Best Tips For Student Loans


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Are you sick of paying interest on your monthly student loans with no end in sight? Afraid of cash-flow problems that may prevent you from paying your student loans on time? I know I was and there is a solution to this problem.

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Best Tips For Student Loans

  1. 1. Student Loan Interest RatesFor more information visit Applying for a Student Loan for college
  2. 2. Applying for a Student Loan for collegeIt seems as though it is easier to get a student loan for college these days. The hardpart about how to get a college student loan is "getting a good interest rate." Somepeople spend years repaying their college student loans. I bet they never imaginedhow long it would take to to repay their student loans.It has become very convenient to apply for a student loan for college. You can beapproved for a student loan quickly. Even if you have bad credit you can still getapproved for a student loan.More than likely you may have already received mail or email regarding your pre-approval for a student loan. The catch with these offers is the terms of the studentloan. The main objective of the sender is to try and lock you into thinking you qualifyfor a student loan, without paying much attention to the terms of the loan. Then theyhit you with high interest rates and high monthly payments once you graduate.Repaying a College Student LoanThere is a high number of college students who graduate in debt. They took out astudent loan for college and are becoming overwhelmed with monthly paymentswhich results in Student Loan Debt. Fresh out of college a good job plus financialfreedom. Exactly that makes it so easy to want to put your payments on student loans"off" so you can buy a car or rent an apartment.This is not good because to avoid student loan debt repaying your student loans has tobe a priority once you graduate. Think logically or think "student loan debt."Some students have graduated and have no clue about their student loan paymentoptions. This happens all of the time because a lot of college graduates do not knowwhere to find information regarding their student loan debt.Student Loan Debt ReliefIs there a solution for student loan debt? If you need more financial freedom fromyour student loans your lender wont mind extending your student loan payment time.This is because they will still be paid, just over a longer period of time.Usually this results in the student paying more money over time with these low
  3. 3. monthly long term payments. Student debt relief? Absolutely 15 years later when youfinally finishing paying off your loan.College Student Loan AlternativesA scholarship is the first thing that should come to mind when you think aboutcollege tuition. Contrary to this a student loan should be your absolute resort. Beforeconsidering a student loan following these steps will help you make the best out ofyour college financial aid query: 1) Apply for Scholarships 2) Apply for Grants 3) Apply for student loans 4) Take advantage of Student Loan options 5) Dont fall victim to Student Loan DebtThe steps listed above start with free sources of financial aid for college. The last fewsteps of applying for student loans and making payments.When you cant get any scholarships or grants and you need a student loan youshould take the following steps:Find a good Student Loan -LenderCompare rates to accomplish step 1Have someone who can be a co-signer of the student loanTry to be in good credit standings
  4. 4. Get a few free credit reports to accomplish the previous stepWhen you find a good rate think about the long termDont get rates that you cant pay when you graduate collegeBegan making payments immediately upon graduation (with the exception of thegrace period)Student Loans for College RecapWhen applying for a student loan for college, understand the terms clearly.*When repaying a college student loan make it a priority and understand your graceperiod options.Shop around for the best student loan interest rate and payment terms.Remember it is a loan for college, dont let the payments linger for 30 years. It isstrongly advised that you consider all of your sources for free college financial aidbefore considering a student loan. Follow the appropriate steps listed in this articleand you will find financial aid for college or have a better understanding of how toapproach Student Loans for College.Students and families are often confused with the variety of options available when itcomes to financing a college education. There are a myriad of options, from collegescholarships and grants to federal and private student loans.As part of the Higher Education Act of 1965, President Lyndon Johnson created thislaw which was intended "to strengthen the education resources of our college anduniversities and to provide financial assistance for students in postsecondary andhigher education." This increased all sources of federal funding provided touniversities and added in grants and other forms of financial aid.Grants and other forms of financial aidThe Federal Stafford Loan is available to both undergraduate and graduate studentsenrolled at least half-time at a college or university accepting federal aid. This is aneed-based program in which undergraduates may borrow up to $5,500 per year insubsidized funds based on academic level and graduate level students may borrow upto $18,500 per year (up to $8,500 in subsidized funds and the remainder inunsubsidized funds). The funds are sent directly to the school and are applied to thestudents account.To ease the financial burden, payments are not required until six months after thestudent graduates.
  5. 5. Student Loan Interest RatesFor more information visit http://studentloansinterestrates.orgWhen looking to apply for a Stafford Loan, students should see what types ofborrower benefits each lender is offering. As these student loans are all fixed at thesame interest rate set by the U.S. Government, lenders are offering incentives toborrow by way of discounts, such as waived fees, rate reductions for early paymentand cash back.While a Federal Stafford Loan is certainly a necessary start, it doesnt always coverthe entire cost of education. A Parent PLUS Loan is a common way that parentscontribute to their childs education. This credit-based loan allows parents to borrowthe 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 students account at the school, repayment beginsshortly thereafter, at which time the student loan consolidation process can beperformed. At a fixed interest rate, the Parent PLUS Loan is an easy and costeffective solution to help bridge the gap between Stafford Loan funding and the costof education.Options for Student fundingFor many years, graduate students were only given Stafford Loans as a federal loanoption for funding their often costly education. The difference was made up throughhome equity, savings, salaries and private loans. However, the Graduate PLUS Loanis a new product that became available to graduate students in 2006. Graduatestudents with good credit can apply on their own signature for a loan up to the cost ofeducation, minus any other aid received.The Graduate PLUS Loan can be applied to tuition, room and board, educationsupplies, lab and travel expenses. The interest rate is fixed and payments are not
  6. 6. required while enrolled in school.Upon graduation, borrower benefits kick in to help students save money duringrepayment. Or a student may save even more by consolidating this loan using thefederal loan consolidation program. The Graduate PLUS Loan truly providesgraduate students with a great option to making their graduate education dreams areality.The Perkins Loan is another federal loan available to both undergraduate andgraduate students offered on the basis of financial need, other aid received andavailability of funds at each school.The federal government lends schools funds for distribution to its neediest students.The school, therefore, is the lender, and undergraduates may be awarded up to$4,000/year and graduates may be awarded up to $6,000/year.These loans need to be repaid directly to the school and have a fixed 5% interest ratesince the program was started. Students can take advantage of a nine-month graceperiod and a ten-year repayment term. However, if consolidated with any existingfederal student loan, including Stafford or Graduate PLUS Loans, this can extend therepayment term.Consolidation has been mentioned a few times and its really in the best interest ofstudents to take advantage of this upon graduation. Each federal loan, on its own, hasa 10 year repayment term, regardless of total loan debt.
  7. 7. Consolidation fixed the interest rate and extends the repayment term, allowing moretime to repay an often hefty federal loan debt.Named for Senator Claiborne Pell, the Pell Grant was established to provide fundsthat dont need to be repaid directly to the neediest students. This is because it is agrant and not a federal student loan. However, like the Stafford and Perkins Loan,eligibility is based on need, as determined by the cost of attendance and expectedfamily contribution. Since 2003, the maximum Pell Grant award has been $4,050 peracademic year. However, due to the rising cost of education, many question why thePell Grant award has not also increased. The Pell Grant covers, on average, one-thirdof the yearly cost of education at a public four-year institution.However, twenty years ago, it covered close to 60%. On February 15, 2007, in anattempt to slowly combat this issue, President Bush signed legislation into law thatwould increase the Pell Grant to $4,310 for the 2007-08 academic year. Thefollowing year, the grant will increase to $4,600 and up to $5,400 by the year 2012.These advances are certainly helping students and families fund the cost ofeducation, especially as tuition costs continue to risePrivate student loansPrivate student loans have gained popularity over recent years as federal fundinghasnt quite met the entire cost of education. There are many other costs associatedwith education, besides just tuition. Commuting students need to cover transportationcosts somehow. City campuses dont always guarantee housing, which forces studentsto find an off-campus apartment, often with high rent costs. There are costlytextbooks to purchase, lab supplies and flights home that arent always covered bytraditional financial aid. Private loans originate to students by a bank or otherfinancial institution, unlike federal loans.
  8. 8. Private student loans also offer similar benefits to students as a federal loan, such asdeferred payment until graduation, different loan repayment terms, and borrowerbenefits. 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 havelimited or no credit at all to get this loan. Because of the varying private loansavailable, most parents and families "shop around" until they find their ideal solution.Student LoansFor more information visit