College Student Loan News and Info

Federal and campus based student financial aid consists of:

• grants, which will not have to be repaid
• student loans, which allow you to borrow money for school under federal student loan programs
• work study programs, which will allow you to earn money while going to college.

Grants

• Federal Pell Grants can be based on a combination of financial aid need, college costs, and your enrollment status (full- or part-time). Pell Grants will not have to be paid back.
• Federal Supplemental Educational Opportunity Grants (FSEOG) are campus based grants awarded to college students with exceptional financial aid need. They range between $100 and $4,000 per year and will not have to be paid back.

College Student Loans

The US Department of Education administers Stafford College Student Loans and Federal Perkins College Student Loans (for students), and PLUS College Student Loans (for parents of the college student). Some student loan funds will come directly from the federal government and others will come from a bank, credit union, or other financial institution.

• Stafford College Student Loans can be subsidized (the government will pay the interest while they are in school and for six months after they have left school) or unsubsidized (the student will pay the interest from the date they receive the money, but they can defer payment until after they leave school). A college student can receive both types of Stafford College Student Loans for the same school year, but the total will be limited based on what year they are in and whether they are a dependent (parents can claim them on their income taxes) or an independent college student. Interest rates on Stafford College Student Loans disbursed between July 1, 2005 and June 30, 2006 is 4.70% during in-school, grace and deferment periods, and 5.30% during repayment. The interest rate on Stafford college student loans will never exceed 8.25%.
• PLUS Student Loans will allow parents with good credit to borrow money at a more favorable interest rate to help pay for higher education costs for their dependent undergraduate college student. PLUS Student Loans are limited to the cost of attending college minus any other financial aid received. They are not based on financial aid need. The interest rate will be variable but cannot exceed 9%. The interest rate for student loans disbursed between July 1, 2005 and June 30, 2006 is 6.1%.
• Federal Perkins College Student Loans are campus based, low interest, fixed rate college student loans of up to $4,000 per year for those with an exceptional financial aid need. As long as you are attending school at least half time, you will not have to begin repayment until nine months after you have graduated, leave school, or drop below half time status. No interest will be charged until repayment begins.
• Private College Student Loans can be obtained from private lenders for college costs not covered by federal and campus based financial aid. They will usually include higher interest rates than a federal college student loan; however, they also will not require federal forms (FASFA).

There are so many different types of college student loans and college student loan repayment programs to choose from. This gives you many options. It is important that you learn the difference between the various college student loan types to ensure that you get the college student loan most appropriate for you. First, you do need to assess your needs and identify all of your resources, including financial aid assistance options and of course any savings. From there the college student loan comparison process can be much easier than anticipated.

So how does one get started? Well, first of all, you need to figure out what kind of college student loan you will need. Are you a graduating high school senior looking for that first undergraduate student loan to finance a first year’s worth of tuition, room and board, living expenses and books? Have you been taught the importance of a cosigner? Have you compared college student loans to understand the difference between federal financial aid programs and private student loans, and what your options are with both? Alternatively, are you a seasoned college student looking for a graduate college student loan, law school loan, career-training loan, or business student loan to further your education? Do you know the benefits of a Federal PLUS College Student Loan? Do you want to apply for a medical college student loan or a nursing college student loan to save the lives of others? In addition, if so do you want to know about the college student loan consolidation options you may have? Everything you need to know about college student loans can be found with a little research on the net. I have also but some information together for you below.

College Student Loan Comparison

There are many different student loan types to choose from. The real difference between them all is…do you qualify for a federally subsidized or unsubsidized Stafford College Student loan? What does the PLUS student loan really mean for your parents? How can alternative or private student loans help to finance your college career? You need to find the answers to all of these questions before you proceed.

Undergraduate College Student Loans

Undergraduate college students have many college student loan options to finance their college careers. Student loan types ranging from those available to college students themselves, as well as those available to the college student’s parents. There are alternative or private student loans, as well as federal college student loans to help you. Any of these college student loans or a combination of all may be your answer.

Graduate and Continuing Educational Student Loans

Graduate Educational student loans are available to those college students who have chosen to continue their studies in a graduate degree program. This may include business school, law school, medical school, and more. Additionally Continuing Educational student loans are available for college students who take continuing education course work that may or may not be tied to a degree program.

College Student Loan Repayment Options

It may be easy to apply for a college student loan, but paying it back after you have graduated can be a different story. There may be some circumstances in which you might not have the funds to start paying back the student loans every month. Luckily for you there may be various repayment options that you can take advantage of. Every repayment plan will be different, so choose the one that suits your current financial situation.

Refinancing private student loans can offer many financial benefits but knowing how to do it properly will avoid hassles and protect your lower interest loans.

Students look to many types of loans when seeking money to pay for their college educations. In general, they look in two places – to the federal government and private lenders.

Federal loans come from the U.S. Department of Education, which runs student aid programs.

Private loans come from many different lending institutions. These are unsecured loans and usually carry a higher interest rate than the federal loans.

Many students who borrow to pay for higher education end up having both federal loans and private loans. Federal loans most often don’t contribute enough money to pay the cost of attending a university.

The reason private loans cannot be mixed with money borrowed through federal education programs is that the low interest rates only are available at the federal level. If you do consolidate them, you will lose the interest benefits of the federal loans.

If you wish, you may consolidate your federal student loans, but do so before you consolidate the private loans. Federal student loans have an advantage over private student loans. They carry lower interest rates, tax-deductible interest and you are permitted to extend the repayment term up to 30 years through a consolidation.

Consolidating the private school loans often is a smart choice because the original loans often carry higher interest rates, tight repayment terms and lack the protection of the federal loans.

Most education loans in the private market aren’t competitive, meaning you likely won’t find much benefit in terms of price by refinancing.

There are other benefits though that make a consolidation worthwhile, especially if you’re looking for ways to cut the monthly cost of the loan.

Lumping all of your education loans into one helps make repayment more simple by creating a single payment each month rather than having to pay several lenders. And, refinancing also will create a new repayment term, which often will decrease your monthly payment total.

Of course, by extending the repayment term than originally set, you will pay more money in interest.

Another potential benefit of refinancing occurs if your credit score has improved in recent years. Interest rates on private student loans are determined based on your credit score. An improved credit score might equate to a lower interest rate during your refinancing.

When someone is in college, often they are looking for a job that they can do to supplement their income and give them a little extra money. Here are some jobs that are good for college students.

1. Babysitter

If the college student enjoys children, this is a great job for them to have. It’s a great way to get some cash, as most families will pay their babysitters in cash instead of a check. You can do school work while the children are sleeping and sometimes the family will invite you to eat meals with them.

2. Fast food

Although this may seem like a menial job, this is a great job because it will help you to save money on food because you will get discounted or free food, depending on where you are working. So it will help you with saving money on food and it will give you some extra spending money.

3. Clothing store

Another great place for a college student to work at is a clothing store. After all, people are going to want to buy clothes, especially when they are in school and see what everyone else is wearing. If they are working at a clothing store, they are making money and getting discounts on the clothing.

4. Office

You can also find work a lot of times in the offices at the school, but you should check as soon as possible because they are usually the first jobs to go. They are usually well paying, better than fast food and retail jobs.

5. Tutoring

If you are good at a certain type of subject, you can offer to help tutor other students and help them with their school work. This is a job that a lot of students do, especially when they are upper classmen and they are tutoring the lower classmen. Put up signs on the dormitory boards to let them know that you are available for tutoring and what your rates are.

There are plenty of different opportunities for jobs in college. They may not always be the most glamorous jobs, but they will help you to pay the bills and have extra money for the things that you want, like pizza and a night out with friends. Whether you are tutoring students, watching children, working in an office, flipping burgers, or putting clothes away, they are all great jobs for college students.

Something that can make people nervous is a visit with the counselor, but it shouldn’t. When you are unsure about something while in college, that is what they are there for. Here are some suggestions on how you can make the most out of your sessions with a counselor.

During your freshmen year of college, this is the best time to get acquainted with the person who is your college advisor. Make a list of the questions that you want to ask him or her. These questions could be ones such as the amount of credits you will need to graduate, and about the amount of credit you can get for classes taken at a community college.

Do not be afraid to talk to your counselor about the things that are bothering you. That is what they are there for. Let them know if you are having trouble figuring out what you are going to do when you get out of college. They may have some suggestions, but they won’t know that you need them if you don’t tell them.

If you are nervous about going to talk to your advisor, see if you can take a friend with you who is in the same major. The meeting can be beneficial for both of you, because your friend may ask questions that you didn’t think of and you may ask questions that they didn’t think of.

Ask them to give you a document that lists your required courses and your required credits. Thais way you will have them with you and you can refer to it. It’s also a good tool to have if things change while you are in school. It’s also a good idea to check in with them to make sure that things haven’t changed.

When you meet with your advisor, take notes on your session. Write down things that your advisor says, important points that they make, such as classes that are the best to take and suggestions for a minor.

You should never be afraid to pick your advisor’s brain when it comes to job advice or other things that you are worried about, because that is their job. They want to help you to be a success in college and help you to choose the right path.

Remember that your advisor is there to answer your questions and to help you make the right decisions.

Four types of federal student loans exist for persons needing money for college. They are subsidized Stafford loans, unsubsidized Stafford loans, Parent PLUS loans, and Federal Perkins loans.

Originally called “Guaranteed Student Loans” (GSL), Stafford loans were re-named in honor of Senator Robert Theodore Stafford, who served as governor of Vermont, as well as a Representative and Senator from that State. There are two types of Stafford loans—unsubsidized and subsidized.

Unsubsidized Stafford loans can be obtained by anyone attending college. A person applying for an unsubsidized Stafford loan does not have to show proof of financial need in order to apply or receive this type loan.

The interest on an unsubsidized Stafford loan begins to accrue at the time of the first loan disbursal, and continues until the loan has been completely repaid.

A subsidized Stafford loan does require proof of financial need before the loan is granted. Further, the Government pays the interest on a subsidized Stafford loan up until the time repayment begins.

Repayment on both subsidized and unsubsidized Stafford loans is expected to begin six months after the borrower leaves school (whether through graduation, deciding to no longer go to college, or after enrollment hours fall below those in which a person is considered to be at least a half-time student).

Parent PLUS loans (PLUS stands for Parent Loans for Undergraduate Students) are applied for and granted to PARENTS of students who are still considered dependants, and are still taking undergraduate courses. It is expected that the money will be used for educational expense purposes, and no other. Acceptance of the application and the amount granted is based on the parents’ credit history.

There is no six-month grace period for repayment of Parent PLUS loans. Parents are expected to begin repaying the loan after the second disbursement has been received.

Federal Perkins loans, named after former Kentucky House of Representatives member Carl D. Perkins, are given to only those students who demonstrate an “exceptional financial need”. The advantages to this type of loan are that it has only a 5% interest rate, and repayment does not begin until NINE months after the borrower has left school. Repayment for other types of Federal loans normally begins after SIX months.

The only possible disadvantage is the fact that one can only receive a MAXIMUM of $2000 each college year. Unfortunately, yearly college expenses are often higher.

Did you know you have the right to cancel all or part of your federal college student loan disbursement for each quarter? You can simply submit a written request to the Office of Student Financial Aid Assistance within 14 days from the date you receive official notification that that your college student loan has funded and credited to your university or college account, or before the first day of classes, whichever occurs last. There will be an official notification sent to you no earlier than 10 days before the start of each term. For Parent PLUS College Student Loans, official notification occurs with the posting of the college student loan to your college student’s university account.

Your written request to cancel a Stafford, Perkins, or Grad PLUS college student loan may be submitted by e-mail from your financial aid administrator or as a handwritten, typed, or printed statement bearing an original signature submitted by mail, in person, or by fax. To cancel a parent PLUS college student loan, the parent borrower may submit a handwritten, typed, or printed statement having an original signature by mail, in person, or by fax.

Any cancellation request received within the 14-day period or before the first day of classes, whichever occurs last: No interest will be charged and college student loan fees will be returned to the college student loan holder. The school must receive the cancellation request in writing from the borrower (you for college student loans; parent borrower for parent loans). To cancel the college student loan disbursement, simply contact your financial aid office.

Canceling your college student loan disbursement, this could cause a balance to be due on your university account, which you will be responsible for paying. This is more likely to be true if excess funds or a credit balance have already been distributed via a check or a direct deposit to a bank account or your school account.

Repayment after the Designated Time Period: You cannot cancel your college student loan disbursement if the designated time period described above has already passed. Instead, you can simply repay the college student loan disbursement directly by contacting the college student loan holder (Direct College Student Loan Servicer for Federal Direct College Student Loans; College Student Loan Services for Federal Perkins College Student Loan). The borrower (you for college student loans; the parent borrower for parent student loans) will be responsible for any interest that may have accrued and any college student loan fees.

Canceling Future College Student Loan Disbursements:

You (the borrower) must submit in writing the request to cancel future college student loan disbursements by contacting the financial aid office prior to 10 days before the start of classes for the next term. For your convenience, the Report Your Changes form is available for this purpose. Once the college student loan has been disbursed for the next term, then you must follow the procedures described above.

Just remember it is up to you to make the choice to cancel if need be. No one else will do it for you. Do the responsible thing now to make the future easier for you.

If you are going away to college or living away from home for the first time during your college years, learning a little about money savvy is a much needed lesson. While some have to count their dollars and others do not, it will for sure be an eye-opening experience to become aware of just how much things cost in the world around us.

One of the first things you’ll need in a new town is a bank account. Look for free checking and the best interest rate on a savings account. Right now, the best is not great but it is still better than nothing. Most Credit Unions offer no fee checking accounts and many banks will offer student rates on some of their services. Be very careful of overdrawing your account. Overdraft fees are very high.

Money savvy also extends to where you spend your money. Picking up lunchmeat and laundry detergent at your neighborhood convenience store is not a wise way to use your money. Everything is more expensive at the corner stores. Choose a close grocery store where you can buy food items and a close department store where you can buy tissue and detergent. If there is a super-store within a few miles, that might serve for all your needs. With gas prices as they are, however, if you have to drive across town to the super-store, it’s best to make two stops closer to home.

While we all like to go out and have a great meal at a favorite restaurant every once in a while, very few college students can afford to do so every night. Hanging out with college students who are big spenders can be hard on the guy or girl who has to watch all their pennies, as well as their nickels, dimes and quarters. Choose friends wisely so that your friends won’t encourage you to overspend when you have to be very careful with your money. Keeping up with the “Joneses” is not all it’s cracked up to be.

To help with the eating out and the household items, ask your friends and family to save coupons for you for restaurants they know you enjoy. Ask them to save coupons for your favorite brand of laundry detergent or your choice of tissue. If they want to surprise you sometimes, suggest that gas cards are great gifts. Learn to buy a 12 pack of coke and keep your own travel cup handy for when you want a soda while you run errands. Stopping at a fast food restaurant to buy a drink might encourage you to pick up some fries also and stopping at the neighborhood convenience store for a drink might encourage a candy bar. Penny pinching through college will teach money savvy and go a long way in helping you retire college loan debt early, as well.

Along with learning how to study for college classes and how to get along with dorm-mates, students come to college needing to learn to manage their money and avoid student debt. While many students need to borrow money for their schooling, sometimes the lack of money management increases the need to borrow and the amount they want to borrow.

College students need to create a budget and stick to it. The budget must be realistic and the allocations in the budget must meet your daily needs. Determine how much money you will have coming in and then plan how you need to spend that money. The key word is “need.” Many of us believe that we need a new CD player or iPod or cell phone, when really we “want” a new one. Just because your cell phone company says you can replace your phone for a low fee doesn’t mean that you have to replace it. Does it still work? Then learn what it means to “make do” with the one you have. The same would hold true for other items that are not worn out. Just because a manufacturer comes out with a new model doesn’t mean you have to have it.

There will be time to live on a larger budget once you are out of college and on your own with a steady income to pay the bills for a new sofa or a new car. Learning to avoid student debt is as simple as saying “no.” College students have always been known to have small budgets. Live on the budget and live like a college student – when you are out of college, you’ll have plenty of time to buy the latest technological gadget for your needs.

Be careful of credit cards and the way they can lure you into spending money you don’t have. If you have a credit card, it is easy to see the sale on that gadget or new piece of jewelry and think that you will have enough money to pay it off when the bill comes. However, the problem is, we forget how many of those excuses we have already used this month and when the bill comes, we are shocked an unable to pay it because we first have to buy groceries with our pay check. Once you skip paying it off in full one month, it is very easy to rack up a very large debt in a very short amount of time.

Learning to manage your money wisely in college is not simple because you have several people who are pulling you to go out to eat or go to this concert or that event and pretty soon, all you available cash is gone. Learn to plan ahead and learn to save enough cash for emergencies. You will be better off in the long run as you avoid piling student credit card debt and general living expenses on top of the student loans you already have for school.

For many years, people who were adults and wanted a career change could go through correspondence school and get a degree by reading certain books, taking tests on those books, sending the test back, waiting for the test and the grade to come back, and then starting all over again with the next chapters in the correspondence course. With the advent of the internet, all that has changed drastically, for the better.

If you are already in a career and are looking for a change, you might want to look into an online college. You can keep the job you are in until you have finished your prescribed course of study online and then you can have the education you need to make your career change.

Another possibility might be that you are in your chosen career but in order to move ahead in that career, you need to further your education. Some careers even require that you take a certain number of continuing education courses per year to keep refreshing and updating your skills. An online college would be the perfect choice for you as well.

While the stimulation of interacting with other students and a professor in the course of a semester of college is well worth your time and effort, there are simply some times when this is not a practical thing to wish for. In that case, it is best to go ahead with as many online courses as you can while interspersing some campus based classes whenever possible.

Many colleges and universities now offer both forms of education. It is not unusual at all for a student to take several campus hours per semester and also take one or two online courses during the same semester. The online courses enhance the campus based classes and the campus based classes enhance the online courses. A college student’s life can be enriched because he or she has taken part in both kinds of education.

One very real and sometimes very necessary attraction for the online colleges is the option of how much time it takes to complete a class. Sometimes, a young mother or father needs to take some classes but they also need to spend time with their children. Online courses help them do that and they can work on the class in their own time within certain defined limits. Sometimes you need to take the class quickly for a certain assignment coming up at work. Again, online courses provide for that need as well.

Be sure to check into those colleges and universities that have made the effort to move to campus classes and online classes. You’ll find the options will boost your career goals.