When scholarship programs and free financial aid is insufficient, Federal college loans, government student loans awarded to undergraduate and graduate students is readily available. What make it attractive are the low interest rate (lower than other forms of financing), no collateral or credit check, and no payment until one graduates.
Although Federal college loans are less expensive than private loans, and no payment till one has graduated or leaves college midway, one has to understand that with interest it adds up and has to be paid eventually.
Students and parents availing Federal college loans should be aware that they can go in for either subsidized (no interest accrued until the student graduates, the best option) or unsubsidized loans (interest accrues while the student is still in school, obviously less desirable). The promissory note, a legal document stating the amount of money borrowed and the conditions under which the loan is to be repaid, is signed; repayment of a federal loan begins soon after the student has graduated from college.
Repayment
Repayments start immediately if for whatever reason the student plans on discontinuing studies.
Grace periods
Usually a grace period of six to twelve months is given to students after graduation. A few federal lenders have a grace period of six months, but the interest grows with a subsidized loan, whereas no interest is charged with the subsidized one; a couple for only about two months with the interest rates starting immediately.
Loan payments are usually made every month or quarterly. The lenders contact the students after graduation or the students have to get in touch with the lenders, if they have not done so already. The student is termed as “delinquent” if the repayments are late or if the students do not make any payments.
A student can select a repayment plan extending between ten and twenty-five years, depending on his/her financial situation: (1) Standard Repayment—fixed amount paid each month for ten years, with a low interest rate. (2) Extended Repayment—fixed annual payment for twenty-five years, paying more interest for the extended period. (3) Graduated Repayment—payments start low with an increase every two years, according to the increase in salary, for ten years. (4) Income-Based Repayment—monthly payment based on size of family and income from ten to twenty-five years; the remaining balance is cancelled after working in public service and the same goes after working for twenty-five years, if the terms are met. (5) Income Contingent Repayment—monthly payments calculated based on income, family size, and direct loans over a period of twenty-five years. After twenty-five years the remaining balance, if any, will be cancelled but tax to be paid on the cancelled balance. (6) Income-Sensitive Repayment—calculated on annual income for a period of ten years. If income increases or decreases, so does the payment.
Students should always use the Federal college loans option first, as it offers more attractive terms. But, again, a note of caution—be careful! Remember, you have to pay back the loan taken, eventually.

Need Based College Student Loans – prove you need it and it could be yours.

Federal Perkins Loan: These are the best loans for college students since interest rates are quite low. However, they also have the most stringent income qualifications.

Federal Stafford College Student Loan (Subsidized): These Stafford College Student loans are ideal since interest rates are low, (they vary each year but cannot exceed 8.25 percent). In addition, interest does not begin to accrue until six months after you leave school (as a graduate or otherwise) since the government basically waives the interest bill on your behalf. You may borrow between $3,500 to $8,500 per year, depending on your grade level.

State Loans: State-sponsored college student loans and their terms vary. Research your home state’s offerings, and if you plan on attending college in another state, you may qualify to apply there as well.

Non Need Based College Student Loans: Extra cash help for anyone who needs or wants it.

Federal Stafford College Student Loan (Unsubsidized): Similar to the subsidized, except interest begins to accrue as soon as the college student loan is disbursed – and Uncle Sam will not help you. However, students can choose to make interest payments during college or defer them until six months after they leave school. The maximum amount that can be borrowed is $3,500 to $20,500 (less any subsidized amounts received for the same period), depending on grade level and dependency status.

PLUS Loan (Parent College Student Loans for Undergraduate Students): Parents can borrow up to the annual total cost of attendance. New rates are set each July but cannot exceed nine percent. Repayment generally begins 60 days after the loan is disbursed.

Find more information about Stafford, PLUS and Perkins loans at the Department of Education’s website.

Private College Student Loans: Organizations and banking institutions offer private college student loans. These are often used to bridge the gap, provide a cushion for living expenses, etc. Rates, repayment plans, and borrowing limits vary, so be sure to do your homework and read all the fine print.

So, whether you are seeking college student loan information for yourself, your child or for your college student, you can find tools and information about grants, college student loans and scholarships very easily on the internet. Use the resources at your fingertips and have fun. The financial aid office of your chosen school is also an excellent source to utilize.

Unlike federal loans, whose interest rates are capped by law, private student loans—offered through banks, credit unions, and other lenders—typically charge variable rates tied to credit scores. Students taking out these loans could see their rates rise by half a percentage point to a full point.

Why are private loans feeling the pinch? Like mortgages, some private student loans are bundled and sold on a secondary market, where they are used to fund new loans. However, skittish buyers are not biting, and some lenders are having a hard time raising enough cash to keep making loans. Unlike with federally backed loans, no one is serving as the backstop for defaults, so investors are worried that these bundles of loans will not turn out to be safe. Meanwhile, lenders are also coping with a new law that limits federal subsidies on government-backed student loans. As a result, some lenders have scaled back on the types of private student loans they offer. Others have taken action that is more dramatic by stopping private student loans all together.

Growth spurt. Private student loans are the fastest growing segment of the student loan finance market. In 2005-06, students took out $17.3 billion in private student loans, compared with only $1.3 billion a decade earlier, according to the College Board.

Aside from raising interest rates, lenders of private student loans are toughening their standards. The nation’s largest private student lender, Sallie Mae, recently announced that it is no longer providing private student loans to students whose credit ratings are below prime. Lenders are likely to require a credit score of at least 650 to secure a private student loan, up from a previous requirement of 620. Students with no credit history will also run into roadblocks. A 20-year-old with no credit and no cosigner is going to find that rates will be quite a bit higher.

But do not lose heart. Were there is a will there is a way. Your education is a very important part of your career for the future. There are many different options that will work for you. First of all, do not forget about the federal student loan programs. Check them out first and get all you are available to receive. Only use a private student loan if you have too.

If you decide you do need to apply for a private student loan. Talk with your parents or grandparents. With their good credit history your troubles will be few. Keep in mind you are working off of someone else’s good credit, so you must be mature about how you handle it.

Your in college so it is time to step up to the plate and act like an adult. Go get em!

Private financial institutions (banks, credit cooperatives and loan and savings companies) lend money to families in co-operation with the federal government, thus offering low interest rates. The cost of such loans is affordable for students and their families, and under certain economic and family circumstances the government may even pay for some of the loan’s interest while the student is still studying (subsidized loan).

The federal government applies an initial charge of 3 %, and the financial institution granting the loan can charge a maximum 1 %. Both charges are automatically deducted from the loan. Students therefore receive the granted sum minus these charges.

A Stafford Federal Loan is a low interest and long term loan (normally lasts for 10 years) with many benefits to the student. Interest may vary but there is a limit to how much it can grow 8.75 %. Interest is reviewed on July 1st every year, and it is guaranteed by the federal government through the education department.

A Stafford Federal Loan is the most popular and widespread loan type among students because the repayment conditions are quite flexible. Sometimes the student can just pay a monthly minimum of USD 50.00, or they can choose a gradual installment increase.

Stafford loans options:

1. Stafford Federal Loan Subsidized
• Government pays for the entire loan interest while the student is still studying.
• Students do not repay interest until six months after they finished or left university.
• You need to prove your economic need to obtain this kind of subsidy. You also need to have applied for a Pell grant beforehand, and you must be either an American citizen or a foreigner with a permanent residence permit.

2. Stafford Federal Loan Non-subsidized

• Students pay for the loan’s interest while they are studying. You can choose whether or not to defer interest repayment while studying.
• If interest repayment is deferred, when you finish university you must repay the whole accumulated interest plus the pending capital, according to the conditions agreed when the loan was granted.

Parents can apply for a Federal Plus Loan covering the entire expense (tuition, administrative fees, books and material, accommodation and meals, transportation) for their son or daughter’s first university study. Any other government financial aid will be discounted from the sum granted. This is a federal government-guaranteed loan and it helps parents to cover their children’s studies with a low interest rate. There is no need to prove a situation of economic need, but the university selected may ask the student to apply for a federal loan in order to accept the student enrolment admission in the university. Parents need a good credit history and it will be checked that they have not unfulfilled repayment of other loans the past.

Interest rates and charges:

• Interest rates are variable but they cannot reach over 9 %. Rates are reviewed on July 1st every year.
• The federal government will apply an initial charge of 3 % and the lender granting the loan may charge up to 1 %.
• Both charges will be automatically deducted from the sum actually transferred to the borrower.

Repayment:

• You start repaying 60 days after the loan has been obtained. Paid interests may qualify for tax benefits.
• Usually people choose a fixed monthly installment, the minimum being USD 50.00.
• Loans can be issued by financial institutions or directly by the government (direct loan program).

Nursing student loans for the Title IV Student Financial Assistance program is administered by the U.S. Department of Education, which are grant and loan programs available to nursing students who qualify under federal guidelines; see archived Title IV Reauthorization changes and info here. Veterans and other eligible persons can use VA Educational benefits for attendance in the Medical Assistant or Psychiatric Assistant programs. In addition, a number of federal, state and local organizations offer a variety of financial help in the form of tuition assistance, scholarships, daycare assistance, transportation assistance, etc.

FEDERAL ASSISTANCE PROGRAMS

The Federal Pell Grant is an award to eligible nursing students that do not have to be repaid. The Federal Supplemental Educational Opportunity Grant (FSEOG) is additional grant awards made available to nursing students with the greatest need level, with priority given to Pell grant recipients. Federal Stafford Loans are low-interest loans available to eligible nursing students who borrow funds for educational expenses from a bank or other lending institution. Repayment on federal nursing school loans begins six months after the borrower’s last date of attendance as at least a half-time student. For all federal programs, the nursing student must apply to the U.S. Department of Education on their application form.

OTHER ASSISTANCE

There are a number of programs funded by various federal, state and local agencies, which generally consist of tuition assistance or scholarships. Nursing students who think they may be eligible for these programs should contact the agencies directly to apply for such assistance. In all cases, college admissions standards will be observed. Since not everyone will qualify for outside assistance, or the aid available will not cover the entire program cost, most colleges offer a number of institutional financing plans, including nursing loans, interest-free installments or low-interest payment arrangements to help pay the remaining expenses.

COLLEGE FINANCIAL AID OFFICE

The Financial Aid Office at your chosen college can determine which programs each applicant may qualify for and how much assistance is available. Since the application process can appear to be a complicated maze to the average individual, the professional FA staff at your chosen college will assist each applicant through the entire process. Each prospective nursing student will have a confidential interview for this purpose, and to answer any questions they may have concerning their eligibility. During this interview, individualized financing arrangements will be made that meets their specific needs.

So, do not be discouraged due to all the options out there. First, choose a college. Go to there financial aid office and let them walk you through all the options you qualify for. They are there to help you in your new life adventure. Let them do there job. They will help you obtain the best nursing student loan available.

Before you can even be considered or eligible for any type of college loan, you have to first fill out the Free Application for Federal Student Aid or FAFSA form. This form is essentially the first piece of information that is needed during the student loan borrowing process. If you go to your college’s financial aid office, they should be able to provide you with the FAFSA form and answer any questions you may have about filling it out. You can also obtain it online and submit all of your information through the Internet, which is a significantly quicker way to get through the process.

After you have submitted your FAFSA and it has been processed, you will then receive a SAR, or Student Aid Report. The purpose of this report is to show the amount of money you or your family is eligible for as well as the approximate amount of funds that will be contributed towards the cost of your tuition. Qualifying for grants or other types of private funding is generally determined by your school or university. Once you know what you are or are not eligible for, you can determine how much you will need to borrow from loan lenders.

Types of Student Loans You Can Consider

College loans can be broken down into four different groups. These include:

• Student loans (Stafford and Perkins) 1-800-4-fedaid
• Loans for parents (PLUS) 1-800-4-fedaid
• Private student loans
• Consolidation loans

If you are wondering which loan would work best for you, then you have to assess your individual situation in order to determine the right choice. The Stafford and Perkins loans are two popular student loans that most college students find easy to qualify for. Both these loans are available to undergraduate and graduate students who are attending college on a full or part-time basis. An added benefit to these loans is that you don’t have to have an established credit history (which most young students tend to lack) in order to be eligible. As a struggling student, you will probably also appreciate the low interest rates that the Perkins loan offers. The subsidized rates that the Stafford loan offers can also be beneficial for you.

If you are not able to obtain any grants or scholarships, do not get discouraged because a parent may still be able to apply for the Parent Loan for Undergraduate Students or PLUS loan. What this loan essentially does is allow a parent to borrow the funds necessary to finance their child’s college education. However, there are a couple important points to keep in mind with a PLUS loan. Repayment of the loans starts only 60 days after taking it out and the interest rates attached are not subsidized.

Another option you also have is the Sallie Mae student loan. If you are not familiar, Sallie Mae is a financial institution that oversees Federal student loans. Sallie Mae is known for offering students a combination of college loan options that can meet their needs all in one place. Student loan consolidation is also worth considering as it allows you to lump all of your loans into one single payment and also helps to eliminate higher interest rates.

Getting a college education is extremely important, however more often than not many people have to side step it due to financial constraints. Remember that the loans mentioned above are truly meant for aspiring students, who want to make something more of themselves by attending an institute of higher learning. As the saying goes, “a mind is a terrible thing to waste,” and you do not have to anymore!

Your first step should include establishing what type of income you have. If you are working your way through college, you may have limited income once you pay for tuition or any kind of student financial aid loans. Perhaps your parents are helping you pay for college and supplying you with a monthly allowance. After making a list of your incoming money, tally it up and see what you have to work with.

After you find out how much you have coming in, you need to figure out how much is going out. Some traditional methods involve carrying a mini spiral notebook and logging in your expenses. If you use this method, you may want to make categories to help you stay organized. You will want to keep track of your expenses for about a month, which allows you to really see what you are buying. This will also give you a great idea on those expenses that really are not necessary.

After you have kept your log for about month, you can begin establishing a budget. Start by making a list of the things you have to spend money on, such as:

• Rent
• Utilities
• Books
• Student Financial Aid
• Food

The items shown above are usually set in stone. You probably will not be able to talk the electric company into giving you a better deal. However, other expenses are more flexible.

These expenses include eating out at restaurants, going to clubs and going to movie theatres. When you are establishing your budget, you will want to make sure that you will be able to pay for the necessities. If things are tight, you will have to make concessions on the other expenses. The movie is not a necessity nor is that Grande coffee from Star Bucks. Try a very handy budget calculator from ed.gov

After you have established what monies are coming in and what monies have to go out, you will have a budget. My belief is this is the easy part. It is very easy to have it on paper knowing were you money needs to go, but there are times when emergencies or unplanned expenses have to take presidents.

What do you do when this happens? First of all, be aware this can and probably will happen. You have to have an emergency plan. You can have a low balance student credit card that you only use for emergencies. Give it to a parent or a very trust worthy friend that can hang onto it until such emergency comes up.

Another option is to take a small amount of money out of each month’s income. Stick it away or, once again give it to a family member for safekeeping. You would be surprised at how fast the money piles up.

These above ideas are only suggestions. Please feel free to try them or put your own spin on it. What every works for you to make your situation work. Your are studying hard you do not need to worry about your finances as well. Make it easy for your self and plan ahead.

If you do not repay your student loans on time or according to the terms of your promissory note, you might go into default, which will affect your credit rating. There is assistance for borrowers having difficulty repaying their education loans, including deferment and forbearance.

If you are a teacher serving in a low-income or subject matter shortage area, it may be possible for you to cancel or defer your student loans. 

There is a new loan forgiveness program for public service employees. Under this program, the amount forgiven is the remaining outstanding balance of principal and accrued interest on an eligible Direct Student Loan for a borrower who is not in default and who makes 120 monthly payments on the loan after October 1, 2007. The borrower must be employed full-time in a public service job during the same period in which the qualifying payments are made and at the time that the cancellation is granted.

A Consolidation Loan allows you to combine all the federal student loans you received to finance your college education into a single loan. 

If you default, it means you failed to make payments on your student loan according to the terms of your promissory note.  The legal document you signed is binding at the time you took out your loan. In other words, you failed to make your loan payments as scheduled. Your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government all can take action to recover the money you owe. I have outlined some consequences of default:

1. National credit bureaus will be notified of your default, which will harm your credit rating severely, making it hard to buy a car or a house.
2. You would be ineligible for additional federal student aid if you decided to return to school.
3. Loan payments can be garnished from your paycheck.
4. State and federal income tax refunds can be withheld and applied toward the amount you owe.
5. You will have to pay late fees and collection costs on top of what you already owe which only increased your debt and burden.
6. You can be sued. 

You obviously do not want to let your direct student loan go into default. However, should this happen, find out what options are available. Click on this link to a Federal aid site http://www.ed.gov/offices/OSFAP/DCS/ to find comprehensive information developed by the Department’s FSA Collections section. Clicking on various tabs within that publication will give you information about how to remove your loan from default, what to do if you have a dispute about your loan’s default status, and how to get answers to questions you might have.

For further information on a default or any kind of forgiveness of a student loan, go online and do so checking.  You will find credible information that can help you in a very bad situation.