Homework Question on Student Loans
- Step 1: Go to www.loanlook.com and login : Email: firstname.lastname@example.org Password: Khalid1478
- Step 2: Next, go to the “Learning Center” on the left toolbar. Click “Financial Literacy”. Scroll to the section of videos titled “Borrowing and Repayment”. Click on “More Videos”. Watch all three videos in this section.
- Step 3: Watch the following video discussing the impacts of student loan debt on borrowers: http://youtu.be/6p0HyjtfaMg
- Step 4: Write a 250-word response paper including what you have learned and anything that surprised you from the resources you have reviewed in steps 1-3.
- This paper needs to be typed and double-spaced. Please use 12-point font, either Times New Roman or Arial.
Homework Answer on Student Loans
Grants and scholarships help students save thousands, and it is a surprise that most students do not understand that grants and scholarships are “free money” while student loans are not and have to be repaid. There are two major types of student loans: federal and private loans. Students are advised to consider federal loans before the private loans. The federal loans are categorized into three: subsidizes loans, unsubsidized loans, and the plus loans. Students should review them and know the benefits accrued to each type before taking a loan.
Borrowers barely have a repayment plan in place. Repayment plans depend on the amount borrowed, amount to be repaid, and the period over which repayment should be made. Three major plans can be executed for loan repayment and they include the standard plan, the graduated plan, and the extended plan. Others include the income-driven plan and loan consolidation. Student loans impact the borrowers’ lives in various ways, such as delaying major decisions like having children or buying a house.
Borrowers lack enough income, security, and confidence about future income stability. Some of them are faced with even larger debts to pay after deferring payment for years due to inability to repay resulting in accumulated interest, thus worsening the situation.The American student loan debts at over one trillion are shockingly higher than the car loans valued at seven hundred billion and credit card loans at eight hundred billion. This is a burden to not only borrowers but also weighs down on the whole economy, thus an issue that requires serious consideration.