Student Loans & Financial Aid info

College? Where do I begin. Just making the decision to attend is difficult enough. I am talking for the adults that did not make that decision when they were in high school. Now they have a home, family, full time job. And now they decide to go to college. I say, good for you. My grandmother always said it was never too late to learn something. And I know now she was right.

I too have put my self in this odd category of going to college at a later age. I have actually found that many of my co-students are on the older side as well. It must be the right thing to do. Well, I think it is. Many may say at this point, “How am I going to pay for it?” This is really the easy part of the whole school thing. At least that is what I have found.

I simply went to my financial aid advisor. She helped me fill out the online FASFA and advised I may still need a private student loan. She helped me with that part as well. She had all the paper work right there and ready to go for me. In most cases the only thing I really had to do was give her a copy of my recent taxes and sign. She did the rest. How simply can it be. Once or twice they needed additional information, she just asked me some questions and took care of the rest.

When dealing with financial aid, it really is easy. Even if you do it your self on line, it is still simple. You simply just fill the form out and wait for there determination. If I remember correctly they made a decision within a week. Once the decision is made they will send you a SAR Report or you can keep checking online. This report will give you details on the student loans and grants you qualify for. You may not qualify for just one but possibly for everything they might have to offer. It just depends on your financial situation.

I personally qualified for one subsidized Stafford Student Loan, one unsubsidized Stafford Student Loan, and a Pell Grant. Did you know a Pell Grant is free money. I will not have to pay it back unless I drop out of school for no good reason. I was till short just a bit so I did have to apply for a private student loan. That all worked out as well. Now my schooling is paid for and I will not have to make any payments until after I have graduated and hopefully am established in a new position.

Choosing the right school, and getting the necessary funding is the key to a good college experience. Once financial aid is put into place the rest really will simply fall into place. Talk to the financial aid advisor at the school you are contemplating attending. Believe me they will be very helpful to you. They are trained professionals and they want to help. This was a smart choice for me and I hope you have the same experience.

When thinking about college, it can make your head spin. You have to think about were you are going to go, how you are going to pay for it, and why are you going (what will your course of study be)? This is a lot to think about especially for a young adult.

The issue of how you will pay for your college experience does not need to be so stressful. Did you know that almost every college and university you choose to go to will have a financial aid office? There, you will find the help you need from a professional financial aid counselor. They are trained and eager to help you out in this financial time in your life. They have gone to school themselves in most cases in order to best direct you in how to finance your higher education. Let them do there job.

They will start with some very simple and basic questions of you, just get some general financial back ground, and help you fill out the right forms. The first place they will always start is the free online FASFA application. I know you have heard this can be very complicated, well; they will be there for you to make the process easy and stress free as possible for you. Once the application has been completed and reviewed by the FASFA processors your financial aid officer will contact you and let you know what you have been qualified for.

If this process is not going to take care of all the financial aid needs for that year, they will then help you apply for a private college student loan. They will typically have a list of preferred lenders they will use, or if you choose, you can use a lender of your own. It is all up to you, they will just be there to make the process easier for you. You will then be able to do your studies stress free and not worry about the financial aid part of the whole college scene.

In many cases, once the financial aid process has been started in the system you are able to start your studies before the whole thing is even complete. This tells you the likely hood of your approval with financial aid. There are so many financial aid programs out there to benefit ones from all walks of life; one not taking advantage of it would just be silly. Unless you are simply independently wealthy, your first step to college should be to the door of the financial aid office.

I personally have had first hand help and knowledge from a professional financial aid counselor. They are very knowledgeable and will help you through what ever the situation is. Each college student will have a very different financial aid need, and they are able to take care of what every that need may be. So make your college life easier for you and use your financial aid counselor. You will be so happy you did.

Are you struggling at making several student loan payments each month? Have you thought about consolidating those college student loans into one? This can help to lower your monthly payments as well as consolidated into only one payment.

If you have obtained several federal student loans in the course of your college education, a student loan consolidation will greatly benefit you. All you have to do is contact your student loan administrator and ask for information in regards to consolidation. They will be happy to help. Once you have done what is needed of you, you will then only have one student loan with one fixed interest rate and one monthly payment.

It is important to remember that you should not consolidate federal student loans with private student loans. The reason being is you will loose the benefit of the lower fixed rate if you mix your private and federal student loans.

To consolidate your private college student loans, the process would be the same simply contact your student loan administrator and ask for information in regards to consolidating. Once again, they will be happy to help you out. When you do consolidate your student loans, you will feel much relief due to it.

When considering student loan consolidation it is important to research the fact. In some cases student loan consolidation may cost more money. Of course this will not be the norm, but one does need to check it out and see what it will do for you before you sign on the dotted line. In other instances, some may not really be looking to lower there payments as much as they are looking to only pay it once a month and only to one company rather than two or three. It all depends on what is important to you and your particular financial situation.

If you are consolidating student loans with different interest rates, the weighted average of the interest rate that will be used will always be in between. Do not be fooled if someone tries to convince you that this will save you money because you are getting a lower interest rate. The interest rate will be lower than the highest of your interest rates, but it will also be higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the student loan will be about the same, give or take just a bit. So ultimately what you will be accomplishing is simply combining two or three loans into one.

The cost of consolidating a federal student loan is zero. You will not be charged anything in order to consolidate your student loan with the federal program. If someone is trying to charge you a said fee, chances are they are not legitimate and you should walk away real fast. Ultimately, it is up to you to do the research and find out what is out there and how are even if it can help you. It all depends upon your financial situation and only you will know if it is going to help.

If you are intending to borrow from a federal student loan program (financial aid) to pay for your higher education, you should first consult with your college financial aid officer to determine that particular college’s application procedure.

The most attractive educational college student loans are those that are geared towards financially needy college students. These student loans such as the Subsidized Stafford College Student Loans and Perkins College Student Loans will not require interest or repayment as long as the college student is enrolled at least half time in school.

College students who will not qualify for need based financial aid will still have an opportunity available to borrow from the federal Unsubsidized Stafford College Student Loan Program.

The parents may also borrow through the federal PLUS Student Loan Program as well as a variety of supplemental college student loan programs, which your college financial aid officer can tell you about. That is what there job is, so seek there advice.

As with any college student loan, make sure you completely understand the interest rate, the repayment terms and any tax implications. Make sure you know whether interest rates are variable or fixed, whether the student loan has forgiveness or deferment provisions, whether you would be able to consolidate the loan down the road, and whether it carries any prepayment penalties. Always borrow only what you need. Remember that college student loans must be repaid even if you never finish college.

Six Facts to Remember About Financial Aid

1. The amount of federal financial aid for which you qualify will be determined by your financial aid need. All though your expected family contribution will usually remain the same from college to college, your financial aid needs will increase or decrease depending upon the costs of the college and tuitions.

2. Your need for federal financial aid will increase at a higher cost college than at a lower cost college. However, this will not necessarily mean that either the higher cost college or the lower cost college will be able to provide you with the financial aid help that will be sufficient to meet your financial aid need.

3. Colleges handle outside scholarships differently. In some cases, an outside scholarship will not affect your financial aid award package; however some colleges will reduce your student loan portion of the package by the amount of the outside scholarship and others may withdraw institutional grant aid by the amount of the scholarship.

4. You must apply for financial aid each year of school. Your family’s federal income tax return should be completed early, which will allow you to complete your FAFSA as accurately and timely as possible.

5. Contact all colleges and universities to which you are applying to in order to learn about any financial aid deadlines.

6. College is a huge investment, but it is one of the most important ones you can make for your future. Take time to learn about all the financial aid options before you make any college or university decision.

Alternative or a private student loan is offered by banks or financial lending institutions to help the college student and parent bridge the gap between the cost of a higher education and the amount of financial aid awarded and received. These are private supplemental college student loans that are not guaranteed by the federal government. Terms and conditions will vary according to each specific lenders guideline.

Private student loans will be offered by a wide variety of banking institutions, and each lender will offer different programs with very different terms. Most banking or financial institutions will have informative websites, and I would encourage all college students to visit these lender’s site. College students can apply for a private student loan as a supplement to a more traditional federal and state source of financial aid assistance. It is also encouraged that all college students first apply for federal and state financial aid assistance before applying for a private college student loan. Private student loans will provide the resources for educational expenses that may not be covered by received federal and state financial aid. The actual dollar figure a person is able to borrow varies according to each college student’s individual financial need circumstance. Other variables will also include the cost of attendance, financial aid resources, and student loan limits imposed by the lender.

Unlike federally guaranteed college student loans, banking institutions that offer private student loans may enforce certain requirements. In many cases, a college student must have a good credit history as well as a low debt to income ratio. A co-signer may also be required if the other criteria is not met. Since a credit check will be part of the process, not everyone will be approved for a private college student loan.

College students as well as the parents can apply for these private student loans through their own initiative. Since the financial institution must determine eligibility for the student loan, college students and parents should apply early enough to ensure that the student loans can be approved by the time each semester’s bill is due.

As you can see, there really are many options to obtain a college student loan. There is the federal government loans, state government loans, and private student loans. What every method works for you is the right choice. However, do not forget to do your homework on whatever avenue you do take. Read the fine print and ask all the questions. If something does not feel right, it probably is not.

The debt you are about to take on to obtain a college student loan may take a bit of time to pay off. So be wise about what you chose to do. Always apply for the federal aid first. This is the free FASFA online application. Even if you think you will not qualify, apply. You really never know until you do. Then go for the private student loans if additional funds are needed. However, research it and talk to friends and family and current college students. Ask about there experiences and learn from them.

Today, federal college student loans are one of the largest forms of college student aid. Making up 41 percent of the total financial college student aid awarded to undergraduate college students each year. Most college students can expect to receive a student loan as part of a financial aid award package. There are typically two kinds of categories for a college student loan; loans based on financial aid need and loans not based on financial aid need.

College Student Loans Based on Financial Aid Need

The federal government is the main provider of need based college student loan funds. Your award letter will always list the kind and the amount of need based loans.

Features of Need Based College Student Loans

Need based college student loans usually share three distinct features?

1. A Low Interest Rates – Stafford College Student Loans offer a fixed interest rate of 6 percent and PLUS College Student Loans are fixed at 8.5 percent. The Perkins College Student Loan interest rate is currently at 5 percent. No credit check will be required for a federal college student loan.
2. Delayed Repayment - With a need based federal college student loan, no payments on principal will be due until after you graduate or leave school.
3. In School Interest Subsidy - This simply means the government pays the interest that accrues on the student loan while you are in school and during the six-month grace period after graduating, resulting in some substantial savings. If you did not have this subsidy, you would either need to make interest payments while in school, or the interest would be added to the principal of the student loan, making it a much more expensive college student loan.

The Three Need Based College Student Loans

Typical need based college student loans are Perkins College Student Loans, subsidized Stafford College Student Loans, and Direct Student Loans. For loans based on financial aid need, the financial aid office at you school of choice will help guide you through the process.

• Perkins College Student Loans - If you have been awarded a Perkins College Student Loan, the Financial Aid Office will send a promissory note that must be signed and returned. Since the college has already been given its Perkins loan funds, it simply transfers the funds to your student account as a credit against charges.
• Subsidized Stafford College Student Loans - For a Subsidized Stafford College Student Loans, the financial aid office will generally ask you to choose a lender. Many lenders will offer online loan applications. Remember you do not have to use there preferred list. Once you have completed the student loan application and the loan is approved, the money will be sent directly to your school for disbursement. Usually, the loan amount will appear as a credit on your account.
• Subsidized Direct Student Loans – Direct Student Loans work the same way as a Stafford College Student Loan except that the federal government is the lender.

Non-Need Based College Student Loans

These are outside of normal need college student loans, often times used to help families that cannot afford to pay their expected contribution from savings and current income.

Some colleges will include one or more of these college student loans in your award letter. When reviewing your financial aid, you should removed these loans and put them to the side. When you have calculated your family’s share of cost, you may find that it is more than you can afford. If so, it is time to consider these types of loans.

Federal College Student Subsidized Loans and Unsubsidized Stafford College Student Loans

To Be Eligible Students:

• You must have a financial aid need
• You must make satisfactory academic progress towards your educational goal
• You must be enrolled in at least half time.
• You must not have prior college student loan defaults or any Federal overpayment blocks
• You must have declared a degree plan on file in the admissions office of your college or university

Freshman subsidized maximum college student loan limits per year are $3,500 and sophomore college student loan limits are $4,500 per academic year. As an example, you are usually considered a freshman if you have 0-29 credit hours and 30 or more, you are would be considered a sophomore. In most cases, developmental course work does not count towards degree or academic levels.

Unlike grants and scholarships, college student loans must be repaid. The maximum life time amount of a college student loans a college student can borrow at all schools with the subsidized program is $31,000 and the maximum lifetime amount a college student can borrow is the combined subsidized and unsubsidized programs of $57,500. If you plan to attend any other college after completion of your program of study at your current college, then please keep in mind when deciding how much you will need to borrow. It is important you borrow conservatively and only borrow what you will need. Once a college student has borrowed the aggregate limits, there will be no additional eligibility for any federal college student loans.

The actual student loan may be limited to less than this, depending on your cost of attendance, other financial aid assistance, and the family financial aid conditions. The U.S. Department of Education will pay the interest during the time the college student is enrolled and during the grace period of six months following enrollment. The interest rate will be variable and can not exceed 8.25%.

For subsidized college student loans, borrowers will not begin there repayment of the loan until six months after the college student completes or drops enrollment to less than half time. The college student loan must be repaid within 10 years.

For unsubsidized college student loans, this program is available to college students, regardless of there income. The interest payments begin the day the student loan is disbursed and the college student is responsible for interest accrued during the school year and deferment periods. Interest rates and loan limits are the same as the Federal Stafford College Student Loan Program. Repayment of the principle begins six months after the college student ceases to be enrolled in at least half time. Generally, dependent college students will not be certified for unsubsidized college student loans unless the parent or guardian has been denied a Federal PLUS Loan.

The options are there for you to choose from. Do your homework and research and chose the best option that suits your financial situation. It is important to apply for all Financial Aid, even if you do not think you qualify. You can never know until you do apply.

While there are many different college student loan options available, there are really only two different kinds of college student loans:

1. Federally guaranteed college student loans. These student loans offer some of the lowest rates, and some of the most flexible repayment options. They will not require a co-signer, and you will get one or a few of them (in most cases) regardless of your financial aid need. In some cases, you might have to borrow directly from the federal government.
2. Non-governmental or private college student loans. Many lenders offer alternative (private) college student loans, but in many cases, the rates will be higher than federally backed college student loans, and the terms will not be quite so flexible. In addition, many private college student loans will require a co-signer.

If you have been awarded a college student loan, the schools will ask you to select a lender from there preferred list of lenders. Remember, it is your right to choose you are a lender you are comfortable with even if it is not on the list. The only exception to this is with schools, in which they participate in the Federal Direct College Student Loan Program (Direct Student Loan). At these schools, you do have to borrow directly from the Federal government.

You need to apply early every year, to ensure you will receive funds in time for the start of the semester. Not all schools will process college student loan applications the same way. Some will want you to use a paper application, while others will have you fill out an online application for electronic processing.

College student loan funds will go directly to the school via check or electronic fund transfer.

If you are an independent college student, your Expected Family Contribution will not include any expected or unexpected help from your parents or guardian. You will be considered an independent college student if:

• you are 24 years of age or older;
• you are married;
• you are enrolled in a graduate or professional educational program (beyond a bachelor’s degree);
• you have legal dependents other than a spouse;
• you are an orphan or ward of the court (or you were a ward of the court until age 18); or
• you are a veteran of the U.S. Armed Services.

You can always check with your college financial aid office if you have questions regarding your dependency status. They are trained professionals and are there to serve and help you through this difficult financial time in your life.

Some special aid programs can make the college experience just a little easier for the non-traditional college student. For example, there are many special graduate scholarships. In addition, there are assistantships that will offer an on-campus employment to non-traditional college students.
To find out about these special opportunities, check with your school’s financial aid office. However, here are a few points you should remember as you pursue these options:

• Make sure you are aware of all deadlines, paperwork requirements, application fees and deposits for these programs.
• Be prepared to have your high school and previous college transcripts sent to the school you are interested in.
• Some of these awards are based on financial aid need, so be prepared to complete financial aid paperwork.