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Manageable Student Loans

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Manageable Student Loans
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Manageable Student Loans

After completing steps 1 to 3 in the tuition fees calculator for my current Associates Degree, I came up with a total tuition of $15.300 over a period of 14 months (Appendix A). Luckily I will not need to take any kind of loan for this amount as it is possible for me to invest the monthly portion of $1092 from my income. Nevertheless looking at the tuition fees for my upcoming Bachelors degree, which is amounting to a total of $37.000 (Appendix B), I will definitely need to take up a loan for at least part of the tuition fees. Students in the United States of America do have a variety of options to reduce their loan amount. Often employers are willing to pay for part of your tuition when your studies support your function at work. Furthermore students can apply for Scholarships and grants; those options do not need any kind of repayment. Besides that you may qualify for Military benefits if any family member “if you are active duty, a member of the Reserve or a member of the National Guard, you may eligible for military tuition assistance” (University of Phoenix, retrieved February 23, 2013 from https://www.phoenix.edu/tuition_and_financial_options/explore-options-to-pay-for-school.html#url=scholarshipsAndOtherBenefits%7C1). Also one should consider asking family members to help funding your studies. As I am currently already saving some small amounts towards my Bachelors Degree, I can definitely cut back on the amount I will need to borrow later. This shall help me to reduce the loan amount and monthly payments thereof. In the United States of America there is a variety of repayment options for student loans. Students can chose the option of a standard repayment, where you will pay a fixed monthly amount over a period of maximum 10 years until the loan is paid off. Then there is the Graduation repayment option where the payments are lower in the beginning and get bigger every two years. As of July 1, 2009 the IBR (Income Based Repayment) option came in place (http://www.igrad.com/articles/student-loan-repayment-plans-choosing-a-plan-grace-period) where your payments are calculated on your yearly income. All in all students can do a lot in order to minimize the amount they need to borrow and finally chose a repayment option that suits best their needs and circumstances in order to avoid default.

Appendix A

Appendix B

References
University of Phoenix (2013). Tuition and Fees retrieved from https://www.phoenix.edu/tuition_and_financial_options/explore-options-to-pay-for-school.html#url=scholarshipsAndOtherBenefits%7C1
Igrad (August 19,2011). Breaking Down the Repayment Options. Igrad.com retrieved February 23, 2013 from www.igrad.com

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