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11-dec-2008
The people inside UVM's student center don't have to pay their student loans back yet, but that doesn't mean they're not worried about it. With the recession in full swing, they're seeing many recent grads struggle to keep up. Yet there are ways for people to avoid defaulting on their loans.
It was a long road spanning eight years and $120,000 of debt, but Eric Rhoda, 30, has finished paying his college tuition.
"It was about $400, $450 a month," he said.
Rhodes says it didn't start very smoothly, though. "I was fresh out of college and I couldn't manage my own money. Definitely got in trouble and fell behind," he said.
The Vermont Student Assistance Corporation heard that story a lot in November, when the Director of Customer Relations, Cody Fiala, said an unusually high number of people missed student loan payments. She says in most cases it was avoidable.
"As soon as they realize they're not going to be able to make that payment, give us a call," she said.
Fiala says like most lenders, VSAC no longer offers loan consolidation. Still, there are options for debtors in trouble. Fiala says some are eligible for deferments based on income and employment. She says VSAC could reduce the payment amount for a few months. Or, she says, payments could be suspended.
"That's obviously the option of last resort because in most cases, the interest is continuing to accumulate," Fiala said.
With tuition prices on the rise, more and more people are finding themselves in the position. St. Michael's College freshman Justin Kane knows what's ahead, but says he didn't have a choice.
"I mean I need a college education, so gotta do it," Kane said.
Source:
http://www.fox44.net
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Bad credit student loan
