Why is FAFSA So Important to College Students Looking For Student Loans?

FAFSA is Your Ticket to student loans?FAFSA is your only entry into the world of federal student loans. You can also find yourself the recipient of a federal grant and work study programs to boot. Without a Student Aid Report (SAR), your chances of getting the best student loans are almost nil.FAFSA, stands for Free Application for Federal Student Aid. The feds are your best place to get a college loan because they have the money to lend at a decent interest rate and the government will actually make your interest payment on some of the loans.The application usually is completed online (spanish version as well) but we recommend downloading a copy and printing it out. It will take you time to research and find the answers to their questions.First you need to create an account with FAFSA. This pin number will allow you to proceed with filling out the application. You will then continue to use that pin number as long as you are applying for federal student loans. Basically it is a virtual account system.CRITICAL NEWSFLASH
Many institutions use the report to help them determine what type of student loan you are eligible for. It is not strictly used for federal purposes.
Money or loans are awarded on a first come first served basis.
January is the start date that you can apply through FAFSA to get student loans for the following fall quarters.
Last year we completed our FAFSA in February and still received our student loans for 2 family members.
Seek help from your high school counselor or a college admissions advisor like we did.
When you receive your SAR, you will find a lot of information but the two most important aspects you need to be concerned with are:
EFC
Eligible Loans
EFC stands for Expected Family Contributions. In your report they will tell you how much they expect you and your family to contribute to your college education. The remainder of the monies needed for college will come from your student loans.Eligible loans are basically that. You’ll receive a list of federal unsubsidized and subsidized student loans that you qualify for. These loans will usually be a Stafford, Perkins Loans or Pell Grants.Keep a couple of things in mind:1. The colleges you chose on your report will also receive your SAR report and if you receive federal monies, they will take money out of the loan for tuition and then send you the rest of the money to use on school related expense.2. You can choose to accept the total loan, partial loan or no loan at all. And you can choose which loan institutions you want to go through.The first time you fill out the FAFSA you will probably say to yourself: “this is the last time I’m doing this”, but trust me, it is easier the second time around. Just don’t forget to fill it out early in the calendar year so there will be money for you.

How To Pay Off Your Student Loans

While student loans have helped many poor students by enabling them to pursue further studies by providing financial assistance, it can also be an emotionally and mentally exhausting journey.Repaying a large student loan or multiple student loans can be a long burden which extends many years, well into your working years. Many students which have graduated find themselves having to set aside a large portion of their salary just to repay the student loans.So what solution is available to help? A student loan consolidation plan may be able to help you particularly if you are repaying several student loans concurrently.A student loan consolidation plan consolidate your student loans into one loan thus you only need to make one payment each month. This will help to better manage your finances as now you only repay one loan.There are several types of student loan consolidation plans available depending on who you lend it from. Examples are federal student loan consolidation, sallie mae student loan consolidation etc. Check with your school or lender for more information.There are several ways in which you can repay a student loan consolidation. The most common is a standard repayment plan. You repay a fixed amount every month until you fully repay the loan.A graduated payment plan allows you to repay the student loan after you have graduated. It is suited for students who have no income during studies and only able to repay when they graduated and have a job.A variable payment plan allows you to adjust how much you repay each month depending on your income level. It allows a greater flexibility and is more suited for people whose income varies each month. An example would be salesmen who earn via commission.Another advantage of student loan consolidation is that it also helps to improve credit rating. Since you are effectively getting a new loan and your existing loans have already been cleared, it will help to improve your credit rating and easier to get financial assistance should you need one in future.I would advise getting a federal student loan consolidation as the interest rates are one of the lowest available and the government loan is open to anyone studying in an american education institution.

Things You Need to Know About Federal Student Loans

Funding your education can be a daunting task for most of us. Unless you are born into a privileged family, finding money to further your academic goals may pose considerable challenge. One very popular way to fund your college education is by getting student loan. Yet with too many institutions offering loans of various kinds and with different rates, how do you select the best one for you? Why not consider Federal Student Loans?Getting to Know Federal Student Loans What are actually federal Student Loans? Federal Student Loans or Direct Loans are part of the federal student aid administered by the UDS Department of Education. These are special loans not offered via private lenders or companies but they are made in agreement between the student and the US Department of Education.Those who wish to apply for a Federal Student Loan must fill in a Free Application for Federal Student Aid (or FAFSA) which can be done via the Internet. Just include all the necessary documentations and information required. Additionally, students must complete a Master Promissory Note (or MPN) which is actually a legal document that explains the contract between the related parties. All the terms and conditions of the loan are stated in clear terms in MPN as well.Getting the LoanAfter successfully securing one of the loans, student may sign up and use the service center. By gaining access to this feature, they may view the loan amount and all related information. Plus, you may also opt to use the services of a counselor form a direct loan servicing site. .It is quite easy to qualify for the loan, you just have to be enrolled in a school that is eligible for the direct loan student loan. And you don’t have to be a full-time student either, you can ask for a Federal loan or direct loan even when you are on a studying part time basis.The Most Common Types of Federal LoansGenerally, there are two most common types of federal loan or also referred to as Direct Loans:- (i) The Subsidized Loan The Federal Subsidized Student Loan has an interest paid subsidy that it lightens the burden of the student to manage. Now, Students don’t have to worry about the interests as they are fully paid by the Government. That should be a reason to have greater peace of mind and to excel in the current academic pursuit. (ii) Unsubsidized Stafford LoanThese are meant for graduate student who have families of their own to support, or if they have no living parent to support them. These are loans with low interest. There is a limit you can get with these kinds of loan and students can expect around $8,000 in total amount.Federal Student Loans do have a fixed interest which is determined every July 1st. There is a minimum fee incurred, which can be set up to 4%, which is used to offset the cost of managing the services of these programs.

How To Get Federal and Private Student Loan Forgiveness

I am sure that many of you face student debt out there still after years of trying to pay it off or maybe you are just starting to pay off those loans out of college. Whatever the case is, many of you would like to take care of that student loan debt as soon as possible.One option that the government provides is through student loan forgiveness. These are great ways for you to give to Uncle Sam or some public service that is needed and in return for your time and skilled service they are kind enough to take care of some or all of your student loans.These options should be decided carefully and please don’t do them for the sole purpose of getting some student loan help because you are bound to hate yourself after a while. You need to find something you are passionate about and at the same time will allow for you to take care of some necessary debt for your future.1. Law SchoolMany of you face law school debt and that is practically a mortgage with the amount you have to shell out for a few years of reading books and losing sleep. Some of you might think that you are going to get hired by some great law firm and everything will be taken care of and that might happen, but for many of you that will not be an option.Another thing to look at is working for a non-profit or public interest organization. This can help you take care of some much needed debt and give yourself a serviceable name in your industry. It might not be glamorous, but it is a good way to take care of all of the debt that will eat at your bank account for years.2. Physical or Occupational TherapyThis is a great example of high in demand and low in supply when it comes to therapists. There are plenty of positions out there that hospitals, the government, and private facilities need to fill and people will always get sick and need medical help. This is a good way to take care of some medical bills that have pilled up just like the law student that we talked about.3. Military ServiceWell this one I would not put as number one for me personally because of the potential health risks, but I am sure you would learn some pretty impressive skills that you can bring back to the “real world” and apply. This is also not exotic, but it will pay the student loan bills and if you are willing to get into hostile territory you can get paid a lot.4. Peace CorpThis is also an international option like the military, but without all of the weaponry. This could create up to 70% debt reduction and help you see the world through a different set of eyes. Many of these traveling experiences will allow you to view struggles of simple people fighting for necessities that we take for granted.5. Social ServicesThere are countless honorable professions such as law enforcement, helping people find housing and occupations, assisting with disabled and elderly, along with other correctional officer positions that can impact your bank account and other lives. These services are some of the best because they will allow for potentially your whole student loan to be taken care of.

5 Benefits of Student Loan Consolidation

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. It is called student loan consolidation.What is Student Loan Consolidation?Student loan consolidation simply means consolidating all your student loans into a single loan with a monthly payment plan. Effectively, all your previous student loans are written off and a new student loan is created which you have to pay off monthly.Benefits of Student Loan ConsolidationHere are some of the benefits of student loan consolidation1. Lower monthly paymentsBy consolidating all your student loans into one loan, you only need to pay off one loan monthly instead of several student loans monthly. Thus, your monthly payment is lower2. Pay only one loan monthly instead of several student loans monthlyIt is a lot easier if you have to manage only one student loan instead of several student loans with different payment deadlines. Also, sometimes with many student loans, you may ended up forgetting to pay one student loan.3. Low, fixed interest rateBy consolidating your student loans, you will be able to take advantages of low, fixed interest rates. Currently, by law, student loan consolidation rates cannot exceed 8.25%. Furthermore, national interest rates are at a 40-year low therefore this is a good time to get one.4. No credit card check or processing feesNo credit card check is required during the application of a student loan consolidation. The payment plans and terms are usually quite flexible in that they can customize it according to your financial standing.5. Make monthly student loan payment electronicallyWhile it is not necessary to make payment electronically, most lenders will knock 0.25% off your student loan rates if you make payment electronically. Also, using direct debit from your bank account will prevent you from forgetting to make a payment.Sometimes it can get quite confusing as to the qualification of applying for a student loan consolidation. The official stand from the government is that students who are still in their grace period or who are still studying in school may qualify for government student loan consolidationThe government student loan consolidation nowadays are quite competitive compared to private sector, therefore I would recommend going for a government student loan consolidation. With so many benefits of getting a student loan consolidation, it is quite obvious to save money in the long run is to get one.

Why is FAFSA So Important to College Students Looking For Student Loans?

FAFSA is Your Ticket to student loans?FAFSA is your only entry into the world of federal student loans. You can also find yourself the recipient of a federal grant and work study programs to boot. Without a Student Aid Report (SAR), your chances of getting the best student loans are almost nil.FAFSA, stands for Free Application for Federal Student Aid. The feds are your best place to get a college loan because they have the money to lend at a decent interest rate and the government will actually make your interest payment on some of the loans.The application usually is completed online (spanish version as well) but we recommend downloading a copy and printing it out. It will take you time to research and find the answers to their questions.First you need to create an account with FAFSA. This pin number will allow you to proceed with filling out the application. You will then continue to use that pin number as long as you are applying for federal student loans. Basically it is a virtual account system.CRITICAL NEWSFLASH
Many institutions use the report to help them determine what type of student loan you are eligible for. It is not strictly used for federal purposes.
Money or loans are awarded on a first come first served basis.
January is the start date that you can apply through FAFSA to get student loans for the following fall quarters.
Last year we completed our FAFSA in February and still received our student loans for 2 family members.
Seek help from your high school counselor or a college admissions advisor like we did.
When you receive your SAR, you will find a lot of information but the two most important aspects you need to be concerned with are:
EFC
Eligible Loans
EFC stands for Expected Family Contributions. In your report they will tell you how much they expect you and your family to contribute to your college education. The remainder of the monies needed for college will come from your student loans.Eligible loans are basically that. You’ll receive a list of federal unsubsidized and subsidized student loans that you qualify for. These loans will usually be a Stafford, Perkins Loans or Pell Grants.Keep a couple of things in mind:1. The colleges you chose on your report will also receive your SAR report and if you receive federal monies, they will take money out of the loan for tuition and then send you the rest of the money to use on school related expense.2. You can choose to accept the total loan, partial loan or no loan at all. And you can choose which loan institutions you want to go through.The first time you fill out the FAFSA you will probably say to yourself: “this is the last time I’m doing this”, but trust me, it is easier the second time around. Just don’t forget to fill it out early in the calendar year so there will be money for you.

The Best Companies For Student Loan Consolidation

What are the best companies for student loan consolidation? There are many ways to handle paying your college loans. Many graduates prefer to consolidate their multiple college loans into one loan. Contacting one of the many companies that lend money specifically for student loan consolidation helps make the decision to consolidate much easier.Even if you can make the monthly payments from your original loans, you may still want to consider consolidating to lower your payments and free up money for other bills with higher interest rates. Using some of the best companies for student loan consolidation helps make the process easier rather than going to a company that doesn’t specialize in student loan consolidationsA consolidation loan lets you combine all your federal student loans into one single loan. Consolidation loans have fixed interest rates that are based on a weighted average of all the loans you are consolidating. You can gain a lower total interest rate if you contact companies that provide loans at the lowest average interest rate. This protects you from future rate increases, but does not allow you to benefit if variable rates decrease in the future. You can also get decreased interest rates by making regular payments or simply allowing your payments to be drafted directly from your bank account.Consider The CostRepayments on consolidated loans begin within 60 days of consolidation and have payback terms between 10 and 30 years depending on the amount of the loan and the payment options you select. Some of the best consolidation companies for student loan consolidation will have a variety of plans for repayment, so you’re sure to find one that matches your circumstances. You can also pay your loans off early and there is generally no fee associated with doing so.While loan consolidation can simplify loan payments and lower your monthly bill by as much as 50%, it can increase the total cost of paying off your loan. Consolidation companies are able to offer lower monthly payments by extending the life of the loan. This fact means that the amount of interest you pay may double by the time you pay off the loan. If you don’t need the payment relief offered by consolidation, you should carefully consider the cost of paying your non-consolidated loans against the cost of loan consolidation.You should also consider the fact that once consolidated; you will lose many of the benefits of a non-consolidated loan such as discounts on your interest rate, principle rebates, or loan cancellation benefits, all of which can decrease the amount of your loan.College loan repayments don’t have to be a source of stress in your young adulthood. If you are doing all you can to make your monthly payments, but still can’t find a way to make ends meet it may be best that you contact one of the many companies that offer student loan consolidation. Don’t struggle, investigate today.

How To Choose Which College Loan To Apply For

Are you struggling to find out how to pay your college fees? You probably know you are going to need a loan but which kind is suitable for you? The type of college or student loan I qualify and how much should I loan? If you are wondering, then please read this article.The first thing you need to do before rushing out to get a loan is to ask yourself some questions.Besides the obvious cost such as college fees and tuition fees, you might want to consider other cost that you will incurred during your college years. Examples include the school supplies, study guides. Others include the lodging, food, transportation, insurance and even your car if you have one.Jot down how much you need to spend for each item for one year. Add them together and multiply them by the number of years you spend in college. This will give you a rough guide as to how much you need to loan.If you plan on getting a part-time job to supplement your income, you can subtract that from the total amount you need to loan.It’s important to know the types of student loans available so I briefly discuss these as well.Student loans can be broadly categorized into 2 types : subsidized and unsubsidized.Subsidized student loans are available from the government. Every year, the federal government disburses millions of dollars of student loans to those in financial need. An example is federal student loan which is heavily subsidized and the interest rate is very low or even none in some cases.It can be difficult to get these type of student loans. You may need to demonstrate your financial status in order to qualify.The other type is unsubsidized student loans. For this type of loan, you must pay the interest in full and you can usually choose to pay immediately or deferred until you have graduated.This type of loan is easier to qualify. In fact, almost anyone can qualify however the loan amount depends a lot on your credit score.These student loans are available from the government as well as most financial institutions and lenders.Regardless of which type of student loan you choose, always remember to calculate how much you are going to need first. If possible, try to pay your home as soon as possible to remain debt free.

Facts About Loans For College Students

So you need help paying for college. What now?Loans for college students are the most common type of financial aid. Unfortunately, loans are borrowed money and unlike scholarships and grants, they require repayment with accumulated interest. The repayment (or default) of student loans affects a person’s credit rating, so it is important to be fully informed about different types of loans and repayment options before borrowing loans for college students.The first step toward receiving financial aid for college is to fill out a Free Application for Federal Student Aid (FAFSA) through the U.S. Department of Education (U.S.D.E.). According to the U.S.D.E., the office of “Federal Student Aid plays a central and essential role in supporting postsecondary education by providing money for college to eligible students and families.” Filling out a FAFSA is the initial step to receive assistance for funding a postsecondary education.Subsidized vs. UnsubsidizedTo determine interest repayment, student loans fall into one of two categories, either subsidized or unsubsidized. Subsidized loans are lent to students on a basis of great financial need, and for this reason, the federal government pays any interested accumulated the loan while the student is still in school or while repayment is deferred for an authorized reason. But students are solely responsible for paying any accumulated interest on unsubsidized loans.Direct vs. FFELTwo different programs within the U.S. Department of Education are responsible for disbursing loans to students. Direct Loans are part of the William D. Ford Federal Direct Loan Program and are issued directly from the U.S.D.E. so students repay these loans to the U.S.D.E. On the Other hand, FFEL Loans (Federal Family Education Loan Program) are insured by the federal government but disbursed through a private lender. Students repay these loans to the private lender.Repayment ScheduleRepayment of loans for college students varies greatly, depending on factors like the total amount of money that a student borrowed, the length of time the student was enrolled in school and the student’s income level after graduation. As a general rule, students have a grace period of six to nine months after they graduate or drop below part-time enrollment status before they must begin repaying their loans.Types of Federal Loans for College Students
Perkins Loans: these loans are lent to students demonstrating great financial need. Federal Perkins Loans are distributed through your school and must be repaid to your school within ten years.
Stafford Loans: these loans are awarded on a basis of financial need and may be either subsidized or unsubsidized. Direct Stafford loans are disbursed to students by the U.S.D.E. and FFEL Stafford Loan disbursed through a private lender, like a bank. Loans are repaid to their respective lender.
PLUS Loans: these are loans borrowed by a student’s parent or legal guardian. PLUS loans can be borrowed to cover any remaining tuition costs that are not covered by other loans. All PLUS loans are unsubsidized and the borrower is responsible for paying all interest. Direct PLUS loans have a fixed interest rate of 8.5 percent, FFEL PLUS loans 7.9 percent.
If a student’s federal financial aid award is not enough to cover the cost of college tuition and other expenses, loans are available through a variety of private lenders as well. Private loans often have higher interest rates and less flexibility when it comes to repayment, so it’s important to research your options before borrowing loans for college students.

How Does Student Loan Consolidation Work?

Nowadays, the cost of higher education is getting more and more expensive. Some families may not be able to afford to send their son or daughter for further education. Getting a student loan will help.There are 2 broad categories of student loans available. Government student loans and private student loansGovernment or federal student loans are funded and administered by the US Department Of Education. It is classified under Federal Student Loans Aid Program. They have very few requirements other than you are studying in a US college or university. International students may also apply though approval is on a case by case basis.Every year, the student loan aid program disburse nearly 60 billion dollars so it is a good choice for get a student loan from the government. Thus the interest rates are pretty low.Private student loans are funded and administered by banks and other financial institutions. These lenders provide student loans at a higher interest rate compared to federal student loans. Some common student loans available are from Citibank and Sallie MaeYou are allowed to apply for both private and federal student loans for your education needs although I would not recommend it.For some students who have a few student loans to repay concurrently, it can be a financial drain on their family finances. That is where student loan consolidation comes in.Student loan consolidation basically consolidates all your student loans into one loan so that it is easier to manage and make payments. When you are getting a student loan consolidation whether from the government or the private market, your existing student loans are paid for and erased by the student loan consolidation lender. The balances are transferred to the new student loan consolidation. Thus you start a new loan and only needs to make a single payment each month.There are many advantages to using student loan consolidation. The interest rates will be lower since it takes the average interest rates of your previous student loans. Thus due to government legislation, the maximum interest rate cannot be higher than 8.25 percent.It becomes a lot easier to manage a single student loan and payment are easier. The repayment options are quite flexible. For federal student loan consolidation, you can opt to start repaying after you have graduated from school. There are also several other options.Another beneficial side-effect of student loan consolidation is that it can also improves your credit score. Since you are effectively clearing all your old student loans and taking a new one, your credit score will increase and is important if plan to take other types of loans in the future.