Quote:
Originally Posted by Mormon Red Death
What are the loan terms and payment requirements?
Progress reports are required twice each year to verify effort and attendance at school, worthiness, activity in church and institute, and repayment integrity. Other requirements include the following:
* Soon after they start school, participants begin to make small monthly payments (about $5) to the bank.
* Larger payments are begun soon after graduation for a period of 2–8 years.
* A small amount of interest (3% plus an inflation factor) is charged to the loan.
* Participants strive to repay the loan as soon as possible to bless others who need help.
* In the event of a significant personal challenge, loan payments may be deferred or adjusted.
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Interesting that there's an age cap (30). I guess that means you should have your career nailed down by that time (I'm screwed).
I like how the loan recipients make small monthly payments during their studies, maybe just to get in the habit of paying back. Seems like a good idea.
I have several friends who have tens of thousands of dollars in student loans but, since they're still in school, it hasn't hit home yet that they're going to have to pay them back someday (in theory, at least). Most of them have some pretty poor spending habits. It's going to be a rude awakening for some of them. Something like this might help them prepare.