Student Loan Advice

RSS Feed Homepage

Articles: 1, 2, 3, 4

When do I pay back my Stafford Loans?
2008-02-15 01:12:00
After you graduate, leave school, or drop below half-time enrollment, you will have a six-month "grace period" before you begin repayment. During this period, you'll receive repayment information, and you'll be notified of your first payment due date. You're responsible for beginning repayment on time, even if you don't receive this information. Payments are usually due monthly.During the grace period on a subsidized loan, you don?t have to pay any principal, and you won?t be charged interest. During the grace period on an unsubsidized loan, you don?t have to pay any principal, but you will be charged interest. You can either pay the interest or it will be capitalized (added to your principal loan balance, thus increasing the amount you?ll repay).
More About: Loans , Back

Other than interest, is there a charge for this loan?
2008-02-14 17:31:00
You'll pay a fee of up to 4 percent of the loan, deducted proportionately from each loan disbursement. For a FFEL Stafford Loan , a portion of this fee goes to the federal government, and a portion goes to the guaranty agency (the organization that administers the FFEL Program in your state) to help reduce the cost of the loans. For a Direct Stafford Loan, the entire fee goes to the government to help reduce the cost of the loans. Also, if you don't make your loan payments when scheduled, you may be charged collection costs and late fees.
More About: Charge , Interest

What's the interest rate on a Stafford Loan?
2008-02-13 23:28:00
For all Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent. This change from a variable to a fixed interest rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.For Stafford Loan s first disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable (adjusted annually on July 1st) but will not exceed 8.25 percent. (You'll be notified any time the variable rate changes.) The interest rate for these loans in 2007-08 is 7.22 percent. (This rate applies to loans in repayment status; the rate may be lower during grace and deferment periods.)(Source: Studentaid.ed.gov)
More About: Interest , Rate , Interest Rate

How will I get the Stafford Loan money?
2008-02-13 18:28:00
For both the Direct Loan and FFEL programs, you'll be paid through your school in at least two installments. No installment may exceed one-half of your loan amount. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If loan money remains, you'll receive the funds by check or in cash, unless you give the school written authorization to hold the funds until later in the enrollment period.Generally, if you're a first-year undergraduate student and a first-time borrower, your school cannot disburse your first payment until 30 days after the first day of your enrollment period. This practice ensures you won't have a loan to repay if you don't begin classes or if you withdraw during the first 30 days of classes.A school with a cohort default rate of less than 10 percent for each of the three most recent fiscal years for which data are available are not required to delay the delivery or disbursement of the first disbursement of...
More About: Money

How much can I borrow for a Stafford Loan?
2008-02-12 21:25:00
It depends on your year in school and whether you have a subsidized or unsubsidized Direct or FFEL Stafford Loan . A subsidized loan is awarded on the basis of financial need. If you're eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you're in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your level of study (see below).You might be able to borrow loan funds beyond your subsidized loan amount even if you don't have demonstrated financial need. In that case, you'd receive an unsubsidized loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you're eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized lo...
More About: Borrow

How to Choose and Evaluate Lenders for Stafford Loan
2008-02-12 17:24:00
You'll need to choose a lender if you obtain a FFEL Stafford Loan . (If you have a Direct Stafford Loan, the federal government?through the U.S. Department of Education?is your lender.) Schools that participate in the FFEL Program will usually have a list of preferred lenders. Student loan borrowers may choose a lender from that list, or choose a different lender they prefer (for example, a credit union). Here are a few things to think about when selecting a FFEL lender.(Source: Studentaid.ed.gov)
More About: Choose , Lenders

Stafford Loans
2008-02-11 17:22:00
In addition to Perkins Loans , the U.S. Department of Education administers the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Both the FFEL and Direct Loan programs consist of what are generally known as Stafford Loans (for students) and PLUS Loans (for parents).Schools generally participate in either the FFEL or Direct Loan program but sometimes participate in both. Under the Direct Loan Program, the funds for your loan come directly from the federal government. Funds for your FFEL will come from a bank, credit union, or other lender that participates in the program. Eligibility rules and loan amounts are identical under both programs, but repayment plans differ somewhat.How can I get a FFEL or Direct Loan?For either type of loan, you must fill out a FAFSA. After your FAFSA is processed, your school will review the results and will inform you about your loan eligibility. You also will have to sign a promissory note, a...

Crackdown
2008-02-08 15:12:00
Yesterday the House side of Congress voted in the College Opportunity and Affordability Act, H.R. 4137. A major feature of the bill clamps down on shady tactics in the student loan industry. The bill sets in place codes of conduct of the "friendships" lenders and university officials currently have. There will be no more kickbacks from sweetheart deals ... just in time for Valentines Day. The bill now goes to the Senate and the White House is already stating they strongly oppose it. I smell a veto coming.
More About: Crackdown

The Today Show - College Loan Scandals
2008-02-06 23:46:00
This was filmed last summer but is still relevant for today:
More About: College , Show , Loan , Scandals , Today

Student Bank Loans
2008-02-06 17:57:00
Suppose you need a student loan and you don't want to be hindered by the restrictions and timeline of federal loans. Look into student bank loans.Some of the advantages of student bank loans:* It's usually a faster approval time.* You don't have to fill out a FAFSA (Free Application For Federal Student Aid).* You can borrow a good bit more money. (This is especially good if you're shooting for an expensive private institution.)Student bank loan approval is based on your personal credit score and history as well as your ability to pay it off ... the better your rating, the better interest rate you get. Don't get scared, the loan rate will be comparable to a federal student loan and not like a credit card rate.So, if your responsible and are considered a low risk, getting a student bank loan can save you the red tape surrounding federal loans.Here's a couple of links for student bank loans:WachoviaBank of America
More About: Loans

Addressing Your Defaulted Student Loan
2008-02-05 21:46:00
If this applies to you then listen up. Here's what the Federal Student Aid office says:Make a payment now by credit or debit card (We accept American Express, Discover, Master Card and Visa as repayment options. Please contact the Default Resolution Group at 1-800-621-3115 to process your credit card payment).Student loan borrowers in default now have more options than ever before to repay their student loans. The U.S. Department of Education's (Department) Default Resolution Group is committed to assisting individuals in default by making debt repayment a simple process.This site will provide you with information on the following loan programs:Federal Family Education Loan s (FFEL), which include Federal Stafford, Federal Consolidation and Federal PLUS loans. When placed in default, these loans are first assigned to a guaranty agency (an organization that administers the FFEL Program for your state) for collection. Periodically, guaranty agencies assign loans to the Department f...
More About: Dressing

Student Loan Calculator
2008-02-05 16:40:00
Here's a handy little calculator from CNN Money to help you determine how quickly you'll pay off your student loans. I figure your loan amount and interest rate are set. Play around with the monthly payment amount. Figure out the maximum monthly payment you can afford and see how short your loan will last.
More About: Student , Calculator , Loan

Chase cuts rates and fees
2008-02-04 22:40:00
Here's something to consider if you're currently shopping around for a student loan. According to Reuters:Chase Education Finance said it will waive the origination fee on Stafford loans and the 1 percent default fee on Stafford, Parent PLUS and Grad PLUS loans.It said it will also reduce the interest rate on all three loans by one-tenth of a percentage point if it makes, services and retains the loans.
More About: Fees , Rates , Cuts , Hase

Sponsor my Loan
2008-02-01 21:54:00
There's a Mr. Luke Livingston that has come up with a clever way to help pay off his student loans. Check out sponsormyloans.com and see what he's done.For $200, you can be the sole sponsor of his site for 1 month with your ads on the header, footer, and sidebar. It reminds me of the "million dollar home page" some time ago but this site is a good bit more reasonable.
More About: Loan , Sponsor

Sallie Mae Update
2008-01-31 18:29:00
Sallie Mae is tightening its belt and will "no longer provide loans to students with sub-prime credit scores." (Source: collegiatetimes.com)"As a result of the impact of the College Cost Reduction and Access Act and the deterioration of the credit markets, Sallie Mae is discontinuing certain non-standard private education loan programs," said Tom Joyce, senior vice president of Sallie Mae's corporate communications. "We are also in the process of adjusting our underwriting criteria and pricing of our private education loans to reflect the current financing and market conditions."Sallie Mae is also laying off 350 people (3% of their workforce) and looking to reduce their costs by 20% in the next two years.
More About: Update , Sallie Mae

Student Loans Pilot
2008-01-23 17:32:00
I'm not sure these guys have the best advice.
More About: Student , Loans , Student Loans , Pilot

Mucho ojo... Tenga cuidado al buscar ayuda para estudiantes
2008-01-22 18:06:00
Fraude de becas¿Cómo son los servicios de búsqueda de becas?Hay muchos servicios particulares de búsqueda de becas que suministran listas de fuentes de ayuda económica. Es importante señalar, sin embargo, que nosotros no evaluamos esos servicios. Si usted opta por usarlos, debería comprobar su reputación comunicándose con la Oficina de Buenas Prácticas Comerciales (Better Business Bureau) o con la oficina de la procuraduría general de su estado. Se pueden hacer búsquedas de becas sin costo en nuestro sitio Web: www.FederalStudentAid.ed.gov. ¿Cómo puedo asegurarme de que estos servicios no son una estafa? ¿A qué debo prestar atención?Hay que ser muy precavido a la hora de buscar información sobre la asistencia financiera. Se calcula que las familias pierden millones de dólares cada año a causa del fraude de becas. La Ley de Prevención de Fraude de Becas Postsecundarias (College Scholarship Fraud Prevention Act) protege a las personas contra el fraude relacionado con la ayuda para est...
More About: Para , Estudiantes , Antes

Información gratuita sobre los programas federales de ayuda para estudiante
2008-01-21 23:05:00
La mayor parte de la ayuda estudiantil otorgada en el país proviene de los programas de becas, trabajo y estudio, y préstamos que administra el Departamento de Educación de EE.UU. Otorgamos casi toda la ayuda de estos programas según la necesidad económica que evidencie el estudiante. Ni las calificaciones académicas ni la posición relativa que éste ocupe en su promoción figuran en la decisión de conceder ayuda.Si, después de leer la presente publicación, todavía tiene dudas sobre los programas federales de ayuda estudiantil, puede hacer lo siguiente: Visitar nuestro sitio Web, en www.FederalStudentAid.ed.gov. Este sitio ofrece información completa y GRATUITA sobre todo lo relacionado con la ayuda estudiantil, como asi mismo enlaces a otros sitios que informan sobre la asistencia financiera. Llamar a nuestro Centro de Información sobre Ayuda Federal para Estudiantes al 1-800-433-3243. Otras fuentes de ayudaOficina de ayuda económicaConsulte con el administrador (o con su personal) e...
More About: Programas , Para

RESUMEN DE LOS PROGRAMAS DE PRÉSTAMOS
2008-01-21 18:04:00
Los estudiantes de pregrado y de posgrado pueden recibir Préstamos Stafford. Los estudiantes de posgrado y los padres de alumnos dependientes que cursan estudios de pregrado pueden obtener Préstamos PLUS. Para recibir un préstamo, hay que estar matriculado para estudiar con dedicación de tiempo completo o medio tiempo en una institución educativa participante y con el fin de recibir un título o certificado. Los préstamos estudiantiles son dinero prestado que, al igual que los préstamos hipotecarios o los que se obtienen para comprar un automóvil, deberán devolverse al prestamista con intereses. No se puede anular la deuda de los préstamos estudiantiles por el simple hecho de que al prestatario no le haya gustado la educación que recibió o no haya obtenido empleo relacionado con su campo de estudio, ni porque esté pasando dificultades económicas. Estos préstamos suponen una obligación legal, así que conviene pensar bien, antes de conseguirlos, el monto que tendrá que reembolsarse a l...
More About: Programas

Préstamos PLUS
2008-01-20 19:04:00
La ley ahora permite a los alumnos de posgrado participar en el programa de Préstamos PLUS. Los mismos términos y condiciones que corresponden a los padres que obtienen Préstamos PLUS para cubrir los estudios de alumnos dependientes también corresponden a los estudiantes de posgrado. Estas condiciones incluyen las siguientes: que el solicitante no tenga historial crediticio negativo, que el período de devolución comience en la fecha del último desembolso del préstamo y que los Préstamos FFEL PLUS tengan una tasa de interés fija del 8.5 por ciento y los Préstamos Directos PLUS, del 7.9 por ciento. Al igual que los padres, los estudiantes de posgrado pueden obtener hasta un monto equivalente al costo de estudiar menos otra ayuda económica recibida. A diferencia de los padres, los estudiantes de posgrado deberán llenar la FAFSA si desean participar en el Programa de Préstamos PLUS. Además, antes de solicitarse el Préstamo PLUS, la institución educativa del estudiante de posgrado deberá...

Préstamos (continuación)
2008-01-19 22:02:00
¿Cuáles son las diferencias entre estos programas de préstamo?En el cuadro que presentamos anteriormente, se muestran las diferencias principales entre los programas. Para obtener información más detallada, siga leyendo la presente sección. La oficina de ayuda económica de la institución educativa puede indicar cuáles de los programas se ofrecen ahí. ¿Cómo hago para solicitar un Préstamo Perkins o un Préstamo Stafford?Al igual que se haría para solicitar cualquier asistencia de nuestros otros programas, hay que llenar la Solicitud Gratuita de Ayuda Federal para Estudiantes (FAFSA). No es necesario llenar ninguna otra solicitud de préstamo. Sin embargo, tendrá que firmar el pagaré, que es un documento legalmente vinculante que lo compromete a reembolsar el préstamo según las condiciones estipuladas en esa letra. Es importante leer el pagaré con detenimiento y guardarlo para futura referencia. ¿SABÍA QUE??Un título universitario le dará mejores probabilidades de empleo y mayores ingre...

Préstamos
2008-01-19 01:04:00
A diferencia de las becas o del trabajo y estudio, los préstamos son dinero prestado que debe reembolsarse con intereses al prestamista, al igual que los préstamos hipotecarios o los que se obtienen para comprar automóviles. Si usted obtiene estos préstamos, recuerde que no se puede anular la deuda de los mismos por el simple hecho de que no le haya gustado la educación que recibió o no haya obtenido empleo relacionado con su campo de estudio, ni porque esté pasando dificultades económicas. Estos préstamos suponen una obligación legal, así que antes de conseguirlos, piense bien el monto que tendrá que devolver a lo largo de los años. Tipos de préstamos:Préstamos Federales «Perkins»:Estos créditos se hacen a los alumnos de pregrado y de posgrado, mediante instituciones participantes.Se ofrecen a los alumnos que demuestren el mayor grado de necesidad económica (los becarios Pell tienen consideración prioritaria).El beneficiario puede cursar estudios con una dedicación de tiempo comple...

Trabajo y estudio
2008-01-18 18:42:00
¿Qué es el Programa Federal de Trabajo y Estudio?En este programa, usted puede estudiar a tiempo parcial y así ganar dinero para pagar su educación. El Programa Federal de Trabajo y Estudio tiene las siguientes características: Permite al alumno trabajar a tiempo parcial mientras estudia. Ayuda a pagar los gastos de estudio. Pueden participar los estudiantes de pregrado y de posgrado Pueden participar los que estudian con dedicación de tiempo completo o parcial. Las instituciones participantes administran el Programa. El Programa fomenta, en lo posible, la labor al servicio de la comunidad y también el trabajo relacionado con el programa de estudio del alumno. ¿Qué tipos de trabajo se ofrecen?El Programa Federal de Trabajo y Estudio ofrece puestos de empleo al alumno que demuestre necesidad económica. El Programa fomenta la labor al servicio de la comunidad y también el trabajo relacionado con el programa de estudio del alumno. Los puestos otorgados al amparo del Programa Federal de...

¿Qué tipos de ayuda federal puedo obtener?
2008-01-17 18:30:00
Hay tres tipos de ayuda federal para estudiantes:Becas: Ayuda económica que no tiene que devolverse (a menos que, por ejemplo, el becario se retire de la institución educativa y, por ello, deba reintegrar lo recibido al programa de becas). Trabajo y estudio: Ayuda estudiantil que el alumno gana trabajando. Préstamos: Ayuda que el alumno toma prestado para sufragar los gastos de estudio. Hay que devolver los préstamos, con intereses, al prestamista. BecasHay cuatro tipos de becas federales: La Beca Federal «Pell» La Beca Federal Suplementaria para la Oportunidad Educativa (FSEOG) La Beca para el Fomento de la Competitividad Académica (ACG) La Beca Nacional para el Fomento de la Retención de Estudiantes de Matemáticas y Ciencias (Beca Nacional SMART) A diferencia de los préstamos, las becas no tienen que reembolsarse, a menos que, por ejemplo, se otorguen los fondos al alumno de forma indebida o éste se retire de la institución educativa. Todas las becas federales se otorgan a estudia...

Apply Early for Federal Student Aid with the FAFSA
2008-01-17 18:28:00
The start of the calendar year also marks the beginning of the college financial aid season with the release of the U.S. Department of Education's 2008-09 Free Application for Federal Student Aid (FAFSA). The FAFSA is the qualifying form for all federal grants and loans as well as many state and private student aid programs. Each year, the U.S. Department of Education disburses more than $80 billion in higher education grants and loans to students attending postsecondary schools, but, to qualify, students must first complete the FAFSA. "We want to make sure students and families take full advantage of the billions of dollars in federal financial assistance available to them for postsecondary education each year," Secretary Margaret Spellings said. "Most families are eligible to receive some type of financial aid; they just have to take that first step and complete the application."Each year, an estimated 14 million applicants apply, and more than 10 million receive some type of fed...
More About: Early

529 - Part 11
2008-01-11 00:30:00
Where can I find more information?Offering Circulars for 529 PlansYou can find out more about a particular 529 plan by reading its offering circular. Often called a “disclosure statement,� “disclosure document,� or “program description,� the offering circular will have detailed information about investment options, tax benefits and consequences, fees and expenses, financial aid, limitations, risks, and other specific information relating to the 529 plan. Most 529 plans post their offering circulars on publicly available websites. The National Association of State Treasurers created the College Savings Plan Network which provides links to most 529 plan websites. Additional Information About Underlying Mutual FundsYou may want to find more about a mutual fund included in a college savings plan investment option. Additional information about a mutual fund is available in its prospectus, statement of additional information, and semiannual and annual report. Offering circular...
More About: Part

529 - Part 10
2008-01-10 18:13:00
What questions should I ask before I invest in a 529 plan?Knowing the answers to these questions may help you decide which 529 plan is best for you. * Is the plan available directly from the state or plan sponsor?* What fees are charged by the plan? How much of my investment goes to compensating my broker? Under what circumstances does the plan waive or reduce certain fees? * What are the plan’s withdrawal restrictions? What types of college expenses are covered by the plan? Which colleges and universities participate in the plan? * What types of investment options are offered by the plan? How long are contributions held before being invested? * Does the plan offer special benefits for state residents? Would I be better off investing in my state’s plan or another plan? Does my state’s plan offer tax advantages or other benefits for investment in the plan it sponsors? If my state’s plan charges higher fees than another state’s plan, do the tax advantages or other benef...
More About: Part

529 - Part 9
2008-01-09 20:08:00
Is investing in a 529 plan right for me?Before you start saving specifically for college, you should consider your overall financial situation. Instead of saving for college, you may want to focus on other financial goals like buying a home, saving for retirement, or paying off high interest credit card bills. Remember that you may face penalties or lose benefits if you do not use the money in a 529 account for higher education expenses. If you decide that saving specifically for college is right for you, then the next step is to determine whether investing in a 529 plan is your best college saving option. Investing in a 529 plan is only one of several ways to save for college. Other tax-advantaged ways to save for college include Coverdell education savings accounts, Uniform Gifts to Minors Act (?UGMA?) accounts, Uniform Transfers to Minors Act (?UTMA?) accounts, tax-exempt municipal securities, and savings bonds. Saving for college in a taxable account is another option. Each coll...
More About: Part

529 - Part 8
2008-01-08 17:59:00
Does investing in a 529 plan impact financial aid eligibility?While each educational institution may treat assets held in a 529 plan differently, investing in a 529 plan will generally reduce a student?s eligibility to participate in need-based financial aid. Beginning July 1, 2006, assets held in pre-paid tuition plans and college savings plans will be treated similarly for federal financial aid purposes. Both will be treated as parental assets in the calculation of the expected family contribution toward college costs. Previously, benefits from pre-paid tuition plans were not treated as parental assets and typically reduced need-based financial aid on a dollar for dollar basis, while assets held in college savings plans received more favorable financial aid treatment.(This is Part 8 of the 529 series.)

529 - Part 7
2008-01-07 22:40:00
What restrictions apply to an investment in a 529 plan?Withdrawal restrictions apply to both college savings plans and pre-paid tuition plans. With limited exceptions, you can only withdraw money that you invest in a 529 plan for eligible college expenses without incurring taxes and penalties. In addition, participants in college savings plans have limited investment options and are not permitted to switch freely among available investment options. Under current tax law, an account holder is only permitted to change his or her investment option one time per year. Additional limitations will likely apply to any 529 plan you may be considering. Before you invest in a 529 plan, you should read the plan?s offering circular to make sure that you understand and are comfortable with any plan limitations. (This is Part 7 of the 529 series.)