Student Loans & Financial Aid info

Many college students have to rely on federal government college student loans to finance their educations. These college student loans have lower interest rates and do not require any credit checks or collateral. College student loans can also provide a variety of deferment options and extended repayment options as well. College student loans do include the Federal Stafford and Federal Perkins College Student Loans.

A Perkins College Student Loan can be awarded to undergraduate and graduate college students with extreme financial assistance needs. This kind of student loan is a campus based college student loan program, as the school is acting as the financial lender using a limited pool of funds usually provided by the federal government. The Perkins College Student Loan is the best college student loan available. It is a subsidized college student loan, as the interest will be paid by the federal government as long as you are enrolled in school allowing a nine month grace period after you have graduated. A Perkins College Student Loan has no origination or default fees, and the interest rate is locked at 5%. Your repayment period is 10 years.

The awarded amount of Perkins College Student Loan you receive will be determined by your school’s financial assistance office. The program will limit you to a $4,000 per year for undergraduate college students and $6,000 per year for graduate college students, with cumulative limits of $20,000 for undergraduate college student loans and $40,000 for undergraduate and graduate college student loans combined.

A Perkins College Student Loan will also offer you a better cancellation provision than a Stafford or PLUS college student loans.

If you find your borrowing needs are still not being met by the federal financial aid college student loan programs, many lenders and financial institutions can offer a multitude of supplemental borrowing programs known as Private or Alternative College Student Loans.

Parents of undergraduate college students can borrow parent loans such as the PLUS College Student Loan to pay for their child’s education. A new program that started on July 1, 2006, graduate and professional college students will also be able to borrow money through the PLUS College Student Loan program to pay for their own education.

A Stafford College Student Loan has a fixed interest rate of 6.8% for college student loans with a first disbursement date after July 1, 2006. (Previously, Stafford College Student Loans had variable interest rates (based on 91-day T-bill rate + 1.7% during school with an additional 0.6% increase upon graduation) capped at 8.25% or less, depending on your yearly adjustments.) All lenders and financial institutions offer the same rate for the Stafford College Student Loan, although some do give discounts for on time and electronic payment from your personal checking account.

The College Cost Reduction and Access Act of 2007 has reduced the interest rates on subsidized Stafford college student loans for undergraduate college students starting July 1, 2008. These reductions are also available only to undergraduate college students, not to graduate college students, and only for subsidized Stafford college student loans, not unsubsidized Stafford college student loans.

It is time to start saving your pennies and applying for those needed grants and student loans. This is the time to start planning for your future. You may want to look through some of the below tips when you start looking for financing options. Even if you do not think you are eligible, you still may get some financial aid!

You need to start thinking about applying for federal financial aid and private scholarships as early as you can. Most federal financial aid programs are on a first come, first serve basis and it is best to be prepared so you will get your forms in first.

Sometimes families that may earn $50,000 - $100,000 per year believe they will not be eligible for any federal financial aid because they believe they have made too much money. The truth is, you may still be eligible for something, so it is definitely worth your time to apply. In addition, the FAFSA will generally be required for state financial aid programs and others, so you still want to make sure you fill it out.

Most federal financial aid programs will be paid out on a first come first serve basis, so as soon as the new FAFSA forms become available at you need to send them in. If you wait past January, you may not get the maximum amount of money you might have been eligible for.

It does sounds like common sense, but some people get so excited about the first year of financial aid that they will receive from their school, and they forget to think about the remaining other years! Colleges can entice you to a school with a large first year financial aid package, but you still need to make sure to inquire about the second, third and fourth years. Will it be the same payout, and will they have the same eligibility requirements? Make sure you ask, and start planning for every year in school.

In addition to filling out the free FAFSA application for federal financial aid, make sure you look into the other programs being offered within your state. Most state programs will require the FAFSA to be filled out first. Additional funding will be set aside by the states for financial aid programs though, so you really want to make sure you have applied to everything you can.

When applying for colleges, do not just look at their course offerings, take the time to also see what kind of financial aid programs they offer. Many schools have their own need based aid programs and it can help you make a decision when choosing where to apply.

Make no mistake, colleges want you! Therefore, it is best to apply to more than one college. If you have received financial aid packages from more than one school, you might be able to negotiate a better package from them if they realize you are considering another similar school.

One of the top reasons college students do not receive their financial aid package they did not fill out there FAFSA forms accurately or something was incomplete. Make sure you take the time to feel all the forms out completely and accurately. Do not leave blank spaces, do not use white out, and double check all your information. This will ensure that your form is processed quickly.

We are all seeing that the cost of higher education is continuing to increase. After you have taking advantage of a Federal college student loan, you may still discover you have significant unmet college expenses you need to cover to pay for your higher college education.

Private college student loans can be a great option to help you fill the gap between what federal assistance, state and school assistance will provide and what you actually need in order to afford a higher education. Private college student loans (sometimes called alternative college student loans) are credit based consumer loans to be used specifically for paying for your higher educational expenses.

Private college student loans, like auto or home mortgage loans, are based on your credit worthiness. Most college students will need a credit worthy co-signer such as a parent or other relative (or even a friend) in order to obtain a private college student loan. Terms and conditions pertaining to these types of student loans can vary greatly, depending on the financial institution you are using. Doing an internet search will quickly and easily help you compare your private college student loan options so you can get the loan that best suits your financial obligations and needs.

When considering a private college student loan you should carefully consider some factors such as interest rate, APR, length or repayment, loan minimum and maximum as well as fees. The internet can make this complicated research easy for everyone to understand by allowing you to compare many of your options side-by-side and on equal terms.

One feature of many private college student loans is the ability to completely postpone, or defer, repayment until you have graduated from college. In addition, private college student loans will almost always offer a lower interest rates than any credit card would be able too.

While students and families are, encourage to pursue federal financial aid assistance before considering a private college student loan, there are many college students and family situations where a private college student loan is viewed as a preferred alternative. Sometimes parents want their college student to be responsible for his or her education. In other cases, the simple convenience of needing no Federal financial aid forms to get needed funds is also a big consideration. Whatever your financial situation may be, know that a private college student loan can often be an attractive and affordable option to help pay your higher education expenses.

It is important to remember, borrow only what you need and compare your options before you do borrow. When comparing your options loot at the interest rate, the terms, any fees associated with the loan, and of course your repayment options. You may find that a slightly higher interest rate and no fees will actually cost you less money in the long run. Do not sign on the dotted line until you have made these comparisons. We are talking about something that will affect you for many years in the future. So make the right decisions and use that education to your advantage.

Welcome to the life of higher education. You studied real hard. You have passed your classes. The hard part is behind you, and now you are on your way to your dream university. Just one big problem, do you know how you will pay for it all. I can help you.

There are many places on the internet that will give you a complete guide to college planning as well as federal financial aid assistance as well as much information on private student loans. You can discover the facts about Stafford and Perkins college student loans as well as private college student loans. You can also find sites on college planning as well as advice on passing entrance exams, selecting a school and federal financial aid assistance and scholarship information.

With the readability of federal financial aid student loans in the form of low interest student loans, scholarships, and grants, college applicants no longer need to feel the familiar anxiety about funding there higher education. Surveys confirm that more than 70% of college students will rely on some type of financial aid assistance, with the majority focusing on federal financial college student loans.

• Stafford college student loans are the most popular kind of student loans and are federally guaranteed college student loans that allow college students to borrow funds from lenders.

• The federal Perkins college student loan is another federal student loan option very similar to the Stafford college student loan, but will contain no upfront fee for taking out the student loan as well as providing a longer grace period.

College students who fail to qualify for a federal college student loan or who need to borrow more to cover their college education costs and expenses can turn to a private college student loan. Among the usual private college student loans, meeting the eligibility criteria are:

1) Enrolled at least part time and working towards a degree at an approved college or university and
2) being credit worthy. Private college student loans can provide a 15-year repayment term as well as numerous repayment and other deferment options.

Not sure, what type of student college student loan will be best for you? Both federal and private college student loans have their pros and cons. Compare every kind of college student loan and check to see which one will save you the most money and best serve your financial situation!

I encourage you to learn the basic college planning knowledge every incoming college student needs to know. By doing your research you can discover what colleges really look for in preparation for college as well as the secrets of taking college entrance exams. Learn tips on how to select your perfect college or university and the scholarships and grants that could help finance your future!

By doing some of the research you can discover all of these very important things to make your college education that much better. Along with the education, how you pay for it as well as what college you chose to attend all go hand in hand.

I want to start by taking a moment to define what financial aid assistance is and is not. Your college or university and Uncle Sam will generally define financial aid assistance as any assistance that is not coming from your own pocket. This includes college student loans. Most financial aid has not come from entitlement programs such as the Pell Grant. Therefore, keeping in mind that outside of the Pell Grant program no college student is owed anything. Everyone has to apply on his or her own and be judged accordingly. This probably sounds a little harsh, but it is not. Every year our government, colleges, and universities are tasked with the huge responsibility of identifying the most needy and most deserving college students out of the hundreds of thousands that have apply. It is by no means a perfect science, but their primary intent is to open doors and not to close them.

In addition, once those doors have been opened, what will you find on the other side? I hope that you will find the resources that will allow you the best investment you will ever make: your college education. All financial aid assistance resources are grouped into two categories: gift aid and self help aid.

Gift aid is defined as financial aid assistance that you will not have to pay back. Typically, this will encompass grants and scholarships. Self help aid is assistance that will require you to do something; either work for the help or pay it back. College work-study programs and all college student loans fall into this category. We can look at these individually.

The federal Pell Grant program is the backbone of all federal aid assistance programs. Once a college student has completed their FAFSA, the first thing a school will determine is if there are Pell Grant eligible. The information a college student and their family provide on the FAFSA will be used to calculate the Expected Family Contribution (EFC). The EFC determines whether the college student is eligible for the Pell Grant. Recipients of Pell Grants must be undergraduate students who have not yet earned their first bachelor’s degree. Completing the free online FAFSA is the only way a college student can apply for a Pell Grant.

Federal Supplemental Educational Opportunity Grant (FSEOG). These grant dollars have been reserved for those Pell Grant recipients who demonstrate the most financial aid need as determined by the FAFSA. FSEOG money is funded by the federal government but will be administered by the local college. SEOG awards will vary by institution depending on availability of money. Award amounts can be from $100 to $4,000.

Institutional and State Grants. Most states will offer grant programs for their residents, however, eligibility and availability of monies available will vary. Additionally, many colleges will make available institutional grant monies that come from endowment sources or other private donation sources. This is typically, what you would find at a private college. A school’s admission brochure or web site will be the best place to locate additional information.

Scholarships. Scholarships are not only for a valedictorians or star athletes, but also for regular students with many kinds of unique qualifications. They will typically fall into two categories: need-based or merit-based.

Need-based scholarships generally determined by a student’s EFC. Outside of the college or university, many scholarship foundations will require your school to provide them with your EFC or at least answer some general questions about your family’s financial situation. Eligibility requirements will vary quite a bit among colleges, universities and foundations looking at need as the primary selection criterion.

Merit-based scholarships are generally based on a student’s talents or academic achievements. However, other things like there leadership ability, moral character and involvement in extracurricular activities will also warrant scholarship accessibility. Merit-based scholarships will often be based on SAT or ACT test scores.

There are literally thousands of available scholarships for all types of college students. A student’s extracurricular activities, area of study, where there live or musical talents are all examples of different criterion used to select scholarship recipients. Do not get locked into the idea that there is nothing out there for you to apply for. With some determination, any college student can uncover a pot of gold in the form of a scholarship.

Are you dismayed by your inadequate federal financial aid assistance package? Are you struggling to find a way to pay for your higher education? A private student loan can give you all the funds you are going to need in the next couple of years.

If you are anything like most people, you probably think that the federal financial aid assistance is the only option out there to help you cover your cost of higher education. Unfortunately, for many, though, federal financial aid assistance is insufficient to cover all higher educational expenses. Do not loose heart; there is a way to cover the expenses that your federal aid assistance cannot. Private student loans can help you pay for college, and will usually have better interest rates than other forms of credit such as credit cards.

There are many benefits to a private student loan. They are meant for people who have used up all other sources of financial aid assistance and still need more funds to pay for their higher education. Private student loans are credit based unsecured student loans that will help you cover the costs of tuition, room and board, fees, supplies, transportation, computers, and any other educational related expense. Private student loans will pick up the extra charges and fees that a federal college student loan and other sources fall short. With a private student loan, you can usually borrow up to the full cost of your expenses or $40,000 yearly or whichever is less.

Getting a private student loan is an easy, fast, and secure process. In fact, the entire process can usually be completed online. You simply fill out the online quick application from the financial institution or bank you have chosen to begin the process. Once you give them your preliminary information, you will usually be contacted within the hour or two, (they want your business) by a student loan advisor or loan representatives. Usually you will even have the convenience of being able to check your private student loan status online! Most financial institutions or banks will streamlined the process to make it as painless as possible for you and all involved.

• Quick, easy application with initial approval in as little as 15 min
• You can borrow up to the full cost of your higher educational cost
• May not have any application fee (each financial institution will be different)
• You will usually make no payments until graduation (as long as you stay at least a half time student)
• Money will go directly to you, not to the school
• No deadlines on the application
• You may be able to qualify with or without a cosigner
• Private student loans and there interest could be tax deductible

Now that you see how very easy it is to apply for a private student loan, what are you waiting for? Get out there and do your homework. When offered a loan, make sure you read ALL the small print and ask all the questions to make you understand what you are signing for. This will affect you into the future so be smart, but have fun.

Becoming a college student is an unparalleled investment, both personally and financially. However, like all investments, it requires your time, commitment and more importantly money. Over the last twenty years, the cost of attending a four year college or university in the United States has increased greatly. It is not an uncommon occurrence for instate college students attending public college or university to pay $6,000 to $10,000 dollars per academic year for tuition only. Out of state college, students can expect to pay $12,000 to $15,000 on average. In addition, students enrolling at private colleges or universities can expect to pay anywhere from $20,000 to as high as $35,000 per year for attendance!

There are a number of federal college student loans available for you to choose from! Because of the high cost of college, knowing your options is key. But fortunately, college students have many options available to them that can help cover the cost of tuition, books, and living expenses. If you are committed to improving your life through a higher educational experience, there are many ways to help you get the funding you need for your higher education. Applying for a federal college student loan is a great way to start the process of financing your college experience now.

For undergraduates, federal Stafford college student loans are among one of the most popular. Additionally, federal PLUS college student loans allow parents to help support their children through there college education. While Stafford college student loans are limited and based on a financial aid need, federal PLUS college student loans are not dependent upon financial aid need and will allow parents to take out college student loans covering the full cost of their college student’s tuition. There are even federal college student loans available for graduate students.

Federal college student loans are government secured. Government Secured Federal college student loans are some of the most competitive educational college student loans on the market. This is because all federal college student loans are backed by the government, allowing creditors to lend college money to prospective college students at premium low interest rates. Most secured loans will require applicants to offer their homes as collateral in order to capitalize on the low interest rates. Nevertheless, because federal college student loans are secured by the government, anyone can profit from a low interest college student loan. My goal is to get you familiar with this process. Then you will be ready to make a college student loans work for you.

Federal Stafford college student loans offer students access to federally financed educational student loans at premium interest rates. If you successfully apply for a federal Stafford college student loan, you can expect a low interest rate of 6.0% and an option of making no payments while you are still attending classes full time. You should also check out PLUS college student loans.

There are no prepayment penalties or any guarantee fees. Additionally, students who take out a federal Stafford college student loan are eligible for federal student loan consolidation, possible tax deductions, and flexible repayment options. Are you worried about bad credit? Do not be! Because the federal government backs your federal Stafford college student loan as a secured educational student loan, you do not have to worry about credit history or providing collateral.

Federal Stafford college student loans are available to U.S. citizens as well as eligible non-citizens who are attending college in the U.S. at an undergraduate level. All you have to do is fill out a free FAFSA in conjunction with your universities financial aid office.

In the heat of summer, parents and new to be college students sweat over the cost of college and how they will pay for it. The best approach is to sweat it out just a bit more by doing all the homework and knowing the real cost of college. You need to know where to look for free and cheap money, and determine whether and how to make use of private student loans for college.

Parents and students who are currently in the process of assembling a plan to pay for college will do themselves a major favor by doing much leg work, research, and shopping around when it comes to calculating whether to borrow, how much to borrow, and from whom to borrow. Cutting corners such as accepting a financial aid package without investigating it and over borrowing can cause parents and students serious money problems down the line.

According to a survey of 1,000 parents with children soon to be in college or already in college, 69% of parents believe that their children will have to borrow to pay for it. Yet 57% of parents with children soon to go to college say they have no ideas which student loans should be applied for first, and similar percentages say they do not understand the range of interest rates on college student loans and the many different repayment options.

There are many misconceptions and disconnects when it comes to paying for college, and they can be very costly. Parents and students, especially in this squeezed economy, need to make the effort to understand the terrain and what it takes to make some smart financial decision. Do not just take the first financial aid package that is offered.

Sit down and do the math to learn the true total cost of an education. This would be everything over and above the tuition and fees. Taking into account the cost of books, transportation, housing and food will help prevent students from getting into a jam that forces rash and expensive borrowing errors.

Know the sequence of funds to tap in order to pay college bills. First, look for free money. This usually means scholarships and grants. You have to apply for them. It is worth the effort. The next step for many families would be borrowing, and the rule of thumb here is to locate and secure the least expensive borrowing options available. Look at all the sources available to you, from federally guaranteed (financial aid) and private student loans to personal and home equity loans. Always exhaust the least expensive loan money before moving on to other sources.

You should never borrow a dollar more than necessary. While it is sometimes tempting to use student loans to have a little extra cash, borrowers will regret that decision when it is time to repay the student loan. The worst thing to do is to say I will just worry about it later. You will have to pay back more than just the amount you borrowed; interest will capitalize on most private student loans so minimizing the borrowed amount is critical in managing what you will repay.

Do not let talks of the credit crunch lead to harmful decisions. Federally guaranteed student loans are available to everyone who qualifies, from a variety of sources. Smart parents and students will first fill out the FAFSA form to qualify for federally guaranteed student loans. If they qualify, it is worthwhile to check the interest rates and discounts of several lenders in order to secure the best financial deal.

Consider a private student loan to fill a cost gap, but shop around for those. Just one percentage point difference in the interest rate is significant when it comes to the amount of debt being accumulated.

Be your own best resource for finding the best deals by shopping around. Take the well-informed shopper you are when it comes to locating the cheapest gas, shopping for the best discounts on groceries or comparing interest rates on car insurance, and put that to work on your private student loans as well. Search beyond the preferred lenders of your college by getting on the Internet, visiting your local bank, or credit unions.

Parents of dependent college students can borrow a PLUS College Student Loan to help pay educational expenses of an undergraduate college student enrolled at least half time in an eligible program at any eligible school. PLUS College Student Loans are available through the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct College Student Loan (Direct Student Loan) Program. An acceptable credit history is required to receive a PLUS college student loan.

While filing the a Free Application for Federal Student Aid (FAFSA) is not really a requirement to receive a PLUS college student loan, most schools do require a FAFSA be filed before they will certify a PLUS college student loan. It is always recommended that families file a FAFSA whether you think you will qualify for federal aid assistance or not.

If the school is a Direct Student Loan school, a parent will need to contact the school directly in order to receive the direct student loan. Funds for Direct Student Loans come directly from the federal government.

If the school is a FFEL school, you will need to obtain your college student loan through a bank or financial lending institution. Your school can provide a list of lenders to help you narrow your choices down. However, you can choose any lender you wish to choose. Do compare your options before you choose a borrower. Many lenders will offer repayment incentives that can lower the cost of a PLUS college student loan.

A parent will typically be required to pass a credit check. However, the credit check is not as demanding as it is for other private loans with which you may be more familiar (e.g., an auto loan or mortgage). If the parent borrower has been denied based on credit, they may still be eligible to get the student loan if they can get someone like a relative to endorse or co-sign the college student loan. The student and parent must also meet other general eligibility requirements for a federal financial aid.

A parent can borrow up to the cost of attendance, which is established by the school, minus other financial aid including other college student loans.

For PLUS College Student Loans disbursed on or after July 1, 2006, the interest rate has been fixed at 7.90 percent. For Direct PLUS College Student Loans as well as the FFEL PLUS Loans, the interest rate is at 8.50 percent.

A fee of up to 4% will be charged to the borrows of a PLUS college student loan. Many lenders will pay this fee on behalf of the borrower, but not all of it. It is most important to carefully review and read the terms of your college student loan when they are presented to you by your lender.

Repayment of a PLUS college student loan begins immediately after the final disbursement of the student loan funds. PLUS college student loans, like all federal college student loans, are disbursed in equal amounts over the course of the academic year. For a school that uses semesters, that would mean two disbursements during the year, one in the beginning of the fall and one in the beginning of the spring. Payment would begin after the spring disbursement has funded.

The standard repayment term would generally be ten years. However, depending on the total amount borrowed the repayment term can be extended up to 25 years. If extenuating circumstances have developed during repayment, a borrower may request forbearance or temporarily stop paying. During a forbearance, the borrower does not have to make any payments, but interest does continue to accrue and will be added to the principal if no payments of interest have been made.

How does one become eligible for federal financial aid?

Federal financial aid is available for those college students who:

• Are U.S. Citizens, U.S. Nationals, permanent residents, refugees, asylees, and other eligible non-citizens
• Have a valid Social Security number
• Are enrolled at least half time
• Are enrolled in an undergraduate or graduate program that leads to a degree or certificate
• If male, are registered with the Selective Service if required
• Are not in default on a current federal college student loan and who do not owe a refund on a federal grant
• Are making satisfactory academic progress
• Demonstrate financial aid need (except for the Unsubsidized Stafford College Student Loan and the Parent College Student Loan for Undergraduate Students PLUS Loan and some scholarship programs

Federal financial aid is not available for the below categories of college students.

The following categories of college students are not eligible for federal financial aid:

• International students who are in the country only temporarily
• Other categories of non-immigrant college students
• College students on Limited or Special Status
• Graduate college students with no degree objective
• An exception is available for college students admitted on a Limited Status who are required to take prerequisite coursework prior to full admission into the Graduate Division. If you fall into this category, you must submit documentation from the Graduate Admissions Office confirming that you are taking prerequisite coursework for graduate admission.
• College students who take classes through University Extension only
• Undergraduate college students who have been enrolled for the equivalent of 18 quarters or longer

College students studying for a second baccalaureate degree will be eligible for one or two years (depending on the terms of their admission) of limited funding from college student loan programs only. College students who have been enrolled for the equivalent of 16 quarters or longer will lose there eligibility for any additional Grants.

College students who do not meet the eligibility criteria above should qualify for alternative or private college student loan programs and even some scholarships. The financial aid office of the college or university you are attending can help you with choosing a private college student lender.

How is your federal financial aid calculated?

About one to three weeks after you have submitted your FAFSA, your college or university will receive your FAFSA application information electronically from the federal processor. It is important that you respond promptly to any requests they may have for supplemental information or documentation. Once your file is complete, your college or university will review all of the information provided to determine your federal financial aid eligibility and the types of financial aid for which you will qualify.

Your eligibility for federal financial aid is the difference between the established college expenses for the academic year and your expected family contribution (EFC). Your EFC is the number used when determining your eligibility to receive federal financial aid funds.

Once your federal financial aid need has been determined, your college or university will offer you a federal financial aid award package. This package can contain grants, student loans, Work-Study, fellowship or even scholarship funds. You will receive notification of your federal financial aid awards by letter and on the internet. Your federal financial aid offer will list the types and amounts of financial aid for which you have qualify.