Wednesday, June 10, 2009

Student Loan Consolidation Interest Rate

When you are consolidating your student loan, what is the first thing that goes to your mind? A lot of you might say it is the interest rate. There is nothing wrong with that, in fact, as a consumer, you deserve the best interest rate when you are consolidating your loans. So, below are some tips to help you to get the best interest rate.

1. Credit

The easiest way for you to earn the best rate is to have a credit score of at least 660.

2. Other criteria

However, there are also other factors involve which can affect your interest rate such as your family size, the loans you are holding, future career, annual income and co-signer credit history (only needed when you are going for private student loan consolidation).

Let's take a look at the income contingent repayment (ICR) plan. In this plan, your minimum monthly payment is just $5 and this amount shouldn't be much of the trouble for most of you. However, you can only qualify for this plan when you have a family and you are a direct loan borrower. So, you see, there are much more involved than credit score when you are talking about the rate for your student loan consolidation.

3. Amount and period

The more loans you consolidate and the longer your loan period, the better rate you can get. However, this is not something worth cheering of. Although you can enjoy low rate, you are actually paying more at the end of your extended loan period.

4. Federal or private

As you probably know, federal loan consolidation doesn't care what your credit score is, it merely locks in the lowest rate for the whole loan period. Since the interest rate for federal government student loan consolidation is review at July, 1 every year, it is best that you consolidate your student loans after that.

Although private student loan consolidation rate can fluctuate with the market rate, this means that you can negotiate your interest rate with the private loan consolidators. You can even enjoy lower rate when you and your co-signer credit history are good. Besides that, private loan consolidators also offer various discounts and incentive so that you can save some money even you are not eligible for fixed interest rate.

5. Online services

Speaking of discounts and incentives, more and more loan agencies are willing to give you a better student loan consolidation interest rate when you adopt their online services.

And to minimize long hauling discussions, a lot of loan agencies are starting to display their repayment package and rate online. This can save you a lot of time when you are researching which loan institution to go to.

By Michael Wai W

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Tuesday, June 9, 2009

Can’t Afford College Education? Applying For A Student Loan Is A Simple Proccess

There is no other place quite like college. The exchange of ideas, the different people you will meet and the education you will receive can change your life. But there is a catch, college is expensive. It can be hard for the average person to afford this wonderful college education. In this case, student loans might be your solution.

Student loans are loans offered to students to assist in payment of the costs of professional education. Student loans are how most students are able to afford college today. It helps you to get money which you can spend for good education.

Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS). (The median is $17,120. One quarter of undergraduate students borrow $24,936 or more, and one tenth borrow $35,213 or more.)

Student loans
Student loans provide you with the method and ability to improve your standing and future by going to college or other higher education. Students can also apply over the phone by calling the number provided next to your desired private student loans lender. Students should also consider the starting package of their salary after they complete their education.

You will also need to consider what your starting salary will be when you do get out of school and get a job. The student loan calculators can help you predict how much money you will need and some student loan calculator can help you predict what your student loan repayments will be.

Federal student loans
Federal and private loan programs are available for US Students who are studying abroad or fully enrolled in a non-US School. Federal student loans are the most affordable loans available to students, with the lowest interest rates and deferred principal and interest payments until after graduation.

Education investment
Education is an investment in your future. The Department of Education acts as a lender, providing funds for Stafford loans and PLUS loans in the same amounts as the Stafford and PLUS loans offered through the Federal Family Education Loan Program. Private student loans, like the Chase Private Student Loan, can be used either alone or when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education.

For those who already have a Student Loan, the servicing site is the one-stop center for managing that loan. A borrower can make online payments, view account balances and payment history, get loan counseling, change billing options, enroll in electronic services, and more.

Do you know enough to make sure you can control your student loans as best as you can. For more insight into what can, and likely will happen if you fail to pay back your student loan, please visit my student loan information site in the signature file.

By: Jimmy Wild

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Wednesday, June 3, 2009

Stafford Loans For Your College Funding

Stafford loans are low-interest, federally guaranteed student loans available to both eligible undergraduate and graduate students for tuition and other school-related expenses. Stafford Loans are an affordable loan option available for most students to pay for college. Stafford Loans are the most widely used, low-cost education loans available from the United States Federal government.

Stafford Loans are widely used and low cost!

Stafford Loans are available to students either directly from the United States Department of Education through the Federal Direct Student Loan Program (FDSLP, also known as Direct) or from a financial intermediary (such as Chase, Sallie Mae or Student Loan Corp). Stafford loans are given to students in the student’s own name. There is no credit check, so students don’t need to worry about finding a co-signer to get money for college or graduate school. Stafford loan rates are lower than other forms of consumer financing, and repayment is postponed for six months until you leave school or drop below half-time enrollment. Stafford Loans are backed (guaranteed) by the federal government and have fixed interest rates.

There are two types of Stafford Loans: Direct and FFEL.

Direct Loans

The US government provides Federal Direct Student Loan Program (FDSLP) loans, administered by “Direct Lending Schools”, directly to students and their parents. Many students who apply for the Stafford Loans in either category choose the Direct loan, in which the money comes right from the government and goes directly to the school.

FFELP (Federal Family Education Loan Program)

Private lenders, such as banks, credit unions and savings & loan associations, provide Federal Family Education Loan Program (FFELP) loans. FFEL loans funded by private lenders are still federally backed and the lenders must follow strict federal loan guidelines. FFEL program Stafford Loan funds can be used for education-related expenses such as tuition, fees, books, living costs, transportation, childcare, etc. Both the FFEL and Direct Loan programs consist of what are generally known as Stafford Loans (for students) and PLUS Loans (for parents). For a FFEL Stafford Loan, the lender will send the loan funds to your school.

Stafford Loan Eligibility

To be eligible for a Stafford loan you must complete a Free Application for Federal Student Aid (FAFSA). Simply fill out the FAFSA form through your educational institution or online at

A Student Is Considered To Be…

To be eligible for Federal Financial Aid a student must be a permanent resident or eligible non-citizen, as applicable. You must have a valid Social Security Number, be attending an eligible school, or accepted for enrollment, as at least a half-time student. If already enrolled, you must maintain satisfactory academic progress in your course of study according to the school's standards. You must have at least a high school diploma or the recognized equivalent of a high school diploma.

A borrower may not qualify if he or she has defaulted on a federal education loan, owes an overpayment on other federal education aid, has been convicted of a drug-related offense while receiving federal student aid, or is incarcerated.

Subsidized Loans (Need Based)

A Federal Stafford Subsidized Loan is awarded on the basis of financial need and is available through the Federal Family Education Loan Program (FFELP). About 2/3 of subsidized Stafford loans are awarded to students with family AGI (adjusted gross income) of under $50,000, 1/4 to students with family AGI of $50,000 to $100,000, and a little less than 10.

Non-subsidized Loans (Non-Need Based)

All students, regardless of need, are eligible for the unsubsidized Stafford Loan. Even though the unsubsidized Stafford Loan is available to all students regardless of financial need, you must still submit the FASFA to be eligible. For all unsubsidized Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6.8%. For unsubsidized Stafford loans, students are responsible for all of the interest that accrues while the student is enrolled in school.

With the unsubsidized Stafford loan, you can defer the payments until after graduation by capitalizing the interest.


There is a 6-month grace period following graduation or when enrolled less that half-time or leaving school altogether before you must begin repaying your loan.

Both the Direct Loan and FFEL programs offer four repayment plans you can choose from, but the terms differ slightly. Please note: some colleges participate only in the Federal Direct Loan Program, which might mean you do not have a choice of lender.

Information You’ll Receive

Your school must notify you in writing whenever it credits your account with your Direct or FFEL Stafford Loan funds.

Loan Limits

The federal government under Title IV of the Family Education Loan Program sets loan limits. Loan limits vary depending on your student status.

The loan limits described below apply to both the FFEL and Direct Loan programs and are cumulative.
The limits may be a little confusing because there are two sets of limits for the Stafford loan: a combined base limit for the subsidized and unsubsidized Stafford loan, and an additional limit for just the unsubsidized Stafford loan.

The program limits are $4,000 per year for undergraduate students and $6,000 per year for graduate students, with cumulative limits of $20,000 for undergraduate loans and $40,000 for undergraduate and graduate loans combined.

Dependent Annual loan limit

· Freshman $5,500 ($3,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)
· Sophomore $6,500 ($4,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)
· Junior or senior $7,500 ($5,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)

Independent Annual loan limit

· Freshman $9,500 ($3,500 between subsidized and unsubsidized, plus an additional $6,000 unsubsidized)
· Sophomore $10,500 ($4,500 between subsidized and unsubsidized, plus an additional $6,000 unsubsidized)
· Junior or senior $12,500 ($5,500 between subsidized and unsubsidized, plus an additional $7,000 unsubsidized)
· Graduate or professional $20,500 ($8,500 between subsidized and unsubsidized, plus an additional $12,000 unsubsidized)
· Lifetime limits Undergraduate dependent lifetime limit $31,000 (up to $23,000 may be subsidized)

Undergraduate independent lifetime limit $57,500 (between subsidized and unsubsidized)
Graduate or professional lifetime limit $138,500 (up to $65,000 may be subsidized) or $224,000 (for health professions) for loans first disbursed on or after July 1, 2008.

Annual limits, which include both the subsidized and the unsubsidized Stafford Loan are as follows: $3,500 in the first year $4,500 in the second year $5,500 in the third year $5,500 in the fourth year.

Consolidation of your Stafford loans…

In some cases it may be beneficial for you to consolidate one or more of your FFEL Stafford Loans into a Consolidation Loan. Consolidating loans can be a great way to simplify repayment and lower monthly payments, and Direct Loans can be consolidated with other student loans. When you consolidate your Stafford loans, you are locking in today's low rates, combining multiple payments into one and lowering your monthly payment.

Final Things To Consider…

Stafford Loans carry a low, fixed interest rate, which is set by the Federal government. Stafford Loans are federal student loans for undergraduate and graduate students. Stafford Loans are the most widely used, low-cost education loans available from the United States Federal government. A Stafford Loan is a great way for you to secure the extra financial aid you require in order to meet your needs for college, university or trade school.

Most college or university students can secure a Federal Stafford Loan to assist with their financial needs. Getting started as early as possible can be the difference between finding financing or not.

Don’t delay; your future depends on it. Prepare your college finances for a bright future.

By: James Richman

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Tuesday, June 2, 2009

The Truth About Student Loans

When it comes to getting a college education most people can agree that the costs can be staggering at best. Even the least expensive colleges in the nation can add up over a four or five year period of time creating crippling debt for those who do not qualify for some of the better grant programs of substantial scholarships.

The problem lies in the fact that the parents of most traditional college students make too much money to qualify for the free financial aid that is needs based and very few qualify for the limited number of scholarships that are available to students based on merit. Even among those that qualify competition and fierce and there are no guarantees. Enter the student loan. There are all kinds of student loans and unfortunately with rising costs associated with college attendence and the growing necessity of a college degree for success in this country it is becoming more and more difficult to pay the price that is associated with higher education.

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