In-Debt Grads: Trouble With Students

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In-debt grads with no jobs can sidestep trouble with student ... Authors: Sandra Block Source: USA Today; 05/25/2010 ISSN: 07347456 Accession Number: J0E365111528010 Database: Academic Search Complete Translate Full Text: Translation in Progress: Translations powered by Language Weaver Service HTML Full Text In-debt grads with no jobs can sidestep trouble with student loans Listen Pause Loading | Download MP3 Help | | | Section: Money, Pg. 03b You just graduated, and your parents are so proud of you. Which is a good thing, because there's a good chance that you'll be moving back in with them. This year's college graduates will be entering a wretched job market, where there are, by some estimates, five candidates for every opening. Perhaps this experience will give you the strength to deal with future challenges. But one of those challenges -- not…show more content…
The key is to understand your options and take action before you fall behind on payments. Tips for worried borrowers: *Understand your grace period. Borrowers typically have a few months after graduation before they're required to start repaying their federal student loans. For most federal student loans, the grace period is six months. *Find out whether you qualify for the income-based repayment program. Under this program, your loan payments could be reduced, based on the amount of discretionary income you have available. In most cases, your loan payments won't exceed 10% of your total income. After 25 years, anything you still owe on the loan will be forgiven. To apply for the program, you'll need to contact the company that's servicing your student loan. If you're not sure who that is, check the database of the National Student Loan Data System, www.nslds.ed.gov. You can also find links to major student loan servicers at www.ibrinfo.org, a website set up by the Project on Student
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