Dienstag, 25. Dezember 2012

How to apply for a Student Loan

How to apply for Student Loan

Applying For a Student Loan All You Need to Know Before You Apply

Education is very important but unfortunately, it comes with an expensive price tag. But do not fear, student loans are readily available to help you breeze through college without having the pressure of coming up with the money needed as enrollment time comes. The thing with student loans is that unlike scholarships and tuition grants, loans are supposed to be paid in full at the end of the term plus interest incurred. Generally, it will take a college student 10 years to fully pay the loan he took out to finance his college education. If you are thinking of getting a student loan then read along as we answer some of the frequently asked questions when it comes to applying for a student loan.

What do I need to apply for a student loan?
In applying for a student loan, you need to keep in mind three important elements:
  • First: the timeline for applying - keep track of the deadlines that you need to meet in your application to avoid any hassles and delays on your part.
  • Second: research on the documents that you need to have in applying for a loan.
  • Lastly, there is such a thing as student loan reports which states the status of your student loan, the award letter and expected family contribution.
  • How to Apply for a Consolidation Loan?

    The first step in applying for a student loan consolidation is to fill out and submit the required application form. The application can be filled out either online or in a paper format. Once the application has been reviewed and approved, the lender will request payoff statements for each loan to be consolidated. It can take some time for the consolidation lender to receive these payoff statements, so it is important that the former student continue to make the regular monthly payments on all student loans until the consolidation loan can be processed. Once the interest rate and the student loan consolidation have been approved, a new federal loan will be taken out in the borrower’s name. All of the previous student loans will be paid off completely. The former student will have the advantage of making one payment each month. The new payment will be lower, which will free up some cash in the monthly budget for other things. If the borrower chooses to make these new monthly payments by way of an automatic withdrawal from his or her checking account, it is possible that he or she may be eligible for a lower interest rate on the student loan consolidation.

    What are the documents needed in applying
    for a student loan?

  • W-2 Forms and other records of your personal income
  • Copy of your federal income tax return
  • Bank statements
  • Proof of investment (stocks, bonds and other investment instruments) and other mortgage information
  • Social Security Number
  • If you are a minor, you also need to present your parent's federal income tax return or Form 1040.
  • Applying Online For Student Loans - Why, Where And How?

    After graduating high school, most of us have some confusion regarding our further education. It is never an easy decision, attending Universities. Universities are expensive, although you can take out a loan, it will take years to pay back even if you become extremely successful with the career choices you make. Today, large numbers of lenders are available in market to offer you college loans. Due to increased competition, some lenders are offering attractive student loan packages even with various liberties in repayments like payment holidays. That’s why students are advised to make a research on their own before finalizing a deal. You can use Internet to search for private student loan as well as government student loan.

    Why apply online for student loans?

  • Online student loans are affordable with very low rate of interest.
  • They are unsecured, so your home equity or retirement accounts are never at risk.
  • They are very easy and fast, require no government forms and no deadline and quick approval.
  • Online student loans give you chance to earn on your investments and savings.
  • Require no paperwork.
  • How to apply online for student loans?

    You can apply via lender or can directly login to the website, and can apply for an online student loan.

    If you are a graduate, you will be asked to provide the following information:
  • Information , name and address of the applicant.
  • Two Personal references.
  • The Balance and rate of interest of your current student loans.
  • Your choice of online student loans payment plan.
  • As a conclusion online student loan are easy, less time consuming, need no paper work and offer you student loan with competitive interest rate. However it is recommended that you make a thorough research online to choose the best deal.Do not postpone, you can save a lot of money by getting a student loan.

    Simplify Your Federal Government Student Loan Application

    Simplify your federal government student loan application by having all the necessary information with you at the time you fill it out. There are many documents that you need when filling out your federal government student loan application. To make the process simple take time to gather all the forms and information that you will need.

    Information Needed

    Organization is a very important key when you begin to fill out you federal government student loan application. You will need your social security number, driver’s license number, W2 forms and any other financial earnings statements that you many have. You will also need your income tax information from the previous year, most recent bank statements. Gathering all of this information before you fill out your federal government student loan application will assist you in making the process very simple.

    Application Tips

    Be sure you plan ahead and allow plenty of time to fill out your federal government student loan application; it is possible it may take up to one hour to complete. You may see a preview of the entire application at the FAFSA website. Looking over the federal government student loan application will help you determine what you will need and how long the process may take. Take baby steps and focus on each line in the application, and fill out everything correctly the first time to avoid having to retrace steps and possibly delay the loan process. The website also has a great option that allows you to save your application and return later when you have more time or needed information. This is a great tool to assist you in filling out you federal government student loan application. Be sure to also read all questions and instructions completely, some questions go into great detail and need to be read very carefully. Your federal government student loan application is very important and it is just as important to understand each question and answer is true and that you feel comfortable with it.

    One of the best tips for you when filling out your federal government student loan application is to get started early. Many schools and colleges have different deadlines imposed on you federal government student loan application. Applying as soon as possible and checking with your schools financial aid office will ensure your application is received on time. To simplify you federal government student loan application you may also read over the FAFSA website or contact you school counselor for assistance or any questions that you may have.

    Learn everything you need to know about Student Financial Aid, Federal Loans, Governmnet Loans, Stafford Loans, Subsidized Loans, Student Loan Payment, Perkins Loan and more!

    More tips that student loan applicants can use

    A

    Save early

    If you are the parent, it's best to invest in a college savings plan early on.

    B

    Financial grants and scholarships

    If you're a student, apply for financial grants and scholarships because these are non-interest bearing financial instruments.

    C

    Research

    Make sure that you understand every clause and terms of your loan before you agree to it.

    D

    Be punctual

    Never miss payments, if you have no choice but to do so, ask help from your parents.

    Student Loan Consolidation

    Student Loan Consolidation

    Benefits of Student Loan Consolidation

    Are you sick of paying interest on your monthly student loans with no end in sight? Afraid of cash-flow problems that may prevent you from paying your student loans on time? I know I was and there is a solution to this problem. It is called student loan consolidation. What is Student Loan Consolidation? Student loan consolidation simply means consolidating all your student loans into a single loan with a monthly payment plan. Effectively, all your previous student loans are written off and a new student loan is created which you have to pay off monthly. Benefits of Student Loan Consolidation Here are some of the benefits of student loan consolidation

    • Lower monthly payments
    • By consolidating all your student loans into one loan, you only need to pay off one loan monthly instead of several student loans monthly. Thus, your monthly payment is lower.

    • Pay only one loan monthly instead of several student loans monthly
    • It is a lot easier if you have to manage only one student loan instead of several student loans with different payment deadlines. Also, sometimes with many student loans, you may ended up forgetting to pay one student loan.

    • Low, fixed interest rate
    • By consolidating your student loans, you will be able to take advantages of low, fixed interest rates. Currently, by law, student loan consolidation rates cannot exceed 8.25%. Furthermore, national interest rates are at a 40-year low therefore this is a good time to get one.

    • No credit card check or processing fees
    • No credit card check is required during the application of a student loan consolidation. The payment plans and terms are usually quite flexible in that they can customize it according to your financial standing.

    • Make monthly student loan payment electronically
    • While it is not necessary to make payment electronically, most lenders will knock 0.25% off your student loan rates if you make payment electronically. Also, using direct debit from your bank account will prevent you from forgetting to make a payment. Sometimes it can get quite confusing as to the qualification of applying for a student loan consolidation. The official stand from the government is that students who are still in their grace period or who are still studying in school may qualify for government student loan consolidation The government student loan consolidation nowadays are quite competitive compared to private sector, therefore I would recommend going for a government student loan consolidation. With so many benefits of getting a student loan consolidation, it is quite obvious to save money in the long run is to get one.

    A Student Loan Consolidation Rate Means Lower Monthly Payments

    After you have graduated from college or university, it will be time to start paying off your student loans. Since federal student loans are applied for each year, by the time you graduate, you will have several loans at various interest rates. A student loan consolidation makes perfect sense in this case. By making a choice to apply for a student loan consolidation, a better rate of interest on the outstanding loan can be locked. The former student will also benefit from lower payments each month. This is important for individuals who are just starting their careers. In addition to the benefits of a lower interest rate, a student loan consolidation makes sense from the point of view of the individual’s credit rating. When you choose to sign the documentation for a student loan consolidation (at any rate), your credit report will show that you have paid off all those outstanding student loans. When your credit report shows that you have fewer outstanding loans (multiple student loans are replaced by one loan), the number of your credit score will go up. For future loans, a good credit score is vital to getting a better interest rate. Consider a student loan consolidation for this reason.

    A Smooth Journey to the Best Available College Loan Consolidation

    Are you worried about the college loan that you presently bear? Well there are many people who are under the burden of education loan that they took in order to pay for their college fees. But what can a person do when he or she is bogged down by various loans that they might have undertaken for their college studies. If you are one who is the same problem, we would take you through the way by which you can live a peaceful student life without taking any tensions of loan.

    What Should A Student Do In Such A Situation?
    When there are many loans paying back becomes really a troubled issue. What you can do is club all those loans together into one and then pay only installment for all the loans. Yes, thanks to college loan consolidation, you can live a far more peaceful life studying without having to pay back for different loans.

    What Advantages Would I have With A Single Loan?
    Well if you are into a few loans then you must be well aware of the high amount of interest you would be required to pay. when opting for a single loan that takes care of all the other you would find that there would be much less problems as well as much lower interest. You would save hefty amounts if you calculate the difference of interest you used to pay and you would be pay. Another good thing about the scheme is that you can actually enjoy a much convenient process as there would be much lesser credit checks too!

    What Is Makes College Loan Consolidation So Special?
    What does a student think of when he or she moves into a college? Well most people look to study well and finish education with flying colors, but does it mean that a student who studies have been possible only due to loans should always worry about repayment rather than studies? This is where loan consolidation changes the life of such students. This loan may allow you to have loans without actually worrying about them.

    What Are The Things I Should Look At Before Choosing A Loan Consolidation?
    There are various providers but all you need to do is look for some of the best providers and leaders and choose for some features that would give you easier loan repayment and lower amount of interest. Some of the common features that should be taken into consideration when choosing a loan consolidation are:
  • Fixed Rate of Interest may be a compulsion for majority of consolidation loans, so before you actually decide try and weigh all the interest options available and then accordingly choose the most suitable option for you.
  • Try and make the monthly installments as low as possible. There are many situations when lower amount of interest may actually help you in saving huge amounts in the long run.
  • Try to look for college loan consolidation from such organizations that are can give you a high repayment tenure. When choosing a loan repayment tenure would mean that you would not have to pay high amounts every month, so your loan repayment eases out.

    There are many organizations that offer college student loan consolidation but you need to look for the best deal. You may search the internet for various results and should choose one that offers you the best deal.

    Learn everything you need to know about Student Financial Aid, Federal Loans, Governmnet Loans, Stafford Loans, Subsidized Loans, Student Loan Payment, Perkins Loan and more!

    Student Loan Forgiveness

    How to qualify for Student Loan Forgiveness

    Student Loan Forgiveness - Do You Qualify?

    Did you know that there are numerous programs available that will actually pay off all or part of your college loans? Student loan forgiveness isn't a myth. Many of these programs aren't widely advertised and most people who are eligible don't even realize that they qualify to have thousands of dollars wiped off the balance of their educational loans.

    Student Loan Forgiveness for Teachers
    The Teacher Loan Forgiveness Program will repay up to $17,500 toward college loans for qualified teachers. Full time teachers with an outstanding FFEL or Direct loan balance on or after October 1998 qualify for $5,000 worth of college loan repayment after 5 consecutive years of service. Student loan forgiveness at the increased amount of $17,500 is available to qualified borrowers who teach full time in the field of mathematics or science at an eligible secondary school or who provide special education to students with disabilities.

    Student Loan Forgiveness for Non-Profit Child or Family Services Agency Employees
    In an effort to attract and retain more highly trained early childcare professionals, the federal government has developed programs to forgive up to 100% of the college loan balance for individuals at eligible centers. To qualify for this student loan forgiveness program, borrowers must hold a degree in early childhood education and work full-time for 2 years at a qualified facility where at least 70% of the children receiving care come from families that earn less than 85% of the state median household income. To learn more, call the Child Care Provider Loan Forgiveness support desk at 1-888-562-7002.

    Student Loan Forgiveness for Law Enforcement Officials
    Protect and serve the community and the government will do the same for your budget by repaying your college loans for you. Full time law enforcement or correction officers are eligible to have their loans paid off by the government at a rate of 15%per year for the first 2 years of service, 20% for the 3rd and 4th year, and 30% for their fifth year.

    Student Loan Forgiveness for Nurses and Medical Technicians
    Several generous student loan forgiveness programs are available for physicians and RN's who practice in areas that lack adequate medical care. The National Heath Services Corps will repay up to $35,000 per year of service for qualified individuals. The Nursing Education Loan Repayment Program (NELRP) repays up to 60% of your college loan balance for those who serve at least 2 years in critical shortage facilities.

    Student Loan Forgiveness for Armed Forces
    The government shows their appreciation of those who serve and protect with a variety of student loan forgiveness programs for the military. The Armed Forces Forgiveness Program pays off up to $2,500 in college loan debt to borrowers who served between September 11th 2001 and June 30, 2006. The National Guard offers its own student loan forgiveness program, paying off up to $10,000 worth of college loan debt for each qualified person. For more information call 1-800-GO-GUARD.

    Student Loan Forgiveness for Volunteer Work
    Serving in the Peace Corps, Americorps, or Volunteers in Service to America (VISTA) all qualify you for college loan forgiveness programs in various amounts. Peace Corps: Time spent volunteering for the Peace Corps pays in more ways than good feelings. Volunteers receive 15% of their Stafford, Perkins, and Consolidation loans paid for each year of service up to 70% of the college loan amount. To learn more about this student loan forgiveness opportunity call 1-800-424-8580. Americorps, the domestic arm of the Peace Corps, awards volunteers $4,725 to apply toward their outstanding college loans after one year of service. To learn more call 1-800-942-2677. VISTA (Volunteers in Service to America): Volunteer 1700 hours for one of the many organizations across the country focused on eradicating hunger, homelessness, poverty, and illiteracy and have up to $4725 wiped off your college balance. To learn more call 1-800-942-2677.

    Student Loan Forgiveness for Head Start Staff
    Those who volunteer for their state's Head Start program not only help children from low income families prepare for kindergarten, they are also granted full or partial college loan forgiveness. The state rewards its Head Start teachers and administrators by canceling 15% of their college loan balance for each year of service up to 100% of the balance.

    Student Loan Forgiveness for Providers of Intervention Services for the Disabled
    The government will pay your Perkins loan in full if you provide full time services designed to aid disabled infants or toddlers who have physical, cognitive, communicative, social, emotional, or adaptive needs. Qualified programs can operate from an in-home setting or outside facility providing the program conforms to the requirements of the Individuals with Disabilities Education Act. To learn more about his student loan forgiveness program, contact your loan provider.

    Find More Resources that Offer Student Loan Forgiveness Programs
    Even more programs exist at the state or county government level or through industry-specific organizations. Inquire with the human resources department of your employer or groups that you volunteer for or are considering joining. Be sure to bookmark this page of resources or pass it along to a friend or colleague. You may just find a way to save yourself or someone you know a few thousand dollars!

    Federal Student Loan Forgiveness

    Performance is ultimately what really matters. Federal Student Loan forgiveness is an exceptional concept applicable to students only under certain circumstances. It means the loan amount received by students might be cancelled in half or in full amount by Federal Government. It is not impossible and depends completely on your work performance. If you want to be one of those special students who want to be a recipient of Federal Student Loan forgiveness, then act to your best.

    You just need to show your excellent performance in the following ways:

  • Organize and perform volunteer work
  • Organize and perform military services
  • Teach/preach/practice medicine in selected communities
  • Make a thorough research and meet other criteria specified by loan forgiveness programs
  • In case of volunteer work, loan forgiveness is conducted by Ameri Corps, where the student needs to serve for one full year, get stipends and extra amounts that can be used towards loans. In another organization, Peace Corps, volunteers can specially apply for deferment of variety of loans like Stafford, Consolidation loans and Perkins loans with partial cancellation of Perkins Loans. This dream can come true in the lives of students only if they can serve with a difference and truly devote their time in work.

    Students who are in military field can also make a mark in the lives of others and at same time contribute to Federal Student Loan forgiveness scheme. Students who are in Army front are therefore highly eligible for Student Loan Repayment program. In case of teaching, Federal Student Loan forgiveness program can be conducted only if the students can become full-time teachers in elementary or secondary schools, mainly teaching students who span the low-income family groups. Under this teaching plan scheme, the students are allowed to be forgiven of Perkins Loan under The National Defense Education Act. In legal field, many law schools forgive the loans of students who dedicatedly serve in public interest or non-profitable organizations. Federal student loan forgiveness programs for medical students include several plans like NIH AIDS Research Loan Repayment Programs, NIH General Research Loan Repayment Program, Indian Health Service [HIS] Loan Repayment Program and US Force, Army and Navy Financial Assistance Program. Under each of these plans, the student should work faithfully, if they want their loan to be forgiven.

    Apart from these fields, there are other ways where Federal Student loan forgiveness program becomes successful. These fields include Bachelor’s Degree in Colleges of Arts and Sciences, where student will perform the job required in institutions. Students who receive the Michael Murphy Loan specially for studying Law enforcement, probation and parole, law and penology or other significant fields related to these studies, can work off one-fifth per year to get enrolled under Federal student loan forgiveness scheme.

    Therefore, Federal Student Loan Forgiveness program is applicable when the student can perform the following activities:

  • Perform full-time/partial service as a teacher in designated/recognized elementary or secondary school teaching students who belong to low-income family groups.
  • Perform the role of a teacher teaching children suffering from some kind of disabilities.
  • Qualified professional teachers belonging to subjects like mathematics, science, foreign languages, bilingual education.
  • Performing the role of an employee of public or non-profit child/family service agency providing services to high-risk children along with their families.
  • Perform any of these activities as per your loan status for acquiring Federal Student loan forgiveness.

    How To Get Federal and Private Student Loan Forgiveness

    I am sure that many of you face student debt out there still after years of trying to pay it off or maybe you are just starting to pay off those loans out of college. Whatever the case is, many of you would like to take care of that student loan debt as soon as possible. One option that the government provides is through student loan forgiveness. These are great ways for you to give to Uncle Sam or some public service that is needed and in return for your time and skilled service they are kind enough to take care of some or all of your student loans.

    These options should be decided carefully and please don't do them for the sole purpose of getting some student loan help because you are bound to hate yourself after a while. You need to find something you are passionate about and at the same time will allow for you to take care of some necessary debt for your future.

    Law School
    Many of you face law school debt and that is practically a mortgage with the amount you have to shell out for a few years of reading books and losing sleep. Some of you might think that you are going to get hired by some great law firm and everything will be taken care of and that might happen, but for many of you that will not be an option. Another thing to look at is working for a non-profit or public interest organization. This can help you take care of some much needed debt and give yourself a serviceable name in your industry. It might not be glamorous, but it is a good way to take care of all of the debt that will eat at your bank account for years.

    Physical or Occupational Therapy
    This is a great example of high in demand and low in supply when it comes to therapists. There are plenty of positions out there that hospitals, the government, and private facilities need to fill and people will always get sick and need medical help. This is a good way to take care of some medical bills that have pilled up just like the law student that we talked about.

    Military Service
    Well this one I would not put as number one for me personally because of the potential health risks, but I am sure you would learn some pretty impressive skills that you can bring back to the "real world" and apply. This is also not exotic, but it will pay the student loan bills and if you are willing to get into hostile territory you can get paid a lot.

    Peace Corp This is also an international option like the military, but without all of the weaponry. This could create up to 70% debt reduction and help you see the world through a different set of eyes. Many of these traveling experiences will allow you to view struggles of simple people fighting for necessities that we take for granted.

    Social Services
    There are countless honorable professions such as law enforcement, helping people find housing and occupations, assisting with disabled and elderly, along with other correctional officer positions that can impact your bank account and other lives. These services are some of the best because they will allow for potentially your whole student loan to be taken care of.

    Learn everything you need to know about Student Financial Aid, Federal Loans, Governmnet Loans, Stafford Loans, Subsidized Loans, Student Loan Payment, Perkins Loan and more!

    Federal Student Loans

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    What are the different types of student loans?


    There are different types of student loans that you can avail, here are some of them: Federal State Loans - The Federal Family Education Loan Program provides American families additional financial aid which is funded by the federal government. Students applying under this type of loan are automatically considered in the program. This type of student loan has a very low interest rate and flexible payment plans.

    Federal Student Loans

    A
    The Perkins Loan
    The Perkins Loan is the most affordable student loan, with an interest rate of 5% and low fees. But it's also the hardest to get because it's only given to those who need it the most. And the loan limit, at $4000, is the lowest of all three federal student loans.
    B
    The Stafford Loan
    The Stafford Loan comes with a variable interest rate that's higher than the Perkins, but lower than the PLUS Loan, due to the cap at 8.25%. As with the Perkins Loan, this student loan does not hold credit worthiness against the applicant. The Stafford Loan also has a much higher loan limit and is offered to both graduate and undergraduate students.
    C
    The PLUS Loan
    Compared to the Perkins and Stafford Student Loans, which are borrowed in the student's name, the PLUS Loan is completely different in that it is a loan for parents of dependent undergraduate students. A big advantage of this type of student loan is that it covers any remaining balance not covered by other forms of aid in essence the loan limit covers your entire educational expense.

    Things You Need to Know About Federal Student Loans


    Funding your education can be a daunting task for most of us. Unless you are born into a privileged family, finding money to further your academic goals may pose considerable challenge. One very popular way to fund your college education is by getting student loan. Yet with too many institutions offering loans of various kinds and with different rates, how do you select the best one for you? Why not consider Federal Student Loans? Getting to Know Federal Student Loans
    What are actually federal Student Loans? Federal Student Loans or Direct Loans are part of the federal student aid administered by the UDS Department of Education. These are special loans not offered via private lenders or companies but they are made in agreement between the student and the US Department of Education. Those who wish to apply for a Federal Student Loan must fill in a Free Application for Federal Student Aid (or FAFSA) which can be done via the Internet. Just include all the necessary documentations and information required. Additionally, students must complete a Master Promissory Note (or MPN) which is actually a legal document that explains the contract between the related parties. All the terms and conditions of the loan are stated in clear terms in MPN as well. Getting the Loan
    After successfully securing one of the loans, student may sign up and use the service center. By gaining access to this feature, they may view the loan amount and all related information. Plus, you may also opt to use the services of a counselor form a direct loan servicing site. . It is quite easy to qualify for the loan, you just have to be enrolled in a school that is eligible for the direct loan student loan. And you don't have to be a full-time student either, you can ask for a Federal loan or direct loan even when you are on a studying part time basis. The Most Common Types of Federal Loans
    Generally, there are two most common types of federal loan or also referred to as Direct Loans:
    The Subsidized Loan
    The Federal Subsidized Student Loan has an interest paid subsidy that it lightens the burden of the student to manage. Now, Students don't have to worry about the interests as they are fully paid by the Government. That should be a reason to have greater peace of mind and to excel in the current academic pursuit.
    Unsubsidized Stafford Loan
    These are meant for graduate student who have families of their own to support, or if they have no living parent to support them. These are loans with low interest. There is a limit you can get with these kinds of loan and students can expect around $8,000 in total amount. Federal Student Loans do have a fixed interest which is determined every July 1st. There is a minimum fee incurred, which can be set up to 4%, which is used to offset the cost of managing the services of these programs.

    Guaranteed Federal Student Loans


    Most students need guidance when it comes to learning about financial aid. When you want to secure a Stafford Federal student loan, you must first file your FAFSA at the FAFSAonline.com website, since it will save you a lot of time. After filing the FAFSA you generally wait a few of weeks to receive your Student Aid Report. Then your school will send you a letter confirming your financial aid. This letter will detail how much aid the student is eligible for, and the form of aid that he or she will get.
    With this award letter in hand, you can then get a promissory note that you have to sign. This promissory note will also contain the filing instructions. The Federal Stafford Loan is a low-interest federally guaranteed loan that students can avail of. These loans can either be subsidized or unsubsidized. For the time that you're in school and for six months after leaving school, the interest on subsidized loans is paid by the federal government. The interest on an unsubsidized federal student loan begins to accrue from the date of disbursement. The student may receive a subsidized loan as well as an unsubsidized loan during the same enrollment period.
    Consolidation of federal student loans is also a possibility. This consolidation program is comprehensive and contains all the necessary information for figuring out how to take advantage of it. With federal student loan consolidations reaching unprecedented lows it has become advantageous to the student to receive federally guaranteed protection by using one of these programs.When you use one of the consolidation programs you're taking advantage of guaranteed protection offered by the federal government.
    A good federal student loan program is the Federal PLUS loan that is a smart financial strategy that parents of students find useful. Apart from offering attractive terms, it enables you to meet your college obligations while paying below market interest rates. This type of federal loan is available any time of the year, offers single-digit interest rates, and you can fund 100% of your college expenses. The student may also eligible tax deduction of the interest with the whole process being on an instant-approval basis. Take advantage of any federal assistance that you can. It's tax dollars at work.


    Private Student Loans


    Private Student Loans - are usually offered by banking institutions such as Bank of America and Wells Fargo. This type of loan provides students to fill the difference between their tuition fee and the federal state loan grant. This type of loan requires the borrower and co-borrowers to have a good credit standing. This is to improve the financial standing of the student which he can use to buy books, computers and room and boarding expenses. Institutional Student Loans - usually offered by the university that you are enrolled in. You can contact your financial aid department for more information.

    Key Benefits of Private Student Loans


    Private student loans can be obtained at a faster pace, making it easy to get and with great flexibility. Read on to know how private student loans help students further their academic activities at ease. With the steady escalation of educational costs and as the number of applicants are on the rise for federal loans, private student loans have grown rapidly among college students. Many students find the private student loans to be fitting and obtained effortlessly for making college education expenses. Private student loans also known as alternative student loans are obtained from private financial organizations, banks, credit unions etc based on the credit worthiness of the applicant for repaying the money without the interference of the government within a short period. Private student loans also are frequently used in the combination with federal student loans, especially when the funds are not sufficient through the federal student loans to cover the full expenses towards education.
    Private student loans can be availed of by students with good credit report, or when he is a regular employee or if he is permanent resident of US. To satisfy the these requirements, he can apply with a co-signer who meets the minimum eligibility criteria and avail the private student loan. Benefits of private student loans:

  • Private student loans can be obtained at a faster pace, making it easy to get and with great flexibility. The approval process is too quick in the case of private student loans that the funds are got by the student within five business working days after the application. The money, which can be availed of through private student loans, is much higher than the federal and scholarship funds. The private student loans can be availed any time by the student without any need to worry about application filing before closing dates. Many private student loans can be consolidated. These private student loans can be used to purchase a laptop, or towards educational expenses etc. A government student loan however, might be very restrictive in spending the money. There is no government intervention, as it is an agreement between the borrower and the private lender. Thus no need for government paperwork.

  • Although there are lots of advantages in getting a private student loan, no one can deny the disadvantages it has. Private student loans are only for credit worthy individuals, and mostly a co-borrower has to co-sign the loan document. Mostly the co-borrower is the parent. Also, the private student loans carry a hefty interest rate when compared with government student loans. Interest rates can vary each month, while government student loan interest rates are fixed. It requires applying for the loan several times as the applications are separate for each academic year in the case of private student loans.
  • Guidelines lenders look in for students' creditworthiness:
    A good credit history for a minimum of 21 months should be there. The residence should not have been changed at least for one year's time. Should be a citizen of US or a permanent resident of US and should have resided for two years in US prior to permanent residentship. Should be able to provide proof of present revenue with an employment in the area where the student is attending school. Should have been in the job for at least 2 years, in case of self-employed should have been conducting business for at least 2 years time.


    Learn everything you need to know about Student Financial Aid, Federal Loans, Governmnet Loans, Stafford Loans, Subsidized Loans, Student Loan Payment, Perkins Loan and more!

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