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[D172]Department Of Education Programs

by Article Submissions, Art

As you struggle to pay off your student loan for your college education you may want to consider the United States' federal debt consolidation loan program.

The federal Higher Education Act (HEA) offers a program for loan consolidation program under the auspices of two loan programs - the Direct Loan and the Federal Family Education Loan (FFEL). Through this consolidation plan the student's loans are paid in full and then a brand new consolidation loan is put into place.

What these programs do is make loan payment simpler through a combination of several loans. Simplification happens because the various loans quite probably have varying terms and schedules of repayment, all to different lending facilities.

Quite often the interest rate on the new consolidation is less than the median rate of the prior student loans. The student borrower could end up with a lower monthly payment as well as an extended repayment time period. Not only will it make the debt easier to pay for the borrower but also afford the federal agency more likelihood of payment in full rather than default.

When making the determination of consolidation of student loan payments you might be wise to consider these factors:

What interest rates are you paying on your current student loans? If a consolidation of these loans will offer a lower rate you may want to consider it. Now, the interest rate for the government's direct consolidation program is determined by the weighted average of the interest rate of the loans that are being consolidated, rounded off to the next highest one eighth of a percent. This is a fixed rate, and will not ever be more than 8.25 percent.

Can you manage your current monthly loan payments? If the answer is no and you have already taken advantage of any deferred payment or forbearance option your lenders offer you may be wise to consider consolidation as a way of avoiding default.

Is the total cost of the loan, over time, a large factor in your decision? One negative of student loan consolidation is that if you take advantage of the option to extend the life of the loan you will end up paying a larger total. This may be a grave concern to you.

How long do you have until your loans are repaid? Even should you be struggling to make your monthly payments if you are getting close to the time when your loans will be paid off, consolidation may not be a good choice for you.
What alternative options might your current lending institutions have available? Before you look at consolidation, or in addition to considering consolidation, you would do well to ask your current lenders what other options, such as change of term or payment they might offer.

Another thing to keep in mind is that not all student loans qualify for the federal consolidation loan program. The ones that do are Plus loans both Direct and Federal, U.S. Stafford loans whether subsidized or not; Direct loans whether subsidized or not; any Direct or Federal consolidation loan, any student loan that is federally insured; U.S. government student Supplemental Loans, and Auxiliary loans for student assistance. A U.S. Perkins loan, a national direct student loan and a national defense student loan are eligible, as well as a loan for health education assistance, for health professions students, the federal loan for disadvantaged students, and the U.S. Nursing Student Loan program.

Plus loans have a restriction for eligibility, however. They can only be federally consolidated if the student's parent is the borrower and has also borrowed by way of other loans also eligible, for that same semester or year of the student's education.

Companies are always looking to hire people who have some prior work experience, as they feel more comfortable with employees who have worked before, and are thus in a position to understand the challenges that comes with it. Internships and cooperative education programs gives you that advantage over someone who has no prior experience of ever setting a foot in an office!

Interns get a chance to apply the theoretical knowledge that they have gained from textbooks into practical situations, and also understand how different things are once you step outside the protective environment of a classroom.

Internships

An intern works with an actual company, usually but not necessarily, in a field related to a student's academic or career goals. Internships provide progressive experiences in integrating theory and practice. These are mostly in the summer breaks, but can also be during an academic year. They can be either full time or part time, and can range from few weeks to a couple of months or more. Such positions are, more often than not, unpaid; but they can also be partially paid. However, for students in their third or final year, or for those who have just graduated, gaining hands-on experience in a professional environment should be more important than monetary gains.

A research or dissertation internship is a type of internship taken by a student, usually during their final year. They work with a particular company and prepare a report, which is usually presented towards the end of the year.

Cooperative Education Programs

Cooperative education is a method of combining academic education with practical work experience. These usually have a specified minimum work period. In an alternating arrangement, a student generally works full time 40 hrs per week during the term. In parallel program, students work part time 20 hrs per week for the term. The student's performance is usually monitored by the school and supervised by the employer. It helps students gain credits as a part of their curriculum. Cooperative education gives students excellent professional experience and many times companies hire the students who have worked with them as a part of a cooperative education program.

International Internships

International internships, though not new, are finding big followers across the globe in the increasingly global market place. Students are taking advantage of international internships in increasing numbers, especially in fields like computer science, information technology, consumer goods and marketing. Countries like Japan, Spain, and India are big favorites, as it exposes them to global trade practices along with an opportunity to learn new cultures and languages. Countries like India provide some of the best experience in global work culture and world-class technologies, with an amount of exposure that was not even previously thought of at an intern level.

However, students need to check before taking on an international internship, as it may mean different things in different countries around the globe. Though such endeavors can be a great learning experience, students need to research properly about the place they are going to visit, to make utmost of their learning time in the new land.

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