Should College Students Take Unsubsidized Federal Student Loans?

One of the first questions on the mind of any college student when they receive their financial aid award letter is, What is the difference between subsidized and unsubsidizedfederal student loans? Sometimes students are only offered unsubsidized loans and they are puzzled about whether they should accept them are not.Both subsidized and unsubsidized federal student loans are offered through the Federal Direct, or the FFEL Stafford Loan programs, which are administered through the federal government. Both types of loans must be repaid. Though the terms and conditions of the loans are set by the federal government (generally making them the best loan options students have), the system is set up so that the actual money comes from and is paid back to private institutions – that means banks.Now, here’s what you really need to know before taking out an unsubsidized student loan.First, with subsidized loans the government covers the interest payments for you while you are in school and/or in deferment. The loan accrues interest just like any other. You’re just not responsible for paying any that accrues before you enter loan repayment on the principle. Students who take out $10,000 (for instance) in subsidized loans, find that, six months after they leave school, they basically owe $10,000 plus whatever interest that gets charged after they start repayment, whenever that might be.When you take out unsubsidized loans, you are responsible for all the interest that the loan(s) accrue, even while you are in school. While enrolled and during the deferment period, you will be given the choice of making voluntary payments on that interest. Making payments like this is a good idea if you are able; it keeps you from being charged interest on your interest. If you do not pay along the way, the interest will be added to the principle of the loan. This could mean that you pay a lot of extra money in interest, which is the biggest drawback of unsubsidized loans.On the other hand if you have not gotten any subsidized loans, because you were told you had no need because your parents make too much money or something, there’s still a good chance unsubsidized federal loans are the best option for you. Subsidized loans are need-based and unsubsidized loans are not. Your level of financial need gets represented by specific numbers calculated from the information you put on your FAFSA application. Without getting in to all the particulars, students who have greater levels of financial need qualify for subsidized loans that those with less need don’t. Even if you have no need at all (according to the governments reckoning) you can still be offered and receive unsubsidized loans.Knowing the differences between these two types of loans can save a lot of confusion, and a surprising amount of money, for you through your college career. If you are ever in a position where you are being offered a combination of subsidized and unsubsidized loans, and you only need to take out half of what’s being offered, go for the subsidized.Finally, remember, don’t take out loans you don’t need, no matter how good the deal might look.

Should College Students Take Unsubsidized Federal Student Loans?

One of the first questions on the mind of any college student when they receive their financial aid award letter is, What is the difference between subsidized and unsubsidizedfederal student loans? Sometimes students are only offered unsubsidized loans and they are puzzled about whether they should accept them are not.Both subsidized and unsubsidized federal student loans are offered through the Federal Direct, or the FFEL Stafford Loan programs, which are administered through the federal government. Both types of loans must be repaid. Though the terms and conditions of the loans are set by the federal government (generally making them the best loan options students have), the system is set up so that the actual money comes from and is paid back to private institutions – that means banks.Now, here’s what you really need to know before taking out an unsubsidized student loan.First, with subsidized loans the government covers the interest payments for you while you are in school and/or in deferment. The loan accrues interest just like any other. You’re just not responsible for paying any that accrues before you enter loan repayment on the principle. Students who take out $10,000 (for instance) in subsidized loans, find that, six months after they leave school, they basically owe $10,000 plus whatever interest that gets charged after they start repayment, whenever that might be.When you take out unsubsidized loans, you are responsible for all the interest that the loan(s) accrue, even while you are in school. While enrolled and during the deferment period, you will be given the choice of making voluntary payments on that interest. Making payments like this is a good idea if you are able; it keeps you from being charged interest on your interest. If you do not pay along the way, the interest will be added to the principle of the loan. This could mean that you pay a lot of extra money in interest, which is the biggest drawback of unsubsidized loans.On the other hand if you have not gotten any subsidized loans, because you were told you had no need because your parents make too much money or something, there’s still a good chance unsubsidized federal loans are the best option for you. Subsidized loans are need-based and unsubsidized loans are not. Your level of financial need gets represented by specific numbers calculated from the information you put on your FAFSA application. Without getting in to all the particulars, students who have greater levels of financial need qualify for subsidized loans that those with less need don’t. Even if you have no need at all (according to the governments reckoning) you can still be offered and receive unsubsidized loans.Knowing the differences between these two types of loans can save a lot of confusion, and a surprising amount of money, for you through your college career. If you are ever in a position where you are being offered a combination of subsidized and unsubsidized loans, and you only need to take out half of what’s being offered, go for the subsidized.Finally, remember, don’t take out loans you don’t need, no matter how good the deal might look.

Scholarship and Educational Grant Opportunities for Freshman College

We cannot deny the fact that being a senior high school can be daunting for many people. You need to fix a lot of things like filling out college forms, checking out universities, preparing for graduation, being separated from your parents and friends, and more importantly, you will be facing the challenge of raising funds to continue your studies.When you are filling out the admission for the university that you have chosen, make sure that you have checked all the available scholarship opportunities that are available for you. There are a lot of programs that will help you ease the burdens of high tuition fees. On an average, the cost of going to school is increasing by up to 6% every year, and being picked for an educational grant will greatly help you financially.The first thing that you need to do when looking for scholarship opportunities is to visit your guidance counselor and ask about all the people, foundations, and businesses who are providing grants for school. There are different types of scholarships available to senior high school students like the Presidential Scholarship, Freshman Honor Scholarship, and special skill grants.The Presidential Scholarship is given to students who have shown great excellence in academics during high school. Most of the time this is given to students who have an average of more than 85%, and this privilege will not be given to you for four straight years. Every year, the program will be checking your performance every year and once you have gone below the requirements, the 50% discount grant will be given to other people.The Freshman Scholarship program is like the Presidential Grant, it is only given to students who have shown great academic performance. But unlike the Presidential Grant, this program will be given to you until you finish college, and will pay for all the institutional costs.Students who do not have high grades should not lose hope. In fact, there are scholarships that are given to them but not for academically excellent students. This is called special skill grant, and is given to students who are gifted with special skills in sports, arts, and music. This is to give all the students a chance to finish their college and get a degree for free. Other organizations may also offer educational grants for students who have special hobbies, and is found to be an outstanding member of a community.

Finding Free Money For College – Using Upromise to Avoid Taking Out Student Loans

Free Cash for College – using the Upromise College Savings Program to save thousands in free money for college.Parents are reporting that they have saved thousands of dollars in their kid’s 529 college savings programs, all with free money GIVEN to them. Programs such as Upromise team up with hundreds of well known retailers, to give cash back rebates on everyday purchases like gas, groceries, dining out, and travel. One parent reports that she has already saved over $2000 for her son’s college education, all of which was deposited into her 529 college savings account as rebates earned through retailer purchases or cash back rebates earned through her Upromise credit card (which gives you 1% cash back on ALL purchases, and more on participating retailer purchases).”Upromise is a program that every parent needs to sign up for. It’s free to sign up, and easy to earn rebates, which equate to CASH in your college savings account. You can even use the money to pay down your own student loans, or simply request a check and get the cash to use however you wish. If every parent signed up for this program when their children were born, they could probably fund most of their college education without ever actually saving any of their own money. I know I’ve gotten more than $2000 in my son’s college 529 plan from Upromise (free money from them) in a little over 5 years. Imagine if I would have started when he was born.”The money Upromise gives it’s members comes from retail partners including:
More than 700 Online retailers such as Best Buy, Ebay, Old Navy, Sears, Expedia, Apple Store
Almost 8,500 restaurants
More than 21,000 grocery and drug stores like Kroger, Safeway, Frys, and more
Other companies like car rental, gas stations, and real estate agenciesHere’s how it works. You simply shop or use the services of one of the above named partners. Upromise then gives you a rebate on your purchase, for example a 2% rebate from Best Buy. Then every quarter, when your Upromise account has at least $50 in it, the savings gets automatically sent to your linked 529 College Savings Account or Sallie Mae Student Loan Account. Or you can simply request to have the money sent to you by check.Upromise states on their website that they have currently given more than $500,000,000 to its members in college savings money, making it a major source of private funding for college education.Additionally, Upromise offers a way to allow friends and family, like grandparents, link to your account so their online shopping can earn rebates for your college savings program. They also offer their own credit card that gives you 1% on all your purchases, and more on purchases made at participating retailers.

No-Cost Student Loan Consolidation

No-Cost Student Loan ConsolidationA no-cost student loan consolidation – doesn’t that just sound too good to be true? Think about it. You have just accrued thousands of dollars in debt through student loans after 4 years of college, or possibly even more. Then, a company offers to take all of your loans off of your hands, put them into one central loan, and do it all for free! Well, while it might not be too good to be true, it all depends around your particular situation, which could make this a “free” process, or could still work out to the benefit of the consolidation company that you are working with throughout the process.How A Student Loan Consolidation WorksHere is how the student loan consolidation works. You have used up thousands of dollars in student loans to pay your way through college, obtain housing throughout college, and pay for other odds-and-ends while attending college. A student loan consolidation then takes all these different loans, pays for each of them, at which time you then pay the student loan consolidation company for the total amount of loans taken out during college.Example of Student Loan ConsolidationIf you were to have outstanding loans of $5000 to one company, $6000 to another, and $9000 to a third, the student loan consolidation allows you to owe $20000 to one company, rather than to three. This can save you money in the long run, as these companies also may be able to offer you a competitive interest rate, which means you will be paying less overall for your student loans in a shorter amount of time and to only one company.Potential Student Loan Consolidation ProblemsProblems can occur with student loan consolidations if you catch a deal that does not work out favorably to your situation. For instance, if you choose a no-cost student loan consolidation that does not offer you a low interest rate, you could actually end up paying them more than you originally would have! It is important that you choose a company not for their “no-cost” approach, but for their willingness to get your student loans paid off with a consolidation that promotes a quick pay-off with minimal interest rates.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. We invite you to learn more about how to get No-Cost Student Loan Consolidation at www.NextStudent.com .