Sunday, June 28, 2009
Friday, June 26, 2009
Student Loan Consolidation: Three Things to Think About
As times get tougher, it makes sense to look closely at every area of expenditure. For many, student debt is a real burden. So consolidating student loans may be an excellent idea. But it is important to do a little homework first.
1. Understand the existing loan(s)Before doing anything else, people considering student loan consolidation should first find the documentation for their existing loan(s). They should then check through the agreement's terms and conditions, and determine current balances, interest rates, and monthly repayments. Those who have a problem finding the necessary paperwork about their Title IV loans and grants can consult the US Education Department's National Student Loan Data System (NSLDS).
2. Understand the problemPresumably, those considering student loan consolidation are facing pressing financial problems. But it is important to understand fully the nature of those problems. They should draw up a realistic list of their monthly outgoings and set those against their income. If the issues they face are short-term difficulties, then they may well be better off talking to their existing lender(s) or loan servicer(s) to see if they are eligible for deferment or forbearance relief that could tide them over until things get better. If those issues are more fundamental, and are clearly going to continue for a long period, then they should explore student debt consolidation options.
3. Understand the implications of student debt consolidationWhen times are hard, people often feel so desperate that they are prepared to sacrifice their long-term interests in order to alleviate short-term debt pressures. This is understandable, but better avoided. Reportedly, some student loan borrowers can cut their monthly repayments by as much as 58 percent. However, because a consolidated loan is likely to last much longer than an ordinary student loan, the total amount of interest payable over its life will almost invariably be higher. In fact, the Federal Student Aid web site warns that: "…in some situations, consolidation can double your total interest expense."There are other considerations to be borne in mind. For example, once loans are consolidated, that is it: the arrangement cannot be ‘unmade’ because the original loans have been paid off and no longer exist. And the timing of consolidation can be important. The interest rate for many student loan consolidations is a fixed one, which is great when rates are rising. But right now they are falling. If it is possible to wait a few weeks or months, it may be possible to consolidate at a record-low fixed rate.Student loan consolidation can transform an individual's finances and make his or her life immeasurably better. However, it is always risky to enter any long-term loan agreement without first fully understanding the implications.
About Author:
For 25 years, Peter Andrew has been a writer specializing in topics surrounding ICT, marketing, management, and business. He began writing professionally when he worked for a large, multinational advertising agency, and still creates business documents, and marketing materials, as well as editorial matter. He lived in London, England, for most of his life, but recently moved to rural France. So far, he is very much enjoying his new, slower, gentler way of life.
1. Understand the existing loan(s)Before doing anything else, people considering student loan consolidation should first find the documentation for their existing loan(s). They should then check through the agreement's terms and conditions, and determine current balances, interest rates, and monthly repayments. Those who have a problem finding the necessary paperwork about their Title IV loans and grants can consult the US Education Department's National Student Loan Data System (NSLDS).
2. Understand the problemPresumably, those considering student loan consolidation are facing pressing financial problems. But it is important to understand fully the nature of those problems. They should draw up a realistic list of their monthly outgoings and set those against their income. If the issues they face are short-term difficulties, then they may well be better off talking to their existing lender(s) or loan servicer(s) to see if they are eligible for deferment or forbearance relief that could tide them over until things get better. If those issues are more fundamental, and are clearly going to continue for a long period, then they should explore student debt consolidation options.
3. Understand the implications of student debt consolidationWhen times are hard, people often feel so desperate that they are prepared to sacrifice their long-term interests in order to alleviate short-term debt pressures. This is understandable, but better avoided. Reportedly, some student loan borrowers can cut their monthly repayments by as much as 58 percent. However, because a consolidated loan is likely to last much longer than an ordinary student loan, the total amount of interest payable over its life will almost invariably be higher. In fact, the Federal Student Aid web site warns that: "…in some situations, consolidation can double your total interest expense."There are other considerations to be borne in mind. For example, once loans are consolidated, that is it: the arrangement cannot be ‘unmade’ because the original loans have been paid off and no longer exist. And the timing of consolidation can be important. The interest rate for many student loan consolidations is a fixed one, which is great when rates are rising. But right now they are falling. If it is possible to wait a few weeks or months, it may be possible to consolidate at a record-low fixed rate.Student loan consolidation can transform an individual's finances and make his or her life immeasurably better. However, it is always risky to enter any long-term loan agreement without first fully understanding the implications.
About Author:
For 25 years, Peter Andrew has been a writer specializing in topics surrounding ICT, marketing, management, and business. He began writing professionally when he worked for a large, multinational advertising agency, and still creates business documents, and marketing materials, as well as editorial matter. He lived in London, England, for most of his life, but recently moved to rural France. So far, he is very much enjoying his new, slower, gentler way of life.
Wednesday, June 24, 2009
graduate school loan
Graduate School Loans is the leader in education finance solutions for grad
uate students. We are committed to providing graduate students with the necessary tools and information to effectively manage your education debt. Graduate School Loans is here to assist you finance your graduate school education. Upon graduation, Graduate School Loans offers education debt management options to aid in the repayment of your graduate student loans. You will find the products and services we offer invaluable to a financial sound future. Graduate School Loans Federal Loan ConsolidationBy consolidating your federal student loans with Graduate School Loans, you can lower your monthly payment, which can save you hundreds of dollars each month. In addition, consolidating your graduate school loans allows you to include your undergraduate loans or previously consolidated loans, permitting you to make one low monthly payment. Learn more... Graduate School Loans Private Loan ConsolidationAt Graduate School Loans, we understand the high cost of graduate school, which is why we offer consolidation of private education debt. Manage your education debt and repayment with a Graduate School Loans Private Loan Consolidation. NEW!!! Now, when you apply for a Graduate School Loans Private Student Loan Consolidation, you'll get 30 days free access to a Crossing job-search website of your choice! That's a $29.95 value. Learn more... News and ResourcesFind all the information you need regarding graduate school funding, education finance, and debt management. Also, keep current with our industry news updates. ArticlesSearch through our database of articles covering various graduate school topics including graduate school funding, graduate school programs, and graduate school lifestyle. Graduate School Loans is dedicated to educating graduate students about the student loan industry and keeping you up to date about changes in legislation and regulations. Here, you'll find everything you need to stay informed. Government RelationsAs an authorized lender under the Federal Family Education Loan Program (FFELP), Graduate School Loans is committed to adhering to government policies and regulations. We work endlessly to ensure your paperwork is administered under strict compliance with federal and state legislation. To this end, we have gathered information about the FFEL Program to make all procedures and protocol as transparent as possible. Graduate School Loans wants you to be informed about your student loans so that your decisions will make for a sound financial future. Financial Aid ProfessionalsYour role is a crucial one in higher education. You are the link between the cost of attaining higher education and the culmination of a successful career. Graduate School Loans recognizes your role and is committed to assisting you and your students. We have outlined the products and services we offer along with the benefits your students will receive when they choose to consolidate their education loans with Graduate School Loans.
uate students. We are committed to providing graduate students with the necessary tools and information to effectively manage your education debt. Graduate School Loans is here to assist you finance your graduate school education. Upon graduation, Graduate School Loans offers education debt management options to aid in the repayment of your graduate student loans. You will find the products and services we offer invaluable to a financial sound future. Graduate School Loans Federal Loan ConsolidationBy consolidating your federal student loans with Graduate School Loans, you can lower your monthly payment, which can save you hundreds of dollars each month. In addition, consolidating your graduate school loans allows you to include your undergraduate loans or previously consolidated loans, permitting you to make one low monthly payment. Learn more... Graduate School Loans Private Loan ConsolidationAt Graduate School Loans, we understand the high cost of graduate school, which is why we offer consolidation of private education debt. Manage your education debt and repayment with a Graduate School Loans Private Loan Consolidation. NEW!!! Now, when you apply for a Graduate School Loans Private Student Loan Consolidation, you'll get 30 days free access to a Crossing job-search website of your choice! That's a $29.95 value. Learn more... News and ResourcesFind all the information you need regarding graduate school funding, education finance, and debt management. Also, keep current with our industry news updates. ArticlesSearch through our database of articles covering various graduate school topics including graduate school funding, graduate school programs, and graduate school lifestyle. Graduate School Loans is dedicated to educating graduate students about the student loan industry and keeping you up to date about changes in legislation and regulations. Here, you'll find everything you need to stay informed. Government RelationsAs an authorized lender under the Federal Family Education Loan Program (FFELP), Graduate School Loans is committed to adhering to government policies and regulations. We work endlessly to ensure your paperwork is administered under strict compliance with federal and state legislation. To this end, we have gathered information about the FFEL Program to make all procedures and protocol as transparent as possible. Graduate School Loans wants you to be informed about your student loans so that your decisions will make for a sound financial future. Financial Aid ProfessionalsYour role is a crucial one in higher education. You are the link between the cost of attaining higher education and the culmination of a successful career. Graduate School Loans recognizes your role and is committed to assisting you and your students. We have outlined the products and services we offer along with the benefits your students will receive when they choose to consolidate their education loans with Graduate School Loans. Tuesday, June 23, 2009
private student loan-compare
Private Student Loans
Private student loans help 'fill the gap' in your financial aid package. Private loans allow you to borrow the difference between what Federal aid can cover, and the true cost of your education.
Private loan funds can be used to pay for tuition, supplies, housing, and more.
Applying For a Private Student Loan is Quick and Easy
Private student loans for tuition, supplies, housing, and more
E-Sign your application and be finished in minutes
Private Student Loans
Apply now »
Compare Private Loans
Private Loan Benefits
Interest Rates
Private Loan Eligibility
Private Loan Repayment
Private Loan FAQs
School Certified
Loan Details & Benefits
Rates & Repayment
Apply Now
Other Loan Options
Federal Student Loans
Parent PLUS Loans
Graduate PLUS Loans
Student Credit Cards
Consolidation
K-12 Private Loans
Win Free Scholarships
Find Online Degrees
Financial Aid Forum
Private Student Loans
Private student loans help 'fill the gap' in your financial aid package. Private loans allow you to borrow the difference between what Federal aid can cover, and the true cost of your education.
Private loan funds can be used to pay for tuition, supplies, housing, and more.
Apply for a Private Student Loan »
Applying For a Private Student Loan is Quick and Easy
Private student loans for tuition, supplies, housing, and more
E-Sign your application and be finished in minutes
#stafford-home {
width:555px;
height: 120px;
}
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Federal Student Loans: Your Best Financial Aid Options
Stafford loans from StaffordLoan.com have a fixed interest rate as low as 5.60% and can be used to cover tuition and other school expenses.
Learn More Apply Now
Federal PLUS Loans from ParentPLUSLoan.com allow parents to borrower up to the cost of attendance for their undergraduate children.
Learn More Apply Now
Private Student Loan News
Can I access all my federal loan details online?
Jun 22 2009 - Yes, your federal loan details can be accessed online through the Department of Education’s National Student Loan Data System (NSLDS) database. The NSLDS database holds all your federal loan details. If...
Learning Contracts, Something You Never Knew
Jun 19 2009 - Forget a big league contract. Sign your John Hancock to the bottom of a learning contract. Did you know that many schools negotiate learning contracts with their students?
Private student loans help 'fill the gap' in your financial aid package. Private loans allow you to borrow the difference between what Federal aid can cover, and the true cost of your education.
Private loan funds can be used to pay for tuition, supplies, housing, and more.
Applying For a Private Student Loan is Quick and Easy
Private student loans for tuition, supplies, housing, and more
E-Sign your application and be finished in minutes
Private Student Loans
Apply now »
Compare Private Loans
Private Loan Benefits
Interest Rates
Private Loan Eligibility
Private Loan Repayment
Private Loan FAQs
School Certified
Loan Details & Benefits
Rates & Repayment
Apply Now
Other Loan Options
Federal Student Loans
Parent PLUS Loans
Graduate PLUS Loans
Student Credit Cards
Consolidation
K-12 Private Loans
Win Free Scholarships
Find Online Degrees
Financial Aid Forum
Private Student Loans
Private student loans help 'fill the gap' in your financial aid package. Private loans allow you to borrow the difference between what Federal aid can cover, and the true cost of your education.
Private loan funds can be used to pay for tuition, supplies, housing, and more.
Apply for a Private Student Loan »
Applying For a Private Student Loan is Quick and Easy
Private student loans for tuition, supplies, housing, and more
E-Sign your application and be finished in minutes
#stafford-home {
width:555px;
height: 120px;
}
#stafford-home .content {
width:260px;
height: 200px;
margin-left:272px;
}
#stafford-home-half {
width:260px;
height: 120px;
}
Federal Student Loans: Your Best Financial Aid Options
Stafford loans from StaffordLoan.com have a fixed interest rate as low as 5.60% and can be used to cover tuition and other school expenses.
Learn More Apply Now
Federal PLUS Loans from ParentPLUSLoan.com allow parents to borrower up to the cost of attendance for their undergraduate children.
Learn More Apply Now
Private Student Loan News
Can I access all my federal loan details online?
Jun 22 2009 - Yes, your federal loan details can be accessed online through the Department of Education’s National Student Loan Data System (NSLDS) database. The NSLDS database holds all your federal loan details. If...
Learning Contracts, Something You Never Knew
Jun 19 2009 - Forget a big league contract. Sign your John Hancock to the bottom of a learning contract. Did you know that many schools negotiate learning contracts with their students?
Monday, June 22, 2009
Saturday, June 20, 2009
student loan company
The Student Loans Company (SLC) is a UK public sector organisation established to provide financial services, in terms of loans and grants, to over one million students annually, in colleges and universities across the four education systems of England, Northern Ireland, Scotland and Wales.
Our other key responsibility is the administration of the collection of repayments, from over two million customers no longer in higher education.
This website provides easy access to
Our other key responsibility is the administration of the collection of repayments, from over two million customers no longer in higher education.
This website provides easy access to
Thursday, June 18, 2009
Wednesday, June 17, 2009
student loan
Citi's wide variety of student loans and fast online applications will help you get the money you need to pay for college quickly to free up time for the things that matter to you.
CitiAssist® Loans
Start a Loan Application
Call 1-800-STUDENT
Federal Stafford Loans
As low as
document.write(STAFFORD_SUB_UNDERGRAD);
6.00%
Basic Eligibility:
You must be:
A U.S. citizen, national, or eligible non-citizen
Enrolled as a full- or half-time undergraduate student
Interest Rate:
document.write(STAFFORD_SUB_UNDERGRAD);
6.00% for a subsidized Federal Stafford Loan
document.write(STAFFORD_UNSUB_UNDERGRAD);
6.80% for an unsubsidized Federal Stafford Loan
Loan Benefits:
Receive a 0.25% interest rate reduction when you enroll in our auto-debit payment program and receive only electronic statements.
Fees:
1.00% origination fee (1.50% 07/01/07 - 06/30/08)
1.00% federal default fee
Borrowing Limits:
Borrow up to $12,500 per year.
Loan Funds:
Your loan funds will be sent directly to your school and credited to your account at the Bursar's Office.
Paying Back Your Loans:
The standard repayment term is 10 years. Repayment begins six months after you graduate, leave school, or drop your attendance below half-time.
More:
The Federal Stafford Loan can be either subsidized or unsubsidized; your eligibility for each will be defined in your award letter from your school. The government will pay the interest for you on subsidized loans, while you pay the interest on unsubsidized loans.
CitiAssist® Loans
Competitive Interest Rates
Basic Eligibility:
You must be:
At least 18 years of age, 19 in AL and NE, and 21 in MS and PR.
Enrolled at least part-time as an undergraduate student.
Enrolled at an accredited, approved college or university in the U.S.
Interest Rate:
Competitive Interest Rates.
Loan Benefits:
Receive a 0.25% interest rate reduction when you enroll in our auto-debit payment program.
Fees:
A loan fee may be added to your principal balance.
Borrowing Limits:
Borrow up to the total cost of education less any other financial aid awarded. A $1,000 minimum loan amount may apply.
Loan Funds:
Your loan funds will be sent directly to your school and credited to your account at the Bursar’s Office.
Paying Back Your Loans:
The standard repayment term is up to 20 years. Repayment begins six months after you graduate or leave school.
More:
You may apply for a private loan on your own or with a co-signer. Since private loans are credit-based, applying with a creditworthy co-signer may increase the likelihood of approval and may help you get a lower interest rate.
CitiAssist® Loans
Start a Loan Application
Call 1-800-STUDENT
Federal Stafford Loans
As low as
document.write(STAFFORD_SUB_UNDERGRAD);
6.00%
Basic Eligibility:
You must be:
A U.S. citizen, national, or eligible non-citizen
Enrolled as a full- or half-time undergraduate student
Interest Rate:
document.write(STAFFORD_SUB_UNDERGRAD);
6.00% for a subsidized Federal Stafford Loan
document.write(STAFFORD_UNSUB_UNDERGRAD);
6.80% for an unsubsidized Federal Stafford Loan
Loan Benefits:
Receive a 0.25% interest rate reduction when you enroll in our auto-debit payment program and receive only electronic statements.
Fees:
1.00% origination fee (1.50% 07/01/07 - 06/30/08)
1.00% federal default fee
Borrowing Limits:
Borrow up to $12,500 per year.
Loan Funds:
Your loan funds will be sent directly to your school and credited to your account at the Bursar's Office.
Paying Back Your Loans:
The standard repayment term is 10 years. Repayment begins six months after you graduate, leave school, or drop your attendance below half-time.
More:
The Federal Stafford Loan can be either subsidized or unsubsidized; your eligibility for each will be defined in your award letter from your school. The government will pay the interest for you on subsidized loans, while you pay the interest on unsubsidized loans.
CitiAssist® Loans
Competitive Interest Rates
Basic Eligibility:
You must be:
At least 18 years of age, 19 in AL and NE, and 21 in MS and PR.
Enrolled at least part-time as an undergraduate student.
Enrolled at an accredited, approved college or university in the U.S.
Interest Rate:
Competitive Interest Rates.
Loan Benefits:
Receive a 0.25% interest rate reduction when you enroll in our auto-debit payment program.
Fees:
A loan fee may be added to your principal balance.
Borrowing Limits:
Borrow up to the total cost of education less any other financial aid awarded. A $1,000 minimum loan amount may apply.
Loan Funds:
Your loan funds will be sent directly to your school and credited to your account at the Bursar’s Office.
Paying Back Your Loans:
The standard repayment term is up to 20 years. Repayment begins six months after you graduate or leave school.
More:
You may apply for a private loan on your own or with a co-signer. Since private loans are credit-based, applying with a creditworthy co-signer may increase the likelihood of approval and may help you get a lower interest rate.
student loan
Student Loan Consolidation Interest Rates
The interest rates for federal student loan consolidations are based on the weighted average of student loan interest rates. Federal Stafford loans disbursed between July 1, 2006 and June 30, 2008 have an interest rate of 6.8%. Stafford loans disbursed after July 1, 2008 have a rate of 6.0%.
Federal student loans will have different rates depending on type and disbursement dates. For example, rates for Stafford loan disbursed before July 1, 2006 will remain variable until consolidated. Visit StaffordLoan.com or ParentPLUSLoan.com for more details on federal student loan interest rates.
Federal Student Loan Consolidation
Private Student Loan Consolidation Rates
Private student loan consolidation interest rates are variable, based on either the LIBOR (London Interbank Offered Rate) or the Prime rate, plus a margin for borrower and/or co-signer credit. Current LIBOR rate = 4.63%. Which means your first year rate could be as low as 5.63%!-->
Origination fees can range between 1% and 5% depending upon your individual credit or the credit of a co-signer. Any fees that associated with the loan are capitalized (added to the loan) typically at the time repayment begins, which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.
Undergraduate Private Consolidation Program Description:
Rates
LIBOR + 5% - 8.5%
APR1
7.90% - 11.93%
Fees2
1% - 5%
Max Term
25 years
Max Balance
$150,000
Based upon a $45,000 principal balance, a 300 month term and a LIBOR rate of 2.8% (as of 7/22/08); the Annual Percentage Rate (APR) would be 7.9% for a borrower with excellent credit who received a rate of LIBOR plus 5% and was assessed a fee of 1% of the loan amount.
Private Student Loan Consolidation-->
View interest rate example for graduate private loan consolidation.
Federal Student Loans Overview
Federal student loans supply financial help for students enrolled at schools that participate in federal aid programs. These loans are offered by private organizations under accordance from the U.S. Department of Education through the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP).
Federal student loans generally cover school expenses, including tuition and fees, room and board, books and school supplies, as well as any transportation. Loans can also help pay for technology needs (i.e., a computer) and for necessary dependent care.
Federal Stafford Student Loans
Stafford Student Loans are federal loans made to college and university students to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student's financial need.
Federal Student Loan Consolidation
If you're a U.S. college student who is approaching graduation day or a recent college graduate, no doubt you've been contacted by student loan consolidation services. As you wade through all this information, it can be hard to get a straight answer to a simple question: is federal loan consolidation right for you?
First of, what is student loan consolidation? This simply means that if you took out more than one U.S. government loan during your time as a college student, you can combine all of them into one.
If you also owe private student loans that weren't part of your financial aid package, you can consolidate these as well. However, lenders recommend that you don't consolidate federal student loans and private student loans together. If you do this, the new consolidated loan will count as a private loan, and you will lose all the benefits that come with your federal student loans, such as student loan deferment if you go to graduate school.
So what are the advantages and disadvantages of consolidating your federal student loans? This questions depends partly on how much you owe, how much you've already paid, and other personal financial variables.
Stafford Loan(student loan)
Both subsidized and unsubsidized loans are guaranteed by the Department of Education either directly or through guarantee agencies. Nearly all students are eligible to receive a Stafford Student Loan regardless of credit score or other financial issues. Both types offer a grace period of six-months, which means that no payments are due until six-months after graduation or three months after the borrower becomes a less-than-full-time student without graduating. Both types have a fairly modest annual limit. The limit for the academic year beginning in 2007 is $3,500 per year for freshman undergraduate students, $4,500 for sophomore undergraduates, and $5,500 per year for junior and senior undergraduates.
Stafford Loan student loan
Parent PLUS Student Loans
The Parent PLUS Student Loan is available to parents of students enrolled at least part-time in a program included within a formal list of participating post-secondary institutions. PLUS loans differ from other federal student loans like the Stafford and Perkins loans in that it can cover a larger amount of the cost of education, has a higher interest rate and the commitment is undertaken by the parent, rather than the student. PLUS Loans are also available for graduate and professional students
Stafford Loan Frequently Asked Questions
I completed my MPN, what's next?
Once you have signed your Master Promissory Note, we reach out to your school to request certification. The school will then certify the loan for the dollar amount that you were awarded.
How long does it take to get my funds?
It all depends on what date your school sets the disbursement for. Check with your financial aid officer for more information.
Can you tell me what my balance is on my Stafford loan?
If you are wondering how much you owe in Federal Stafford Loans, please call the US Department of Education at 800-433-3243 or you may look up your student loans on the National Student Loan Database.
How much am I eligible for?
To see the loan limits chart for undergraduates, please see above If you are a graduate student, please see above.
Why does the loan need to be certified?
Certification is necessary because Stafford loans are federally guaranteed loans. Your school must verify that you are enrolled in classes, and that you are maintaining satisfactory academic progress in order to continue to be eligible for Stafford loans through the federal government.
What is the interest rate for Stafford Loans?
For the 2009-2010 school year, the interest rate on a Subsidized Stafford Loan is fixed at 5.6%. The interest rate for Unsubsidized Stafford loans is a fixed rate of 6.8%. The Stafford loan for graduate students is at a fixed rate of 6.8% for Unsubsidized and Subsidized Stafford loans. Please note, that interest rates on Federal Stafford Subsidized and Unsubsidized Loans change yearly but will never exceed 8.25%.
What's the difference between unsubsidized and subsidized loans?
Subsidized loans are awarded based on financial need. You will not be charged interest before you begin repayment or during periods of deferment. The federal government "subsidizes" (or pays) the interest during these times.
Unsubsidized loans are not awarded based on financial needs. Any eligible student can take out Unsubsidized Stafford Loans. You will be charged interest from the time the loan is disbursed, to the time the loan is repaid in full.
Are there specific schools that accept Stafford loans?
Yes, Stafford Loans can be used at any eligible school which accepts them. Take a look at the Student Loan Network Eligible Schools Directory for information about which schools accept which loans. If you are unsure or think your school participates in the Direct Loan Program, contact your financial aid officer.
What are the deadlines for Stafford Loans?
Unfortunately, there is no single set deadline for Stafford Loan applications; you will need to contact your school's financial aid office to obtain deadlines for your specific institution.
How much can I borrow under a Stafford Loan?
The amount you can borrow is based on your grade level and your status as a student. Independent students may be eligible to borrow more because they are paying for college without assistance from their family. Please review the current Stafford Loan limits chart for borrowing limits and to determine dependency status.
Based on your award letter, you may not always qualify for the maximum Stafford Loan amount. For additional loan funding, consider alternative student loans which allow you to borrow up to the total cost of education less other financial aid received.
the Stafford Loan
The loan is deferred until graduation; can we pay on the loan during the 4 years?
Yes, but you will need to place your loan into repayment and then defer it while in school.
Are there penalties for early payment, or if the loan is paid in full before scheduled (deferred) payments begin?
There are never early payment penalties for federal student loans.
What are the repayment options for a Stafford Loan?
The standard repayment term for this loan is 10 years. You may be able to extend repayment by deferring or consolidating your Stafford loans.
You can choose one of the following plans:
The Standard Repayment Plan requires you to pay a fixed amount each month based on your principle and interest but will be no less than $50 or the interest that has accrued.
The Graduated Repayment Plan allows you to make lower payments at the beginning of repayment then, over time, your payments begin to increase. Each of your payments must equal the interest accrued on the loan between scheduled payments and initial payments general cover interest only for the first few years.
The Income-Sensitive Repayment Plan bases your monthly payment on your yearly income and your loan amount. Payments may change as your income rises or falls.
The Extended Repayment Plan is for borrowers with FFELP loans totaling more than $30,000. This plan offers a choice of fixed or graduated payments over a period of up to 25 years.
Do I have to reapply every year in order to get the Stafford Loan?
A very common question. You have to apply every year because each year, the amount of aid you are eligible for is determined by your FAFSA. Federal student loans do not "renew" automatically.
Stafford Loan student loan
I was awarded a $3,500 Stafford loan. When I got my final disbursement, the total was less than $3,500. Why did I receive less than what I was awarded?
There may be fees associated with the Stafford Loan. The fees vary by lender and can include a 1% default fee plus a 3% origination fee. The 1% default fee is a fee used by the lender to create a reserve to protect the loan program in instances when borrowers default on their loans. Default and origination fees, if charged, are deducted from the loan funds before they are sent to the school, but you will ultimately be responsible for repaying the full amount of $3,500
How is my EFC Calculated?
The federal government proscribes an official federal EFC calculation. This calculation determines family resources available from a family's income (less allowances for taxes and living expenses) and assets (less allowances for retirement). A percentage of these available amounts are earmarked as EFC. You can calculate an unofficial EFC right on the Internet.
Why do some schools use an EFC that differs from what my Federal EFC (on my SAR) says?
Some schools use an Institutional EFC calculation to determine eligibility for non-Federal sources of financial aid. This calculation usually considers additional family resources, like home equity, that are not part of the Federal EFC calculation. to learn all about the financial aid award process. www.studentloanconsolidationrate
Can I get a Stafford Loan if I have poor credit?
Yes. The Stafford Loan is not a credit-based loan - it is a need-based loan and your eligibility for it is governed by your FAFSA submission, not your credit report.
What are the Stafford Loan cancellation policies?
Your school must notify you in writing whenever your account is credited with your loan proceeds. This notification must be sent to you no earlier than 30 days before and no later than 30 days after the school credits your account. You may cancel all or a portion of your loan if you inform your school within 14 days after the date that your school sends you this notice or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period.
Check out our financial aid forum to post questions and engage in conversation with peers and industry leading financial aid experts.
How can I bridge the financial gap between my total cost of education and the amount of financial aid I was awarded?
There are four main options available to students and families:
Contributions from Savings. A family might consider using savings or investments to meet educational costs. Families with assets that can be liquidated for educational expenses generally have less reliance on financial aid and pay less in fees and interest expenses.
Contributions from Income. Some families might be able to meet educational expenses by allocating funds from their current budget. This option requires a family to closely analyze their income and expenses and determine an amount that they can pay on an ongoing basis. Adjustments may have to be made to existing household expenses to afford an amount to allocate from income.
Tuition Payment Plans. If the school participates in a tuition payment plan, a family can pay the remaining tuition balance in monthly installments which can range from a nine to twelve month period of time.
Alternative (Private) Student Loans. Consider alternative loans as a means to meet educational costs not covered by federal aid. For more information, read our page on alternative student loans.
Which student loan programs are best?
While there are no absolute ways to determine which loan programs are best, there are some general guidelines and areas that will help to help you choose the most affordable loan option.
Interest Subsidy -- Subsidized loans (in which the government or other agency) are far better than unsubsidized loans (in which interest must be paid by the borrower from the loan's disbursement).
Lowest Cost -- The loan's interest rates and fee structure determine the amount of a loan's finance charges. Some loans (like mortgages) allow you to pay up-front fees in exchange for a lower interest rate. You should consider this feature in relation to how long you plan to repay the loan. The loans with a longer repayment period are often less expensive with lower interest charges and a slightly higher up-front fee.
Interest rate options -- Programs offer different interest rate options. Some are fixed and stay the same over the life of the loan. Some are variable and tied to the Prime interest rate (or other index). When the interest rate changes also varies among programs. Some change annually, some quarterly and some as often as monthly.
Flexibility -- Consider the repayment options offered. Are payments required during repayment? Can the principal be deferred? Are alternative repayment programs (graduate repayment or income sensitive, for example) offered?
How to choose an alternative loan program?
There are many ways to compare alternative loan programs. And oftentimes, a student's and family's unique circumstances will determine what loan program makes the most sense. Alternative loan programs differ in who the borrower is (the student, parent or other co-applicant). You should refer to the page on Alternative Loans for more information.
The interest rates for federal student loan consolidations are based on the weighted average of student loan interest rates. Federal Stafford loans disbursed between July 1, 2006 and June 30, 2008 have an interest rate of 6.8%. Stafford loans disbursed after July 1, 2008 have a rate of 6.0%.
Federal student loans will have different rates depending on type and disbursement dates. For example, rates for Stafford loan disbursed before July 1, 2006 will remain variable until consolidated. Visit StaffordLoan.com or ParentPLUSLoan.com for more details on federal student loan interest rates.
Federal Student Loan Consolidation
Private Student Loan Consolidation Rates
Private student loan consolidation interest rates are variable, based on either the LIBOR (London Interbank Offered Rate) or the Prime rate, plus a margin for borrower and/or co-signer credit. Current LIBOR rate = 4.63%. Which means your first year rate could be as low as 5.63%!-->
Origination fees can range between 1% and 5% depending upon your individual credit or the credit of a co-signer. Any fees that associated with the loan are capitalized (added to the loan) typically at the time repayment begins, which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.
Undergraduate Private Consolidation Program Description:
Rates
LIBOR + 5% - 8.5%
APR1
7.90% - 11.93%
Fees2
1% - 5%
Max Term
25 years
Max Balance
$150,000
Based upon a $45,000 principal balance, a 300 month term and a LIBOR rate of 2.8% (as of 7/22/08); the Annual Percentage Rate (APR) would be 7.9% for a borrower with excellent credit who received a rate of LIBOR plus 5% and was assessed a fee of 1% of the loan amount.
Private Student Loan Consolidation-->
View interest rate example for graduate private loan consolidation.
Federal Student Loans Overview
Federal student loans supply financial help for students enrolled at schools that participate in federal aid programs. These loans are offered by private organizations under accordance from the U.S. Department of Education through the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP).
Federal student loans generally cover school expenses, including tuition and fees, room and board, books and school supplies, as well as any transportation. Loans can also help pay for technology needs (i.e., a computer) and for necessary dependent care.
Federal Stafford Student Loans
Stafford Student Loans are federal loans made to college and university students to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student's financial need.
Federal Student Loan Consolidation
If you're a U.S. college student who is approaching graduation day or a recent college graduate, no doubt you've been contacted by student loan consolidation services. As you wade through all this information, it can be hard to get a straight answer to a simple question: is federal loan consolidation right for you?
First of, what is student loan consolidation? This simply means that if you took out more than one U.S. government loan during your time as a college student, you can combine all of them into one.
If you also owe private student loans that weren't part of your financial aid package, you can consolidate these as well. However, lenders recommend that you don't consolidate federal student loans and private student loans together. If you do this, the new consolidated loan will count as a private loan, and you will lose all the benefits that come with your federal student loans, such as student loan deferment if you go to graduate school.
So what are the advantages and disadvantages of consolidating your federal student loans? This questions depends partly on how much you owe, how much you've already paid, and other personal financial variables.
Stafford Loan(student loan)
Both subsidized and unsubsidized loans are guaranteed by the Department of Education either directly or through guarantee agencies. Nearly all students are eligible to receive a Stafford Student Loan regardless of credit score or other financial issues. Both types offer a grace period of six-months, which means that no payments are due until six-months after graduation or three months after the borrower becomes a less-than-full-time student without graduating. Both types have a fairly modest annual limit. The limit for the academic year beginning in 2007 is $3,500 per year for freshman undergraduate students, $4,500 for sophomore undergraduates, and $5,500 per year for junior and senior undergraduates.
Stafford Loan student loan
Parent PLUS Student Loans
The Parent PLUS Student Loan is available to parents of students enrolled at least part-time in a program included within a formal list of participating post-secondary institutions. PLUS loans differ from other federal student loans like the Stafford and Perkins loans in that it can cover a larger amount of the cost of education, has a higher interest rate and the commitment is undertaken by the parent, rather than the student. PLUS Loans are also available for graduate and professional students
Stafford Loan Frequently Asked Questions
I completed my MPN, what's next?
Once you have signed your Master Promissory Note, we reach out to your school to request certification. The school will then certify the loan for the dollar amount that you were awarded.
How long does it take to get my funds?
It all depends on what date your school sets the disbursement for. Check with your financial aid officer for more information.
Can you tell me what my balance is on my Stafford loan?
If you are wondering how much you owe in Federal Stafford Loans, please call the US Department of Education at 800-433-3243 or you may look up your student loans on the National Student Loan Database.
How much am I eligible for?
To see the loan limits chart for undergraduates, please see above If you are a graduate student, please see above.
Why does the loan need to be certified?
Certification is necessary because Stafford loans are federally guaranteed loans. Your school must verify that you are enrolled in classes, and that you are maintaining satisfactory academic progress in order to continue to be eligible for Stafford loans through the federal government.
What is the interest rate for Stafford Loans?
For the 2009-2010 school year, the interest rate on a Subsidized Stafford Loan is fixed at 5.6%. The interest rate for Unsubsidized Stafford loans is a fixed rate of 6.8%. The Stafford loan for graduate students is at a fixed rate of 6.8% for Unsubsidized and Subsidized Stafford loans. Please note, that interest rates on Federal Stafford Subsidized and Unsubsidized Loans change yearly but will never exceed 8.25%.
What's the difference between unsubsidized and subsidized loans?
Subsidized loans are awarded based on financial need. You will not be charged interest before you begin repayment or during periods of deferment. The federal government "subsidizes" (or pays) the interest during these times.
Unsubsidized loans are not awarded based on financial needs. Any eligible student can take out Unsubsidized Stafford Loans. You will be charged interest from the time the loan is disbursed, to the time the loan is repaid in full.
Are there specific schools that accept Stafford loans?
Yes, Stafford Loans can be used at any eligible school which accepts them. Take a look at the Student Loan Network Eligible Schools Directory for information about which schools accept which loans. If you are unsure or think your school participates in the Direct Loan Program, contact your financial aid officer.
What are the deadlines for Stafford Loans?
Unfortunately, there is no single set deadline for Stafford Loan applications; you will need to contact your school's financial aid office to obtain deadlines for your specific institution.
How much can I borrow under a Stafford Loan?
The amount you can borrow is based on your grade level and your status as a student. Independent students may be eligible to borrow more because they are paying for college without assistance from their family. Please review the current Stafford Loan limits chart for borrowing limits and to determine dependency status.
Based on your award letter, you may not always qualify for the maximum Stafford Loan amount. For additional loan funding, consider alternative student loans which allow you to borrow up to the total cost of education less other financial aid received.
the Stafford Loan
The loan is deferred until graduation; can we pay on the loan during the 4 years?
Yes, but you will need to place your loan into repayment and then defer it while in school.
Are there penalties for early payment, or if the loan is paid in full before scheduled (deferred) payments begin?
There are never early payment penalties for federal student loans.
What are the repayment options for a Stafford Loan?
The standard repayment term for this loan is 10 years. You may be able to extend repayment by deferring or consolidating your Stafford loans.
You can choose one of the following plans:
The Standard Repayment Plan requires you to pay a fixed amount each month based on your principle and interest but will be no less than $50 or the interest that has accrued.
The Graduated Repayment Plan allows you to make lower payments at the beginning of repayment then, over time, your payments begin to increase. Each of your payments must equal the interest accrued on the loan between scheduled payments and initial payments general cover interest only for the first few years.
The Income-Sensitive Repayment Plan bases your monthly payment on your yearly income and your loan amount. Payments may change as your income rises or falls.
The Extended Repayment Plan is for borrowers with FFELP loans totaling more than $30,000. This plan offers a choice of fixed or graduated payments over a period of up to 25 years.
Do I have to reapply every year in order to get the Stafford Loan?
A very common question. You have to apply every year because each year, the amount of aid you are eligible for is determined by your FAFSA. Federal student loans do not "renew" automatically.
Stafford Loan student loan
I was awarded a $3,500 Stafford loan. When I got my final disbursement, the total was less than $3,500. Why did I receive less than what I was awarded?
There may be fees associated with the Stafford Loan. The fees vary by lender and can include a 1% default fee plus a 3% origination fee. The 1% default fee is a fee used by the lender to create a reserve to protect the loan program in instances when borrowers default on their loans. Default and origination fees, if charged, are deducted from the loan funds before they are sent to the school, but you will ultimately be responsible for repaying the full amount of $3,500
How is my EFC Calculated?
The federal government proscribes an official federal EFC calculation. This calculation determines family resources available from a family's income (less allowances for taxes and living expenses) and assets (less allowances for retirement). A percentage of these available amounts are earmarked as EFC. You can calculate an unofficial EFC right on the Internet.
Why do some schools use an EFC that differs from what my Federal EFC (on my SAR) says?
Some schools use an Institutional EFC calculation to determine eligibility for non-Federal sources of financial aid. This calculation usually considers additional family resources, like home equity, that are not part of the Federal EFC calculation. to learn all about the financial aid award process. www.studentloanconsolidationrate
Can I get a Stafford Loan if I have poor credit?
Yes. The Stafford Loan is not a credit-based loan - it is a need-based loan and your eligibility for it is governed by your FAFSA submission, not your credit report.
What are the Stafford Loan cancellation policies?
Your school must notify you in writing whenever your account is credited with your loan proceeds. This notification must be sent to you no earlier than 30 days before and no later than 30 days after the school credits your account. You may cancel all or a portion of your loan if you inform your school within 14 days after the date that your school sends you this notice or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period.
Check out our financial aid forum to post questions and engage in conversation with peers and industry leading financial aid experts.
How can I bridge the financial gap between my total cost of education and the amount of financial aid I was awarded?
There are four main options available to students and families:
Contributions from Savings. A family might consider using savings or investments to meet educational costs. Families with assets that can be liquidated for educational expenses generally have less reliance on financial aid and pay less in fees and interest expenses.
Contributions from Income. Some families might be able to meet educational expenses by allocating funds from their current budget. This option requires a family to closely analyze their income and expenses and determine an amount that they can pay on an ongoing basis. Adjustments may have to be made to existing household expenses to afford an amount to allocate from income.
Tuition Payment Plans. If the school participates in a tuition payment plan, a family can pay the remaining tuition balance in monthly installments which can range from a nine to twelve month period of time.
Alternative (Private) Student Loans. Consider alternative loans as a means to meet educational costs not covered by federal aid. For more information, read our page on alternative student loans.
Which student loan programs are best?
While there are no absolute ways to determine which loan programs are best, there are some general guidelines and areas that will help to help you choose the most affordable loan option.
Interest Subsidy -- Subsidized loans (in which the government or other agency) are far better than unsubsidized loans (in which interest must be paid by the borrower from the loan's disbursement).
Lowest Cost -- The loan's interest rates and fee structure determine the amount of a loan's finance charges. Some loans (like mortgages) allow you to pay up-front fees in exchange for a lower interest rate. You should consider this feature in relation to how long you plan to repay the loan. The loans with a longer repayment period are often less expensive with lower interest charges and a slightly higher up-front fee.
Interest rate options -- Programs offer different interest rate options. Some are fixed and stay the same over the life of the loan. Some are variable and tied to the Prime interest rate (or other index). When the interest rate changes also varies among programs. Some change annually, some quarterly and some as often as monthly.
Flexibility -- Consider the repayment options offered. Are payments required during repayment? Can the principal be deferred? Are alternative repayment programs (graduate repayment or income sensitive, for example) offered?
How to choose an alternative loan program?
There are many ways to compare alternative loan programs. And oftentimes, a student's and family's unique circumstances will determine what loan program makes the most sense. Alternative loan programs differ in who the borrower is (the student, parent or other co-applicant). You should refer to the page on Alternative Loans for more information.
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