Student Loans Consolidator

Student Loans Consolidation

2009-01-03T08:56:00.000-08:00

Student loan consolidation

Tired from paying interest on student loans every month, afraid of the deadline of paying back loans, there is a solution of your tensions, STUDENT LOAN Consolidation. In student loan consolidation, a student may enjoy many benefits; some of them are following below.

1. lower monthly payments
2. only one monthly payment rather than paying separately
3. Student loan consolidation rates are very low, fixed interest rate cannot exceed 8.25% at any time, coupled with national interest rates at a 40-year low.
4. For the application of student loan consolidation, you don’t have to offer any credit card check or processing fees.
5. the terms and payment plans of student loan consolidation are very flexible, the provider can mode them according to your financial needs
6. While you don't need to consolidate in order to take advantage of this one, you can knock an additional .25% off your rate by making your monthly payment electronically. This electronic debit option does more than save you money - it decreases your chances of forgetting a payment.
7. The option to prepay your loan at any time without incurring a penalty
Sometimes a student got confused about the qualification of applying for student loan consolidation. But now government clears that students who are still in their grace period or cannot re pay their owe money on a student loans can qualify to get student loan consolidation or those who are still in school may consolidate their government-guaranteed loans

Today in the market, there are many companies offering student loans to the college students, but when it comes to their interest rates, they are charging very high. A student has to pay interest on their loans, every month, which is quite impossible for some due to lack of money and time. When it comes time to pay back their student loans, it can be a real burden and a distraction from their career. For those, student loan consolidation is a best deal and step to follow. In this, you don’t even get low interest rates, but can enjoy other facilities including grace period of six to nine months, only one monthly payments, tension-free mind etc.

Due to existence of government sector, a student has an opportunity to enjoy the offers given by the government as they are quite competitive than private. Student loan consolidation rates is fixed and cant be changed after signing the contracts and whenever student has graduated or ceased to be a full time student, he can also enjoy the benefit of grace period of six to nine months which allows him to get employed and repay their loans easily.

Loan consolidation is the channel through which you can bring all your loans under one single policy and reduce the monthly payments by increasing the duration of the loan. Consolidation has loads of benefits, some being:

* Lower rate of interest
* Locking in loans at a lower interest rate
* Lower monthly payments
* Worrying about just one loan instead of many
* Longer repayment schedule

The logic behind consolidation is simple. consolidation merges all your loans and bills into one single payment. It reduces your (the borrower's) monthly bill of loan repayment. In simpler terms, think of it this way: If you have to pay $100 in 5 years, you pay $20 every year (ignoring any interest component), and if you have to pay the same $100 in 10 years, you pay $10 every year. And in certain cases, the monthly payment burden gets reduced, and the loan payment period also doesn't get increased. This is what consolidation does; it reduces your monthly expenditure on loan repayment and gives you that extra cash in hand.

Now to tell you a little bit more about the Student Consolidation Program. If your loan is eligible to be consolidated under this program (see the list below) then you don't have to worry about variable interest rates anymore. Under the Student Consolidation Program, the interest rates are fixed based on many technicalities such as the amount of loan outstanding, the interest rate currently paid, etc. This rate of interest would be fixed throughout the life of your loan. So no more watching the interest rate markets for fluctuations that can hamper your lifestyle.

The list of loans that can be consolidated under the Student Consolidation Program:

* Unsubsidized Federal Stafford Loans
* Federal Parent Loans for Undergraduate Students (PLUS)
* Federal Supplemental Loans for Students (SLS)
* National Direct Student Loans (NDSL)
* Health Professions Student Loans
* Federal Perkins Loans
* Subsidized Federal Stafford Loans
* All Federal Direct Student Loans (Direct Loans)
* Health Education Assistance Loans (HEAL)
* Nursing Student Loans
* Student Consolidation Loans
* Federally Insured Student Loans (FISL)
* Loan from the Department of Education

If your loan falls under any of the above, then loan consolidation is a realistic option for you.

We reduce your loan burdens. We offer you the following terms:

* Lock in low interest rates.
* No credit checks, No fees - Absolutely Free!
* Loan period extendable to up to 30 years
* Lower monthly payments by nearly 50%
* Complete confidentiality maintained
* Free live pre-qualification by government-approved agents
* It's a U.S. Government Program
* And it takes just 60 Seconds to Qualify!

Federal Student Loan Limits

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As tuition rates at many colleges continues to rise, the limits that students may borrow each year has stayed the same.

Dependent undergraduates may borrow up to $2,625 their freshman year, $3,500 their sophomore year and $5,500 for each remaining year in Stafford Loans.

Students classified as independent from parents, may qualify for additional unsubsidized loans. Dependent students may also receive unsubsidized loans if parents do not qualify for a PLUS loan.

Unsubsidized loans can be a double edged sword -- they allow the student to pay for college, but borrowers do not receive the interest free benefit of subsidized loans.

There is also cumulative limit of $23,000 for an undergraduate education.

The limits on amounts students can borrow though federal loans hasn't increased since 1992. In that time tuition rates have more than doubled.

According to finaid.org, tuition rates increase at about twice the general inflation rate. On average, tuition tends to increase about 8% per year. In addition, general inflation has caused prices for student housing, meals and other necessary expenses to increase.

For the school year 2005-2006 many colleges dramatically raised tuition rates. An example of such tuition hikes is the University of Colorado where rates rates have been raised for all of the system's campuses. Tuition at CU-Boulder will go up by 27.8 percent, from $3,480 to $4,446. Other CU campuses will see a similar increase.

The national average tuition for public universities is $4,694 per year for in state residents. For freshmen and sophomore students, the current student loan limit does not even cover tuition costs.

Because of the restrictions with federal student loan limits, students and parents will need to become more diligent in seeking out alternative sources of college funding.

There are many scholarships available nationwide that students can apply for. One of the easiest ways to apply is through the FastWeb online database. There are also many books available that list scholarships that students can apply for.

Part time and summer student employment also becomes more important when education costs rise.

Until the federal government reconsiders raising the student loan limits, students will become increasingly dependent upon scholarships, savings and employment. The lesson for families with children not yet in college is simple -- start saving early.

Loan Limits

In May 2008, the President signed the Ensuring Continued Access to Student Loans Act of 2008 (Pub. L. No. 110-227), which made several changes to federal student loans first disbursed on or after July 1, 2008. The most significant changes involved increases in loan limits by $2,000, which are reflected in the table below.

New Loan Limits

Freshman Year

Sophomore Year

Remaining Years

$5,500

$6,500

$7,500

Aggregate Limit for Bachelor’s
Degree

$31,000

*Aggregate limit applies to total Stafford loan amounts, including subsidized and unsubsidized

Independent, Certain Dependent and Graduate Students

Independent undergraduate students, as well as dependent students whose parents have been turned down for a PLUS loan, can borrow an additional unsubsidized $6,000 (up from $4,000) the first two years and $7,000 the remaining years (up from $5,000). The annual loan limit goes up to $9,500 for freshmen; $10,500 for sophomores; and $12,500 for juniors and seniors. The aggregate Stafford loan limit these students may borrow, including subsidized loans, is now $57,500 (minus subsidized loans amounts).

Graduate and professional students can borrow $25,000 per year, although only $8,500 of that is subsidized. The aggregate subsidized amount for these students, including undergraduate loans, is $65,500. The combined cumulative limit for both subsidized and unsubsidized loans is $138,500.

For independent graduate students and for graduate students whose parents were denied a PLUS loan, the cumulative limits are $46,000 and $138,500, respectively. Starting July 1, 2007, some medical school students may borrow up to $40,500 a year (up from $38,500) and a cumulative total of $189,125.

Average Student Loan Debt

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The average student loan debt depends on the institution and the course which the student is studying. The National Post-Secondary Student Aid Study has calculated the following statistics for average student loans for the academic year 2003-2004.

Twenty-one percent of the students attending certificate courses at community colleges had borrowed loans at a median average of $5,307; while 78% of those attending certificate courses at private schools borrowed at a median average of $5,705. These figures show that the number of student borrowers at the private schools was marginally higher than the number at community schools. Among the associate degree students at community colleges, 28% had borrowed a median average of $5,879.

The statistic among bachelor’s degree students was still higher. For the four-year bachelor’s degree course at public colleges, 58% of students borrowed at a median average of $14,671; while at private colleges, 69% borrowed at $17,125.

For the four-year master’s course at public colleges, 48% of the students were borrowers with a median average of $26,119; while at private colleges 73% students were borrowers with a median average of $29,000.

For specialized courses like doctorates and professional courses, the student debt was exceedingly high. 48% of the students undergoing doctorate courses at various institutions borrowed an average of $44,743 last year. 89% of the students opting for four-year professional courses at public colleges borrowed an average of $63,500 and 81% of the professional courses students at private colleges borrowed an average of $71,317.

These figures show that as the academic level goes higher, the average student loan debt also goes higher. The expense of professional courses such as medicine and law are very high and therefore, students also borrow more. Almo

Where Do You Stand?

The average college student graduates with alarming amounts of debt. Who do you think is responsible for the costs? Graduates and parents who have signed on for multiple student loans are responsible for repayment, for as long as it takes.

While many parents have more financial experience, there are many more graduates who risk defaulting on student loan repayment due to lack of information and guidance.

Until recently graduates across the board have been completely unprepared to handle their loan repayment or manage student loan accounts. For this reason, more and more student loan providers and financial aid services have worked vigorously to present students with specialized loan products, such as affordable student consolidation loans, innovative deferment and student loan repayment options, all in a non-threatening manner.

College = Debt

Planning on college? Then plan on debt. Few Americans can simply write a check to cover cost of attendance. Regardless of the movement of the economy, it seems that college expenses continue to rise unaffected.

Most undergraduate students graduate with close to $20,000 in student loan debt. This is a 108% increase in just a decade. And the differences are not that significant between public and private colleges anymore.
Students who graduate from professional or vocational two-year programs are in debt as well. Many of them are responsible for nearly $10,000 in student loans.
Graduate students must borrow even more on credit in order to complete their degrees. In fact the biggest borrowers of all are law students and medical students, both of whom end up with close to a whopping $100,000 in student loans! The earning potential in both fields is directly relative to the debt they have incurred, but most spend their first few years doing grunt labor as residents and as aides to established attorneys.

Student Debt Trends

As one might expect, the trend in student loan debt is directly relative to the continued rise in college tuition and expenses.

Federal vs. Private Loan Costs

A growing chorus of voices is sounding the alarm on student loans. Statistics reveal unexpected and dangerous trends: there are too many college students relying first on high interest, high limit alternative or private student loans than they are on low cost, low interest federal student loans. A fistful of factors has contributed, including: lack of proper financial aid guidance, an irresponsible lending environment, and unaffordable college tuition.

In the span of one academic year, 2004-2005, students increased their private loan debt by 30%.

Failure to File FAFSA and Debt Mounts

Even more egregious errors occur when student borrowers fail to file a Free Application for Federal Student Aid (FAFSA). This application provides direct access to low-cost federal loans and grants. It is also required for many other types of loans and scholarships from outside sources. So the student that fails to file is most likely missing out on college, working his or her tail off to put themselves through part-time, or borrowing high cost and completely unnecessary private loans.

Guess what? Close to 8 million students fail to file a FAFSA each year.

Pell Grant Borrowers Carry More Debt

Another surprising trend: Low-income students that receive Pell Grants are more likely to carry significantly more student loan debt.

Student Debt Sabotages Graduate and PhD Seekers

Consider this: one survey of college graduates revealed an overwhelming number of respondents that were sidetracked from graduate or post-graduate study due primarily to existing student loan debt.³ Does this mean that if we were not faced with the mountain of student loan bills that we would be a more well-educated society?

Managing Debt: One Encouraging Trend

Since the late 1990s there has been a significant increase in students who are now utilizing student loan consolidation products or deferment options to more carefully manage the burden of student loan debt. Once upon a time such resources were frowned upon, a clear indicator of a poor financial plan. By today’s standards they are flexible and forgiving debt management tools.

Guaranteed Student Loan

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As you study the different loan options available to help you fund your college education, you find something referred to as a guaranteed loan, but you can't find any explanation as to what this means. What are guaranteed student loans, and how are they different from standard loans?

A guaranteed student loan is one that is provided by a lending institution but guaranteed by the federal government. What this means is that the federal government takes on the responsibility for seeing that the loan is repaid as agreed. The government is also responsible for paying the interest and paying the lenders to manage the loan. In the past, what is now known as the Subsidized Stafford Loan was simply called the Guaranteed Student Loan. However, because the same description applies to any state or federal loan that is guaranteed against default, the name was changed.

The reason for guaranteed student loans is that subsidized Stafford Loans are need-based. Therefore, a bank or educational institution who will be lending money to those receiving such loans cannot require the standard credit checks they would tack on with a typical loan. In order for a lending institution or private lender to agree to such a situation, there has to be an entity assuming the risk. In guaranteed student loans, the federal and state governments take on this responsibility, paying out subsidy payments to the lender, who then assumes no risk in the event of default. If you have financial need, this is one of the best ways to fund your college tuition, since the government will pay all interest until six months after you graduate, when repayment on the loan becomes due.

Note that the Unsubsidized Stafford Loans are not guaranteed. However, very few are paid out by comparison to those that are subsidized. In order to help alleviate the expense of such government funding as provided by guaranteed loans, there are other less costly government lending plans. The Federal government also provides direct loans, which are just as effective for students and drain less budget from the federal government than guaranteed student loans.

Get Secure Financial Aid

Guaranteed student loans can mean a couple of different things in the realm of financial aid. For example:

The current Subsidized Federal Stafford Loan was once simply known as the Guaranteed Student Loan.
The term can also apply to any state-based student loan or federal student loan that is guaranteed against default by the lender.

Guaranteed loans have been used for student subsidies for nearly 50 years.

What is a guaranteed student loan? A guaranteed student loan is extended from a lending institution under the financial guarantees, or insurance of the Federal government. Guaranteed loans are most associated with the Federal Family Education Loan Program (FFELP), which includes the Stafford Loans and the PLUS Loans for parents and graduate students.

Federal Guaranteed Loans

The Federal government is most well recognized as the chief guarantor for federal student loans, particularly the FFELP program in which dozens of student loan lenders participate. But the government also acts as lender for its own Direct Federal Loan Program. The FFEL program was first started in 1965 with the introduction of the Higher Education Act of 1965. With the participation of hundreds of FFEL lenders the federal student loans were made much more accessible. The FFELP originates three times the number of loans originated through the federal Direct Loan program.

State Guaranty Agencies

State-based agencies may also guarantee federal loans. For example, the Oklahoma Guaranteed Student Loan Program offers financial insurance and incentive for lenders that extend the Federal Family Education Loan Program (FFELP) to Oklahoma student residents. In this case student residents have the privilege of applying for FFEL loans directly through the state.

How Does Loan Guarantee Work?

The federal government and certain state agencies actually pay subsidies to lenders. This over the years has become a significant bone of contention when any discussion of the cost of college and student debt arises. The purpose of lender subsidies:

Insure lenders have funds to cover borrowers that default on their loans.
Provide income to lenders for their participation in the FFEL program.

Lenders Paid to Participate

Imagine how much money a private lender stands to lose when just one student loan borrower defaults on a student loan. The lender stands to lose many thousands of dollars. Multiply this by many borrowers. Lenders would go out of business; it would not be feasible for them to extend the FFELP loans to students. Instead government sources offer them financial insurance so they assume no risk.

When the College Cost Reduction Act of 2007 was signed into law it included reductions in the lender subsidies, which may lawmakers felt had spun out of control. This measure is a direct blow to lender profiteering.

The big benefit of the guaranteed student loan program, or the FFELP, is that you, the student, have a much wider array of lenders from which to choose for your federal student loans.

Popular Guaranteed Student Loans

The most popular guaranteed student loans by far are the Stafford Loans.

Subsidized Stafford Loans are need-based. The federal government pays the interest on these low-income loans. One of the best features is that they are no credit check loans—your lender cannot ask you to go through a credit check. But this puts lenders at financial risk. They are basically advancing money to borrowers with poor credit who risk defaulting on student loans. Lenders use their money to fund your subsidized Stafford Loans and for this service they are given subsidy payments from the federal government in exchange for the risk they assume.

Unsubsidized Stafford Loans do not offer interest subsidies to borrowers; they are not exclusive to low income borrowers. The borrower is responsible for paying all the interest on the loan as soon as the loan is disbursed.

Federal Costs of the Guaranteed Student Loan Program

There have been many critics of the Guaranteed Student Loan program. The Federal government also offers direct loans that many say have been much more effective than the budget-draining guaranteed loans.

Student Loan Forbearance

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Forbearance is a way to temporarily postpone or reduce payments for a set period of time. This typically takes place because the borrower is experiencing financial difficulty, but can occur for any of the following reasons:

Unemployment
Partial Disability
Other documented hardship

The borrower can receive federal student loan forbearance if he/she is ineligible for a deferment. Unlike deferment, it doesn't matter if these loans are subsidized or unsubsidized because interest still accrues, and the borrower is responsible for its repayment. The borrower's loan holder can grant forbearance in intervals of up to 12 months at a time and for up to 3 years. In order to enact federal student loan forbearance, it must be applied for through the loan servicer, and payments must still be made until forbearance has been granted.

Interest Rates and Federal Student Loan Forbearance

In addition, federal student loan forbearance does NOT lock interest rates. Even though loans are deferred, they still have variable rates unless a loan is being deferred that was also consolidated (which has a fixed interest rate). Currently, interest rates are at 39 year lows - therefore the best way to defer loans presently is to consolidate now, so that the borrower will be able to defer after the consolidation is complete and lock in these low rates for the life of the loan.

Obtaining a Forbearance

In a forbearance, your loan holder gives you permission to stop making payments for a set period of time. Interest always continues to accrue during a forbearance. Forbearances are granted for up to one year at a time. In some circumstances, a forbearance may be available even if you have defaulted.

Forbearances are easier to obtain than deferments or cancellations, because they are not tied to the type of loans you have or the date you obtained them -- and they aren't governed by the picayune rules that make cancellations and deferments so hard to come by.

Qualifying for a forbearance. Forbearance on federal loans may be granted for a number of reasons, including:

poor health
unforeseen personal problems
inability to pay within the maximum repayment term (usually 10 years), or
monthly payments totaling more than 20% of a borrower's monthly income.

How to get a forbearance. To apply for a forbearance, contact the holder of your loan, explain your situation, ask for a forbearance, and fill out the appropriate forms

Your Forebearance Options

Avoid Student Loan Delinquency

Student loan lenders provide a variety of repayment programs that offer you assistance with various financial circumstances. The ultimate goal: to make sure you have flexible choices when it comes to student loan repayment. No one benefits when you default on loans.

Delay or postpone student loan payments under certain circumstances in one of two ways: loan deferment or forbearance.

Forbearance vs. Deferment

During forbearance you are responsible for paying the loan interest that accrues during the period of delay. Forbearance may also allow you to make smaller loan payments for a certain period of time, as well. During deferment the interest on any subsidized loans is not accrued.

Popular reasons to pursue forbearance include:

You’ve already used up deferment options.
Your financial situation does not make you eligible for loan deferment.
You can prove a term of financial hardship.

Remember: Lenders are quite willing to work with you if you are having financial difficulties making student loan payments. There are a couple of other options besides loan forbearance: you might also evaluate your eligibility for loan consolidation or loan deferment, or change the type of loan repayment plan you initially chose.

**Tip: Federal school loan laws have changed since June 1, 1993, many that involved student loan repayment options. Always contact your lender or student aid officer for the most up to date information.

When Forbearance Makes Sense

Besides general economic hardship, student loan forbearance on your federal Stafford Loans may be mandatory in a few situations. Always contact the program or lender directly, ask for appropriate forms and fill them out completely.

Teacher Loan Forbearance--Teachers, if you have borrowed student loans after July 1, 1993 and currently are eligible for the Teacher Loan Forgiveness program, check with the Federal Student Aid program for further details on your eligibility for this forbearance.
If you’re a med student and entering residency you are eligible for forbearance and sometimes loan deferment. During this period chances are likely you have entered loan repayment, are now faced with astronomical loan payments, but your income is typically so much lower that you automatically qualify for economic hardship status.
Serve with AmeriCorps and make sure you find out how you can declare a period of forbearance on your loans. Ask your Direct Loan or FFELP lender.
If you serve in a military capacity, you also may qualify for forbearance. Again, always check with your lender.

Lender Options for Repaying Private College Debt

Under the federal loan program you have plenty of options for loan deferment or forbearance, but what about private student loans? Most private and non-profit organizations provide forbearance options if you qualify. Lenders differ widely, so expect a variation of criteria for private loan forbearance. Allow yourself plenty of time for applications to be processed and remember: until you’ve been approved you must still make regularly scheduled loan payments.

Parental Student Loan Deferment

If you are a parent and are paying on a PLUS Loan while a child is in college and you experience a financial problem with loan repayment you may be able to apply for a loan forbearance. Check with your lender for details.

As you can see forbearance rules are more subjective than those for deferment. The best advice is to go directly to your lender and ask about your eligibility for loan forbearance. Always pursue alternative repayment plans and avoid loan default at all costs.

Student Loans Bad Credit

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Alternative Financing With Bad Credit Student Loans

Proven Strategies for Improving Your Credit and Getting the Money You Need

Credit, good or bad, is a reality when it comes time to plan your financial aid and student loan strategy.

Common myths about college students and credit:

All students that go in search of student loans are fresh out of high school—just plain wrong. A growing population of students is well past high school, many working on second and third degrees, and professionals that return to school for career-related courses. All may qualify for student loans.
Students have no credit history—again, wrong. Any student that has had a job and paid any type of bill or credit card has a credit history. Alternatively plenty of younger students could be affected by their credit history because they, ironically, have little to reflect their financial situation or attitudes. Adult students usually have plenty of credit history from which to draw conclusions, good or bad.
Students must rely on parents’ credit—again any student, young or old with enough good credit can qualify themselves.
Parents have good credit—really wrong. While some parents have good credit it’s really a mistake to assume that all do. Plenty of parents have poor and bad credit, making them totally inappropriate choices for co-signors or co-borrowers.

Good news: Bad credit, or no credit, is not a legitimate obstacle to a college education.

You may have to work a little bit harder to secure the financing, but you should never let bad credit stand in your way to an education.

Federal Student Loans: Perfect Bad Credit Loans

The federal student loans—Direct of FFEL--are hands down your first strategy when you must overcome bad credit. The subsidized and unsubsidized Stafford Loans may be utilized to your advantage in a number of ways. First these are the single most popular student loans and require no credit check at all to qualify for funds. The only federal loans that require a credit check are the Parent and Grad PLUS Loans—both non-need-based loans.

Dependent students with high financial need may qualify for Stafford Loan limits that increase with each year of study.
Independent students may receive almost double the financial amount as dependents.
Parents, been turned down for a PLUS Loan based on credit? You could be a benefit to your child—he or she could be approved for much more in Stafford Loan funds.
Grad students and adult professionals may qualify for over $20,000 each year in low-interest Stafford Loans, without any credit check.

How to Get a Private Student Loan When You Have Poor Credit Scores

If for some reason you do not qualify for federal student loans or your financial award fails to cover your necessary college expenses, a private loan may be necessary. But how do you get past the dreaded credit check? You don’t.

Here’s how you plan for a private loan with bad credit:

All private student loans are credit-based whether they are for undergrads, grads, med students, law school loans or supplemental private loans that help you cover continuing education costs or even Bar Exam costs. It’s that simple—you’ve been informed. So armed with that knowledge what step can you take to be approved for a private loan?

Find a co-signor in advance who knows you, trusts you and is willing to sign a promissory note with you. Also make sure your co-signor has very good credit.

A co-signor does not have to be a parent or guardian; it can also be a good friend or a relative.

Leverage Student Loans to Improve Your Bad Credit

All student loans require you make repayments, which are key to your credit record. Here’s a strategy: make every student loan payment on time. Use co-signors to your advantage—to build up your credit. It’s easy: once you’ve made 48 consecutive on-time payments, it’s common for your lender to release the co-signor from the loan. After that you’re only building on your own credit, no one else’s.

**Tip: Ask your lender if they provide a co-signor release once you’ve made a certain number of on time payments.

Keep Your Credit History Ship-Shape

After college, when you’re out in the real world, and the bills begin piling up, continue to nurture your credit record. At the first sign of repayment woes, talk to your lender about a student consolidation loan.

We’ve given you some proven ways to overcome bad credit, work toward continuous improvement, and get the money you need to make college a reality.

The bad credit student loan is easy to obtain?

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Student Loan Balance

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What you need to do

You can check out your current loan balance by looking up your account online. Go to "Get it done online" and use the Look at Account Information service. You need to be registered to use this service.

What you'll see

You'll be able to view up-to-date information on your student loan, including your loan balance, any repayments you've made, interest charged and written off, and any penalties you may have incurred.

Finding out your Student Loan balance

At the end of every tax year, we work out how much of your Student Loan you have repaid, and what your remaining balance is. At other times in the year you may not be able to get information on the exact amount you owe - but there are ways to estimate it.

How your balance is calculated

Your Student Loan balance will be calculated differently according to the type of repayer you are.

Working as an employee

If you work as an employee and pay tax and National Insurance through the Pay As You Earn (PAYE) Scheme, your employer will calculate and deduct Student Loan repayments due each pay period, based on your earnings for that period.

The Student Loans Company will only be informed of your total repayments at the end of each financial year and it is important you keep your own records.

Repaying through Self Assessment

If you repay through Self Assessment, you will make payments to HMRC.

The Student Loans Company will only be informed of your total repayments at the end of each financial year.

Living overseas

If you live overseas you will be making repayments directly to the Student Loans Company.

Repayments will be credited to your account upon receipt and interest will be applied to your account at the end of every month.

When you receive a statement

Before you begin repaying your Student Loan, you will receive an annual statement for the year ending 31 August. When your account becomes due for repayment, you will be sent a statement for the period ending 5 April.

The next statement will be issued between 12 and 24 months after that date - depending on your repayment method and the date that HMRC advises the Student Loans Company of the amount collected.

Checking your balanc

No information regarding repayments, balances and collection will be passed between the Student Loans Company and HMRC, other than the repayment information transfers at the end of the tax year when HMRC tell the Student Loans Company how much you have paid.

This means that there may be times when you wish to contact the Student Loans Company or HMRC about your balance, but they can't provide you with this information.

However, you can estimate your balance in between statements by looking at your most recent statement and taking off any deductions noted on your wage slips and P60.

You can check your balance online, or contact the Student Loans Company by letter or telephone and they will carry out these calculations on your behalf.

Student Loan No Cosigner

2008-12-25T09:26:00.000-08:00

How do you get a student loan without a co-signer?

Student loan without a co-signer

Federal loans (such as the Stafford loan) are not based on your credit history. You will not need a co-signer, or good credit. With private loans there is no way around needing a good credit history.

Here is more input and advice:

If you're in foster care, talk to the people. There is a program which provides tuition, room and board money to children who were in foster care until they went to college.

The answer above suggests Stafford loans as a solution. The problem with Federal Government loans like Stafford are that the student with no credit history can not fully fund their tuition with a Stafford loan. Stafford has very low limits (like 2,650.00 in freshman year). As a parent it was my expectation that my daughter would just get student loans on her own to fully pay for her own college without involving her parents. We can not afford to pay her tuition and have never started a college fund as we could not afford it. And now our income is better but we can not afford to pay it without changing our lifestyle. Anyway, I decided to help my daughter by applying for a PLUS Parent loan but was rejected due to bad credit. I was told that she can get additional Fed. Stafford funds up to another $4,000. That helps but she really needs the whole amount of the tuition and room/board. In this case she needs a total of $10,000 per year. Stafford sucks.. they should not cap the amount that can be borrowed. The student should be able to borrow the whole tuition amount without help from parents.

Its a sad situation; my parents lost their jobs and I have been working free-lance on and off so i have no steady income or credit thus still dependent on my parents somewhat. My parents makes 45,000/per year combined so I filled out a form stating based on my condition i am not able to afford any other loans other than the Government Stafford loan. I only receive a limit and wasn't able to receive any more cause they said my parents income was kind of high even though they aren't working. Come on now such hypocrisy; I filled out a special circumstances form but that would take 2 months, by that time school essentials would need to be met at couple weeks before school start. Only a miracle is needed, and none is presenting themselves. I did couple scholarships but when they are issued out it would be in mid-term, so I guess what other opinions are there? Parent Plus and Signature Loan i cant get that completed cause for one my parents have their own loans to pay off, they have no source of income right now, and finally their credit isn't that great. I explained this to my school but they say i must fill a form out which apparently is gonna take forever to be reviewed. Being a student well I should say being a young American and the seed for the future of this country my options are limited, I'm not saying the government should sponsor every child in its boundaries, but the ones who cant get an alternative loan should able to get the Stafford loan at its maximum because either way you put it we are still going to have to pay back the government money we borrowed with interest.

FAFSA, is a very good thing to look into. www.fafsa.ed.gov

As long as you have a co-signer that makes above $19,000/year the question is more based on the student's credit history than anything else. If the child is a ward of the state, then there are other options available and almost any school will have financial aid people that will assist. ANYONE who makes over $19k a year can cosign a loan UP TO THE COST OF ATTENDANCE FOR THAT YEAR MINUS ANY OTHER FINANCIAL AID. The parents credit matters, but not that much. The co-sign part is just so the lending institution knows they can go to the parent if the student defaults on the loan.

It is impossible to get a student loan without a co-signer even if the co-signer makes over $19,000 as another person as suggested. I was the victim of a scam and my credit got ruined. My Dad has excellent credit but no one will approve a student loan with him as a co-signer because he's only been at his current job for 6 months. My fiance has ok credit and makes almost $40,000 and they wouldn't accept him as a co-signer either. I have applied to every bank and loan company I could find on the internet. I even started calling to find out their minimum credit scores to see if it would even be worth while to apply. I got the same answer each time "we don't give out that information". They all just wanted me to apply and "see" if I will get approved. I told them I know they wouldn't approve me because I've applied to all of them before. (I was able to get some negatives off my credit report and raise the score to 610 but no one will tell me if that's high enough and all want to run my credit again! That will show as an inquiry and cause it to go down even more!!)

Federal banks offered loan without a cosigner.

Check out facts & figures about the no cosigner signature loans. Try for this loans when all the options are closed.

You can have various federal loan grants and also various private student loans lenders are in the market.

If you have little or no credit history can you get a student loan without a co-signer?
Well that's a tricky question it depends.

There are 5 major types of loans to fund an education.

Stafford Loans (sub and unsub) No credit checks are required but they have certain loan limits. 3500 Freshman 4500 2nd year 3rd and beyond $5500 per year. But if your are older than 24, married, in the military, or your parents have poor credit you can be eligible for an additional $4000 in un-sub Stafford loans each year.

Perkins Loan- which your eligibility for these loans are for the neediest students can be an additional $ 2000- 4000 for more info you would need to talk to your school or check your financial aid award package.

PLUS loans- Parent loans for Undergraduate Students- are taken out in parents name and certified by the school and it will cover the rest of the cost of attendance.

School Certified Private Loans- require at least a 620 FICO score and it will cover the rest of the cost of attendance. and if you didn't meet that requirement you would need a co-signer.

Direct to Consumer Private Loans- where the money is sent directly to the student for education related expenses. Housing, Transportation, Books, Beer, etc. The credit qualifications are hardest. So you better have good credit or a good co-signer.

(Direct loans through the department of education aren't any better or more lenient when it comes to credit. ) Some schools are only direct loans schools that's what the other person said everyone he knows has direct loans. Because they couldn't get any other loans.

From other contributors:

Similar situation here for my daughter. She has no credit history whatsoever. We make too much money for grants but here's the problem: my husband refuses to help pay for school at all, in any way, shape or form. He also will not allow me to co-sign any loans even though I was prepared to do so. Basically she's on her own with this. She has applied for loan and after loan after loan and so far all have been rejected due to no credit history. We haven't heard anything back from Stafford or the Direct Loan she applied for yet. FAFSA said she didn't qualify for any grants and she didn't get any scholarships. She's set to start school at the end of next month but are at the end of the road here. What does one do in this situation? And does anyone know how to check online for the status of a Stafford loan?

Yes. Everyone I know in college has gotten a Direct Loan through the government. As long as you are not bankrupt or owe the government, you are approved. Many people do not realize that pretty much everyone is eligible for a government loan.

Hi - problem with Federal Government loans like Stafford are that the student with no credit history can not fully fund their tuition with a Stafford loan. Stafford has very low limits (like 2,650.00 in freshman year). As a parent it was my expectation that my daughter would just get student loans on her own to fully pay for her own college without involving her parents. We can not afford to pay her tuition and have never started a college fund as we could not afford it. And now our income is better but we can not afford to pay it without changing our lifestyle. Anyway, I decided to help my daughter by applying for a PLUS Parent loan but was rejected due to bad credit. I was told that she can get additional Fed. Stafford funds up to another $4,000. That helps but she really needs the whole amount of the tuition and room/board. In this case she needs a total of $10,000 per year. Stafford sucks.. they should not cap the amount that can be borrowed. The student should be able to borrow the whole tuition amount without help from parents.

I agree with you Stafford sucks! but, it does not change the fact that the tuition still needs to be paid, I have been to every website, talk to over 25 lenders and had my credit ran 10 to 15 times and I still can't get anywhere. My son want's to go to school, I can't help him and no one will lend him the money without credit and no cosigner. what am I going to do? school starts in about 13 days and he still needs $13,000.

This only applies if you own a house. My husband and I just moved from England so we have no credit history but we bought a house here about a year ago, even though we have no equity in the house we were able to get a home equity loan for $20,000 from our bank (Wachovia Bank) Our house is worth about $126,000, and our combined income at the time we applied for the loan was only $30,000. Both of our credit scores were about 620. We got this loan so I could attend college. The only thing about it is we have to pay $177 a month right away to pay off the loan, however it is a 20 year loan, with no prepayment penalties. Its not as desirable as a student loan but it was our only option because we do not have a co-signer for a student loan. I cont think I would have been able to attend school without it.

What no one else really says is that you have to have a COSIGNER for pretty much all loans besides Stafford and PLUS loans. I, myself, haven't been able to find ANY loans that I can get without a cosigner. I don't have bad credit - just NO credit. I'm actually at a complete loss, but it's just FYI that a cosigner is needed for loans if you have no credit or bad credit.

There really is no private lender that will approve you without credit history or a co-signer. The only sure thing is to get a credit card and use it responsibly for a year or two. That is, until the government cleans up it's federal aid system so it works for everyone.

It depends that how good you are in your education how efficient enough you can proof your self to get a loan of any type. Federal students loan and private students loan offers various advantages. You will not need any cosigner if you have good academic record.

Student Loan Locator

2008-12-25T09:17:00.000-08:00

A student loan locator can be found on the Internet by getting referrals from the school the student wishes to attend, or by using a local bank depending upon one's preference. After a scholar has tried to get scholarships and grants to help fund his education, chances are he will still need additional funds. A student loans locator will help in these circumstances. According to one such online organization, Federal aid is available through Perkins, Stafford, and PLUS loans. Applications must be made between January 1 and June 30 for the following school year which includes the first half of the summer term. In four to six weeks, there will be a Student Aid Report outlining the amount granted, and outlining the expected contribution from the family. The locator organization points out that these loans must be applied for each year, and they frequently leave a tuition gap, which must be filled by private funding.

The organization selected to locate funding will direct an applicant to one of the large banks that offer financing via the use of the Internet online. Generally the same requirements are made by each of these lending institutions, according to the student loan locator, a scholar is informed about an institutions specific requirement. For instance, applicants must be a U.S. Citizen or permanent resident; must have a satisfactory credit history over the previous two years (or have a co-applicant who does); proof of income; and at least a two year history of activity if self-employed. After approval is granted for the first year, a satisfactory academic progress must be maintained for subsequent tuition payments to be granted. Several possible lenders will be available to the scholar through a student loans locator, so any variations in requirements and amounts can be studied for the best possible contract.

It is fair to note that included in the information by a locating organization for college funding is the fact that all these financing programs are made with a variable interest rate. The process of seeking funding via information provided by a student loan locator is not complicated, but must be begun early. As soon as a scholar has decided on a school and has been accepted, he should contact the student loans locator so that funds are available in time for registration. "If any of you lacks wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him" (James 1:5). An organization that searches funding sources on behalf of the scholar takes some of the pressure off the student and his or her family when they have so many things to do getting ready for college. Every scholar would like a four-year scholarship, but few are actually going to get that kind of help. The search for funding Internet sites are there for those who are unsure how to make the tuition payments for an education.

Student loans and finding that perfect school that is affordable yet offers a quality education can become confusing for any student. Loans are a big part which determines where you can or cannot go to school at. Best Leading Lenders has the solution for you through our school and student loan locator. Never before has it been easier to connect with the perfect programs for student loans or schools. It isn't necessary for you to have perfect credit in order to qualify for a student loan because there are many programs known as bad credit student loans which can help you if your credit is blemished.

We offer free student loan locator services for college students throughout the United States. You can search through various schools which offer degrees in administration, business, design, education, health care, technology and other areas of special interest. Student loans are available nationwide for practically every school, and if you have not yet decided which school you will attend you are able to find the perfect school and loan based on your desired degree and area of interest.

Student loan programs do vary and colleges also vary so you need to have the best tools available to you for making a wise decision for your future. Our services eliminates all the headaches which can come with finding the right loan program for the right school and best of all it is an absolutely free service to you. To find the right school which offers a degree in your area of interest and to connect with the right student loans go to our online form and submit it to find the perfect school and student loan.

Free searches are available nationwide on participating schools and available programs which they offer for student loans. Many schools have special financing which can help students who have poor credit, these bad credit student loans may require a slightly higher interest rate. Always check with your chosen school and ask them to explain all of your student loan options with you.

No Credit Check Student Loans

2008-12-25T09:03:00.000-08:00

Under no credit check student loans, credit is given for a definite purpose and for a predetermined period. Normally, these loans are repayable in installments. Funds are required for single non-repetitive transactions and are withdrawn only once. If the student needs funds again or wants a renewal of an existing loan, a fresh request is made to the bank. Thus, a student is required to negotiate every time he is taking a new loan or renewing an existing loan. The banker is at liberty to grant or refuse such a request depending upon his own cash resources and thecredit policy of the bank.

As the time of repayment of the loan or its installments is fixed in advance for student loans, this system ensures a greater degree of self-discipline on the borrower as compared to the cash credit system. Whenever any loan is granted or its renewal is sanctioned, the banker gets the opportunity to automatically review the loan account. Unsatisfactory loan accounts may be discontinued at the discretion of the banker. The system is comparatively simple. Interest accrues to the bank on the entire amount lent to astudent.

Every time a loan is required, it is to be negotiated with the banker. To avoid it, students may borrow in excess of their exact requirements to provide for any contingency. Banks haveno control over the use of funds borrowed by the student. However, banks insist on hypothecation of the asset purchased with the loan amount. Though student loans are for fixed periods, in practice they roll over, i.e., they are renewed frequently. Loan documentation is more comprehensive as compared to cashcredit system. Under the cash credit system, the banker specifies a limit for each customer, up to which the customer is permitted to borrow against the security of tangible assets or guarantees.

How to Get a No Credit Check Student Loan

We all recognize that going to college is a really high-priced affair and more often than not one that many people require financial support in order to obtain thosestudent loans . Most of the individuals who have arisen to the level of going to college either do not have the necessary amount of money to go to college or their expenses at college far out reaches that of the amount that they had saved up but there are ways to obtain ano credit check student loan. But normally they are individuals venturing out on their own in life and therefore lack the financial backing that would allow them to comfortably make it through college and many look forcredit cards or a personal loan to get through but eventually are in way over their heads in debt.

Normally these students are in critical need of funding for college and we are here to let them know how they can be stress free considering this issue, since there is a way out of it and it does not matter if there isno credit or bad credit on your behalf there are numerous financing means to get the money demanded for college. There is a plan called, a no credit check student loan which will help untold students manage on their own in life. The unique risk you take is to not perform at your champion levels and learn as much as you can possibly learn prior to signing on for this kind of loan. College is not a quick process so you should make it your job to learn which program that provides the best services for you and if you talk to a financial adviser they will serve you with this process.

What is the first thing to perform once you get chosen a college for pursuing further studies if you are looking for funding for your college expenses? The solution is to go to a financial adviser, have a talk with him/her and decide which is the optimal way for you to fund your studies. A financial adviser will actually be capable to identify your situation and determine for you the choices that are open to you although many have a guaranteed path to obtainstudent loans. It will not matter if you are attempting to go to a private school or maybe a state school these types of loans are for everyone.

They will direct you to the Federal Stafford Loan which is a no credit student loan and only involves one application to acquire this federal student loan. It is really a loan that can be availed at low interest rates but which is established on the type of your need i.e. it gets structured according to the seriousness of your needs. It will only require some checking and registration online but let me tell you that it is fully worth the effort. You can payback the money within duration of maximum six months after you leave college.

The loan being the first thing that your financial adviser will talk to you about, the scholarship is the next affair that he/she will bring to your attention. You know very well that there are several kinds of scholarships obtainable to you at school either need based or situation based or merit based. These are essentialcredit checks that you do not have to pay back and even a small one of this type will be super helpful to you.

Now if the situation becomes such that you fail to qualify for a no credit check loan, which is highly improbable in any case, then you can go for the most popular direction of lending money i.e. obtaining it from some rich relative and paying it back once you get out of the college and get a job but those are debt consolidation fears that lenders will take into consideration once you are over with your college experience. What you can also do is take a loan on some one else's name for instance ask some relative or parent to take the loan in his or her name and then give the money to you and theircredit report will reflect what form of money they can obtain. Assure them that you will pay the money back for them. I am sure that they will understand and after all education is important so individuals will be happy to do anything for you and support you in educating yourself further.

Student Loan Clearinghouse

2008-12-25T08:43:00.000-08:00

[The following is a news release issued by The National Council of Higher Education Loan Programs (NCHELP), the Meteor Advisory Team (MAT), and the National Student Clearinghouse.]

The National Council of Higher Education Loan Programs, Inc. (NCHELP), the Meteor Advisory Team (MAT), and the National Student Clearinghouse (Clearinghouse) today announced that colleges and students can now track and manage their federal and private student loan debt through the Meteor Network. The Clearinghouse provides colleges and students with access to 100% of outstanding FFELP loans and federal Direct Loans, in addition to billions of dollars in private student loans through its LoanLocator service and Meteor implementation. The Meteor Network, a shared effort of leading FFELP business partners, provides aggregated, real-time financial aid award data to student loan borrowers and schools. The Clearinghouse, a non-profit organization located in Herndon, Virginia, is the nation's trusted source for degree and enrollment information and provides reporting, verification and research services to and on behalf of more than 3,100 participating colleges and universities.

Meteor, a valuable service for student borrowers and schools, continues to grow in importance as student aid volume increases and access to accurate and timely information becomes mandatory. As a result of recent regulatory, legislative and program changes, the percentage of students with multiple loan servicers is expected to increase. Meteor assists users by providing aggregated, timely and accurate information.

The Clearinghouse’s secure Web site allows financial aid directors at participating Clearinghouse colleges and universities to access Meteor data. Institutions enrolled in the Clearinghouse’s free online Student Self-Service program can also provide their students with access to Meteor data. The Clearinghouse uses campus-based authentication to enable access to Meteor and its other Student Self-Service offerings from a college’s Web site. Campus-based authentication provides greater access to valuable debt management, default aversion, and other tools and services by using a college’s authentication process to gain access to the Meteor Network and Clearinghouse services. Access to Meteor is available to both institutions and students at no charge.

Meteor is a collaborative effort within the student aid industry to simplify and consolidate access to student financial aid information. Sponsored by FFELP providers, and coordinated by the National Council of Higher Education Loan Programs (NCHELP), the Meteor software provides open, non-proprietary, real time access to all available aid information for a student, and aggregates it for display to students and Financial Aid Professionals. NCHELP represents a nationwide network of guaranty agencies, secondary markets, lenders, loan servicers, collectors, schools and other organizations that provide financial assistance to millions of American students and their families each year. For additional information Tim Cameron at meteor@nchelp.org.

METEOR/NCHELP CONTACT:
Tim Cameron
meteor@nchelp.org

The National Student Clearinghouse is the most trusted source for enrollment and degree verification in the US. A non-profit organization established by the higher education community in 1993, the Clearinghouse serves as a central repository and single point of contact for the collection and timely exchange of accurate, comprehensive enrollment, degree and certificate records on behalf of participating institutions. More than 3,100 colleges, enrolling 91% of US college students, participate in the Clearinghouse. Student loan providers, employers, student credit issuers, student health insurance providers, the U.S. Department of Education, and others access the Clearinghouse's registry over 100 million times annually to conduct electronic student record verifications.

NATIONAL STUDENT CLEARINGHOUSE CONTACT:
Kathleen Dugan
Marketing Director
dugan@studentclearinghouse.org

National Student Loan Clearinghouse and the U.S. Department of Education, Office of Student Financial Assistance, Partner to Conduct Pilot Project

HERNDON, Va., Oct. 14 /PRNewswire/ -- The National Student Loan
Clearinghouse is participating in a pilot project with the Office of Student
Financial Assistance (SFA) of the U.S. Department of Education to test the
feasibility and cost-benefit of using the Clearinghouse's "all-enrolled
database" for helping track enrollment changes among Direct Loan borrowers.
The three-month pilot, which began in September, explores a process for
exchanging enrollment information between the entities.
"The Clearinghouse has effectively and efficiently facilitated the
exchange of student data among multiple business partners for the past six
years," said Daniel Boehmer, president, National Student Loan Clearinghouse.
"Our partnership with the Department is an important step toward bringing
time-tested, private-sector solutions to government entities."
The database being tested reduces the use of paper deferment forms for
students attending schools that use the Clearinghouse. The number of
deferment forms is expected to drop significantly, reducing processing costs
and creating a simplified system for students and schools.
The database also allows the Clearinghouse to notify SFA when a borrower
withdraws from enrollment or drops below half-time status in an average of 30
days, compared to the current process that can take as long as 90 days. This
can help reduce delinquency rates by converting borrowers to repayment status
more quickly.
"We are maintaining the promise made in the Modernization Blueprint, which
pledges our commitment to improving enrollment tracking for Direct Loan
borrowers," said Dan Hayward, division director, SFA.

The National Student Loan Clearinghouse was launched in 1993 by a cross-
section of student loan industry representatives to improve student loan
services for all participants -- colleges and universities, guarantee
agencies, lenders and servicers, and the federal government. Since its
inception, the Clearinghouse has reduced the workload for participating
colleges and universities by hundreds of staff equivalents.

Student Loans for International Students

2008-12-25T08:21:00.000-08:00

Loan Program for International Students - US Co-Signer Required

As the number of international students studying in the USA continues to increase, the need for international financial aid is constantly growing. To address this need, we provide access to loans for non-US Citizens from anywhere in the world who are planning to study at approved schools throughout the USA. We have been a leader in providing loans for international students since 1998, and thousands of international students have applied for loans through our programs. Due to the credit crunch, as of September 5, 2008 we are temporarily unable to accept applications from non-US students, but we hope to have a new international student loan program in place shortly. Submit your information through the Apply Now button and we will contact you with the details of the new program.

Co-Signer Required for All Applicants
The co-signer must be a US citizen or permanent resident, with good credit and income history, who has lived in the United States for the past two years.

Typically students can borrow up to their school's cost of attedance. International students are required to have a US Citizen or permanent resident as a co-signer to apply for this loan.

International student loans also offer:

Funds are disbursed directly to you!
Generous repayment terms
Six months grace period while you find a job
and much more.....

Learn more about our International Student Loan Programs:

A few US banks will offer student loans to international students if the loan is co-signed by a creditworthy US citizen or permanent resident (holder of a "green card"). There may also be restrictions on the type of visa (F1 or J1). In addition to the loans listed below, certain international students (i.e., permanent US residents with a green card) may be eligible for Federal Stafford and PLUS loans.

Canadian Higher Education Loan Program (CanHELP). CanHELP is an alternative loan program for Canadian college and university students to study in the USA and approved schools throughout the world. The loans are offered by the International Education Finance Corporation (IEFC) working in conjunction with Bank of America, Fleet Boston, Citizens Bank, and The Education Resources Institute (TERI). Students may borrow up to the full cost of education, including tuition, fees, and room and board. Graduate students may borrow a maximum of $15,000 per year without a co-signer, or up to cost of education with a co-signer. The minimum loan amount is $1,000 per academic year. Students may take up to 20 years to repay the loan. There is a $50 minimum payment and some deferment provisions. The interest rate is the prime lending rate plus 0.5%. Undergraduate students must have a creditworthy Canadian citizen as co-signer. There is a 8.5% guarantee fee for undergraduate and graduate students with a co-signer. Graduate students can apply without a co-signer if they pay a 7.5% guarantee fee at disbursement and a 2% guarantee fee at repayment which will be financed into the loan. For more information, call 1-617-328-1565 or fax 1-617-328-0615, write to InternationalStudentLoan.com, 15 Cottage Avenue, Fifth Floor, Quincy, MA 02169.

Global Student Loan Corporation (GSLC). GSLC offers student loans for international students that do not require a US citizen or permanent resident to co-sign the loan. (A co-signer in the student's home country may be required. Often this co-signer is the student's parent or guardian.) GSLC works with financial institutions and banks located in the student's home country to provide financing for the student's education. GSLC's President is Dr. Keith Jepsen, formerly the Director of Financial Aid at New York University. Currently more than three dozen schools participate in the GSLC loan program. Their web site also includes an International Student Planner. For more information, visit the GSLC web site, call 1-212-736-9666, fax 1-212-736-6536, or write to Global Student Loan Corporation, 350 Fifth Avenue, Suite 2416, New York, NY 10118 USA.

International Student Loan Program (ISLP) and Study Abroad Loan Progam (SALP). ISLP is an alternative loan program for international students to study at approved US colleges and universities. SALP is an alternative loan program for US citizens to study abroad. The loans offered by InternationalStudentLoan.com are funded by PNC Bank and guaranteed by The Education Resources Institute (TERI). Students may borrow up to the full cost of education, including tuition, fees, and room and board. The minimum loan amount is $1,500 per academic year. Students may take up to 25 years to repay the loan. There is a $25 minimum payment and some deferment provisions. A creditworthy US citizen or permanent resident must co-sign the loan. For more information, call 1-617-328-1565 or fax 1-617-328-0615, write to InternationalStudentLoan.com, 15 Cottage Ave, Fifth Floor, Quincy, MA 02169

Massachusetts Educational Financing Authority (MEFA). The Massachusetts Educational Financing Authority offers the MEFA Loan program for foreign students attending one of more than 80 participating colleges and universities in Massachusetts. Canadian students may borrow without a US cosigner, and a US cosigner is required for all other foreign students. Families may borrow up to the full cost of education and the repayment term is 15 years, with a fixed interest rate (currently 6.85%) and there is no penalty for prepayment. MEFA is able to offer such a low interest rate because they are non-profit and exempt from federal and state tax. MEFA also has a free guide to colleges and universities in Massachusetts. For more information, call 1-800-842-1531 or 1-617-261-9760, fax 1-617-261-9765, write to MEFA, 125 Summer Street, Suite 1450, Boston, MA 02110

Norwest Bank (1-703-749-0131 or the financial aid department at 1-800-366-6227). These MBA loans are for graduate business and medical students who are international students. For more information write to Norwest Bank/HEMAR Insurance Corp., GMAC, 2400 Broadway Suite 320, Santa Monica, CA 90404-3064.

The Education Resources Institute (TERI) (1-800-255-8374 x210 or 1-617-426-0681). The TERI Professional Education Plan (PEP) loan is available for graduate and professional study. International students can borrow the cost of education up $20,000 per year (cumulative limit of $80,000) with a creditworthy US citizen as cosigner. Their lenders include Citibank (1-800-692-8200 x480), Bank of Boston (PO Box 312, Boston, MA 02117-0312), Baybank (1-800-332-8374 or 1-617-320-2422; PO Box 510, Dedham, MA 02026), and Nellie Mae (1-800-634-9308; 50 Braintree Hill Park, Braintree, MA 02184). Interest rates and fees may vary depending on the lender. For more information, call 1-800-255-TERI (1-800-255-8374), write to The Education Resources Institute (TERI), 330 Stuart Street, Suite 500, Boston, MA 02116-5237

When evaluating a loan program, it is important to carefully compare the costs. Some loans have interest rates pegged to the 91-day T-Bill Rate. Others use the Prime Lending Rate, which is approximately two to four percentage points higher.

ACS Student Loan Payment

2008-12-25T08:06:00.000-08:00

Advantages

Lower monthly payment - your monthly payments may decrease as much as 40 percent. A consolidation loan may allow you to extend the repayment term up to 30 years, depending on your total outstanding student loan balance.
Single monthly payment - simplifies the paperwork. You only have to write one check per month to a single lender.
No fees - there are no charges to consolidate your loan.
No prepayment penalty - you can repay your loan sooner without any penalty.
Choice of repayment plans - you can choose from standard, graduated, income sensitive or extended payment plans depending on how low you want your monthly payments.

Disadvantages

Longer repayment period - you will have a longer repayment period due to the extended term.
Increased interests costs - you may pay more interest over the life of your loan.
Limited deferment and forbearance options - you may lose any unused deferment or forbearance period on your existing loans.
Federal Perkins Loan Borrowers may lose eligibility to cancel their debt for full-time employment in certain fields of teaching, public service, service in the Peace Corps or ACTION, or service in the military. Please refer to your original promissory note for more information on your cancellation benefits.

Eligible Loan Types

Federal Subsidized and Unsubsidized Stafford Loans
Federal Direct Loans
Federal Parent Loans (PLUS)
Federal Grad PLUS Loans
Federal Direct Grad PLUS Loans
Supplemental Loans for Students (SLS)
Federal Perkins Loans
Federally Insured Student Loans (FISL)
Health Professions Student Loans (HPSL)
Federal Nursing Loans

Repayment Terms

The terms of repayment are based on your outstanding principal balance.

		Less than $7,500	= 10 years
		$7,500 to $9,999.99	= 12 years
		$10,000 to $19,999.99	= 15 years
		$20,000 to $39,999.99	= 20 years
		$40,000 to $59,999.99	= 25 years
		$60,000 and above	= 30 years

Example

	Unconsolidated Loan	Consolidation Loan
	Standard Payment Plan	Standard Payment Plan	Graduated Payment Plan
Interest Rate	7.00 %	7.00 %	7.00 %
Repayment Term	10 years	20 years	20 years
Monthly Payment	$232	$155	$119*
Total Principal Payment	$20,000	$20,000	$20,000
Total Interest Payment **	$7,840	$17,200	$20,374
Total Loan Payment	$27,840	$37,200	$40,374

* This is the estimated monthly payment for the first two years only. Monthly payments will gradually increase every two years over the repayment term.

** According to new government regulations, you may be able to deduct the total amount of interest you pay each year from your adjusted gross income.

If you can benefit from a loan consolidation and would like more information, please call ACS' toll-free number 1-800-283-6221. We will assist you with any questions and available options with your lender.

If you would like a loan consolidation application, please click on the 'Apply Now' button below and follow the instructions. Mail your completed application to:

ACS
Attention: Loan Consolidations
P.O. Box 92265
Los Angeles, CA 90009

The loan you received to help you with your education comes from a revolving fund. Your prompt payment of that loan will return monies to the fund which can be used by others for the funding of their education.

Payment begins 90-days after the date you cease to be enrolled at NNU as at least a half-time regular student.

Statements are prepared and mailed by ACS on or near the 1st of each month for current loan accounts. If your loan is past-due, statements are prepared on or near the 15th of each month. Please make your check payable to Northwest Nazarene University. Payments for your loan should be mailed to the following address (with tear off payment coupon):

Northwest Nazarene University
c/o ACS, Inc
P O Box 3295
Milwaukee, WI 53201

Payments without a payment coupon should be mailed to:

Northwest Nazarene University
Business Office-Student Loans
623 Holly St
Nampa ID 83686
or
ACS Education Services
Campus Products and Services
P O Box 7061
Utica, NY 13504-7061.

Payments can also be made online at ACS.

You must make payments on your loan even if you do not receive a bill or payment notice. Billing statements are sent to you as a convenience, but you are obligated to make payments even if you do not receive any reminders.

ACS offers several electronic payment options. Below is a brief description of these products; check out ACS's website for additional information.

If you fail to make full payment when due or do not file forms with the proper documentation in a timely manner, you will be assessed a late charge and may be reported as a delinquent account to the national credit bureaus.

If you fail to fulfill your responsibilities concerning your student loan, you may be required to repay the entire loan immediately including accrued interest, late charges, collection fees, and legal costs.

Student Loan Funding

2008-12-25T06:08:00.000-08:00

Student Loan Funding (SLF) is a national student loan provider with the sole mission of increasing access to education. With customized Web solutions, comprehensive loan products and a team of education funding experts, Student Loan Funding helps high schools, access organizations, colleges and universities provide financial aid solutions in today's changing environment. Since 1981, Student Loan Funding has helped more than two million students attain a higher education.

Student Loan Funding Available For Iowa Students And Families (Iowa College Student Aid Commission)

Iowa College Student Aid Commission Lender Partners Commit to Providing Education Loan Choices for Students and Families

Des Moines, IA, March 6, 2008 - Recent announcements concerning the instability of funding for federally insured student loans and private educational loans have caused many to be concerned about limited access to student loans for college students. funding These announcements come at a critical time as students and families are beginning to make plans for education financing for the 2008-2009 academic year. While there are signs of distress in financing loans obtained through the Federal Family Education Loan Program (FFELP), the good news is that Iowa students and families have many student loan financing options available to them next year.

"Many of our lender partners, both local and national, have stepped up to the plate to ensure that access to a college of choice remains attainable and affordable for Iowa students," stated Karen Misjak, Executive Director of the Iowa College Student Aid Commission (Commission). funding "The Commission works with over 250 lenders who participate in the Federal Stafford, Parent PLUS, and Grad PLUS loan programs. Many of these lenders also provide competitive private loan products. In addition, we have received requests from other lenders who would like to work with the Commission to help Iowa students and families pay for college," explained Misjak.

FFELP lenders have historically provided attractive borrower benefits such as interest rate reductions for on-time payments which ultimately reduce the cost of the loan. funding Unfortunately, the loan liquidity issue has affected the benefits that some lenders will offer this year which may increase the cost of the loan to students. Students and parents should review loan terms before selecting a lender. Comparing lender repayment terms may help parents and students save money in the end.

The Commission is dedicated to connecting Iowa students and families to the essential resources, services and information to help students succeed. In addition to providing scholarships, grants, and loan forgiveness to Iowa students, we also help students with career planning. funding Our new outreach unit is gearing up to help students, parents, and high school counselors understand all aspects of planning, preparing, and paying for college. The Commission offers free programs and services to ensure that a college education or advanced training programs are accessible to all Iowa families.

About the Iowa College Student Aid Commission
As the state's designated guaranty agency for the Family Federal Education Loan Program (FFELP), the Commission guarantees more than $526 million annually in student loans from private lenders to support over 79,000 Iowa students. funding In addition, the Commission administers state scholarship, grant, and loan forgiveness programs, provides borrowers with assistance to avoid the serious consequences of default, conducts research and distributes higher education data, and offers Iowans assistance in obtaining student financial aid and college-related information.

Defaulted Student Loan

2008-12-25T05:48:00.000-08:00

This section summarizes the consequences of default, gives advice on how to avoid it and, if you're already in default, how to get out of it.

You are responsible for repaying your student loans even if you do not graduate, have trouble finding a job after graduation, or just didn't like your school. If you do not make any payments on your student loans for 270 days and do not make special arrangements with your lender to get a deferment or forbearance, your loans will be in default. Defaulting on your student loans has serious consequences.

Note that student loans are now generally not dischargeable through bankruptcy. It is fairly difficult to satisfy the requirements for an undue hardship petition, which generally requires demonstrating that you made a good faith effort to repay the debt, that you will not be able to maintain a minimal standard of living and still repay the debt (usually using the lowest monthly payment under any of the repayment plans, typically income-contiengent or income-based repayment), and that the conditions that prevent you from repaying the debt will likely persist for most of the full term of the loan. Even if you satisfy the requirements of an undue hardship discharge, often this will result in just a partial discharge of the debt.

Almost three-quarters of students who default on their loans have done so after withdrawing from school and failing to complete their studies.

Federal Guide to Defaulted Student Loans

The US Department of Education Debt Collection Service publishes a guide called Guide to Defaulted Student Loans to help students repay their defaulted student loans. It includes information about repaying a defaulted student loan, loan consolidation, the consequences of default, collection costs, resolving disputes, ineligibility for further Federal student aid, and related topics. For more information on repaying a defaulted loan, call 1-800-4-FED-AID (1-800-433-3243) or 1-800-621-3115.

Consequences of Default

If you default on your student loan:

Your loans may be turned over to a collection agency.

You'll be liable for the costs associated with collecting your loan, including court costs and attorney fees.

You can be sued for the entire amount of your loan.

Your wages may be garnished. (Federal law limits the amount that may be garnished to 15% of the borrower's take-home pay.)

Your federal and state income tax refunds may be intercepted.

The federal government may withhold part of your Social Security benefit payments. (The US Supreme Court upheld the government's ability to collect defaulted student loans in this manner without a statute of limitations in Lockhart v US (04-881, December 2005).)

Your defaulted loans will appear on your credit record, making it difficult for you to obtain an auto loan, mortgage, or even credit cards. A bad credit record can also harm your ability to find a job.

You won't receive any more federal financial aid until you repay the loan in full or make arrangements to repay what you already owe and make at least six consecutive, on-time, monthly payments. (You will also be ineligible for assistance under most federal benefit programs.)

You'll be ineligible for deferments.

Subsidized interest benefits will be denied.

You may not be able to renew a professional license you hold.

And of course, you will still owe the full amount of your loan.

Preventing Default

Borrow as little as possible. Default rates increase with overborrowing. If your total debt will be more than twice your expected starting salary, you are borrowing too much and should consider attending a less expensive college. Live like a student while you are in school so you don't have to live like a student after you graduate.

Make sure you understand your options and responsibilities before taking out a loan.

Prepare a checklist of all your loans, including the name and phone number of the lender, the type of loan, the amount of the loan, the interest rate, and especially any due dates or deadlines.

Make your payments on time.

Notify your lender or servicer promptly of any changes that may affect the repayment of your loan. If you move or change your address, let them know. Likewise tell them about name changes (e.g., because of marriage), graduation or termination of studies, leaves of absence and transfers to another school.

If you encounter temporary financial difficulties, consider applying for a deferment or forbearance on your loans. It is better to defer your payments than to go into default. Ask your lender about these options while you are still making payments, before you default on your loan. You won't be able to get a deferment or forbearance after you default.

Send in your deferment form by certified mail, return receipt requested, so you have proof it was submitted. Continue making the monthly payments until the lender notifies you that your deferment has been approved. Some deferments are not automatic. If you stop making payments before approval, your loan could go into default. This would prevent the lender from approving the deferment. Do not make any assumptions. If you haven't heard from the lender in a month, call them, and keep on calling them.

If you are having trouble making payments due to a more permanent income deficit, your lender may be able to suggest alternate repayment options, such as extended repayment, graduated repayment, income sensitive repayment, income contingent repayment and income-based repayment. Income-based repayment will typically have the lowest monthly payment. The types of available repayment options currently depend on whether the loan was issued under the FFELP or FDSLP (Direct) programs.

All of the alternate repayment plans reduce the monthly payment by increasing the loan term. This will increase the total interest paid over the life of the loan. For example, increasing the loan term from 10 to 20 years on a Stafford loan will cut the monthly payment by about a third, but will more than double the interest paid over the life of the loan.

Some students who have both federal and private student loans will use an alternate repayment plan on the federal loans, to reduce the monthly payment on the federal loans, and use the savings to pay off the more expensive private student loans quicker. While this is generally good advice, only pursue this option if you are sure you can resist the temptation to spend the savings. Any savings must be used to pay down debt.

Consider using a consolidation loan to combine all of your educational loans into one big loan. This lets you send your payments to just one lender. You may also be able to extend the term of the loan in order to reduce the size of your monthly payments.

Keep careful records regarding your loan. Put copies of all your letters, canceled checks, promissory notes, notices of disbursement and other forms in a file folder. Record your payments and the date you mailed or made the payment in a spreadsheet or a personal finance program like Quicken or Microsoft Money.

If you have both federal and private education loans and can afford to make the required payments on only one loan, try to avoid defaulting on the federal loans. The federal loans have more flexible repayment options and harsher penalties for default.

Postponing Repayment

Two options available for postponing repayment of your student loans are deferments and forbearances. If you are thinking about defaulting on your student loans, ask the lender whether you are eligible for a deferment or forbearance before you default. You cannot receive a deferment or forbearance if your loan is in default. If you default on your loans, you are no longer eligible for deferments and forbearances.

For more information about deferments and forbearances, contact the financial aid office at the school that issued the loan and/or the original lender or current servicer of your loan.

Deferments

During deferment, the lender allows you to postpone repaying the principal of your loan for a specific period of time.

Most federal loan programs allow students to defer their loans while they are in school at least half time. For Perkins Loans and Subsidized Stafford Loans, no interest accrues during the deferment period because the federal government pays the interest. For other loan programs, such as the unsubsidized Stafford loan, the interest still accrues during the deferment period. Students can postpone the interest payments on such loans by capitalizing the interest, which increases the size of the loan. (Capitalizing the interest adds it to the loan principle. This increases the amount of the debt, which means you'll be paying interest on interest, in addition to interest on the principal.)

Deferments are commonly granted for

students who are enrolled in undergraduate or graduate school,

disabled students who are participating in a rehabilitation training program,

unemployment

economic hardship

These deferments are for the FFELP and FDSLP loans, not the Perkins loan. Other deferments may also be available; contact your lender for details. Note also that there are limits on the length of a deferment.

Deferments are not granted automatically. You must submit an application and provide documentation to support your request for a deferment. Do not stop making payments on your student loans until after you are notified that your deferment has been granted.

Forbearances

During forbearance, the lender allows you to postpone or reduce your payments, but the interest charges continue to accrue. The federal government does not pay the interest charges on the loan during the forbearance period. You must continue paying the interest charges during the forbearance period.

Note also that there are limits on the length of forbearance. Forbearances are typically granted in 12-month intervals for up to three years.

Forbearances are not granted automatically. You must submit an application and provide documentation to support your request for a deferment. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. Do not stop making payments on your student loans until after you are notified that your forbearance has been granted.

Getting Out of Default

To get out of default, you need to make arrangements with your servicer or lender to repay the loan. Once you have made six consecutive full voluntary on-time payments, you will be eligible for additional Title IV aid. On-time is defined as within 15 days of the due date. Voluntary excludes payments made by garnishment or other offsets. After you have made 9 of 10 consecutive payments within 20 days of the due date and applied for and received "rehabilitation", you will no longer be considered in default. At this time record of the default will be removed from the reports to credit reporting bureaus.

For loan rehabilitation, the payments must be "reasonable and affordable". This is determined by the guarantee agency, and will consider the borrower's (and his/her spouse's) disposable income and financial circumstances. It can be below the required minimum payment of $50 or the interest that accrues, whichever is greater, if the guarantee agency determines that a smaller amount is reasonable and affordable based on the borrower's financial circumstances.

Also, if you are seeking rehabilitation and your wages are subject to a garnishment order, sometimes the guarantee agency will be willing to accept the higher of the rehabilitation amount or the wage garnishment, as opposed to the sum.

Also, if the default is very recent, the lender may not yet have reported the default to a guarantee agency. Lenders do not need to file a default claim until 90 days after the default occurs. If the borrower brings the delinquency under 270 days (the definition of default) within the 90-day period, before the lender has filed a default claim, they can cure the default.

It may also be possible to cure the default by consolidating the delinquent loan before the lender has filed for a default claim. Since the consolidation loan is a new loan and it pays off the deliquent loans, it effectively wipes the slate clean.

While lenders have very powerful options for collecting defaulted debt, and so don't need to negotiate, they will often prefer to get the borrower into a voluntary payment plan than have to take the borrower to court. A good rule of thumb is a payment plan where you pay about 1% of the total amount owed per month.

For information about your options, contact the servicer of the loan and/or the original lender or the current holder of the loan. The financial aid office at your school should be able to tell you the name, address and telephone number of your lender and can also provide you with help and advice about repayment problems. You can also talk to the Default Resolution Group at the US Department of Education by calling 1-800-621-3115.

Collection Agencies

If you default on your student loans, the lender or guarantor may use a collection agency to collect the loan. The collection agency's costs are added to the amount due, and the borrower is required to repay them in addition to the amount due on the loan.

Federal regulations state that a borrower who has defaulted on his or her student loans may be required to pay reasonable collection costs in addition to other charges, such as late payment fees. What constitutes reasonable is not very well defined.

Federal regulations concerning campus-based loan programs, such as the Perkins Loan, suggest that collection costs may not reasonably exceed 30% of the principal, interest and late charges collected on the loan, plus any court costs, for first collection efforts. For second collection efforts, the percentage increases to 40%. For Perkins loans made from 1981 through 1986, many promissory notes limited collection costs to 25% of the outstanding principal and interest due on the loan. Since then, however, promissory notes have had no such restriction.

For loans held by the US Department of Education (e.g., Federal Direct Stafford Loans), the department assesses collection costs at a rate of 25% of the outstanding principal and interest due on the loan (or 20% of the payment). FFELP lenders are limited to a similar amount.

When consolidating a defaulted loan, collection costs of up to 18.5% of the outstanding principal and interest may be included in the amount consolidated. So a collection agency might be willing to reduce its fees to 18.5% if the student consolidates his or her loans. But the collection agency is under no obligation to do so. So if the student consolidates his or her loans and the collection agency does not reduce its fees, the student must pay the amount in excess of 18.5%.

If you work out a payment schedule within 60 days of default, some collection agencies will waive or reduce the collection fee.

Overall, it appears that collection costs can legally be as high as 40%, perhaps even higher.

If you think the collection costs are excessive, you can ask the collection agency to provide a detailed itemization of the actual costs incurred in collecting the loan. Although federal regulations are murky on this point, it appears that the costs must be based on either the actual costs incurred in collecting the loan or the average costs incurred for similar actions taken to collect loans in similar stages of delinquency.

If your income tax refunds have been attached and your filing status was married filing joint, you should ask for a hearing and fight it using the innocent spouse defense. While the government has the right to your income tax refunds, they do not have the right to your spouse's share of the income tax refunds. (That is, unless he/she has also defaulted on his/her student loans.)

Default Rates

The US Department of Education uses three different definitions when calculating default rates:

Cohort Default Rate. The cohort default rate is the percentage of federal education loan borrowers who enter repayment in one federal fiscal year and default before the end of the next fiscal year. This short-term measure of defaults is used to determine a college's eligibility to participate in federal student aid programs. If a college has at least 30 borrowers entering repayment and its cohort default rate is more than 40% in a single year or more than 25% for three years in a row, it loses eligibility. The cohort default rate is also used to determine whether a college is eligible for an exception to certain rules. For example, the requirements for a 30-day delay for first time borrowers and multiple disbursements are waived for colleges with cohort default rates of less than 10%.

The cohort default rate is a very weak measure of defaults. Given that a default does not occur until a payment is more than 270 days late, lenders have 90 days to file a claim on a default, and Stafford loans do not enter repayment until the end of the 6 month grace period, the cohort default rate is mainly a measure of the percentage of borrowers who never begin making payments on their loans or stop making payments within the first year of graduation.

Budget Lifetime Default Rates. The Budget Lifetime Default Rate is a projection of the percentage of federal education loan dollars entering repayment in a federal fiscal year that will default within the next 20 years. These default rates are reported in the President's budget. The default rates can change significantly from one year to the next (especially the differences between estimated projected rates and "actual" projected rates). It is unclear whether these changes are due to the sensitivity of the model to inflation and other economic factors, changes in the model from one year to the next, or political considerations.

Cumulative Lifetime Default Rates. The cumulative lifetime default rate is the percentage of federal education loans that enter repayment in a particular federal fiscal year and default before the end of the current fiscal year. These default rates increase as the number of years of data increase.

All of these default rates are based on the federal fiscal year, which runs from October 1 to September 30. The federal fiscal year is offset relative to the academic year, which runs from July 1 to June 30.

It is worth noting that these definitions of default rates differ on several factors:

Basis: Borrowers, Loan Dollars, Loans

Time Frame: 2 years, 20 years, from repayment inception

Institutional Category: different definitions based on institutional level (<>

Two-year and proprietary institutions tend to have the highest default rates, more than twice the default rates at four-year, public, and private non-profit institutions. Graduate and professional students have among the lowest default rates, about half the average.

Private student loans tend to have long-term default rates that are about half of the default rates on federal education loans, partly because they exclude most borrowers with credit scores below 650. The federal government lends to a riskier population of borrowers because the government is focused on enhancing access to higher education, while private lenders are focused on profitability.

Student Loan Lenders

2008-12-25T05:34:00.000-08:00

1. National City Direct Student Loans - Student Loans $1,500 To $40,000 A Year. Preliminary Approval In As Little As 15 Minutes, & Receive Your Check In As Few As 5 Business Days. Call 1-800-883-3318

2. Astrive Student Loans - Borrow the Money You Need for Your Tuition, Room/Board & Much More. See AstriveStudentLoans.com or call 800-521-5299

Because these loans are awarded based on credit, they can range anywhere from the prime rate (which averages around 7.6 percent) to 15.31 percent.* The rate depends heavily both on the prime interest rate at the time and the applicant or co-applicant’s credit worthiness. Lenders’ interest rates vary. *Independent research, a sampling of five major lenders, from Student Loans.Net editorial.

NOTE: Student loan lenders listed are among the some of the most trusted lenders on the internet. They feature low, competitive interest rates, helpful customer service AND as they are selective with who they lend to, unlike predatory lenders who approve student loans with no credit needed or for people with bad credit. Student Loans.Net does not list those types of lenders.

If you want to attend college or go for higher studies, you need to put up with lots of expenses. In case you are not able to pay them yourself, or you haven't been able to arrange for a federal loan, you can opt for the various private student loans. There are a number of private student loan lenders all across the United States that can provide you with these student loans. These lenders are actually private banks, financial institutions or other organizations that provide loans to support your higher education, against a 'collateral'.

The private student loan lenders provide different types of loans. They include the undergraduate private education loans and graduate private student loans. These loans are available at highly competitive interest rates. They are an easy way to attain the extra money you need for your college expenses.

The lenders also offer continuing education loans. These loans provide you with flexible loan amounts that range from $1,000 to $40,000. The maximum loan amount that you can get under such a loan is $150,000.

The loan amount provided by the private lenders is meant to take care of the tuition fees and the living expenses. It also includes money for purchasing, books and computer equipment. The loan amount can even be used to pay the past-due tuition bills. The best thing about getting the loans from any of the private lenders is that you have to start the payments only after you complete your studies.

In order to avail any of the above mentioned loans, the private lenders need you to fulfill certain eligibility requirements.

If you apply for a graduate or under graduate loan program, you must be an undergraduate/graduate student, 18 years of age or older. If you are an undergraduate student, you should be enrolled at least half-time in a certain certificate or degree program. Sometimes the lenders only consider the certificate or degree program provided by an institution approved by the lender.

If you are applying for a graduate student loan or a continuing education student loan, you should be enrolled at least half-time in a professional or graduate program. Again the lender may consider whether you are studying in an institution approved by the lender.

Also you need to be a U.S. Citizen to be eligible for the loans. Even if you are a non US citizen, you need to have a valid unexpired Alien Registration Receipt Card or INS form I-151 or I-551.

In case you do not have a credit history, or your credit history is not good enough, you will need a co-signer. You can ask one of your parents or any other person to be your co signer. The only thing is that the co signer has to be credit worthy.

Some of the biggest private student loan lenders that you can contact are Chase Private Student Loans, Act private student loans, National City Direct Student Loans. Check out the various loan programs offered by them and choose the most suitable one for yourself.

Pay Off Student Loan

2008-12-25T05:14:00.001-08:00

* 1. Figure Out Who You Owe And How Much You Owe
* 2. Consider Wiping Out Your Loans With Some Do-Gooding
* 3. Learn About Repayment Options
* 4. Learn About Ways To Delay Your Payment
* 5. Learn How To Survive Default

Take a look behind you. Do you see it?… In the far distance - but quickly catching up-are your student loans. That's right, all those loans that you saw only as figures on paper are coming up fast and they're screaming, "Remember us?Pay us off! PAY US OFF!"

If this personified vision of your student loans doesn't chill you to your very core, then how does this make you feel: If you're the average American student, you owe about $17,000 in loans after graduation. Quadruple that amount if you're the average grad school graduate. Some students naively believe that they can outrun or ignore their loans, but they're gonna screw themselves over down the line: lenders are sticklers about being paid back, anal about timely payments, and prepared to completely mess up your credit history.

Now are you feeling scared? Take comfort in the fact that the majority of higher education graduates are in the same boat. Nevertheless,student loan repayment is a big, complicated deal. We'll help you decipher the messy jargon and figure out a plan of action.

1. FIGURE OUT WHO YOU OWE AND HOW MUCH YOU OWE

If you're like most students, you went through college or grad school idly aware of the fact that you were spending a whopping amount on your education, but not really knowing (or caring) how much it was, where the money was coming from, or how you'd eventuallypay it back. We hope you enjoyed those years, because now it's time to pay for them. The first major task to tackle is to figure out who you're paying and how much you owe.

You can find the answers in all those notices that your lender(s) and your school's financial aid office have been sending to you. If you were wise enough to keep most of your notices, then start sorting through them and answer the following questions:

What types of loans did I take out?
How much do I owe in total?
Who is (or are) my lender(s)?

What types of loans did I take out?

Many types of loans exist. Some of the more popular ones are Stafford, Perkins, HEAL, and PLUS loans. You won't have to worry about PLUS (Parent Loans for Undergraduate Students) because that one is your parents' responsibility (suckers!), but mostly everything else is your burden now. Take time to go through all the contracts you signed (and kept a copy of, we hope) and make a list of the loans you have.

How much do I owe in total?

The Department of Education - which decides how much and what types of financial aid you're eligible for - may have offered you $8,000 in loans per semester, but you (or your parents) may have decided that you only needed to borrow $5,000. One way you can figure out how much you actually borrowed is to take a look at the contracts you signed - they should have the dollar amount spelled out to the cent. Another way is to take a look at the notices that your lenders have been mailing you each semester (which tell you how much you borrowed and how much you now owe).

If you come across the financial aid reward letter that lists all the financial aid you're eligible for, be careful not to mix up grants with loans. Grants such as the Pell Grant, the SEOG (Supplemental Education Opportunity Grant), and others do not have to be paid back. It was free money. Rejoice!

Who is/are my lender(s)?

Here's how it usually works: You choose a bank to put up your money, you sign all sorts of forms, then the bank hands you the money in semesterly installments. Usually - but not all the time - the bank then turns around and sells your forms to Sallie Mae for the same amount. Sallie Mae may is no country bumpkin; officially known as the Student Loan Marketing Association, Sallie Mae was established by Congress to generate money for students to borrow, and it is one of the largestloan providers in the country. By selling off loans, banks gain more money to lend other students. What this means for you is that you're now in Sallie Mae's hands.

Sometimes Sallie Mae will decide to turn around and sell your loans off to yet another loan provider (what are you, a two-cent whore?). In this case, the new lender is now responsible for getting you the money you need for school (and getting it all back from you when you graduate). So even if you startedoff borrowing money from the bank, you could end up owing Sallie Mae, or even Sallie's inbred two-fingered cousin.

All this transferring is done without your permission, but you are informed of each transfer. The amount that you borrowed remains the same, so if you know how much you owe, the only thing you have to do is figure out who you owe it to. Your latest records will tell you who.

If you've thrown out all your notices, contracts, and documentation, you may have just read through all this with a look of sheer horror on your face. Gotcha! While you really should've kept better track of your records, this is one time where you can get away with being a mess. All you have to do is contact your school's financial aid office and ask them about your record. Even if the office can't help you, they'll be able to get you in touch with your state'sloan guaranty agency, where you'll be clued in on your debts. Believe us, someone will have a record.

Of course, without any personal records, you won't be able to effectively dispute dates, amounts, or other screw-ups, so if you're still in school, start keeping track of all your records.

2. CONSIDER WIPING OUT YOUR LOANS WITH SOME DO-GOODING

Unless you die, you won't be able to get away from paying off your loans… but you do have the option of paying them off in the form of service. This is called loan forgiveness and you'll have to do more than say you're sorry. The government decided that it'd take care of your debts for you if you'll agree to put some time into one or several of the following programs:

Volunteering loan forgiveness
Law school loan forgiveness
Med school loan forgiveness
Occupational or physical therapy education loan forgiveness

Volunteering loan forgiveness

Americorps. If you're willing to devote a year of your life to volunteering for Americorps, you'll be rewarded with $4,725 to spend on your college debts, and a stipend of up to $7,400. That doesn't sound much like volunteering to us, but hey, we didn't write the dictionary. For more information, visit the Americorps website or call them at (800) 942-2677.
Peace Corps. Go traveling with the Peace Corps and you'll get to defer most of your student loans until after you leave the program. Not only that, but you may even get some of your loans reduced (maybe as much as 70%, if you're lucky!). Call (800) 424-8580 for more details.
VISTA (Volunteers in Service to America).VISTA, which is all about community development and ending poverty, homelessness, and illiteracy in the United States, will pay off $4,725 of your loans if you join in on their cause for at least 1,700 hours. Call (800) 942-2677.
Military Service. Be on your way to complete loan forgiveness and buff up at the same time! If you join the Army Reserve or the National Guard after graduation, you can receive up to $10,000 topay off your loans. If you're the sort of person who doesn't mind the occasional brush with death, ask to be stationed in areas of hostility and you could get even more money.
Teaching. If you like to get your summers off, then sign up to teach full-time under certain conditions and your loan will be completely forgiven. Your options are 1) to teach special ed, 2) to teach in a school that services kids students from low-income families, or 3) to teach in a designated teacher-shortage area.
Social Services. If you're a full-time provider of early intervention services for the disabled, employee of an agency that provides services to families of low-income communities, a full-time nurse or medical technician, or a full-time law enforcement or corrections officer, yourloan can be completely absolved. Restrictions (that involve the date your loan was made) apply. You should contact the various agencies or organizations for more details.

Law school loan forgiveness

If you've just been through law school, it's likely that you owe between $80,000 and $125,000 in loans. No wonder you chase ambulances. Fortunately for you, more than 30 law schools in the U.S. allowloan forgiveness to students who take on public interest or non-profit positions. For a list of these schools and more information, visit the Equal Justice Works.

Med school loan forgiveness

National Health Service Corps offers a program in some states that will help you pay off your colossal med school loan and give you an annual salary in exchange for practicing medicine in underserved areas. This is an OUTSTANDING deal, so check out the Office of Statewide Health Planning and Community Development website or call (916) 654-1833.

Occupational or physical therapy education loan forgiveness

When you apply for a job in the occupational/physical therapy field, ask about your employer's loan forgiveness package. Because there is such a high demand for occupational and physical therapists, many hospitals and private health-related organizations will offer topay off some of your student loans if you agree to lend them your valuable expertise.

If you've just read through all your options and you 1) don't qualify, 2) hate helping people, or 3) want to make money immediately and not 5 years down the road, that's fine too. Just continue to step 3 to learn about some more traditional repayment options.

3. LEARN ABOUT REPAYMENT OPTIONS

What happens if you don't pay

Before we get into the various loan repayment options, let's take some time to dispel some of the clever schemes we know you're plotting for getting out of your expensive situation:

Moving. Just because you move doesn't mean that the loan people won't find you. We're not going to get into their clandestine and evil tactics; just realize that not only can you not hide, but that you shouldn't even try. Changing your name doesn't work either.
Ignoring your monthly loan repayment bill. Even if you got into a nasty fight on
the phone with your lender's customer representative and have decided to teach him a lesson on manners by refusing payment, you'll soon discover that it's in your best interest to drop your grudge. Here's a scenario of what happens if you choose to completely disregard yourstudent loans:

The first monthly bill arrives in your mailbox. You put it on your desk and forget to pay.

A second notice arrives in your mailbox. It accuses you of being a delinquent. (You achieve delinquent status the day after your monthly repayment is due and it's not in the lender's hands.) You scratch your head, add that notice to the growing pile on your desk, and turn your attention to the Victoria's Secret catalog that accompanied the notice.

Two weeks later, you'll start getting phone calls and more notices. You lender is required to make at least four phone calls and send four of those letters before sending a final demand letter (about 5 months after the loan payment was due). This letter will tell you that unless you pay up now, a default claim will be filed on your loan.

After a default claim is filed, your lender will turn your case over to a guaranty agency and you'll get a nasty phone call from them. If you don't negotiate some sort of deal within 60 days, your guaranty agency will report you to the national credit bureaus.

Now the fabulous life you dreamed of leading starts to crumble around you. You'll be ineligible to receive credit cards, an apartment, or a mortgage for a car or house. The government has the right to deduct money straight from your income, and it's unlikely that you'll ever date again. We'll tell you how to survive a default later, but it's still not a pleasant way to live a life.

Options for paying

Here's the general deal on loan repayment: After graduation, you'll get 6 months of freedom from loan repayment. If you're smart, you'll use these 6 months to get a job. When loan repayment begins, you'll pay at least $50 a month (unless you're in forbearance, deferment, or your lender agrees to a smaller amount) until your entire loan (plus interest) is paid off. In any given month, you can opt to pay off more than your monthly requirement without penalty. You have to pay off your loan even if you aren't satisfied with the education you received and can't do jack squat with it. So you went to med school and ended up starting an Internet company? Tough cookies - you still gottapay.

Here are your four main payment options. Keep in mind that you can switch from one to another, depending on your financial status:

Option 1: Standard Payment. If you land a good job out of college and can afford to make steep monthly payments, go with the standard payment schedule. Under the standard payment, you'll have finished payingoff your debt within 10 years, and you'll have the best interest rate. This is the quickest way to pay off your loans, but it also requires the highest monthly payments.
Option 2: Graduated Payment. This is the payment method for people who get out of college expecting to make a modest but steadily increasing wage. The payment requirements will startoff gentle, then increase every couple of years for the next 10 to 30 years.
Option 3: Income-Based Payment. If you're in a commission-based or seasonal business (say, selling houses or selling ice cream from a truck), your income probably vacillates. So your monthly payment bill will be proportional to the amount you are currently making and you'll get up to 15 years topay it all off. The good news is that you will always be able to pay your loans. The bad news is that if you have a particularly good month, you never get the chance to enjoy it.
Option 4: Long-Term Payment. With this schedule, you'll be allowed to pay the least possible amount per month for 10 to 30 years. If you're a procrastinator by nature and this schedule sounds like it's your cup of tea, here's the catch: by the time thirty years is up, you may have paid double the original amount of your loan. This payment plan has by far the worst interest rate.

If you need to hear some numbers before making a decision on a payment schedule, contact your lender. (If you don't know who your lender is, contact your school's financial aid office.) Talk to a customer rep and ask them all the questions you want.

4. LEARN ABOUT WAYS TO DELAY YOUR PAYMENT

This step is about delaying your payment today, but paying more interest in the long run.

Consolidation
Deferment
Forbearance

Consolidation

Consolidation is a path that over a million graduates take each year. It basically consists of bunching all your separate student loans into one big loan, and then paying off that mother loan. If, for example, you're getting three bills in the mail every month for the three different types of loans you took out and each bill asks for $300, you're paying a grand total of $900 each month. If you simply can't afford to shell out close to a grand each month, consolidate your three loans and it'll act as if it were oneloan - and you'll only owe $300 a month. Some people also choose consolidation because it's easier than keeping track of multiple student loan bills.

The downside of consolidation is, of course, the fact that it'll take longer to pay off your consolidated loans, and you'll end up paying a lot more in interest. You could, in the worst case scenario, end up paying three times your original loan amount. Also, if you plan on eventually going back to school and taking out more student loans, consolidation could mess up your chances for interest subsidy benefits on your future loans.

To find out more about loan consolidation, including whether you qualify for it (you may not), contact your lender or turn to the following resources (if appropriate):

Sallie Mae (800) 524-9100
Citibank (800) 967-2400
Federal Direct Consolidation Loan Info Center (800) 557-7392

Deferment

If you find that you simply can't keep making monthly payments, no matter how small, you can choose to defer your loans. This means that for an amount of time that's negotiated between you and your lender, you won't have topay a cent. Interest, however, will continue to accrue if your loan is unsubsidized ("subsidized" means that the government will step in and take care of the interest.) Not everyone qualifies forloan deferment - you must contact your lender and prove that you are currently trapped in financial difficulties before they'll give you the forms to sign.

Forbearance

Forbearance is a three-month break from your loan repayment, but unlike with deferments, you don't need to be reduced to eating gruel to get it. Just call up your lender and state your case: you need a couple months to put a down payment on an apartment, your dog needs surgery, you're getting married and you don't want to wear a garbage bag. Your lender doesn't necessarily have to grant you forbearance, but if your reasons for requesting one are reasonable, then you may get one.

5. LEARN HOW TO SURVIVE DEFAULT

Here's a step for all of you who are currently getting your kneecaps smashed by a large hairy man named Vito because you refused topay your loans. The fact is that you can still pick yourself up and beat this thing (though we do not recommend that you attempt to beat Vito… have you learned nothing?).

All you have to do is contact your loan holder and agree to make six on-time $50 payments. (The amount can even be lowered if you make a reasonable case.) At this point, you become eligible, once again, to apply for additional federal loans and grants. Make six more on-time payments and you're out of default. You get welcomed back to your pick of payment schedules and even the options of deferment and forbearance. Just don't ever screw things up again - not even we will be able to help you at that point.

If you need additional help with a defaulted loan or other general loan headaches, contact your school's financial aid office, or get some free booklets on loan repayment:

U.S. General Services Administration
Consumer Information Center
S. James Consumer Information Center - 6C
P.O. Box 100
Pueblo, CO 81002
(Ask for the "Direct Student Loan Consolidation" and "Paying For College" booklets.)
Federal Trade Commission's Public Reference Branch
Room 130, 6th Street and Pennsylvania Ave.
NW Washington, DC 20580
(Ask for a booklet called "Knee Deep In Debt.")

We're sorry if this SYW has been a little too "real life" for you, but we hope that it's helped clear up some of the murkiness surroundingstudent loans. And when you're forgoing that shopping spree to make a monthly payment, just remember that you'll be out of debt one day. Just think how happy you'll be when your kids go through the same misery…

ACS Student Loan

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When considering all the options for financing your higher education, one of the loan products that you might come across is the ACS student loan.

What does “ACS” stand for? Well, in short it stands for “Affiliated Computer Services.” This is a company to which a large portion of federally subsidized student loans are outsourced. This means that they act as the actual lender for many of these loans. As the GoCollege.com website puts it:

Basically, when you get a direct loan from the government, such as a Stafford Loan, you may very well end up borrowing through ACS, as they are the Department of Education’s primary outsourcing company.

In essence, the term “ACS student loan” is a bit of a misnomer. These loans are actually guaranteed by the federal government and are administered by ACS. However, because ACS manages so many loans, many borrowers have come to think of these as ACS loans.

Advantages of the ACS Student Loan

Why seek out an ACS student loan (or, more accurately, a loan administered by ACS)? There are a number of reasons:

Ease: ACS is well known for its high-quality management process and ease of use. With an ACS student loan, you can access your accounts online and keep track of all your loans in one place.
Assistance with Loans: ACS can offer assistance to students in helping them get matched with the right loans, and you can even apply online.

Qualifications for the ACS Student Loan

Whether you can qualify for a loan through the ACS service will depend on a variety of factors, including:

The type of loan for which you’re applying: An ACS student loan is basically a student loan offered through any one of several federal government programs, all of which have different qualification criteria. You must qualify under the federal loan program you are considering, such as the Perkins loan or the Stafford loan.
The college you plan to attend: Not all institutions of higher education qualify for all types of student loan programs. You will need to check with your institution’s financial aid program to figure out which loan might work best for you.
Who is borrowing: Loans are available for both students and parents, which may mean that you and your family have some decisions to make. In some cases, it may make more sense for a student to apply, in other cases, it may make sense for the parents to do so.

The good news is that the ACS service can help you figure out what might work best for you.

Steps for Applying for an ACS Student Loan

To get started, go to the ACS site at https://www.acs-education.com/CS/Jsp/general/home.jsp. Here you will find step-by-step instructions for filling out the various forms necessary to explore the federal loan application process.

Through the site, you can also gain access to a wide variety of online tools, such as secure processes for making payments to existing loans or submitting deferment forms.

A college education doesn’t need to be out of reach, especially with some of the student loan options available through ACS and other vendors.

Personal Student Loan

2008-12-21T03:01:00.000-08:00

More and more students are bridging the financial aid gap with (non-government-subsidized) loans that are based on a borrower's income and credit history. In fact, these loans are currently the fastest growing source of education financing.

What are the advantages?
Personal loans don't require filling out long, complex federal student aid forms, like FAFSA or the Stafford Loan application. Approval is based on credit and income. In addition, personal loans offer more money and more time to pay it back than federal loan programs. Finally, these loans let borrowers – not some third party – decide how much they need.

Who can apply?
Applicants must be U.S. citizens or permanent residents. Because personal loans are credit-based, having a good credit history and steady income are key. Applying with creditworthy co-signers — such as parents — can significantly increase your chance of qualifying for a loan, being granted a higher loan amount and getting a better interest rate and a lower monthly payment.

What about deadlines?
There are no deadlines for our personal loans. You can apply any time during the year. Our loans can ordinarily be disbursed in as little as two to five days after signed applications are received. If you're half way through a semester and realize you can't make ends meet, it's time to look into a personal student loan.

What is the application process?
The easiest way to apply for a personal student loan is online. We have an online application with fast approvals and a quick turnaround on loan disbursement. It's usually just a few days from application to processed check. Or, you can call toll-free and handle your application quickly and easily over the phone.

How does repayment work?
Repayment usually begins right after disbursement. With many student loans you can choose total deferment, or you can choose to pay only monthly interest while you’re in school (partial deferment), or you can begin full repayment immediately. You choose the option that best suits your needs.

How is the interest rate determined for a Education Loan?
The interest rate for a Education Loan is the Prime Rate, adjusted monthly, plus or minus a margin depending on your credit history.

Are there any applications or origination fees for a Education Loan?
There may be an origination fee which is determined by the loan amount and credit evaluation. If a fee is charged, it will be added to the principal of your loan and financed with the loan amount.

NOTE: We encourage students to thoroughly research the availability of Federal Aid and other low or no-cost education funds before considering a personal loan. Personal loans are designed to help you pay the difference between available financial aid and your college’s actual cost of attendance.

William D Ford Federal Student Loan

2008-12-21T02:36:00.000-08:00

Looking for a way to pay your way through college? The William D. Ford Student Loan is the newest federal financial aid program that was established for college students in 1994. While older student loans for college forced students to apply for loans through private banks, these days students are able to receive direct loans through the U.S. Department of Education, because of the William D. Ford Student Loan Program. These loans are applied for through the FAFSA (Federal Application For Student Aid) and are then distributed directly (if accepted and applied for) to your school to pay for your education.

So Many Decisions!

Following college though, many students are confused as to the payment repayment options concerning direct loans to their college. These totals for loans often total in the thousands of dollars range and must be accounted for. Direct loans can also come from a variety of different federal sources, each of who will want their money back. This makes an option like student loan consolidation almost imperative, as graduated college students can apply to consolidate their federal direct loans. By doing this, they can lower their interest rates on loans and save thousands of dollars per year.

Do Your Research

The William D. Ford Student Loan Consolidation option makes it easy and convenient for former students to repay their loans. All they need to do is simply contact an agency like NextStudent, who will then help them to consolidate their student loans. Federal agencies can also be contacted to follow through with this procedure. Be sure to research consolidation before you start and find your best option. When it comes to saving money through consolidation, it is only possible if you find interest rates that are low and will reduce your monthly payments. The Internet is your best bet for researching the William D. Ford Student Loan Consolidation and finding out more information about saving yourself money in the future. College may be over, but the learning continues!

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible.

William D Ford Federal : Directly Benefit from It

Federal direct loans, also known as the William D. Ford Direct program is intended to provide direct funding to the students borrowers and parents. So basically with this program, government loans can be had without going through commercial banks, private lending companies and other financial institutions. As will other programs, the federal direct program has its own criteria and requirements in order for a to avail of its funding one of which is the credit rating criteria especially for those non-need based programs. What?€?s great about the William D Ford Direct program is that they have professional customer service agents that are ready to enlighten any prospective borrowers about any matter that might be unclear to them. This is perhaps one of the best ways to know more about the federal direct loans as you are already talking to someone who belongs to the organization itself. Of course, you can also make some research online, but the sources are incredibly aplenty and you are left to yourself on discerning which facts are truthful and which are not. The government Stafford loans via William D. Ford Federal Direct Program are offered to a lot of college students. And since the federal direct loans are given by a US agency, need not go through a middle man such as a bank or private lender. Likewise, as with the case of other federal loans, one important requirement of direct federal loans is the completion of FAFSA by the prospective borrower. Accomplishing the FAFSA will help in determining the eligibility of the borrower for either subsidized or unsubsidized loans. And with federal direct loans, the repayment starts in six months after the borrower ceases his half time status which is normally 6 credit hours, the minimum that the must be enrolled in.

Undergraduate Student Loans

2008-12-21T02:21:00.000-08:00

Loans are granted to students to help them to finance their studies. They are increasingly numerous demands among students regarding loans. Banks have adapted different formulas to suit students' needs when it comes to financing their inscription expenses, books, room and board, and all expenses related to education. Most school loans have an interest rate of 2.9% to 6%, banks are usually giving better interest rates to students of bigger schools like; engineering, medical or commerce establishments because most of these school institutions are partners with banks. Tuition rates are on the rise at many colleges; the limits that students can borrow from year to year are stable and remained the same. Undergraduates dependent of parents are allowed to borrow up to $2,625 their freshman year, $3,500 their sophomore year and $5,500 for each remaining year in Stafford Loans. Students that are Independent from parents can qualify for additional unsubsidized loans. Dependent students may also receive unsubsidized loans depending on the financial situation of their parents. Unsubsidized loans are helping in some situations but the down side of it is that students aren't getting interest free benefit with these subsidized loans. The limit of $23,000 loans for an undergraduate education has not increased since 1992. On the other hand, tuition rates have increased at a fast rate, in fact the rates more than doubled. Tuition rates increase a lot more than the inflation rate. A percentage of about 8% per year is registered. Not to mention that inflation has caused prices for students other expenses such as; housing, meals and other day to day expenses to increase dramatically. Many colleges dramatically raised their tuition rates by 28%. The public universities average tuition is $4,694.00 per year for in state residents. Student loan limit doesn't even cover tuition costs.

Undergraduate Federal Student Loans

Federal Stafford loans are fixed-rate student loans for undergraduate students attending a college or university that participates in the Federal Family Education Loan Program. Stafford loans can be used to pay tuition, and other eligible school expenses. Stafford loans are not based on credit, and they can be subsidized or unsubsidized depending on the student's financial need.

Subsidized Stafford Loans are federally guaranteed loans based on financial need. Interest does not accrue on the loan while you are in school at least half time, or during any future deferment periods. The federal government "subsidizes" (or pays) the interest during these times.

Unsubsidized Stafford Loans are federally guaranteed loans that are not based on financial need. Interest will accrue from the time the loan is disbursed to the school, but can be deferred until 6 months after graduation.

Stafford Loan Interest Rates

Note: Graduate Stafford Loans (both subsidized and unsubsidized) have a fixed interest rate of 6.8% through 2013.

Academic Year	Subsidized Rates	Unsubsidized/Graduate Rates
2007-08	6.80%	6.80%
2008-09	6.00%	6.80%
2009-10	5.60%	6.80%
2010-11	4.50%	6.80%
2011-12	3.40%	6.80%
2012-13	6.80%	6.80%

Stafford Loan Limits

Dependent Students	Annual Loan Limits
First Year	$5,500 ($3,500 subsidized/$2,000 unsubsidized)
Second Year	$6,500 ($4,500 subsidized/$2,000 unsubsidized)
Third Year and Beyond	$7,500 ($5,500 subsidized/$2,000 unsubsidized)

Independent Students	Annual Loan Limits
First Year	$9,500 ($3,500 subsidized/$6,000 unsubsidized)
Second Year	$10,500 ($4,500 subsidized/$6,000 unsubsidized)
Third Year and Beyond	$12,500 ($5,500 subsidized/$7,000 unsubsidized)
Graduate or Professional	$20,500 ($8,500 subsidized/$12,000 unsubsidized)

Lifetime Limits
Undergraduate Dependent	$31,000 (Up to $23,000 may be subsidized)
Undergraduate Independent	$57,500
Graduate or Professional	$138,500 (Up to $65,000 may be subsidized) or $224,000 (for Health Professionals)

College Student Loan

2008-12-21T02:12:00.000-08:00

College student loans are commonly known as Stafford student loans and federal Stafford student loans; though there are now many different types of college loan for students out there, such as private student loans. Stafford student loans have become a necessity in financing the rising cost of college and universities. Many undergraduate, graduate and other students are finding their awarded financial aid college student loans; grants and Stafford student loans do not cover all of their education expenses.

Traditionally, Stafford college student loans were only available for tuition, through your educational institution's "preferred lender". These college student loans are government subsidized and are not paid back until graduation. Many companies are utilizing the internet to lend directly to the student or parent, which ultimately saves money for students by lowering interest rates and eliminating kick-backs the schools or universities receive. The process of obtaining Stafford college student loans can seem complicated or intimidating.

Great Tips to Easy College Student Loan Consolidation

If you are a student borrower who desperately wants to lower down your loan payments every month, then college student loan consolidation is a great solution to this problem. However, the process of consolidation your loans is not that easy and so in order for you to free yourself of too much hassle, here are some great tips on how to consolidate student loans: One good thing about government loans is that the interest rates are fixed when consolidating them, and so rest assured that the rates that the lending company will charge you are within the boundaries of the law. Albeit there is already a ceiling on the interest rates when consolidating government loans, it is always to your advantage if you will shop around for those with really low interest rates.

Grace period of loan repayment means you are done with college and earn a degree but the part of repayment, you just have not started. The grace period is usually from the graduation day to 6 months after and is usually regarded as an excellent time to which you acquire college student loan consolidation. Lower interest rates are primarily the benefit that we can take advantage of when consolidating during this period.

Most students try to keep themselves tied solely to federal student loans, however, it can't be avoided that their overall college expenses are not covered by government loans - and so they need to get another type of loan, which is the private student loans. The latter basically pay off everything else that the federal type was not able to.

Now if it so happens that you have both the government and private loans, which is most likely if you fund your education primarily thru loans, then never have them consolidated together.

Apply first college student loan consolidation on all your federal loans - this is a totally separate group. Then you can deal with all your private loans, which you must consider you other loan group. Have them all merged into another process of debt consolidation.

What's the reason behind the separation of the two types of loan when acquiring college student loan consolidation? Simply it is because the federal loans have more benefits such as the interest cap, which will be lost once it gets consolidated with private student loans.

Paying for College
Plus Student Loans
Stafford Student Loan

Graduate Student Loan

2008-12-21T01:51:00.000-08:00

Graduate school is a significant investment for any student. Sallie Mae offers graduate student loan programs to help students achieve their higher education goals.

Federal graduate student loans, which include Stafford and Graduate PLUS loans, are often the least expensive way for graduate students to borrow. Graduate students should first exhaust their federal Stafford loan eligibility and then consider the Graduate PLUS loan to help cover unmet costs.

Graduate School Loans: Advancing Toward Your Advanced Degree

While only thirty years ago a four year college degree was enough to get you into good job in your chosen profession, times have definitely changed. Now having a Bachelor's Degree may be good for an entry level job in a field you love, but if you want to break into the upper levels of your profession, and advanced degree is almost certainly required.

And certain careers, especially those in law and medicine, have always demanded several years of graduate study. Yet the grants, and scholarships readily available to college undergraduates seem to evaporate when one is looking for a way to fund graduate school. Graduate student loans, it seems, are the best way for the financially challenged to pay for their graduate degrees.

Stafford Loans

Fortunately, the Federal government does understand the need for graduate level study, and offers the Stafford Loans program to provide a variety of graduate student loans. All you need do is complete a free application for student aid, or FAFSA loan, and then decide which loan avenue to pursue.

You may find Stafford graduate student loans administered by the graduate schools to which you are applying, but they are granted by the government. One big advantage to accepting a Stafford graduate student loan is that you will be allowed a six month grace period following your graduation before you need to start your payments.

The Federal Stafford graduate student loan program is also administered privately by banks and other commercial lending institutions. If the government accepts your application for this Stafford loan, you will be given a list of their approved lenders. Only those students who have not defaulted on any other student loans are eligible for Stafford graduate student loans, so if you have an earlier loan hanging over you, you need to clear it up if you want to fund your graduate school career with a Stafford loan.

If your income is low enough, you may have the interest on your graduate student loans subsidized by the government. What this means is that as long as you are enrolled in graduate school, you will not be responsible for the interest on your loan.

If your income level is too high, however, the interest on your graduate student loans will accumulate and be included in the principal which you need to repay. This means that both the total of your loan, and your payments, will increase. You will be able to take out Stafford graduate student loans totaling $50,000, spread out over the time you remain in graduate school.

Private Loans

If you are ineligible for a Stafford loan, you can always look for a private one, but your success will depend on your previous credit history. So you should do as much as you can to clean up your credit and raise your credit score before applying for any graduate school loans.

Funding graduate school may be hard work, but don't let a shaky credit history stop you. If you can find a willing co-signer, your search for graduate school loans will be simplified greatly. When you see your grad school financial struggles in the light of the increased earning power an advanced degree will bring, they are greatly diminished.

CFS student loan

2008-12-21T01:29:00.000-08:00

One of the greatest relieves in student life comes from the facility of consolidating the loans when you are getting weaker on many fronts by paying the hi-rising interests on multiple loans from different institutions. Now is the time to look around for the most suitable consolidation services offered in the market for students. This will make your life easier. No matter what is the status of your loan, you're enjoying grace period or timely paying-off your student debts¸ you have every reason to avail the benefits from student loan consolidation program. It will give you more financial freedom by limiting your liability to just one creditor and you will have more money in hand even after paying off your monthly debts.

You just have to go through the paper work without paying anything, not even credit charges, its totally a free service but of a very great value for student who are loosing heart in hands of high paybacks to different financial institutions. How much you will reduce on your monthly payments varies from case to case, as its all about the loan details that paves the way for us to evaluate the amount of realistic reduction that can be undertaken in your case, just pick-up the phone and talk to the CFS loan consolidation consultant on toll free number, within few hours, he will calculate and inform you the expected reduction in your ongoing payment amount, normally it fluctuates around 51 %, but it may vary.

Get the privilege of your time, its one of the most beneficial concept in today's world for students. There may be a lot of students who have already applied for the CFS student loan consolidation, take some time out to consult with them before you take-on the real steps about your loan consolidation.

About a CFS Student Loan

CFS, which is short for Collegiate Funding Services consolidates federal student loans to provide students and former students with the ability to take advantage of lower interest rates and less paperwork. With a CFS student loan consolidation, students also gain the ability to actually reduce their payments. Commonly called CFS Suntech they are one of the largest servicer of federal student loans in the United States.

A loan through CFS provides numerous other advantages for students including the following:

The ability to reduce the amount of interest paid throughout the life of the loan
The option of an interest rate reduction
Tax deductible interest

Eligibility requirements do apply for the CFS student loan. Common eligibility requirements include:

$7500 or more in federal student loans
All loans considered for consolidation must be in either the grace period or in repayment status
Student loans considered for consolidation include: subsidized and unsubsidized Stafford loans, Federal Supplemental Loans for Students, Federal Perkins Loans, Federal Insured Student Loans, Federal PLUS loans, Direct PLUS loans, Subsidized Federal Consolidation loans, Direct Subsidized Consolidation loans, Direct Unsubsidized Consolidation loans and Federal Nursing loans.

Various repayment options are also offered with a student loan through CFS. In some cases repayment options can be extended up to 30 years. This is depending upon the amount of the student loan. Five different repayment plans are offered:

Level Repayment Plan-fixed monthly payments
Two Year Graduated Repayment Plan-lower payments over the first two years of the loan with increases that begin in year three of repayment
Four Year Graduated Repayment Plan-lower payments over the first four years of the loan with increases that begin in year five of repayment
Income Sensitive Repayment Plan-Payment options calculated on current income levels and adjusted annually.
Extended Repayment Plan-Under special circumstances, a borrower may be able to repay the amount of their loan over a 25 year period of time.

Individuals considering a loan through CFS should know that no origination or loan fees are charged and interest rates are set by the federal government each July 1. Discounts are offered for certain incentives, such as signing up for automatic payments and making payments on time.

A CFS student loan also has non-credit based student loans which are cfs student loans not based on credit. Credit has no bearing on whether or not the loan is approved.

To see if your eligible to receive free scholarship monies first visit and . It's a free service that everyone should try before you fill out a college loan application. You may not need a student loan if you secure free monies for college.

CFS Student Loan or Collegiate Funding Services

A CFS student loan offers non-credit based student loans to college students and they may at the same time also reduce their payments. CFS consolidates federal student loans to provide students and former students with the ability to take advantage of lower interest rates and less paperwork. CFS Collegiate Funding Services is owned and operated by JPMorgan Chase Bank. With a CFS student loan consolidation, students also gain the ability to actually reduce their payments and interest. A loan through CFS provides numerous other advantages for students including the following:

The ability to reduce the amount of interest paid throughout the life of the loan
The option of an interest rate reduction
Tax deductible interest

Eligibility requirements do apply for the CFS student loan. Common eligibility requirements include:

$7500 or more in federal student loans
All loans considered for consolidation must be in either the grace period or in repayment status
Student loans considered for consolidation include: subsidized and unsubsidized Stafford loans, Federal Supplemental Loans for Students, Federal Perkins Loans, Federal Insured Student Loans, Federal PLUS loans, Direct PLUS loans, Subsidized Federal Consolidation loans, Direct Subsidized Consolidation loans, Direct Unsubsidized Consolidation loans and Federal Nursing loans.

Various repayment options are also offered with a student loan through CFS. In some cases repayment options can be extended up to 30 years; primarily depending upon the amount of the student loan. Five different repayment plans are offered:

Level Repayment Plan-fixed monthly payments
Two Year Graduated Repayment Plan-lower payments over the first two years of the loan with increases that begin in year three of repayment
Four Year Graduated Repayment Plan-lower payments over the first four years of the loan with increases that begin in year five of repayment
Income Sensitive Repayment Plan-Payment options calculated on current income levels and adjusted annually.
Extended Repayment Plan-Under special circumstances, a borrower may be able to repay the amount of their loan over a 25 year period of time.

Individuals considering a CFS student loan should know that no origination or loan fees are charged and interest rates are set by the federal government each July 1. Discounts are offered for certain incentives, such as signing up for automatic payments and making payments on time. A CFS student loan has loans available for college students, graduate students, recent graduates, high school students, parents and even continuing education.

Unsubsidized Stafford Student Loans

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An Unsubsidized Stafford Loan is a federally guaranteed loan that is not based on financial need. Interest will accrue from the time the loan is disbursed to the school. You do not have to make interest or principal payments until six months after graduation, or six months after you drop below a half time status. You must renew your FAFSA each school year in order to receive the Unsubsidized Stafford loan.

Unsubsidized Stafford Loan Interest Rate information

The current interest rate on an Unsubsidized Stafford loan is 6.8% fixed. Interest begins accruing after the loan is disbursed to the school. You are not required to pay the interest while you are in school, but doing so can save you money. If you choose not to pay the interest while in school then the interest is capitalized no more than four times a year. This means that the interest that accrues is added to your principal loan balance, and interest then begins accruing on that new principal balance. You are essentially paying interest on interest.

Example 1: You borrow a $7,500 Unsubsidized Stafford loan and you pay the interest every month for 4 years. You graduate with a balance of $7,500 and an approximate monthly payment of $86/month for 10 years. You pay a total of $10,320.
Example 2: You borrow a $7,500 Unsubsidized Stafford loan and you choose to defer the interest for the 4 years you are in school. You graduate with an estimated balance of $9,420 and an approximate monthly payment of $108/month for 10 years. You pay a total of $12,960.

More Studnets Qualify for Unsubsidized Student Loans

Popular Financial Aid

It is easiest to explain what unsubsidized loans are if we first give a definition of subsidized loans. Subsidized loans are available to low-income students. What’s so special about these loans? The federal government pays the interest on these loans while recipients are in school and up through the initial 6-month grace period.

Unsubsidized loan terms dictate that you begin repaying the interest immediately even if you are in school. How do many students get around this? They defer the loan interest; it is capitalized as part of the balance and you then pick up payments following your six-month, post-graduation grace period.

The unsubsidized Stafford Loans are hands down the most popular student loans in the U.S.

But guess what? Most types of student loans fall into the definition of unsubsidized: PLUS Loans for parents and graduates, and even private and alternative student loans are included in this category. The interest on these loans is the responsibility of the borrower.

Applying for Unsubsidized Loans

You must fill out the Free Application for Federal Student Aid in order to qualify for any type of government student loan. Period. The FAFSA is a 5-page long tedious application form that no one enjoys completing. But if you fail to file one you summarily eliminate yourself from almost every form of financial aid, including many kinds of scholarships and grants. The only student loans left open to you are the private student loans: typically high cost and high interest.

Almost 8 million students fail to file a FAFSA each year! Studies show that 6 million of those students would qualify for federal aid and almost 2 million of those low-income and eligible for Pell Grants, free government money they would not be required to repay. Why do they fail to file? Various reasons, including procrastination, pride, and general miscalculation of real college costs. 1 Don’t be one of them, file the FAFSA and get your fair share of the federal unsubsidized loans available to you.

Appealing Interest Rates for Unsubsidized Federal Loans

The beauty of unsubsidized federal loans is the interest rates. In contrast to private student loans your federal loans feature appealing interest rates. The Stafford and Perkins Loans especially feature excellent rates you should not miss taking advantage of:

Stafford Loan interest rates were cut with the signing into law of the College Cost Reduction Act of 2007. By 2012 the Stafford Loan interest rates will be cut from 6.8 % to 3.4%.
Perkins Loan interest rates are a low 5%.

Repaying Unsubsidized Student Loans

Remember the key difference between subsidized and unsubsidized student loans is the initial repayment of interest. Your unsubsidized Stafford Loans offer you a six-month grace period following graduation. You have four different loan repayment options that provide you ultimate flexibility when financing your loans:

Standard- fixed monthly payments for 10 years.
Extended-standard or graduated monthly payments for up to 25 years.
Graduated-payments begin small and get bigger.
Income Sensitive-your monthly payments are relative to your income level.

What happens when you have problems making your monthly payments, make them consistently late and even miss a few? In situations like these you risk loan default, a dangerous financial situation.

A solution:

Federal student consolidation loans package your debt into one low monthly payment that is designed to be manageable and affordable. When all is said and done you really pay more for your education, but you also avoid wrecking your credit and financial future.

Subsidized or unsubsidized? Chances are you will have both.

Subsidized Student Stafford loans

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For those students who have been granted eligibility, the subsidized Stafford Loan is recommended. This loan can be used to cover a portion of the student's cost of education. The primary benefit is that the U.S. Department of Education pays the interest that accrues on this loan while the student is in school or during any loan deferment period.

The student would need to satisfy that he/she is in school and enrolled at least half-time, based on the school's definition of half-time status. The Department of Education will cover all interest charged during the period the student is enrolled at least half-time and for the six month grace period given to the borrower after graduation or separation (ceasing to be enrolled at least half-time). Further, if the borrower, while in repayment, should need to take out a deferment such as an unemployment deferment or because of a return to school (in-school deferment), the government would pay the interest during those periods, as well.

There are many reasons a student might qualify for a subsidized student loan. One might be if a student's parents' financial means are far less than what is required to cover their child's education. However, it is important to note that the FAFSA must be completed before receiving any federal loans. The federal government uses a universal formula to calculate a family's financial ability to assist in paying for their child's education. A student wouldn't be eligible to receive subsidized student loans simply because their parents refused to pay for a specific college for one reason or another (i.e., location, size, program options, religious affiliation, etc.). This student would have to find other options to pay for college such as college scholarships and/or taking out a private student loan.

What's a Subsidized Loan?

Hate paying interest? Subsidized loans are loans for which the borrower does not pay interest. Interest would normally be charged periodically according to the annual percentage rate (APR). However, with a subsidized loan the interest is paid by another party. Of course, all good things come to an end sooner or later.

Subsidized Student Loans

As you read through the brochures and websites full of information on loans, you notice that the Stafford Loans are the most commonly disbursed but also see that there is more than one type of loan subsidized and unsubsidized. You are particularly interested in the subsidized student loans, taking note that they are interest-free, but you aren't sure what the qualifications are or how the loan process actually works. What is involved in qualifying for subsidized student loans?

To understand subsidized student loans, you must first understand the configuration of a standard loan. In order to obtain most loans, you must submit to a credit check. Upon approval (based on a GOOD credit history, not a negative or non-existent one), an interest rate is fixed, and payments become due immediately upon disbursal. In some cases, where student loans are concerned, payments may be for interest only until the student graduates.

With a subsidized loan, no interest must be repaid by the borrower. The federal government handles this portion of the loan fees with the lender. However, there are very strict rules by which the administration of subsidized Stafford Loans are governed, and not just anyone can be approved. The qualifications are as follows:

As with all government funding opportunities, the FAFSA is the standardized application form for determination of eligibility.

Students must show, through the completion of the FAFSA, that they are severely lacking in adequate funding for college or university attendance, based on a low EFC (Expected Family Contribution).

No credit check is required; therefore, students without credit history who can prove independence from a parent may be eligible; however, while parents with bad credit history are still eligible, having a high income disqualifies their student for subsidized student loans.

If you don't qualify for subsidized student loans, you can still obtain low interest unsubsidized Stafford Loans and Perkins Loans, which will offer you savings in comparison to a personal or private loan from another lending institution.

Government Student Loan

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Many students rely on federal government student loans to finance their education. These loans generally have low interest rates and some do not even require credit checks or collateral. Government loans also provide a variety of deferment options and extended repayment terms. In terms of available loan programs, the following information provides a background on government loans as well as an overview of additional programs that are offered by the Student Loan Network.

What are Government Student Loans?

These loans supply financial help for students enrolled at a school that participates in federal aid programs. When referring to a "school," this means a two-year or four-year public or private college, university, or trade school. Private organizations supply these government student loans 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).

There are a variety of government student loan programs. Check with your school to see which programs they participate in.

What is a Stafford Loan?

Stafford Loans are federal student loans made directly available to college and university students and are used 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.

A subsidized federal loan is when the government pays the loan's interest while you're in school while an unsubsidized government student loan requires you to pay all the interest, although you can have the payments deferred until after graduation. To receive a subsidized Stafford Loan, you must be able to demonstrate financial need. About 2/3 of subsidized Stafford Loans are awarded to students with family adjusted gross income (AGI) of under $50,000, 1/4 to students with family AGI of $50,000 to $100,000, and a little less than 10% to students with family AGI over $100,000.

The limit for the academic year beginning in 2007 is $3,500 per year for freshman undergraduate students, $4,500 for sophomore undergrads, and $5,500 per year for junior and senior undergrads. Government student loans for medical students have higher limits: $8,500 for subsidized Stafford and $30,000 maximum for unsubsidized Stafford. Many students also take advantage of the unsubsidized Perkins Loan. For graduate students, the limit for Perkins Loans is $6,000 per year.

Suntech Student Loan Student Loan Consolidation

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Suntech Student Loan student loan consolidation is a practical repayment management option that enables you to bundle all of the federal direct student loans you received to finance your college education into a single loan.

Requirements for Suntech Student Loan Consolidation

Minimum amount outstanding of $20,000 in Federal loans
No federal loans in default or serious delinquency
Must be graduated or below half time enrollment

Benefits of Suntech Student Loan Student Loan Consolidation

Reduce your monthly payment by as much as 53%
Apply now and lock in a lower rate for the life of the loan.
Make one loan payment a month.
Improve your credit rating!
Match your repayment plan and term to your financial situation.
Applying for your loan with us is easy, and
There are no fees, credit checks, application or origination charges associated with your application!

Suntech Student Loan consolidation can significantly reduce your monthly payment burden. That's because Suntech Student Loan student loan consolidation allows you to stretch your repayment period from the standard 10 years to up to 30 years, depending on the amount of your education debts. The lower payment means you'll have more money available to meet other household expenses, including car payments, childcare, and career-related necessities. Apply now and you will secure a low fixed interest rate for the life of the loan.

Using Suntech Student Loans to Fund Your Education

Attending and graduating college these days is very expensive. Getting a college education is possible with Suntech student loans. These days, getting a college education can be difficult, if not impossible. Without an educational financial plan a college degree may be unattainable. Fortunately, there are now manystudent loans packages that are being offered to students who dream of a college diploma but could not afford one.

Suntech student loans are being expertly managed by the Collegiate Funding Services-Suntech Servicing.

Student Loan Program

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"In the United States, federal student loans are consolidated somewhat differently, as federal student loans are guaranteed by the U.S. government. In a federal student loan consolidation, existing loans are purchased and closed by a loan consolidation company or by the Department of Education (depending on what type of federal student loan the borrower holds). Interest rates for the consolidation are based on that year's student loan rate, which is in turn based on the 91-day Treasury bill rate at the last auction in May of each calendar year.[citation needed] Student loan rates can fluctuate from the current low of 4.70% to a maximum of 8.25% for federal Stafford loans, 9% for PLUS loans.[citation needed] The current consolidation program allows students to consolidate once with a private lender, and reconsolidate again only with the Department of Education.[citation needed] Upon consolidation, a fixed interest rate is set based on the then-current interest rate. Reconsolidating does not change that rate. If the student combines loans of different types and rates into one new consolidation loan, a weighted average calculation will establish the appropriate rate based on the then-current interest rates of the different loans being consolidated together. Federal student loan consolidation is often referred to as refinancing, which is incorrect because the l"

Alternative Student Loan

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The rising cost of college tuition, together with limited government financial aid, has created a widening gap between the cost of college and your ability to afford it.

Alternative student loans fill the 'gap' allowing you to borrow the difference between Federal financial aid and the true cost of an education.

You can borrower up to 100% of your education costs, and pay for tuition, books, supplies, housing and more.

Alternative Student Loan Benefits

No upfront, origination, guarantor, or prepayment fees
Defer payments while in school and for a six-month grace period after graduation
Exclusive 2% graduation reward based on your outstanding principal balance ¹
Lower your interest rate by 0.25% for auto-debit repayment
Rates as low as Prime minus 0.50%, based on credit evaluation
Annual Maximum is 100% of your Cost of Attendance minus other aid, based on school certification

E-Signature helps make it faster to apply and submit your application. We recommend having your co-signer and reference information available when you apply to help further speed up the process.

In order to qualify for an alternative student loan, applicants must be enrolled at least half-time at an eligible school and typically meet the following requirements:

Must be a U.S. citizen or permanent resident
You and your cosigner must pass a credit check

Frequently Asked Questions About Alternative Loans in General

What is an alternative student loan?

Unlike Federal Student Loans, alternative student loans or private student loans are specialized education loans based on your credit history and income and should only be considered after all federal loans, grants and scholarships have been exhausted. Lenders typically give better terms for better credit history.

What can alternative student loans be used for?

Alternative student loans can be used for education-related expenses including such things as tuition, books, transportation and room and board.

Who can apply for an alternative student loan?

The student must apply for the loan. Since many students do not have extensive credit history, they will need a creditworthy cosigner to apply for this loan.

Are there application deadlines?

No. You may apply for an alternative student loan at any time.

What is the application process?

You will need to submit your application online. Once you determine the amount you want to borrow, you will need your Social Security Number, driver's license, cosigner information, and two additional references ready. You and your cosigner's credit will be checked. You can then check your status online at any time.

Are there any fees?

There are no origination fees, no guarantor fees, and no prepayment fees associated with this loan.

What are the interest rates?

Interest rates will be based on you and your cosigner's credit history and are generally stated as an index, such as Prime or LIBOR, plus a margin.

Is the interest tax deductible?

Interest on student loans may be tax deductible. Please consult your tax advisor or visit irs.gov for more information.

How soon will I receive my funds?

Alternative student loan funds are usually disbursed within 14 days of receiving all necessary paperwork.

Who offers alternative student loans?

Banks, private lenders and other financial institutions offer alternative student loans.

How long are repayment terms for alternative student loans in general?

Repayment terms typically range from 15-25 years.

Are there any deferment options?

You can typically choose to begin repaying your loan immediately, make interest only payments while you are in school, or defer all of your payments while you are in school. Any interest you defer will be capitalized (added to your balance) when you begin making your loan payments.

What should I look for in an alternative student loan?

Interest rates and fees can vary significantly between lenders. Many lenders also offer borrower benefits that can reduce the principal or interest on an alternative student loan. Be sure to look carefully at the terms and conditions when applying for a loan.

* The legal age for entering into contracts is 18 years of age in every state except Alabama and Nebraska (19 years old), and Mississippi and Puerto Rico (21 years old).

You will be eligible to receive a Graduation Reward when:

The student graduates from the degree program that the loan was used to fund, and;
The graduation date is less than six years after the date of the loan's first disbursement, and;
The loan is not in default on the graduation date

Upon graduation, if you have more than one participating loan, you may be eligible to receive a Graduation Reward on each loan. However, you will not receive a Graduation Reward more than once for the same loan, even if the student receives more than one degree. We may request proof of the graduation date and degree from the student or the school, in order to confirm eligibility for the Graduation Reward. If you default on your loan or consolidate or refinance your loan with another lender prior to redeeming the Graduation Reward, you will not be eligible for a Graduation Reward. We will calculate the Graduation Reward by multiplying the outstanding principal balance of your loan on the last day of the month of graduation by 2% (0.02) and rounding to the nearest cent. The outstanding principal balance used for the calculation will not include accrued and unpaid interest, which may be capitalized when your loan enters its repayment phase. If you consolidate or refinance your loan with another lender after you redeem your Graduation Reward, we may add the amount you redeemed to the principal balance of your loan that is reported to the consolidating or refinancing lender. If there is an overpayment due to an error, we reserve the right to increase the principal balance of your loan by the amount of the overpayment of the Graduation Reward. It is your responsibility to notify us if there is an error in the Graduation Reward calculation or if you do not receive an expected Graduation Reward redemption

Student Loan Consolidation Low Interest Rate

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If you will be graduating within the next few months, we would like to congratulate you for obtaining your hard-earned degree. Also, we would like to provide you with some very important information regarding federal student loan consolidation. You must consolidate during your grace period to avoid an interest rate increase of 0.60%. If you wait until your grace period ends, your interest rate will automatically be 0.60% higher. When you consolidate during your grace period, you will have no payments due until your grace period has ended. You have nothing to lose. There really is no reason to pay this higher rate on your federal student loans!

With student loan consolidation, you can lock in a low, fixed interest rate for the life of your loan--and there are no fees, credit checks, income verifications, or prepayment penalties. This will help you reduce your monthly payments by nearly 50% and save you thousands of dollars over the life of your loan.

The Benefits of Low Interest Student Loans

While it is sometimes possible to get a private loan with a very low interest rate, your best bet is with federal student loans. The benefits of a low interest student loan are obvious. A lower interest rate means lower payments, a shortened repayment period and more money in your pocket.

Another added benefit of low interest student loans is the subsidized aspect of many federal student loans. If you get a Stafford Loan or Perkins Loan, you may very well have your interest paid by the government while you are in school and even up to nine months after you graduate.

The Two Major Types of Low Interest Loans

We’ve already established that the major type of low interest student loan is a federal loan. Because of this, we will concentrate on the types of federal loans that offer extremely low interest rates and other benefits to students struggling to finance their education.

Stafford Student Loan

A Stafford student loan is a form of low interest loan that allows students with little to no credit to afford college. This is so because, as a federal student loan, the Stafford loan has different requirements than a standard lender like a bank. Rather than basing your worthiness on a credit score, it is based on whether or not you fall within the eligible income bracket, if you are attending school at least half-time and if you have never defaulted on a loan before.

There is also a limit as to how high the interest rate on a Stafford loan can be. It is currently 8.2%, though most people get a rate that is lower than this. Another added benefit is that you can get a Stafford loan subsidized, meaning that the government will foot the bill for the interest that accrues while you are in school. Stafford loans are also available unsubsidized, though the low interest rate still applies.

Perkins Student Loan

A Federal Perkins Loan is another form of federal loan that provides many options for borrowers. However, in order to qualify for this loan you need to show exceptional need. In fact, most that qualify also qualify for the Federal Pell Grant—another form of financial aid that requires exceptional need to be eligible. If you do qualify for this type of low interest loan, you will be pleased to know that it is subsidized as well. The Perkins Loan also has the largest grace period of all the loans, meaning you don’t have to pay a dime back on your loan until nine months following graduation.

The interest rate is also the lowest you will find anywhere—a low 5%! You will never get a rate like that at a bank or credit union. This is why federal loans are the true low interest loans. Nothing else can come close to their outstanding rates.

How to Take Advantage of These Low Rates

The path to financial aid success starts with the FAFSA. If you want to secure a federal loan of some sort—or even more preferably, a grant—then you need to have your FAFSA submitted by March 2 of the year you plan to begin attending school in the fall. Once your FAFSA is processed, you will receive a Student Aid Report or SAR, outlining how much money you are expected to contribute to your education financially. A few weeks after that, an award letter should arrive in the mail detailing what types of financial aid you have qualified for and how much money you can or will receive. You will need to return this award letter indicating what financial aid you are accepting.

From then, you will need to follow the specific instructions for securing the type of low interest loan you’ve been awarded. A Stafford loan requires you submit a promissory note, while a Perkins loan requires you to fill out paperwork and submit it directly to your school, as your college of choice will be the lender.

Regardless of the type of loan you end up getting, just always note the interest rate. Even though you may be new to the world of finances and credit, lenders expect you to make responsible and informed decisions. Always educate yourself about a potential loan, even if it does have an enticing low interest rate, before you sign on the dotted line.

Great Tips to Easy College Student Loan Consolidation

If you are a student borrower who desperately wants to lower down your loan payments every month, then college student loan consolidation is a great solution to this problem. However, the process of consolidation your loans is not that easy and so in order for you to free yourself of too much hassle, here are some great tips on how to consolidate student loans: One good thing about government loans is that the interest rates are fixed when consolidating them, and so rest assured that the rates that the lending company will charge you are within the boundaries of the law. Albeit there is already a ceiling on the interest rates when consolidating government loans, it is always to your advantage if you will shop around for those with really low interest rates.

Grace period of loan repayment means you are done with college and earn a degree but the part of repayment, you just have not started. The grace period is usually from the graduation day to 6 months after and is usually regarded as an excellent time to which you acquire college student loan consolidation. Lower interest rates are primarily the benefit that we can take advantage of when consolidating during this period.

Most students try to keep themselves tied solely to federal student loans, however, it can't be avoided that their overall college expenses are not covered by government loans - and so they need to get another type of loan, which is the private student loans. The latter basically pay off everything else that the federal type was not able to.

Now if it so happens that you have both the government and private loans, which is most likely if you fund your education primarily thru loans, then never have them consolidated together.

Apply first college student loan consolidation on all your federal loans - this is a totally separate group. Then you can deal with all your private loans, which you must consider you other loan group. Have them all merged into another process of debt consolidation.

What's the reason behind the separation of the two types of loan when acquiring college student loan consolidation? Simply it is because the federal loans have more benefits such as the interest cap, which will be lost once it gets consolidated with private student loans.

PLUS Loan - Student loan consolidation low interest rate

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PLUS loan

The interest rate on PLUS loans first disbursed beginning July 1, 2006 is fixed at 8.5%.
The interest rate on PLUS loans first disbursed on or after July 1, 1998 but before June 30, 2006 is variable and may change annually on July 1 but will never exceed 9%. The current interest rate on these variable rate PLUS loans is 5.01%.

The Two Major Types of Low Interest Loans

Stafford Student Loan

Perkins Student Loan

How to Take Advantage of These Low Rates

Great Tips to Easy College Student Loan Consolidation

Stafford Loan - Student Loan Consolidation Low Interest Rate

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Stafford Loan

The interest rate on Stafford loans first disbursed beginning July 1, 2008:

Subsidized Stafford loans for undergraduate students has a declining fixed interest rate.

July 1, 2008–June 30, 2009 the interest rate is 6%.
July 1, 2009–June 30, 2010 the interest rate is 5.6%.
July 1, 2010–June 30, 2011 the interest rate is 4.5%.
July 1, 2011–June 30, 2012 the interest rate is 3.4%.
Beginning July 1, 2012 the rate is 6.8%.

Subsidized Stafford loans for graduate and professional student and all unsubsidized Stafford loans is 6.8%.

The interest rate on Stafford loans first disbursed beginning July 1, 2006 is fixed at 6.8%.
The interest rate on Stafford loans first disbursed on or after July 1, 1998 but before June 30, 2006 is variable and may change on July 1 of each year but will never exceed 8.25%. The rate is based on:

The 91-day T-bill rate + 1.70% during in-school, grace, and deferment periods.

Starting July 1, 2008 the interest rate on variable rate loans is 3.61%.

The 91-day T-bill rate + 2.30% during repayment periods.

Starting July 1, 2008, the interest rate on variable rate loans is 4.21%.

The Benefits of Low Interest Student Loans

While it is sometimes possible to get a private loan with a very low interest rate, your best bet is with federal student loans. The benefits of a low interest student loan are obvious. A lower interest rate means lower payments, a shortened repayment period and more money in your pocket.

Another added benefit of low interest student loans is the subsidized aspect of many federal student loans. If you get a Stafford Loan or Perkins Loan, you may very well have your interest paid by the government while you are in school and even up to nine months after you graduate.

The Two Major Types of Low Interest Loans

Stafford Student Loan

Perkins Student Loan

How to Take Advantage of These Low Rates

Great Tips to Easy College Student Loan Consolidation

Refinancing Student Loans

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Refinance Student Loans - How and Why?

Let's face facts. Going to college these days, especially private universities, is no cheap task and can put you well into debt before you even enter the "real world" for yourself. Most people, especially young college students, do not have the tens of thousands of dollars to pony up every year for college tuition either. Therefore, most college students choose to use student loans to put themselves through college, whereby they can pay the tuition without breaking a sweat. However, when it comes time to graduate from college and pay these student loans back, many people do not know where to begin. How about refinancing these loans before you even start anything else?

Advantages of Refinancing

By refinancing your student loans, you can save yourself hundreds, even thousands of dollars before you start repaying your loans, an option that many people fail to use. When you leave college, chances are that you have a variety of loans on the books with an array of different interest rates attached to each one. Refinancing these loans can help you to lower these interest rates, or, at least, bring some of them down, thus lowering your monthly payments and saving YOU money in the end. Even if all of your interest rates cannot be refinanced, chances are that you can save money in some places through refinancing.

Where To Refinance?

But, when it comes to refinancing, where do you turn to find a reliable place to lower your interest rates? The Internet may just be your one-stop-shop for refinancing your student loans from college, as you can search a variety of sites that offer refinancing services to suit your needs. Be careful though. Not every web site offering financial help will actually help you, and non-credible sites may actually just be out to steal a buck from you. Deal with those college student loan web sites that deliver real refinancing results and are properly licensed. Then, sit back and enjoy your money-saving tactics.

Student loan refinancing can be obtained from traditional banks and credit unions, but you may want to consider going with an online lender. The online lending market is very competitive and many online lenders are offering student loan refinancing rates that can't be beat. No matter where you decide to get your student loan refinancing, take time to shop around and compare lenders, rates, and loan terms. This is the only way to make sure your refinance pays off.

How to Refinance your Student Loans

Reducing loan payments through refinancing

The main goal of refinancing is usually to reduce your monthly student loan payments. There are several ways to do this, and most banks have student loan consolidation programs.

When refinancing your student loans there are several things to consider. First, you have both federal student loans and private loans, you will want to refinance them separately. Because of the way federal loans are structured, you can get a much lower interest rate on them than you can on private loans. Private student loans are basically personal loans made with the assumption that your income will increase with more education. If you mix the two together when you refinance, you will end up paying a higher interest rate on the combined principal than you would if you financed the two loans separately.

Second, student loan rates vary by lender and by your credit history. So, before your refinance make sure your credit history is in good shape. Review a credit report, and take action to fix problems. Then, compare rates from different lenders. Rates on for refinancing federal student loans change once a year (usually around July 1). Currently the rates are very low, but it's difficult to know how they will change as the economy changes.

What you need to qualify for low-interest rate refinancine fo your student loans

Each lender has different qualification requirements for refinancing. Most lenders require that none of your loans be in "in-school" status - that is, you cannot be currently paying for education using an active student loan. Some lenders have a minimum balance requirement, and that balance is arbitrary. To find out what each lender requires, visit the lendors listed above.

Two ways to reduce your student loan payments

When you refinance your student loans, you can reduce your monthly payments either by getting a lower interest rate, or by extending the duration of your loan. Of the two methods, getting a lower interest rate is preferable since you are also reducing your long-term student loan debt.

However, if your monthly payments are too high, extending the duration of your loan can be a big help. Effectively, you extend the period over which you repay your loans, so each payment is smaller. Longer terms, though, usually mean higher interest rates, and more interest payments. In the long run you end up paying more, but the payments are more managable.

Refinance Student Loans: How to Do it the Right Way

It is a fact: nobody goes through college without needing an enormous amount of money. Such money is necessary for such expenses like books, tuition, and many more. This only results in many students getting saddled with numerous debts. Loans are borrowed from various lenders, financial institutions and banks. Unfortunately, loans need to be paid and here is where the problem of the student borrower begins. Loans get unpaid and interest pile up. Borrower sees himself in a sorry state.

Good thing is that many students now refinance student loans - knowing this is a great means of solving their financial woes. Student loan refinancing is such a boon for those who have accumulated debts to pay their school expenses.

There is no reason anymore for student borrowers to stay miserable in the midst of their multiple debts. It is time to refinance student loans in order to enjoy the huge benefits that one can obtain from such process.

One very important benefit with refinancing student loans is being able to obtain low rates of interest. This helps you face a much lesser installment amount very month. Imagine getting payment discounts every month; this ultimately helps you save lots of dollars in the end.

The main purpose when you refinance student loans is to be able to lower down the payments due every month. However, to get the best of student loan refinancing, remember applying the following advice.

Federal and private student loans are to be consolidated separately as two groups. You can get a much lower rate of interest with federal loans. If you happen to mix these two together in consolidation; you will end up paying a much higher rate with the combined amount in principal.

Rates of student loans depend on the lender that you get. Therefore it is best that you work hard in finding the best lending company that can offer you only the excellent loan product that you need. Simply put, refinance student loans via the right lender and you will surely enjoy the low rates of interests as well as convenient payment every month.

Apply for Student Loans

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Nearly six million undergraduate students did loan nearly $90 billion to meet the costs of attending college. Given shrinking scholarship and financial aid budgets, the bulk of this aid will be in the form of , with most students relying on federal Stafford .

To assist these borrowers there is a program that simplifies the process of obtaining Stafford by allowing students to online loan.

The person who like the Stafford loan fill out a simple online loan application and receive a follow-up call from a specially trained loan consultant within 48 hours. At the time they , the loan consultant will obtain any additional information needed to complete the application and answer any questions when they loan. Once the loan information is submitted and processed, the person who will loan will receive the final loan documents, which he/she will sign and return via a postage-paid envelope.

A complete education helps in shaping your future a lot. Higher education no doubt can make or mar a man's future in terms of his career. Many people have their dreams built upon it. However, if bad credit is affecting you from properly concentrating on your studies then you no longer need to worry. With bad credit student loans you can pay off your previous dues or debts and can live tension free life ahead. Features The moment you provide the evidence of your unemployment, you are eligible for student loan for bad credit. These loans are going to fund you for under graduate, graduate or post graduate education. More over unemployed parents can also apply for student unemployed loans for his child. Student loans leaves you free from all hassles of managing funds for your studies as it covers the cost of paying tuition fees, books, computer, boarding, student travel etc. these loan are available on internet or one can also apply for these loan by going to traditional financial institute. Bad credit student loans come comparatively cheaper even if you have a poor credit rating and arrears, CCJs etc against you. The repayment duration varies from 3 to 20 years and also you can negotiate the exact interest rates and other terms depending on your exact credit status. Application: places and procedures If you are a student pursuing your higher education then you can definitely apply for these student loans specially crafted for people with bad credit. Students get low interest rates in spite of having a bad credit history. Student loans for people with bad credit are available online as well and you just need to log into the internet to get the quote and most of the time to apply as well. Borrowers just need to fill the application form online itself and then be considered for the grant of the loan after verifying their identity.

Student Loan Debt Consolidation

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When pursuing higher studies it becomes essential to take external help in the form of loans which enables to cover the rising education costs. When the time comes to repay the loan amount, you may have to undergo some mental stress which is not at all beneficial. Instead of facing such situations, its better to remove all the debts incurred with the help of student debt consolidation.

With the help of student debt consolidation loan, all the outstanding debts are merged and paid off with the help of this loan. This loan is designed keeping in mind the borrower's economical condition. So lenders offer this loan at low interest rates. When all the debts are removed, borrower does not have to face multiple lenders. Instead he is answerable to a single lender. About the repayment of this loan, loan applicant can pay back it after a period of six months. He has also an option to pay back the loan amount after completing the course or getting a descent job.

Depending on various circumstances and needs, a borrower can obtain this loan in two formats. If the amount is bigger he can opt for secured form of debt consolidation loan. Here the amount approved is based on equity value of collateral which is offered at easy terms and conditions. On the other hand, unsecured form of debt consolidation loan can be accessed without placing any collateral. This option can be used to pay debts which are smaller.

The main purpose of Student debt consolidation loan is to help a borrower to restore his financial standing. With a low interest loan it becomes less burdensome for the borrower. This helps to save substantial amount of money on interest rates. Its main thrust is to rebuild the finances which helps him to lead a debt free life and offers financial freedom.

With more emphasis given to online method, to know and understand the terms and conditions of this loan in a better way, borrower can use this method. Student debt consolidation loan helps to rebuild and restore the financial condition and removing all the debts from the borrowers shoulder. This is the reason why most of the lenders recommend student debt consolidation loan.

There’s no way around it. If you took out student loans to pay for college, you have to pay them back. That can be hard to do, whether you’re still in school, trying to start your life outside it, or even 10 years down the line. You borrowed the money, you used it, and you have to pay it back.

What happens when that means you have to choose between paying all your bills or just those? What happens when those outstanding debts get in the way of putting money together for a house, or a car, or a family? It just doesn’t make sense to walk through life incurring the debts of living while you’re still dragging around the ones from school.

Fortunately, there’s a solution. You still have to pay back what you borrowed, but with a student loan debt consolidation make monthly payments to just one lender.

Think of it as refinancing. The money you borrow from one lender pays off the money you owe to all those other lenders. No more juggling what’s due to whom and when. Not only that, the interest rate on thestudent loan debt consolidation is the weighted average of those other loans, making it lower overall and bringing your monthly payment down accordingly. Some student loan debt consolidations are settled at a fixed rate, so you don’t have to worry when July 1 rolls around each year that your payment will go up.

Among the student loan debt consolidation available, there are actually four different student repayment plans to research and one is bound to be just what you’re looking for.

If the idea of a fixed rate really appeals to you, consider either the Standard Repayment Plan or the Extended Repayment Plan. The Standard Repayment Plan gives you a maximum of 10 years to repay, but payments are divided within that time limit at a fixed interest rate.

Extended Repayment Plans relieve the burden of monthly payment amounts still further by stretching the time to pay off the loan to between 12 and 30 years (depending on the total amount borrowed). Again, the interest rate is fixed for that time period, and the payments are lower. Be aware that over time, you will end up paying a larger amount, but the monthly payments will be easier to bear.

The Graduated Repayment Plan also allows you to spread your monthly student load debt consolidation payments over a period of between 12 and 30 years, but in this case, the amount of your monthly payment will increase every two years.

The fourth plan appeals to a number of people because it takes into account what’s going on in your life. In the Income Contingent Repayment Plan, a reasonable monthly payment amount is determined based on your annual gross income, family size, and total directstudent loan debt. Another advantage of this student loan debt consolidation repayment plan spreads the payments over 25 years.

If you’re close to the end of your student loans, consider carefully whether taking on a new loan is worth the time and effort. However, if you still have a long time to go and many payments ahead of you – and you’ve already exhausted the deferment and forbearance options on your existing loans – making a fresh start with astudent loan debt consolidation may actually be to your benefit.

Private Student Loan Consolidation

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Private student loan consolidation is a great way to significantly lower your monthly loan payments by combining all your private student loans into one manageable loan. Private student loan consolidation reduces the stress of multiple payments, and allows you to budget accordingly to meet your payment as well as lowering your interest rate.

Here's a chart showing your savings with private student loan consolidation:

Loan Amount	Assumed Current Payment*	Initial Monthly Payment**	Monthly Savings	Annual Savings
$10,000.00	$88.77	$69.41	$19.36	$232.32
$30,000.00	$269.00	$208.22	$60.78	$729.36
$50,000.00	$448.33	$347.20	$101.13	$1,213.51
$75,000.00	$672.49	$520.55	$151.94	$1,823.28
$100,000.00	$896.65	$694.07	$202.58	$2,430.96

*Assuming a 15 year loan term, with an original rate of 6.8%
**Assuming extended term of 25 years at same rate of 6.8%
***Interest rate and the resulting monthly payment(s) contingent upon borrower and/or co-signer credit

Other Benefits of Private Student Loan Consolidation:

Lower Monthly Payments: With private student loan consolidation, most borrowers can reduce their monthly payment by extending the repayment term of their private student loan debt.
Reduced Interest Rates: Borrowers with improved credit may often lower their interest rate. Existing loan holders will not reduce your interest rate if your credit has improved.
Rate Reductions: Borrowers may apply on their own or with a credit-worthy co-signer for private student loan consolidation. Borrower and Co-signers with superior credit may receive lower APR loans.
Internship/Residency & Military Deferment: A 48 month deferment for medical/dental residents and a 36 month deferment for all active-duty military personnel is available through the Graduate Leverage Private Student Loan Consolidation Program.
Repayment Term: Undergraduate borrowers may receive up to a 25 year repayment term which offers the lowest possible monthly payment, and graduate student borrowers may receive up to a 30 year repayment term.
No Prepayment Penalties: All payments in excess of scheduled payments go directly to principal.

Direct Student Loan Consolidation

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Federal Direct loan consolidation is a practical repayment tool that enables you to combine all of your federal Direct student loans into a single loan. In addition to reducing your monthly payment up to 53%, federal Direct consolidation provides flexible repayment plans, interest rate reductions, and deferment and forbearance options.

How do you know if you have federal Direct student loans? Below is a detailed list of the different types of federal Direct student loans.

William D. Ford Stafford and PLUS Loans
Direct Stafford Loans and PLUS Loans
Direct Consolidation Loans
Your loan bills come from the Direct Loan Servicing Center
Your loan bills bear the name William D. Ford Federal Direct Loan Program
Your school is a Direct Lending School

Apply Today for Direct Student Loan Consolidation

Apply now for a free information packet or you can read some frequently asked questions about Federal Direct Loan consolidation.

Benefits of Direct Student Loan Consolidation

One of the key benefits of Direct loan consolidation is payment relief. By combining all of your direct student loans into one consolidated loan, you can lengthen your repayment term from the standard 10 years to up to 30 years, depending on the amount of your education debts. With a lower monthly payment, you'll have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable.

Additional Benefits of Consolidating Direct Student Loans

Reduce your monthly payment up to 53%!
Reduce your interest rate 0.6% by consolidating during your grace period
Simplified finances - one payment per month
Improve your credit rating
No credit checks, fees, or application charges

Requirements for Direct Student Loan Consolidation

Minimum amount of $10,000 in federal student loans
Loans must not be in default
Must be graduated or enrolled less than half time

Best student loan consolidation

Best student loan consolidation, a way to slim down your monthly burden

Going to college is very important. Thus, Americans, even married once still continue to go to college. This is because you have better future if you are able to finish college; this is true in American and even in the other parts of the world.

To help you with this important factor in your life, student loans are available to help you go through college education. However, students end up with knee-deep in student loans.

If you are one of these students, you need not despair; you may shop around to find the best student loan consolidation entities to help you in the process of getting out of debt.

Best student loan consolidation will help reduce your monthly payment of up to 50%.

You cannot find any better deal than that. Reducing your monthly payment will mean that you can have some spare money for other purposes. Beststudent loan consolidation will thus help you have some money to meet other expenses like car payments, household needs, and childcare.

Additionally, because of the best student loan consolidation program, your credit rating will improve and you can even extend your paying period from the usual ten years to as long as thirty years.

You may also find the best student loan consolidation company that will give an additional percentage of interest on top of the savings from the consolidation. This will be good to lessen your monthly burden.

Additionally, if your student loan is under the federal direct student loans, you may qualify for the best federal direct loan consolidation program.

In this program, in addition to the 50% or more reduction in your monthly payments, there is a lock in lower interest rate available for you.

This lock in lower interest rate is best for your student loan consolidation program because it will shield you against inflation rates.

This will mean that you will not have to worry about additional charges due to the inflation rate fluctuations.

To top is all off, the best student loan consolidation deal under the federal direct program is easy to apply, and there are no fees, credit checks, application, or original charges.

Thus, it is a clean way through paying your student loans and can even spare you some money for other purposes. Is this not the best student loan consolidation program you will ever find?

If you are not sure if your student loans are under the federal direct student loans program, you may check out the Internet. Match your student loans if they will qualify for the best student loan consolidation program.

Stafford Student Loan

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Stafford loans are one of the most commonly used student loans with low interest and are available for undergraduates, graduates and professional students. These loans are either subsidized or unsubsidized.

Benefits of a Stafford Loan

You'll get a low, 6.8-percent interest rate.
Your repayment won't begin until 6 months after you leave school.
You do not need to have your credit checked.
Depending on what school you attend, you may not be charged an origination fee.

Stafford Loan Maximum Annual Amounts

Dependent Undergraduate

Independent Undergraduate

Graduate or Professional
Level

Graduate Medical Level

1^st Year

2^nd Year

3^rd Year and Higher

$2,625 Subsidized	$2,625 Subsidized	$8,500 Subsidized	$8,500 Subsidized
$2,625 Subsidized	$4,000 Unsubsidized	$10,000 Unsubsidized	$30,000 Unsubsidized
$3,500 Subsidized	$3,500 Subsidized	$8,500 Subsidized	$8,500 Subsidized
$3,500 Subsidized	$4,000 Unsubsidized	$10,000 Unsubsidized	$30,000 Unsubsidized
$5,500 Subsidized	$5,500 Subsidized	$8,500 Subsidized	$8,500 Subsidized
$5,500 Subsidized	$10,000 Unsubsidized	$10,000 Unsubsidized	$30,000 Unsubsidized

About

The Federal Stafford Loan is the most popular low-interest education loan designed for undergraduate and graduate students. This loan is guaranteed by the federal government and offers flexible repayment options. Schools that participate in the Federal Family Education Loan (FFEL) Program or in the William D. Ford Federal Direct Loan (Direct Loan) Program, or both, offer Stafford Loans.

FFEL Program vs. Direct Loan Program

Schools generally participate in either the FFEL or Direct Loan Program, but some may participate in both. The eligibility rules and loan amounts are identical under both programs. Repayment plans, however, differ somewhat.

FFEL funds will come from a bank, credit union, or other lender that participates in the program. You will need to choose a lender if you obtain this loan. Schools that participate in the FFEL Program will usually have a list of preferred lenders. Borrowers may choose a lender from that list, or choose a different lender they prefer.
Direct Loan funds will come directly from the federal government. No lender choices will need to be made.

Subsidized vs. Unsubsidized Stafford Loans

There are two types of Federal Stafford Loans: subsidized and unsubsidized. Depending on household income, a student may be eligible for one or both varieties of student loans. The school will specify the loan type for which the student qualifies.

Subsidized Stafford Loans are awarded on the basis of financial need. The government pays the interest while the student is in school, in deferment (if applicable), and during the grace period before repayment begins.
Unsubsidized Stafford Loans are not based on income, but not all students will be eligible for the maximum loan amount. A student’s year in school, their additional financial aid awards and the estimated cost of attendance will be factored into the eligibility decision. Student who borrow unsubsidized Stafford Loans are responsible for all interest that accrues while they are in school, in deferment, and during the grace period. As long as the student doesn’t exceed yearly Stafford Loan borrowing limits, they may take out both subsidized and unsubsidized loans.

If you're a dependent undergraduate student, each year you can borrow up to:

$5,500 (for the 2008-09 academic year) if you're a first-year student enrolled in a program of study that is at least a full academic year.
$6,500 (for the 2008-09 academic year) if you've completed your first year of study and the remainder of your program is at least a full academic year.
$7,500 if you've completed at least two years of study and the remainder of your program is at least a full academic year.

If you're an independent undergraduate student or a dependent student whose parents have applied for but were unable to get a PLUS Loan (a parent loan), each year you can borrow up to:

$9,500 (for the 2008-09 academic year) if you're a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount may be in subsidized loans.
$10,500 (for the 2008-09 academic year) if you've completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount may be in subsidized loans.
$12,500 (for the 2008-09 academic year) if you've completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount may be in subsidized loans.

The student is responsible for all interest that accrues while they are in school, in deferment, and during the grace period. As long as the student doesn’t exceed yearly Stafford Loan borrowing limits, they may take out both subsidized and unsubsidized loans.

Interest Rates and Fees

Interest rates on unsubsidized Stafford Loans first disbursed on or after July 1, 2006 are fixed at 6.8% for both undergraduates and graduate school students.
Interest rates on subsidized Stafford Loans first disbursed between July 1,2006 and June 30, 2008 are fixed at 6.8%. Subsidized Stafford Loans first disbursed on or after July 1, 2008 are fixed at 6.0 % for undergraduates and 6.8% for graduate school students.
Interest rates on Stafford Loans disbursed between July 1, 1998 and June 30, 2006 may vary from year to year but cannot exceed 8.25%. For the 2008-2009 school year, the interest rate is 4.21%. This rate may be lower during grace and deferment periods.
In addition to interest rates, a loan fee of up to 4% will be charged. It will be deducted proportionately from each loan disbursement.

Eligibility Requirements

Enrolled at least half time at an eligible school and maintaining satisfactory academic progress
A U.S. citizen or a permanent resident of the U.S. or an eligible territory
Not currently in default. Must not owe a refund on any Title IV loan or grant
Registered with Selective Service (if borrower is a male under age 25)

Loan Repayment

Students will have a 6 month grace period after graduating, leaving school, or dropping below half-time status. After this time, payments must be made.
During the grace period, interest will not be charged on subsidized loans but will be charged on unsubsidized loans.
Payments are usually due on a monthly basis.
Under certain circumstances, e.g. health problems, a student may be eligible for loan deferment.

Plus Student Loans

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PLUS loans are available to two groups: parents of undergraduate students and graduate or professional students. The loan's maximum amount is variable and can be increased to cover up to 100 percent of the cost of attendance. It is a cost-effective alternative to using retirement accounts, income, savings, or home equity loans to fund your or your child's education.

Benefits of a PLUS Loan

Many borrowers prefer the PLUS Loan for its favorable repayment terms with low interest rates. You can borrow up to 100 percent of the cost of college at an 8.5-percent interest rate.
Applying for a PLUS loan is completely free.
While the student is enrolled, no payment is required.
If you have any economic difficulty, you can postpone repayment for up to three years.
Depending on what school the student attends, you may not be charged an origination fee.

Introducing the Federal Graduate PLUS Loan! A low interest, federally backed student loan guaranteed by the U.S. Government. The Grad PLUS loan is a non-need credit based loan similar to a private student loan, but with the benefit of having a fixed interest rate and federal guarantee.

The Graduate PLUS Loan allows graduate students to borrow the total cost of their graduate education including tuition, room and board, supplies, lab expenses, and travel, less any other aid.

Interest is fixed, locked in at 8.5%
GradPLUS payments can be deferred while you are in school
No Cosigner Required

How much can I borrow with a GradPLUS loan?

The yearly limit on a Graduate PLUS Loan is equal to your cost of attendance* minus any other financial aid you receive. For example, if your cost of attendance* is $6,000 and you receive $4,000 in other financial aid, you could borrow up to but no more than $2,000.

Do they get the money or do I?

Your lender (for a FFEL Graduate PLUS Student Loan) will send the loan funds to your school. Your school might require you to endorse a disbursement check and send it back to the school. In most cases, the loan will be disbursed in at least two installments, and no installment will be greater than half the loan amount. The funds will first be applied to your tuition, fees, room and board, and other school charges. If any loan funds remain, you will receive the amount as a check or in cash, unless you authorize the amount to be released to your school account. Any remaining loan funds must be used for your education expenses.

What kind of credit do I need?

A qualified Graduate PLUS Loan borrower does not have an adverse credit history (defined in regulations as being 90 days or more delinquent on any debt, or having a credit report that shows default, discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the five years preceding the date of the credit report). Note that Graduate and Professional Student PLUS loans do not use any kind of a debt-to-income ratio or FICO score, unlike private education loans.

Do I need a co-signer?

You might need a co-signer if your credit is insufficient. Graduate students with excellent credit should not need a co-signer to apply for the loan.

Can I cancel the loan if I change my mind, even if I have signed the promissory note agreeing to the loan's terms?

Yes. Your school must notify you in writing whenever it credits your account with Graduate PLUS Loan funds. 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 their loan if you inform your school within 14 days after the date your school sends 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.) If you receive Graduate PLUS Loan funds directly by check, you may refuse the funds by not endorsing the check.

What's the interest rate on GradPLUS Loans?

GradPLUS Loan rates are fixed at 8.5%. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.

Student Loans Forgiveness

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Check your account

You can view most of your federal financial aid history, including Stafford , in the National Loan Clearinghouse System if you have a Personal Identification Number (PIN). If you don't have one, you can request one at the PIN site .

Consider Consolidation

Consolidating your PLUS Loans can help to ease the repayment of the loan. Consolidation can stretch the repayment term from 10 years to a maximum of 30 years, making the monthly impact on your cash flow much lower. Click here for Loan Consolidation .

Circumstances and Conditions for Loan Discharge

If you have taken out a loan to help pay for your education, all or part of it may be cancelled (forgiven) for several reasons. You may qualify for total or partial loan forgiveness if:

You die or become totally and permanently disabled
The school closed within 90 days of your enrollment and they were unable to finish their program of study
The school did not properly qualify your status before they began studies
You did not receive a refund that was due to you
Your signature was forged
The school did not properly evaluate your ability to benefit from the coursework before beginning studies
The school does not make required return of loan funds to the lender
Your loan is discharged due to bankruptcy. Cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship
For child care providers, A.A. or B.A. in early childhood education required. Must have worked for two consecutive years in eligible child care facility serving low income community

Your loan cannot be discharged solely because you believe that the school you or your child attended did at least one of the following:

Provided poor training, had unqualified instructors, or inadequate equipment
Did not provide job placement or other services that it promised, or
Engaged in fraudulent activities (other than falsely certifying the loan)
If you believe you are eligible for loan forgiveness, contact the holder of your loan

Circumstances for Loan / Cancellation

Under certain circumstances, the federal government will cancel all or part of an educational loan. This practice is called Loan Forgiveness. To qualify, you must:

Perform volunteer work
Perform military service
Teach or practice medicine in certain types of communities
Meet other criteria specified by the forgiveness program

Volunteer Work

These volunteer organizations offer loan forgiveness:

AmeriCorps. Serve for 12 months and receive up to $7400 in stipends plus $4725 to be used towards your loan. Call 1-800-942-2677.

Peace Corps. Volunteers may apply for deferment of Stafford, Perkins and Consolidation loans and partial cancellation of Perkins Loans (15% for each year of service). Volunteers make a real difference in the lives of real people with two years of service in more than 70 developing countries. Contact the Peace Corps at 1111 20th St., NW, Washington, DC 20526 or call 1-800-424-8580 or 1-202-692-1845.

Volunteers in Service to America (VISTA). Volunteer with private, non-profit groups that help eradicate hunger, homelessness, poverty and illiteracy. Provide 1700 hours of service and receive $4725. Call 1-800-942-2677 or 1-202-606-5000.

Military

Students who are in the Army National Guard may be eligible for their Student Loan Repayment Program, which offers up to $10,000. For further detailed information, call toll-free 1-800-GO-GUARD.(The military and veterans' associations provide many scholarships and tuition assistance programs. Contact your recruiter for more details)

Teaching

Students who become full-time teachers in an elementary or secondary school that serves students from low-income families can have a portion of their Perkins Loan forgiven under The National Defense Education Act. This program forgives 15% of your loan for the first and second years of teaching service, 20% for the third and fourth, and 30% for the fifth. Contact your school district's administration to see which schools are eligible.

For Stafford Loan borrowers, forgiveness is available for up to $5,000 of the aggregate loan amount that is outstanding after completion of the fifth year of teaching. A borrower might qualify for loan forgiveness under the Direct and FFEL Consolidation Loan programs. If so, only the portion of the consolidation loan used to repay Direct Stafford Loans or FFEL Stafford Loans qualifies.

Legal and Medical Studies

Many law schools forgive the loans of students who serve in public interest or non-profit positions. Legal and Medical Students have opportunities to participate in loan forgiveness opportunities to participate in loan forgiveness through their potential employers. Contact the National Association for Public Interest Law (1666 Connecticut Ave., Suite 424, Washington, DC, 20009; 1-202-466-3686).

Similarly, groups like the National Health Service Corps offer forgiveness programs to physicians who agree to practice for a set number of years in areas that lack adequate medical care. If you're a California resident, contact the Office of Statewide Health Planning and Development (State Loan Repayment Program, Primary Care Resources and Community Development Division, 1600 Ninth St., Room 440, Sacramento, CA 95814; 1-916-654-1833), or a similar agency in your state.

Many hospitals and private healthcare facilities use loan forgiveness to recruit occupational and physical therapists. Contact the American Physical Therapy Association (1111 North Fairfax St., Alexandria, VA 22314-1488; 1-800-999-2782) or the American Occupational Therapy Association (P.O. Box 31220, 47200 Montgomery Lane, Bethesda, MD 20824-1220; 1-301-652-2682)

Other Paths to Forgiveness

Students who complete a bachelor's degree at Baker University's College of Arts and Sciences may be eligible for the school's loan forgiveness program. Contact Baker University, P.O. Box 65, Baldwin City, KS 66006-0065; 1-913-594-6451.

Students who majored in education and teach in Mississippi may be eligible for the William Winter Teacher Scholar Loan. This program forgives one year of your loan in exchange for one year of service (it forgives two years of your loan if you teach in a shortage area). Contact the Mississippi Office of State Student Financial Aid, 3825 Ridgewood Rd., Jackson, MS 39211-6453; 1-601-982-6663.

Students who receive the Michael Murphy Loan to study law enforcement, law, probation and parole, penology, or other related fields are eligible to work off one-fifth per year as a State Trooper (or related law enforcement official) in Alaska. Contact the Alaska State Troopers, Director's Office Scholarship Fund, 5700 East Tudor Rd., Anchorage, AK 99507; 1-907-269-5511.

Maryland state and local government employees who earn less than $40,000 gross annually may be eligible for a loan assistance/repayment program to study law, nursing, physical and occupational therapy, social work and education. Contact the Maryland State Scholarship Administration, 16 Francis St., Annapolis, MD 21401; 1-410-974-2971 x146.

Perkins loans can be cancelled for full-time service as a teacher in a designated elementary or secondary school serving students from low-income families, special education teacher (includes teaching children with disabilities in a public or other nonprofit elementary or secondary school), qualified professional provider of early intervention services for the disabled, teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas, employee of a public or non-profit child or family service agency providing services to high-risk children and their families from low-income communities, nurse or medical technician, law enforcement or corrections officer, staff member in the educational component of a Head Start Program, service as a Vista or Peace Corps Volunteer and service in the Armed Forces (up to 50% in areas of hostilities or imminent danger).

Student Loan Deferment / Deferred

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Changing times demand changing repayment options, and federal student loans of all kinds, including federal student loan consolidation, offer flexible repayment options, including deferment and forbearance. Here is a quick summary of common loan payment management solutions:

Deferment is an entitlement that postpones payments. If you qualify, you must be granted a deferment.
Forbearance is a discretionary plan that postpones payments. Forbearance is optionally granted by the lender based on many factors, including your payment history and loan status.
Consolidation is a loan type. Consolidation does not postpone payments, but does reduce them, making them more affordable.

When it comes to payments and interest, here are some more key differences:

In deferment, no interest accrues on subsidized loans. Unsubsidized loans accrue interest. At the end of the deferment, any accumulated interest is added to your loan.
In forbearance, interest accrues on all loans regardless of type. At the end of the forbearance, accumulated interest is added to your loan. Forbearance may also require a small interest-only monthly payment.
In consolidation, interest is paid as part of each monthly payment.

Additionally:

In deferment and forbearance, your interest rates remain variable and can substantially increase or decrease based on market conditions. It is in your best interest to consolidate before filing for either.
In consolidation, your interest rates are locked in at the time of consolidation and cannot decrease or increase.

Finally, when it comes to time periods:

Deferments usually are granted for a period of 36 months and are non-renewable unless you consolidate.
Forbearances are granted for periods based on the lender's discretion, usually 24 or 36 months and are non-renewable unless you consolidate.
Consolidation loans renew your deferment and forbearance eligibility by closing out your old loans and opening a new consolidation loan.

Deferment, forbearance, and consolidation are not automatic processes. You must apply for each program.

There are several circumstances that allow current and former students to qualify for a student loan deferment. These deferment options will vary depending on the kind of loans that are outstanding and the borrower's financial and workplace status. But let's first answer the question - What is a student loan deferment?

A deferment means that no payments need be made on a student loan during the approved deferment period - the payments can be deferred until a later date. In the case of Subsidized Stafford Loans interest charges will not accrue during the deferment. This means that the size of the loan will not grow due to interest charges while the deferment is still in place.

Types of Student Loan Deferments

There are a total of five types or categories of student loan deferments that we're going to discuss. The types listed below apply to Federal Stafford loans, Supplemental Loans, PLUS and consolidated student loans. Each of these has its own set of rules and will be explained in more detail in subsequent sections:

Education Deferments - this type of deferment has to do with a student's enrollment status, and is sometimes referred to as an in-school deferment.
Economic Deferment - generally dealing with specific types of economic hardships or unemployment.
Disability Deferment - a student loan deferment program that applies to disabled students.
Family Related Deferments - a loan deferment program that applies to mothers re-entering the workforce or those on parental leave.
Public Service Deferment - a student loan deferment program that applies to students that are in the Armed Forces, Peace Corps, volunteers, or in public health service.

Education Deferments

As long as the student borrower is attending school at least half-time - as defined by the school itself, then payments on the loan can be deferred until after the student ceases to be enrolled half-time. In fact, most loan payments will resume six months after half-time enrollment ceases.

An In-School deferment form may be needed to verify enrollment. If the school is a member of the National Clearinghouse then the enrollment data is kept electronically and may be sent to the lender through electronic transmission.

To qualify for an in-school student loan deferment:

You must have an outstanding Federal Stafford, Supplemental, PLUS, or consolidation loan.
Your college or university must certify your enrollment as a full-time or part-time student.

Economic Deferment

Economic deferments generally fall into one of two categories - economic hardships and unemployment deferments. For the student borrower to qualify the candidate must demonstrate need via a statement of annual earnings that their income is below certain wage guidelines established by the Bureau of Labor Statistics.

Economic Hardship Deferment

To qualify for an Economic Hardship Deferment the student must meet one of the following criteria:

Have been granted an Economic Hardship Deferment under the Federal Direct or Federal Perkins Loan programs.
Receiving public assistance payments.
Working at least 30 hours per week and have federal education loan payments that equal or exceed 20% of your monthly income. Also, when you subtract your federal student loan payments, your monthly income must fall at or below 220% of the minimum wage or the poverty line - whichever is greater.
Working at least 30 hours per week and earning no more than minimum wage or below the poverty line for a family of two - whichever is greater.
Working less than 30 hours per week and earning no more than twice the minimum wage or the poverty line amount - whichever is greater. Also, when you subtract your federal student loan payments, your monthly income must fall below the minimum wage or poverty line.
Serving as a Peace Corps volunteer now or some time in the future.

Unemployment Deferments

Students with outstanding loans may be eligible for an unemployment loan deferment for up to three years after they halt attendance at a school. The person trying to defer loan payments will likely be required to complete the unemployment deferment form every six months.

To qualify for an Unemployment Deferment the student needs to:

Have an outstanding Federal Stafford, Supplemental, PLUS or consolidation loan.
Conscientiously seek full-time employment in the U.S.
Register with a private or public employment agencies if there is one within 50 miles of the student's permanent or temporary address.
Confirm a job search for full-time employment during the preceding six months when applying for a continuation of an unemployment deferment.

Disability / Rehabilitation Deferment

A student may qualify for a loan deferment if they are receiving rehabilitation training under an approved program, if they are unable to work due to an injury or illness, or if they are caring for a dependent or spouse that is disabled.

To qualify for a disability deferment you must have an outstanding Federal Stafford, Supplemental. PLUS, or consolidation loan and in the case of disability, the student must:

Be unable to work or attend school for at least 60 days to recover from the illness or injury.
Developed the disability after obtaining student loans.
Be pregnant and with complications.
Have a spouse or dependent that requires at least 90 days of nursing or similar care. This care must prevent you from working full time.

To qualify for a rehabilitation deferment, the student must:

Be in a program that is licensed or recognized by a state agency as one that can provide rehabilitation training for drug / alcohol abuse and mental health services.
Be in a program that provides written, individualized plans with specific end dates for services and requires significant commitment to achieve rehabilitation.

Family Leave Student Loan Deferment

A parental leave or family leave student loan deferment is available to present and former students that are pregnant or caring for a newborn or a newly adopted child and cannot work or attend school. Parental leave deferments apply to outstanding Federal Stafford or Supplemental Loan that were obtained before July 1, 1993.

To qualify for a parental leave deferment the student or former student needs to be:

Pregnant or caring for a newborn or newly adopted child.
Unemployed or unable to attend school.
At least a half-time student during the six months preceding the application for this type of student loan deferment.

A parental leave deferment can be obtained for a maximum time limit of 6 months for each occurrence. There is presently no limit on the number of occurrences.

Public Service Student Loan Deferments

The student loan deferment rules as they apply to what is termed a public service deferment are quite generous. To qualify, you must have an outstanding Federal Stafford or Supplemental loan that was obtained before July 1, 1993 or a Federal PLUS loan that was obtained before August 15, 1983. There are a total of five types of public service deferments:

Military Deferment - this can be obtained while on active duty as a member of the Armed Forces or when serving full time for a minimum of one year in the National Guard or Reserves.
Public Health - a public health deferment applies while serving as a full time officer in the Commissioned Corps of Public Health of the United States Public Health Service.
NOAA - a NOAA deferment applies while serving actively in the National Oceanic & Atmospheric Administration (NOAA).
Peace Corps - applies while serving as a volunteer under the Peace Corps Act or in an ACTION program.
Tax Exempt Organization / Volunteer - applies while serving as a volunteer for a tax exempt organization that the U.S. Department of Education has determined to be comparable to a Peace Corps or ACTION program volunteer.

The qualifying rules for a public service student loan deferment as they apply to each of the five program types are as follows:

Military Deferment - documentation proving full-time active duty status in the U.S. Armed Forces.
Public Health - a statement from an authorized official of the Public Health Service, that certifies serving as a full-time officer in the Commissioned Corps of Public Health Service. This needs to include beginning and end dates of service.
NOAA - certification of active duty from an authorized official of the NOAA Corps.
Peace Corps - serving full-time in the Peace Corps for at least a one-year term.
Tax Exempt Organization / Volunteer - employed in an organization that is tax exempt Section 501 (c) (3) of the Internal Revenue Code that involves providing services to low income persons and their communities, assisting them in eliminating poverty and the related human, social and environmental conditions. Compensation received must not exceed the federal minimum wage.

Student Loan Deferment Forms

As you can see there are many different types of student loan deferment programs. If you believe that you qualify for a program that allows for deferring a student loan, then you should contact your lending agent or loan servicing organization for more information on the exact qualifying rules.

Your lending agent or loan servicing organization will also have the student loan deferment forms you will need to complete to be considered for such a deferment.

Student Loan Repayment

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When you consolidate your student loans, you will have a variety of repayment options. Here's a breakdown of those options:

Equal Payments

This option provides equal monthly payments over the term of the loan.

Select 2/Graduated Payments

This option allows for interest-only payments first two years of repayment. In the third year, payments increase to level installments of principal and interest payments for the remaining term of the loan.

Select 5/Graduated Payments

This option allows for interest-only payments first two years of repayment. In the third through fifth years, payments increase to include a portion of principal. In the sixth year, payments increase to level investments of principal and interest payments for the remaining term of the loan.

Income-Sensitive Payments

This option provides for payments to be adjusted annually based on your expected total monthly gross income from employment and all other sources. Your account will initially be disbursed at a gradated Select/2 Graduated repayment plan. After the consolidation loan is disbursed, you must contact your servicer to qualify. Once eligibility is determined, your servicer will calculate your new payment.

Extended Equal Payments

This option allows up to a 30 year repayment term of Equal Payments.

Extended Select 2 Payments

This option allows up to a 30 year repayment term with the Select 2/Graduated Payment plan.

Extended Select 5 Payments

This option allows up to a 30 year repayment term with the Select 5/Graduated Payment plan.

All Extended Repayment Plans are for qualified borrowers with at least $20,000 in eligible loans. Applicants interested in any of the Extended Repayment Plans should contact their Loan Consolidation specialist to determine eligibility.

The length of time you can choose to repay your loan is dependent on your total loan balance, both for those loans you are consolidating and for any additional education loans that you have, but are not consolidating.

Note: maximum repayment period excludes authorized periods of deferment and forbearance.

The Basics of Student Loan Forgiveness and Repayment Programs

One of the greatest opportunities for stressed out college graduates is student “loan forgiveness” or “loan repayment” programs. These programs offer to eliminate some or all of your student loans in return for choosing certain careers, military service, and even volunteer work.

Such programs can eliminate anywhere from a few thousand dollars to over $100,000 of student loans. Ironically, many of these programs receive a relatively small number of applications indicating that many graduates are completely unaware of these opportunities.

Loan Forgiveness vs. Loan Repayment

Student loan forgiveness programs are those backed by the Federal government and cover loans issued through Federal programs such as Stafford and Perkins Loans. When you participate in one of these programs, portions of your debt are literally “erased” from your lender’s books.

Student loan repayment programs, which are more widespread than forgiveness programs, may be used to eliminate any type of loan including private loans. Under these programs, you either receive additional funds that you can use to pay down your loan, or a payment is made directly to your lender by your employer.

Taxability of Student Loan Repayment and Forgiveness

The amount eliminated under loan forgiveness or repayment programs may be considered taxable income in the year received. In other words, if you have $5,000 in loans forgiven next year, that may increase your taxable income in the eyes of the IRS by an equivalent amount. While that’s never fun, it shouldn’t discourage you from using one of these programs since the benefit far outweighs the cost.

To avoid having your student loan forgiveness or employer repayments be subject to taxation, your student loan must specifically include provisions allowing it to be forgiven. These provisions must require you to work within certain professions, for certain employers, for a specified minimum amount of time.

Additionally, any loan repayments made under the National Health Services Corps (NHSC) Repayment Program or any state program eligible for funds from the Public Health Services Act are considered tax-free.

Directories of Student Loan Repayment and Forgiveness Programs:

There are literally hundreds of loan forgiveness programs available to graduates. Many times, professional associations within different industries will maintain a list of student loan repayment and forgiveness programs that apply to their profession.

Student Loan Relief

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We have over $23,000 in student loans. My husband has already consolidated when the rates were high. We are at an 8.5 percent interest rate. Is there nothing else we can do make the interest better? -Tracey, Colorado

There's little, if anything you can do. If you have at least one loan that has NOT been consolidated, you can use that one loan to consolidate everything and switch to a different lender where you can take advantage of some discounts. But in all likelihood, you may only save a quarter of a percentage point. You'd be saving something like $400 bucks over the life of the loan.

If all of your loans are consolidated, there's no way to lock in a lower rate. But all is not lost. Take advantage of student loan interest tax deduction (which allow you to take a deduction up to $2,500). Or you may want to investigate taking out a home equity line of credit that has a lower rate. And use that money to pay off the student loans. Federal loans, by the way, have no prepayment penalties.

Student loan relief is available for students or college graduates who are having problems making their loan payments. There are many reasons and hardships that can keep a consumer from taking care of their debt in a timely manner. As a result, there are a variety of relief programs that aid consumers in such times and circumstances. Bankruptcy is a last resort for financial trauma, and student loans are not dischargeable, making some type of assistance crucial for even those filing bankruptcy. Getting information on student loans relief can be helpful as graduates seek to take care of debt, but get help in difficult times. College graduates often finish their programs of study with a sizeable debt in addition to their chosen degrees; assistance is often needed to help these graduates find a practical way to address and manage this debt.

There are several options that can be considered when looking for student loan relief. First, and foremost, college graduates wanting assistance should contact the lending agency or school where the financial aid was administered, and report that there is a problem. Ignoring bills, or letting an unpaid debt accumulate simply compound the debt and financial trouble. Communication is key and is always best. Contacting the financial department will give the financial department the opportunity to suggest help and identify appropriate assistance programs.

If a lending agency does not offer a student loans relief program when a borrower reports a situation of financial difficulty, another option to ask about is a deferment possibility. Deferment is a suspension of payments for a specific amount of time, and many lenders are willing to offer this assistance for a set amount of time, enabling the borrower to get back on their feet and then resume loan payments. Another student loan relief option is forbearance. With forbearance, the consumer will pay a reduced monthly payment amount, for a period of determined time, after which the monthly payment will return to the original amount. Both of these relief options can get the consumer through a rough financial time, and back on payment track at a later date, avoiding late fees and penalties.

Debt consolidation is another option for those looking for student loans relief. Consolidating debt into one payment monthly can help control the income and outgo of cash and often reduce the total interest charges. There are loan companies available online which offer various terms and conditions for debt consolidation. Whichever relief program one considers, remember to turn to God, who wants to help and give His peace. Cry out to Him and let His hope fill your heart. "But I will hope continually, and will yet praise thee more and more. My mouth will shew forth thy righteousness and thy salvation all the day; for I know not the numbers there of."

Federal Student Loan Consolidation

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Federal student loan consolidation is a fixed-rate refinancing program that combines all of your existing federal student loans into one new loan. Consolidation is a great tool for managing your finances - providing immediate payment relief and long term benefits. With our fast and convenient eSignature, your application will be complete in just a few minutes.

Cut your monthly student loan payment by as much as 50%
Simplify your finances with one monthly payment
Improve your credit rating
No credit checks, fees, or application charges
Reduce your interest rate 0.6% by consolidating during your grace period

Federal Student Loan Consolidation Payment Relief

One of the key benefits of consolidating your federal school loans is payment relief. By combining all of your student loans into one consolidated loan, you can lengthen your repayment term from the standard 10 years to up to 30 years, depending on the amount of your education debts. With a lower monthly payment, you'll have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable.

Consolidating with Student loan Consolidator

Get one-on-one personalized customer service. Our loan counselors will educate you on the benefits of federal student loan consolidation and help you determine if consolidating is the right choice. We will explain the consolidation process and the repayment options that are available to you.

What Qualifies for Federal Student Loan Consolidation?

Federal loan consolidation can include Federal Stafford Loan consolidation, PLUS Loan consolidation, Direct Loan consolidation as well as Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans taken to pay for your education. Private student loan consolidation is different - You will lose your federal loan benefits if you consolidate your federal loans into a private loan consolidation.

Consolidating with Student loan Consolidator