Student loans-new rules???

Pell Grants have gone up. However by the time she hits college in 4 years, the limits will probably have gone up again. Same with the stafford loans....limits will probably change again with time.

What do you mean repayment rule??

There are many good debt consolidation companies out there which are affordable in their charges, but the irony is that they do not consolidate student loans. What is the reason for that?

You pay money to have your debts consolidated. The Department of Education already offers an income incontingent repayment plan or an income based repayment option thru the Direct Loan Program.

Student loans are considered somewhat of a secured debt like a house or a car due to the federal guarantee. They will not deal with outside third parties.

Hi Soaplady,

I am the OP. By repayment, I meant how can I pay the loan back? I heard from one of my friends that under the new so-called rule, the repayment has changed for public sector workers. Can you tell me something about it????

This is a little confusing...you posted that your daughter is in high school, thus she cant have any loans yet. She would have to get a public sector job first and that is a ways off.

Right now, public employees can have their loans cancelled after 10 years in repayment. Things could change by the time she graduates and goes into repayment.

Sorry for asking dumb questions. I know I am behaving like an idiot. But I have little or no knowledge about these things. The thing that I was asking was can I help her to pay it back and since I am in the public sector, will it change anything in the repayment plan?

Sure you can help her with payments. Unfortunately the borrower has to work in the public sector.

Okay, I thought I can take a loan for her. So, as u said, the loan has to be in her name, right?? And she will be the person who will have to pay it back rite? I'm sorry but I just wanted to make myself clear on this.

When the time comes, you will do a FAFSA application for her financial aid. Your financial aid will be packaged...pell grants first, then sub and unsub stafford loans, Perkins loans and if need arises, Parent PLUS loans. PLUS loans are the loans that YOU can take out, but they are calculated after all other financial aid has been packaged.

Thank you so much Soaplady. Tjis is really a very good site. Thanks for the pain u took to answer me.