Posts by tag: loan repayment
What is the process to pay the education loan?
- Jul, 18 2023
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So, you're curious about the process of paying back an education loan? It's quite straightforward, really. First, you need to know the details of your loan like the total amount, interest rate, and the tenure. Then, you begin repayment - usually starting six months after you graduate or leave school. Payments can typically be made online or through mail, and it's crucial to make them on time to avoid any penalties or impact on your credit score. It's all about staying informed and being consistent!
Why do student loans have such high interest rates?
- Jul, 12 2023
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In my latest blog post, I dove into the complex world of student loans to understand why their interest rates are so high. It turns out, it's primarily due to the inherent risk lenders take on since students often don’t have a credit history or consistent income. Additionally, these loans are unsecured, meaning there's no collateral, making them riskier for lenders. The long repayment terms also contribute to the high rates. Lastly, federal loan rates are set by Congress and can be influenced by the economy and political climate.