excess. It seems like easy money at the time, but ultimately, it adds up and you are looking down the barrel at five- maybe even six-figures.
Some graduates are finding it hard to find jobs, so they can’t start paying back loans, which the lenders want them to do ASAP.
When a former student ignores his loans for more than 270 days the loan goes into default and this means the government can garnish your wages, as well as withhold your income tax returs and apply that money to you loan debt. You can even be sued.
If you think, bankruptcy is the answer, think again. Student loans are not discharged when a person files for bankruptcy. Collection by the government on student loans can go on for twenty years even if you are bankrupt.
Additionally, if you default on your student loans, this is going to mess up your credit rating.
It is important to pay something regularly so you don’t ruin your credit score.
Repayment may vary depending on the type of loan you got. Loans from the past year are under the control of the federal government whereas older loans are handled through an outside entity.
If you are paying back in the standard repayment method, this means that the borrower pays back a specific amount each month after graduation. The balance must be paid off in 10 years. If you have the extended repayment plan, a specific amount is paid each month but the time that you have to pay back the entire loan is extended. This allows the borrower to make smaller monthly payments but make payments for a longer period of time. Obviously, the longer it takes you to pay off the loan the more interest you pay.
Other methods include the graduated repayment method. This option may be the best of both above methods. The borrower starts out paying small amounts. Over time, the payments increase and the borrower pays bigger amounts toward the end of the loan.
Another method is the income-contingent repayment option. The borrower pays back an amount each month that is determined by the borrower’s income. Your payment is a percentage of your income each month.
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MY TAKE:
Don’t ignore your student loans. They will not go away. If you aren’t employed and can’t pay anything contact the lender and see if something can be worked out. Totally defaulting on your loans is going to mess up your credit rating so badly that you will never be able to purchase a home or anything of value. Granted, college graduates, for the most part, are young and naïve but now is the time to man-up and assume responsibility for that money you borrowed, some of which you may have used unwisely. Live and learn.
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Other Resources
Backpacking and Kids
Just because a child can’t hold a fifty pound backpack shouldn’t mean that they should be excluded from a backpacking session, but there are some things to do before going out on a backpacking adventure. The first is that the children’s backpacks that the kids will use should be tried on with their items and some practice walking should be done just to make sure that the kids are up to the challenge. And it’s often just fine for a child to go with no backpack while their parents are the ones to bear the weight of their backpacks.







