Student Loans & Financial Aid info

You have a choice of repayment plans if you received a FFEL or a Direct Student Loan. Federal Perkins Loans do not have repayment plan choices.  Generally, you have up to 10 years to repay. Your monthly payment will depend on the size of your debt and the length of your repayment period. Note to parents: Generally, Direct PLUS Loan borrowers can choose all but the Income Contingent Repayment Plan. FFEL PLUS Loan borrowers usually can choose from among all the FFEL repayment plans.  In some cases, you might be able to reduce your interest rate if you sign up for electronic debiting.

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.

The Ins and Outs of Scholarships for Women
By Student Loans.org

Over the last few decades, women have entered the work forces of America in bigger and bigger numbers. Gone are the days when men went to post secondary school, and earned a living for their family, while the women stayed home and kept house.

In today’s world, women play as important a roll in the U.S economy as men. A lot of family’s can no longer afford to live on one income, and women are no longer constrained by archaic social norms.

However, in certain sectors of the economy, women are sadly absent. It’s in these sectors, which include business schools, economics, engineering and other jobs which are still seen as being “manly,” that you will find schools which offer plenty of scholarships for women.

While you can probably find scholarships for women in practically every field of study, a student’s best bet of getting a scholarship for women is in one of these areas of study.

Unlike in bygone years, there are also a lot more scholarships for women to be found in the sporting categories. In the past, most sporting scholarships were given out to male athletes, but there has been quite an increase in sporting scholarships for women in recent years.

The Magic of Minority Scholarships

The rise in Minority’s in the U.S is overwhelming, and many people who first come to the U.S or in some cases are already here, don’t have the financial backing for a post secondary education. Yet, like everyone, they want what’s best for their children, and grandchildren.

It’s important that everyone, including minorities, get a chance at a fair education, which includes everyone, and helps them get the job they want. This is why there are scholarships that are exclusively for the minority segment of the population.

Minority scholarships offer the chance for hard working students to get ahead in life. For some, a minority scholarship is the only way they will be able to go to college or university at all.

In 2003, Universities and colleges were facing litigation and pressure from Washington, because of a ruling by the Supreme Court, that didn’t ban race being used for admissions into higher schooling, but left the law unclear.

This put pressure on minority scholarship funds to allow white people to get money that was previously only available to minority groups. While minority scholarships can still be found that cater to just minorities, there are quite a few minority scholarships that were forced to expand their available pool of minority scholarship money, to allow for non-minorities to get a scholarship too.

Still, you can find a lot of minority scholarship opportunities on the web. A prospective student can find, and apply for, a minority scholarship online. First we advise you start reading all you can about how to locate a college scholarship.

The guidance councillor is another excellent source of information on minority scholarships. It’s their job to be aware of scholarships, including minority scholarships, and they can probably help you find one that will best suit your needs.

Sometimes, businesses will offer minority scholarships as well. Perhaps you’re employed at a place which offers a minority scholarship, and you’re unaware of it. Either that or perhaps your parents work at a place that offers minority scholarships.

Businesses throughout the United States pump millions of dollars into minority scholarships. So does Government, and individuals, so that minorities have a better chance of breaking out of the low income cycle they may find themselves in, and can afford to go to school.

The U.S government, and businesses, by giving out and supporting minority scholarships, are showing that they don’t want to see the significant assets and skills that many people, including minorities, have to offer to the country, and business in general, go to waste.

If you’re in need of quick funds for college, consider one of the many lenders listed on our private student loan lenders page. Best of luck to you all. Please borrow and pay back responsibly.

The U.S. Department of Education administers the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Student Loan) Program. Both the FFEL and Direct Loan programs consist of what are generally known as Stafford Loans (for students) and PLUS Loans (for parents).

Schools generally participate in either the FFEL or Direct Student Loan program but sometimes participate in both. Under the Direct Loan Program, the funds for your loan come directly from the federal government. Funds for your FFEL will come from a bank, credit union, or other lender that participates in the program. Eligibility rules and loan amounts are identical under both programs, but repayment plans differ somewhat. 

For either type of loan, you must fill out a FAFSA. After your FAFSA is processed, your school will review the results and will inform you about your loan eligibility. You also will have to sign a promissory note, a binding legal document that lists the conditions under which you are borrowing and the terms under which you agree to repay your loan.

You will need to choose a lender if you obtain a FFEL Stafford Loan.  Schools that participate in the FFEL Program will usually have a list of preferred lenders. Student loan borrowers may choose a lender from that list, or choose a different lender they prefer (for example, a credit union). Here are a few things to think about when selecting a FFEL lender. 

The amount in which you can borrow depends on your year in school and whether you have a subsidized or unsubsidized Direct Student Loan or FFEL Stafford Loan. A subsidized loan is awarded based on financial need. If you are eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you are in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan-borrowing limit for your level of study.

You might be able to borrow loan funds beyond your subsidized loan amount even if you have not demonstrated financial need. In that case, you would receive an unsubsidized loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you are eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accrue and be capitalized.  Capitalizing the interest will increase the amount you have to repay. 

You can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as you do not exceed the annual loan limits.

If you are a dependent undergraduate student, each year you can borrow up to $3,500 if you are a first-year student enrolled in a program of study that is at least a full academic year.  Alternatively, $4,500 if you have completed your first year of study and the remainder of your program is at least a full academic year.  Alternatively, $5,500 if you have completed two years of study and the remainder of your program is at least a full academic year. 

If you are an independent undergraduate student or a dependent student whose parents have applied for but were unable to get a PLUS Loan, each year you can borrow up to $7,500 if you are a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount may be in subsidized loans.  Alternatively, $8,500 if you have completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount may be in subsidized loans.  Alternatively,   $10,500 if you have completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount may be in subsidized loans.

If you are a graduate or professional degree student, each year you can borrow up to $20,500 for the 2007-08 academic year. No more than $8,500 of this amount may be in subsidized loans. 

When you graduate with a graduate or professional degree, the maximum total debt allowed from Stafford Loans is $138,500. No more than $65,500 of this amount may be in subsidized loans. This maximum total graduate debt limit includes Stafford Loans received for undergraduate study.

These amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized FFELs or Direct Loans, individually or in combination. Because you cannot borrow more than your cost of attendance minus the amount of any Federal Pell Grant you are eligible for and minus any other financial aid you will get, you may receive less than the annual maximum amounts.

Where to Apply for Student LoansStarting college can be a bit overwhelming to say the least.  Applying for student loans can add to the stress.  It is important to know where to go to apply for student loan.  There are many types of student loans out there for students to choose from so you want to be sure that you go with the loan that meet your specific needs.  Some students need the student loans that will just help them pay for college expenses such as tuition and books where other students need the college funding that will help them with living expenses as well, which are commonly known as private student loans.  
One of the first places that you should check with would be the financial aid office of your college of choice.  They can advise you on the top student loans and where and how to apply to each of them.  You will find that when you are applying to federal student loans or government student loans, you can apply by simply filling out just one application.
There are also private lenders that offer personal student loans to students as well as parents for their child’s education.  You can look into such places as banks and credit unions for loans and what options that they can provide to you.  There are plenty of places to look into right in your own neighborhood.  Many company’s (possibly where your parents work) offer programs offering student loans for the employees children as part of their benefits package so you may want to have your parents look into this.
The Internet can provide a wealth of information where student loans are concerned.  You can compare many student loans on one website, with just a simple click of the mouse.  Many of these sites will also calculate what your possible monthly payments would be on your student loans.  These calculators are very handy when you are trying to plan your budget and to see where you may need additional help to help with your college education.  Be sure to check into each of the student loan lenders that you are considering that are online.  You want to be sure that you are getting the best of the student loans that you can get and you do not want to be stuck into one of the high interest rate loans.  Be sure to read the fine print on the application so you know exactly what you are getting yourself into. And something of the utmost importance: Involve your parents. 

Need help paying for college? Here is a little information on available financing.

When it comes to big-ticket items, you have to pay for in your lifetime, it does not get much bigger than higher education. Indeed, predictions are that college tuition will increase by about twice the rate of general inflation, year over year. This would mean, in 20 years, the average annual cost of tuition for a four-year public program would rise from today’s $5,132 to $19,859 and the cost of a private program from $20,082 to $77,711. 

Nevertheless, help is at hand. For want to be college students (and their parents) who could benefit from a financial leg up in this department, here is a primer on what is available.

What types of aid are available?  The ideal sources of funding for your child’s education are scholarships and grants that do not require repayment. Even those lucky enough to qualify rarely receive enough to foot the whole bill. Fortunately, there are several types of student loans. They are distinguished by various factors, including their rates of interest, repayment terms, and maximum available amounts and whether the onus of repayment falls on the student or his or her parents. 

Some principal sources of student financial aid are:

·        Federally funded student loans

·        Parent loans

·        Private loans

·        Other loans

·        State aid

·        Institutional assistance

First, let us talk about a Federal student loans.  The U.S. Department of Education’s Federal Student Aid (FSA) programs provide nearly 70 percent of all financial aid for American students. FSA is available to students — both undergraduate and graduate — enrolled in eligible programs at participating schools. In most cases, they are granted based on a student’s need. 

Stafford loans are long-term, low-interest loans regulated by the federal government. They are given to students (rather than to their parents) and must be repaid with interest following the completion of their education term.

How much can one obtain from a federal student loan?  A student’s financial need is calculated based on his or her expected family contribution (EFC), academic level and the anticipated cost of his or her education (including tuition, room and board, and books). Worksheets that show how the EFC is calculated are available at www.studentaid.ed.gov/pubs, or you can request a free copy of the EFC Formula by calling 1-800-4ED-PUBS, and asking for the Federal Student Aid Handbook. 

When would you need to pay your student loan back?  Students are required to begin paying off their Stafford loan debt six months after they graduate, or after their enrollment drops to less than half time.

 Keep your government student loan simple, that could be your motto during the process of applying for federal government student loan. The easiest way for you to do this is to be sure you have all of your pertinent information ready to go onto a government loan form at a moments notice. The documents you need to get approved for a government student loan are numerous, so start planning now.
But what all do you actually need for your government student loan? First of all you need the basics for your government student loan application, such as your social security number, your birth certificate and your drivers license number (if you have one).
The next things you need to gather to be able to apply for a government student loan is anything that has to do with the money you make. This will include your w2 forms and all other earnings statements you can track down. These all can affect your government student loan application.
If you were to wait until after you applied for the student loan to get this all together the chances of getting approved for any government loan goes way down. Organization really is key to getting the government student loan that you need.
You also don’t want to wait until the last minute to apply for the government student loan. There are often time limits to a government student loan as well as a limit to the amount of money that any government student loan can give out. The sooner you apply the better your chances of getting the government student loan. Start planning early, well before you actually graduate from high school, this will mean you never miss a deadline when it comes to the government student loan application.
It is your responsibility to check out the different deadlines that each school has when it comes to most all student loan types, aside from private. They are always different and if you miss getting your government student loan application in on time then you will be out of luck. This government student loan is going to affect the rest of your life, so take this seriously and be organized. Start planning early and have all of the forms and documents you need ready to go, this will make applying for a government student loan simple and easy.

There are several different options available for students in terms of student loans; however, the following are the 10 Best Student Loan Options:

 Subsidized Stafford Loan

• Unsubsidized Stafford Loan
• Federal Perkins Loan
• Federal PLUS loan for parents
• Direct PLUS loans
• Federal consolidation loan
• Federal Nursing Loan
• Federal Insured Student Loan
• Health Professions Student Loans
• Private student loans

 Let us take a closer look at more information regarding the 10 best student loan options that anyone considering college student loans should consider:

 1.      The Subsidized Stafford Loan is available for both graduate and undergraduate study. While the student is in school, the federal government pays the interest on the loan. This loan is need based, so not all applicants may qualify.

2.      The Unsubsidized Stafford Loan is also available for graduate and undergraduate study. Unlike the Subsidized Stafford Loan, with this loan the student is responsible for the interest that is accrued on the loan while they are in school. This is not a needs based loan, so students may be eligible for the loan even if they do not show a financial need for the loan.

3.      The Federal Perkins loan is a type of student loan that is available to both graduate and undergraduate students. Applicants must demonstrate financial need in order to qualify for this loan. Funds are disbursed by the school and must be repaid to the school.

4.      The PLUS loan program gives parents of students the option to borrow up to 100% of their child’s cost of education. Parents are eligible for this loan even if they do not demonstrate a financial need and regardless of income.

5.      Direct PLUS loan: this type of student loan is available to parents and guardians of dependent undergraduate students. Borrowers do not need to demonstrate financial need and may borrow up to the cost of attendance; minus any amount of financial aid that may have received. Loan funds are first applied to tuition and fees. This type of government and federal student loan has a variable interest rate.

6.      The federal consolidation loan program gives students and their parents the option to consolidate loans and take advantage of lower interest rates and monthly payments.

7.      The federal nursing loan gives students who are enrolled in nursing school the option of a low interest loan and flexible repayment options. Loan cancellation is available in some cases.

8.      The Federal Insured Student Loan program gives students who might not otherwise qualify for a student loan the ability to receive the funds they need to complete their education.  This is in fact in my opinion the Best Student Loan available.

9.      The Health Professions Student Loan provides long-term, low interest loans to students pursuing degrees in dentistry, optometry, pharmacy, veterinary medicine or podiatry.

10.  Private student loans require a credit check for borrowers; however, students and their families are typically able to borrow more money than they would have been able to through a federal student loan.

Student Loan Consolidation ServicesBy Student-Loans.org 
Student loan consolidation services provide a wide variety of servicing functions for borrowers. A big part of the services include deferment programs that help alleviate the hardship associated with repayment based on different seniors.  The following is a list of deferment student loan consolidation services offered to borrowers who qualify.
Economic Hardship –Borrowers who earn less than minimum wage or exceed the federally established debt-to-income ratio, there is the economic hardship deferment. Individuals who qualify for public assistance or are serving in the Peace Corps also qualify for this deferment.
Graduate Fellowship – Student loan consolidation services provide eligible graduate students a deferment option.
In-School Deferment – Part time and full time students studying at eligible schools can request a deferment.
Internship/Residency – Individuals enrolled in a qualifying internship or residency program can apply for a deferment. This program also covers borrowers in a medical training program that leads to a degree or certificate award by their institution, hospital, or health care facility.
Parental Leave – Borrowers can request a deferment if the individual is pregnant or caring for a newborn or newly adopted child.
Temporary Total Disability – If a borrower experiences temporary total disability or is unable to secure a job because they are caring for a dependent or spouse who is disabled, they can apply for a deferment. Borrowers who experience permanent disability should inquire about the cancellation of their loan.
Unemployment – Individuals who are seeking work, but are not employed full time can apply for a deferment. The borrower can receive unemployment benefits and qualify for a deferment.
Teacher Shortage Area – Teachers who work full time in a public or non-profit elementary school or secondary school may be able to qualify for a deferment if the are they work in is experiencing a teacher shortage.
Additional information on student loan consolidation services and deferment programs can be found by visiting sites such as college-loans.net. Deferments available to you depend on the type of consolidation loan you have and your lender.

Now that you are facing the stress of dealing with the repayment of your student loans, you may want to opt for consolidation. Student loans consolidating can be tricky, and several factors need to be taken into consideration when making your decisions. However, if you decide that the benefits of consolidation outweigh the drawbacks, you can find a way to make it work, whether you have federal or private loans. 

There is a difference between consolidating federal and private loans. The most glaring difference is that, with a Federal Consolidation Loan, your interest rate is fixed in keeping with a federal formula, while private consolidation interest rates can be either fixed or variable. Variable means that the interest rate can increase at any moment. If you are consolidating both types of loans, you should make sure to keep them separate. 

When Consolidating Federal Student Loans, the borrowers are generally allowed up to 10 years to repay, when they consolidate Federal Stafford and Graduate PLUS Loans. However, some borrowers can qualify for the government’s Extended Repayment Plan. Borrowers who consolidate student loans through the Federal Consolidation Loan Program can refinance one or multiple student loans into one new fixed-rate loan. In other words, the original loan is paid in full and another one is initiated. 

Anyone with eligible Federal Student Loans can get a Federal Consolidation Loan, and can do so without paying loan fees. Interest rates are fixed for the life of the student loan. Rates are based on the weighted average of the interest rates of the loans being consolidated, rounded up to the nearest one-eighth-percent or 8.25 percent, whichever is less. Borrowers do not need a credit card, and the fixed interest rates allow them to avoid future variable rate increases.

You must meet certain eligibility requirements for student loans consolidation received from the federal government. To qualify, the borrower must have one or more appropriate Federal Student Loans with a combined balance greater than $10,000. The borrower also must have left school, graduated or must be attending school less than half the time. 

Borrowers may have only one Federal Student Loan Consolidation application in process at a time, and the loans must be in good standing, not in default. The borrower’s loans must also be in a grace period, deferment, forbearance or repayment status at the time of application. Eligible Federal Student Loans include: 

• All Federal Stafford and Direct Loans

• Graduate PLUS Loans 

• Federal Perkins Loans

• Health Professions Student Loans 

• Nursing Student Loans

• Federal Supplemental Loans for Students 

• Auxiliary Loans to Assist Students

• National Direct Student Loans 

• Federally Insured Student Loans

• Federal Consolidation Loans 

Graduate PLUS Loans can be consolidated as soon as they are disbursed to the school, while Federal Stafford Loans can be consolidated only after graduation. A borrower with a subsidized or unsubsidized Stafford Loan must be consolidated with the government’s Direct Consolidation Loans Program.

Student Loans Consolidation RatesBy Student-Loans.org 
To calculate student loans consolidation rate you must first understand all the interest rates of your loans you wish to combine. The federal consolidation student loans consolidation rate is dependent upon these figures.
Currently, federal student loans awarded after June. 31, 2006 have an interest rate of 6.8 percent (all numbers are as of January 2008). Student loans that were taken out prior (or on) this date feature an adjustable interest rate. These loans are up for re-adjustment annually in July. The adjustment depends solely on the results of the 91-day Treasure Bill Auctions. The following rates apply through June 2008.
Stafford Loans in grace period – 6.62 percentStafford Loans in repayment – 7.22 percentParent PLUS Loans (disbursed after July 1, 1998) – 8.02 percentParent PLUS Loans (disbursed after July 1, 2006) – 8.50 percent
Your student loan consolidation rate will be calculated by the weighted average of your current student loans. What does this mean? For example, if you have three loans with three different interest rates, you multiply the outstanding student loan balance by its interest rate. In other words, if you have a loan for $10,000 at 5.99 percent interest, you would multiply the two numbers to get 59,900. Do this for each loan. Next, add the totals from all three loans. Let’s say that number equals 137,775. Now, total the outstanding loan balances and divide them by the amount you came up with in step two. Finally, round the result to the nearest 1/8th percent. Sound complicated? If you are not good with numbers, find a consolidation calculator online to tell you what the weighted average of you loans is.
As you can tell, the student loans consolidation rate varies greatly. If you are interested in figuring your rate, but don’t know the amounts or rates of your current federal education loans, visit the NSLDS from ED.gov to access this information.