How Students Can Reduce The Amount They Owe In Student Loans After Graduation
With higher universities’ fall semester about to start, students around the world are getting their financial aid information in order. For students who need loans, it’s extremely easy to take out more loan money than they need to cover tuition, fees and books. Instead of returning the excess money, students are funding their “lifestyles”.
Yes, students can return their loans without being charged any fees or interest.
Returning Student Loan Monies: 2 Ways Students Can Save Money On Their Education
Students have the right to return the student loan money within 30 to 120 days after the school disbursed the money. It’s imperative that students just get the bare minimum to cover the costs of their needs to save themselves thousands of dollars down the road. There are two ways in which to cancel federal student loans
Let the school know within the two-week window after the student is informed of their rights to cancel or by the first day of school. If not, they can let the school know within 30 days. The school’s financial aid office doesn’t legally have to return loans, even if you want them to. Students will need to turn in a request in writing and certified mail to prove that you’ve asked for the funds to be returned.
Students have 120 days to return their Direct Subsidized and Unsubsidized Loans – whether it’s some or all of it. In order to properly return this money, students should get in touch with Direct Loan Serving Center to avoid interest or fees.
Students have the option to repay the loan instead of canceling it, but there’s the origination fee they paid and interest that’s been accumulating while they debated on whether or not they needed the money.
How Students Can Reduce or Eliminate Need For Student Loans
It’s better for students to take out the bare minimum for their loans, and they can do this by doing three things:
Apply For Grants and Scholarships
Students should apply for grants and scholarships, applying all summer long if needed. A majority of colleges provide grants and scholarships to current students – some students are eligible for them after the first year. Students should constantly apply for these monies to reduce the amount of loans they need.
Become A Resident Assistant or Apply For Work-Study Job
Colleges always have a work study job students can apply for. If a student’s not eligible for work study, they can look at other employment opportunities such as resident assistant – all of this could save them thousands of dollars each year in loans.
Work During The Summer
Students should use the summer to work and save money for the next term. The monies they earned can fund some of their lifestyles as well as pay for books and tuition.