Payday loan lenders know how tight funds can be for so many people in the country. American families continue to struggle for funds to put towards basic necessities. Saving for college tuition is not anything they are capable of leaning on loans and grants to pursue higher education. Rules for Stafford loans are changing, but not for the better good of a college student.
Stafford loans are government loans which are made directly to higher education students with the idea that six months after graduation, the individual will start making payments. There are subsidized loans and unsubsidized loans. In the past, the government would pay the interest for the subsidized loans until the student starts paying the money back, where the unsubsidized loan, the student is responsible to pay back all the interest for the loan. Those students who received their loan before July 1, 2012 will be grandfathered, but those subsidized loans which are given after the first will now be responsible for the interest themselves.
Other changes for Stafford Loans:
- Subsidized loans carried an interest rate of 3.4% which has been increased to 6.8%.
- The six month “grace period” between leaving college and the first payment due will now carry interest which will be paid for by the student who receives a loan between July1, 2012 and June 30, 2014.
- The loan origination fee rebate of 0.5% will no longer be offered.
- Any loans for graduate/professional schools will automatically be unsubsidized which means interest will accrue while the student is in school.
These changes apply to only Stafford Loans only. Other options for loans are:
- Perkins loans for undergraduate and graduate students.
- PLUS loans which are loaned to parents to students pursuing undergraduate education.
- GradPlus Loans for graduate and professional school students
Why would payday loan lenders be concerned with student loan changes?
It is a simple answer. Changes in loans could present future financial problems for students and their parents. With any type of loan, once the money is borrowed, there is a promise to pay it back. Direct payday loan lenders know that when a student has trouble finding a high paying job after graduation is not a given, but sometimes takes more than six months. Start-up costs for a new home or apartment is pricey, online payday loans lenders have loaned to many customers making life transitions. Fast cash provides quick relief of what can be a stressful situation. Graduates who have started work and have not yet received a paycheck use this money option to help pay for their student loan payment while the demand for income goes elsewhere.
Not everyone has family or friends to help out with transition periods, especially when it comes to money. The majority of students makes other choices or has other options available to them during this time period. Nevertheless, Spotya! a Direct Payday Loan Lender wants people to be aware of policy changes which could present a negative effect on future income. Spotya.com is a responsible lender taking the opportunity to spread the news in order to inform its readers. Higher education goals are positive building blocks for one’s future. Find a solution which works best for you and your family in order to keep these goals alive.
