Comments for Student Loan Guides

Comment on How to Borrow Student Loans Responsibly – Five Ways to Do it Right by Albertha

Albertha — Thu, 26 Apr 2012 01:47:58 +0000

Borrowing and Repaying Student Loans

Student Loans – Budget and borrow sensibly

A great question to ask yourself, When it comes to possibly borrowing money, is “how much do I really need?”

When it comes to possibly borrowing money, you need to budget and borrow sensibly.

Do a good job Estimating the Real Cost of College – It is important to understand all of the costs involved, including room & board, books, lab fees, student membership fees, online access fees, spending money, etc. Estimate a personalized college budget. You can also calculate your Expected Family Contribution (EFC) and any loan related repayment costs. Apply for a student loan for the amount you need.

Don’t Spread too thin – See that you borrow only that you can afford. Don’t go overboard with future earning potential.

Understand fully that Borrowing is a responsibility – Don’t take it lightly!
Borrow only for education and nominal living expenses and not to finance lavish lifestyle.

If it is your first experince borrowing student loan, consider this responsibility seriously – your ability to borrow in the future depends on it. Make sure you read and understand the terms and conditions on your promissory note. You are agreeing to repay the loan with all accrued interest and fees. You are obligated to repay your loan whether or not you complete your education, are satisfied with your education, or are able to find a job. Read and keep all records relating to your loan.

Comment on Student Loan Consolidation Programs by Amada

Amada — Wed, 25 Apr 2012 23:50:31 +0000

Student Loan Consolidation Programs

Consolidation loans allow you to combine different types of federal student loans to simplify repayment. Even if you have just one loan, you can also choose to consolidate it. Both the FFEL and Direct Loan Programs offer consolidation loans. There are several advantages to consolidate or rehabilitate your loan as described in the categories below.
FFEL Consolidation Loans

A FFEL Consolidation Loan is designed to help student and parent borrowers consolidate several types of federal student loans with various repayment schedules into one loan. With a FFEL Consolidation Loan, you will make only one payment a month. Under this program, your consolidation loan will be made by a commercial lender, credit bureaus will be notified that your account has a zero balance, and you will sign a new promissory note that will establish a new interest rate and repayment schedule. To receive a FFEL Consolidation Loan, you must be in repayment on your defaulted loan (that is, three voluntary, on-time, full monthly payments). Depending on the balance due, the repayment period may extend up to 30 years. If you owe no other delinquent or defaulted debts to the United States, you will again be eligible for other federal funds, including FHA loans, VA loans, and Title IV student financial aid funds.

You may be able to combine your existing Federal education loans into one new consolidated loan that offers several advantages.Consolidation loans allow you to combine different types of federal student loans to simplify repayment. Even if you have just one loan, you can also choose to consolidate it. The FFEL and Direct Loan Programs offer consolidation loans. There are several advantages to consolidate or rehabilitate your loans.

FFEL Consolidation Loans

Comment on Apply For Student Loan – Get Approved even with Bad Credit by Anastácia

Anastácia — Wed, 25 Apr 2012 16:24:58 +0000

Personal loans, auto loans and mortgages aare difficult to obtain unless you have excellent credit. If you have anything less than that , you either may end up paying pay higher interest rates rates or maybe denied credit , Period. However, credit score is not important for most federally funded student loans.

However, for a PLUS (Parental Loans for Undergraduate Students) loan or private funding, your credit history and score can determine whether you qualify for a student loan and the interest rate you pay. In general, credit scores below 630 will prevent you from securing a private loan. Once you’ve checked your credit scores, you should have a good sense of whether or not you will qualify.

Private loans are available from numerous providers. Unlike in federal ly backed student loans, even if you are declined by one or more providers, you have more options. In addition to higher rates, borrowers with lower credit scores might be also subject to lower loan limits. Further, the lender may limit the spending of funds to only legitimate school charges.

To qualify for a better rate — or to qualify at all, should credit scores prevent the student from securing a loan — ask a friend or family member with better credit whether they’d be willing to co-sign your private loan. However, this means the co-signer of the loan will be “on the hook” you fail to pay.

Another option to secure a better interest rate is to make regular payments or interest-only payments while still in school.

Many lenders offer an appeals process and may make an exception should there be extenuating circumstances or errors on your report.

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Comment on Using Student Loans to Get Your College Education by Henderson31Sheena

Henderson31Sheena — Wed, 25 Apr 2012 14:33:12 +0000

President Obama started a three-state tour, stumping his student loan campaign today, calling for reduced loan interest for college students. A 2007 law that kept federally subsidized Stafford loan interest rates low will expire July 1, if Congress doesn’t extend them. Interest rates on some 7.4 million student loans will double from 3.4 to 6.8 percent. I think that to receive the credit loans from creditors you should have a firm motivation. However, one time I have received a student loan, just because I wanted to buy a car.

Comment on Community Colleges and the Dangers of Student Loan Debt by Treasa

Treasa — Wed, 25 Apr 2012 01:07:23 +0000

U.S. Students Loan Debt

U.S. student loan debt that now surpasses credit card and auto-loan debt, at an estimated $1 trillion, as per the Consumer Financial Protection Bureau.

Since 1999, student loan debt has increased by 511%, while household disposable income has increased by only 73%.

Government data show the average cost of tuition for four years at a private college easily surpasses a total of $200,000, and is estimated to climb to more than $320,000 by 2028. You don’t see this level of college costs in Switzerland or Monaco.

That $1 trillion in total estimated student loan debt equals 11% of total housing debt, so it’s easy to see how tuition gouging is hanging up American families struggling to get out from under housing loans.

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Comment on Student Loans Start to Bypass 2-Year Colleges by Ariane

Ariane — Tue, 24 Apr 2012 20:53:34 +0000

Big and small banks are getting aggressive in paring the list of colleges they serve. Tuition and loan amounts can be quite small at community colleges. But these institutions, which are a stepping stone to other educational programs or to better jobs, often get their students from the lower economic ladder. More than 6.2 million of the nation’s 14.8 million undergraduates — over 40 percent — attend community colleges making it a crisis that banks who not too long ago were bailed out with tax payers money are really out to cut the hand that fed them. Community colleges are small veins in teh body of country’s ecnomic structure and without feeding them the body will become weaker and weaker. Banks must reconsider their foolish policies of short term gains.

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Comment on Community Colleges and the Dangers of Student Loan Debt by ÿþd

ÿþd — Tue, 24 Apr 2012 06:42:39 +0000

financial aid administrators say they have been able to find fallback lenders that students can switch to, but the hurdles are costly to students — in money and time. The maximum interest rate on federal loans, now at 6.8 percent on the most commonly used loans, is set by Congress, but lenders are scrapping benefits, like rate cuts for borrowers who make their payments on time or allow direct withdrawals from bank accounts.

Comment on Community Colleges and the Dangers of Student Loan Debt by charms

charms — Mon, 16 Apr 2012 04:37:50 +0000

A few things to keep in mind before you jump into searching for federal student loans or state students loans:

•Fill out the Free Application for Federal Student Aid (or FAFSA). Without it, you won’t have access to federal student loans. Don’t worry, many of these are not based on need or your income.
• Plan before you act. When looking for students loan, always use federal loans first, such as the Perkins, Stafford, and PLUS loans. They carry lower, fixed interest rates and often have more favorable terms than private (or alternative) loans.
•If federal student loans, state loans and grant etc are not enough to meet your needs and you must go for private student loans, consider all of the costs. Private loans can have origination fees, different ways of compounding interest, and higher interest rates or APRs.
•Knowing your credit worthiness and credit score is very helpful especially considering private student loans. The lower your score, the higher your rate will likely be on a private loan. Most student borrowers will need a credit-worthy co-signer to be approved for a private student loan. Most private loans have variable interest rates (meaning they will fluctuate over time), while government-backed (or federal) loans have fixed interest rates and more lenient repayment terms.

Comment on Student Loans Start to Bypass 2-Year Colleges by student_loan_consolidation

student_loan_consolidation — Mon, 16 Apr 2012 04:28:51 +0000

Homework and due diligence is the key. You have lot of options and must investigate your loan options carefully by considering the following:

•Total cost of the loan (after all of the interest and fees are taken into account)
•APR or annual percentage rate
•Borrower rewards (such as cash back or interest rate reductions for making on-time payments)
•Monthly payment
•Deferment options

Narrow it down based on your confort levels and go with the one that gives you biggest bang for teh buck

Comment on Community Colleges and the Dangers of Student Loan Debt by Andrew Pelt

Andrew Pelt — Sun, 15 Apr 2012 16:24:35 +0000

I am in my graduate program and I make some money teaching. Money I make and student lonas I have taken are not enough for me to make my ends meet. Can I use Private loans to supplement since federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education. Also, for the lack of credit history and collatoral, how do I qualify for students loan. Thanks