With the increasing price in education and demand for a better life, most students tend to take up more than one federal education loan during their university period and later for their continuing education. In most cases students do not understand the added responsibility that comes with these loans. The major problem comes when they have to repay several loans after their college ends, this is when most students start realizing the cost of loans taken and look out for ways to minimize their monthly expense.
The Federal Stafford Loan is available to both undergraduate and graduate students enrolled at least half-time at a college or university accepting federal aid. This is a need-based program in which undergraduates may borrow up to $5,500 per year in subsidized funds based on academic level and graduate level students may borrow up to $18,500 per year (up to $8,500 in subsidized funds and the remainder in unsubsidized funds). The funds are sent directly to the school and are applied to the student's account. To ease the financial burden, payments are not required until six months after the student graduates. When looking to apply for a Stafford Loan, students should see what types of borrower benefits each lender is offering. As these student loans are all fixed at the same interest rate set by the U.S. Government, lenders are offering incentives to borrow by way of discounts, such as waived fees, rate reductions for early payment and cash back. While a Federal Stafford Loan is certainly a necessary start, it doesn't always cover the entire cost of education. A Parent PLUS Loan is a common way that parents contribute to their child's education. This credit-based loan allows parents to borrow the total cost of undergraduate education including tuition, room and board, supplies, college fees and more, minus any other aid received. Once the loan has been put into the student's account at the school, repayment begins shortly thereafter, at which time the student loan consolidation process can be performed. At a fixed interest rate, the Parent PLUS Loan is an easy and cost effective solution to help bridge the gap between Stafford Loan funding and the cost of education.
To be eligible for direct student loans, a student needs to attend the school that is participating in the direct loan program. Also, the student must be enrolling for at least on a part-time basis.
The two most common direct student loans are: (i) subsidized Stafford loan and (ii) unsubsidized Stafford loan. The subsidized loan has an interest subsidy and paid by the Government. Students who are awarded don't need to worry about paying interest and hence can concentrate on his or her study in full.
Once approved the lending company will pay all the previous loans taken by the student and the student has only to pay the new loan amount with a lower interest rate in an even longer period of time. These student loan consolidation programs come with various repayment periods which are lower than many other federal loan programs, thus students can use the grace period to further reduce their rate of interest. A major advantage of consolidating your loan is that it gives you time to settle down after your college period, most students can not find a job instantly they leave their college which can be an added pressure on students who already face problems of repaying their loan. Consolidating several loans you can get enough time to think about your career prospective and decide to choose a better paying job than choosing a less attractive job with low pay only to pay for your education loan.
Private student loans have gained popularity over recent years as federal funding hasn't quite met the entire cost of education. There are many other costs associated with education, besides just tuition. Commuting students need to cover transportation costs somehow. City campuses don't always guarantee housing, which forces students to find an off-campus apartment, often with high rent costs. There are costly textbooks to purchase, lab supplies and flights home that aren't always covered by traditional financial aid. Private loans originate to students by a bank or other financial institution, unlike federal loans. Private student loans also offer similar benefits to students as a federal loan, such as deferred payment until graduation, different loan repayment terms, and borrower benefits. The interest rates on private loans vary from company to company and are, usually, on a basis of credit. Co-signers are a great way for a student who may have limited or no credit at all to get this loan. Because of the varying private loans available, most parents and families "shop around" until they find their ideal solution.
The Federal Stafford Loan is available to both undergraduate and graduate students enrolled at least half-time at a college or university accepting federal aid. This is a need-based program in which undergraduates may borrow up to $5,500 per year in subsidized funds based on academic level and graduate level students may borrow up to $18,500 per year (up to $8,500 in subsidized funds and the remainder in unsubsidized funds). The funds are sent directly to the school and are applied to the student's account. To ease the financial burden, payments are not required until six months after the student graduates. When looking to apply for a Stafford Loan, students should see what types of borrower benefits each lender is offering. As these student loans are all fixed at the same interest rate set by the U.S. Government, lenders are offering incentives to borrow by way of discounts, such as waived fees, rate reductions for early payment and cash back. While a Federal Stafford Loan is certainly a necessary start, it doesn't always cover the entire cost of education. A Parent PLUS Loan is a common way that parents contribute to their child's education. This credit-based loan allows parents to borrow the total cost of undergraduate education including tuition, room and board, supplies, college fees and more, minus any other aid received. Once the loan has been put into the student's account at the school, repayment begins shortly thereafter, at which time the student loan consolidation process can be performed. At a fixed interest rate, the Parent PLUS Loan is an easy and cost effective solution to help bridge the gap between Stafford Loan funding and the cost of education.
To be eligible for direct student loans, a student needs to attend the school that is participating in the direct loan program. Also, the student must be enrolling for at least on a part-time basis.
The two most common direct student loans are: (i) subsidized Stafford loan and (ii) unsubsidized Stafford loan. The subsidized loan has an interest subsidy and paid by the Government. Students who are awarded don't need to worry about paying interest and hence can concentrate on his or her study in full.
Once approved the lending company will pay all the previous loans taken by the student and the student has only to pay the new loan amount with a lower interest rate in an even longer period of time. These student loan consolidation programs come with various repayment periods which are lower than many other federal loan programs, thus students can use the grace period to further reduce their rate of interest. A major advantage of consolidating your loan is that it gives you time to settle down after your college period, most students can not find a job instantly they leave their college which can be an added pressure on students who already face problems of repaying their loan. Consolidating several loans you can get enough time to think about your career prospective and decide to choose a better paying job than choosing a less attractive job with low pay only to pay for your education loan.
Private student loans have gained popularity over recent years as federal funding hasn't quite met the entire cost of education. There are many other costs associated with education, besides just tuition. Commuting students need to cover transportation costs somehow. City campuses don't always guarantee housing, which forces students to find an off-campus apartment, often with high rent costs. There are costly textbooks to purchase, lab supplies and flights home that aren't always covered by traditional financial aid. Private loans originate to students by a bank or other financial institution, unlike federal loans. Private student loans also offer similar benefits to students as a federal loan, such as deferred payment until graduation, different loan repayment terms, and borrower benefits. The interest rates on private loans vary from company to company and are, usually, on a basis of credit. Co-signers are a great way for a student who may have limited or no credit at all to get this loan. Because of the varying private loans available, most parents and families "shop around" until they find their ideal solution.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Various Things To Notice About Singapore's Personal Loan You have full permission to reprint this article provided this box is kept unchanged.
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