College Student Loan News and Info

A Stafford College Student Loan is a federally guaranteed low interest college student loan. These college student loans are designed for college students attending approved colleges, vocational schools or technical schools. There will be no credit check required to obtain any of these college student loans.

Your eligibility for a Stafford College Student Loan will be based on your income and your financial aid need. Standards have been set by the U.S. Department of Education. You can be eligible for a Stafford College Student Loan if you:

• Are a U.S. citizen or national with permanent residence
• Have no defaults on previous government guaranteed college student loans
• Are attending college on at least a part time basis
• Maintain satisfactory academic progress as determined by your school

There are two types of Stafford College Student Loans:

Subsidized Stafford College Student Loans are awarded based on financial aid need. The federal government will pay the accrued interest while you are in school up until repayment of the loan begins after the six month grace period.

Unsubsidized Stafford College Student Loans are not awarded based on financial aid need. The college student will be responsible for making the interest payments when the college student loan is disbursed. You can qualify for an Unsubsidized Stafford College Student Loan even if your family’s income has exceeded the guidelines.

Independent college students can borrow more than a dependent college student. To qualify as an independent college student, you must be one of the following:

• 24 years of age by December 31 of the awarding year
• An orphan or a ward of the court
• A veteran
• Married or have legal dependents other than a spouse
• A graduate college student
• Declared independent by a financial aid administrator based on unusual circumstances

Federal Parent PLUS College Student Loans

Federal PLUS College Student Loans are low interest rate college student loans for parents of undergraduate college students designed to help you better afford the cost of your child’s college education. With a PLUS College Student loan, parents can fund the entire cost of the students’ higher education, minus any other financial aid assistance received.

Federal Parent PLUS College Student Loan provides funds for indirect expenses like:
• Books
• Supplies
• Living Expenses
• Travel

And direct costs like:
• Tuition
• Room
• Board
• Fees

PLUS College Student loans will require a basic credit check but are not made based on income or assets and will require no collateral. To be eligible for the PLUS college student loan, the parents must be a U.S. citizen, eligible permanent resident or non-citizen, not be in default on any education student loans, and have a dependent child enrolled at least half time in an undergraduate program.

For graduate and professional college students, you can apply for a Grad PLUS student loan. Graduate and professional college students enrolled at least half time can borrow up to the total cost of higher education, less other financial aid assistance that has been received. This will include books, supplies and living expenses, as well as direct costs like tuition and room and board. New student loans issued beginning July 1, 2006 will have a fixed interest rate of just 8.5%.

The Federal Perkins College Student Loan is a low interest five percent government college student loan available to college students with exceptional financial aid need as determined by the Free Application for Federal Student Aid (FAFSA). You will generally begin repayment of this college student loan in nine months after you have graduated, withdrawn, or cease to be enrolled as a half time student.

To be eligible for the Federal Perkins College Student Loan, your FAFSA must be complete, including any verification, if applicable, no later than March 1st of each year.

Federal regulations do require recipients of Federal college student loans to complete an Entrance Loan Counseling at what every college or university they have enrolled. Perkins college student loan funds will not be applied to your account until an entrance counseling has been complete.

Federal regulations will also require borrowers to complete an Exit Loan Counseling when leaving the college or university of your choice.

To obtain more information concerning these, and other, requirements for Federal Perkins College Student Loans, you can contact the financial office at your chosen college or university.

Repayment of Federal Perkins College Student Loans may be postponed or canceled under some circumstances, such as financial hardship or employment in a specific field. Cancellation and deferment provisions dove particular regulations that must be followed. Borrowers should continue to make college student loan payments until the deferment or cancellation request has been completely approved.

To obtain more information concerning how to apply for cancellation or deferment of your Federal Perkins College Student Loan, you can contact the financial office at your chosen college or university.

Partial listing of Deferment and Cancellation Provisions for Federal Perkins College Student Loan Borrowers:

• Enrolled at least half time as a regular student at a college or university.
• Enrolled in ED approved Rehabilitation training for disabled individuals.
• Seeking but unable to find a full time job.
• Economic hardship.
• Peace Corp volunteers.
• Total and permanent disability.
• Death of Borrower.
• Full time law enforcement or corrections officer.
• Full time employment in a Head Start Program.
• Full time special education teacher in a public or nonprofit elementary or secondary school system.
• Full time teacher in a designated low income public or nonprofit elementary or secondary school system.
• Full time nurse or medical technician providing health care services.
• Service in U.S. Army, Navy, Air Force, Marines, or Coast Guard in a designated area of hostilities or an area that qualifies for hazardous duty pay.

The Federal Perkins College Student Loan Program is serviced by the financial aid office at your chosen college or university. All inquiries dealing with the collection of Federal Perkins College Student Loan repayment, default, or deferment and cancellation request should be directed to the financial aid office at your college or university.

Any financial aid assistance should be discussed with a qualified financial aid counselor at your financial aid office. They are trained to help you out with such issues. I would encourage you to visit them and use there advise. They will make the process that much easier for you.

Learning to Conquer College Coursework

College classes are different than high school classes. High School classes need to teach you some basic math, basic English, basic history, etc. They set the foundation for the classes you will take in college. The grading system is also different, a difference for which you should be adequately prepared when you enter college life.

If you were to get a word picture of education, you might think of it as an ever expanding and growing pyramid. The basics lay the foundation of the pyramid and even though we build a foundation throughout elementary school, the foundation continues to widen and expand because we continue to find out “basic” stuff all our lives. Elementary school gives you very basic knowledge which you are to memorize and repeat back to your teacher in a certain way. In other words, you must understand that 2 plus 2 equals 4 in grade school so that you can move to algebra in high school.

On top of the basics, the foundation, we put what we learn in high school. We are still memorizing and simply repeating what we have learned but we are also expanding what we have in our foundation. Algebra simply will not work if you don’t have the basics of addition, subtraction, multiplication, and division down pat when you get into the class. You can’t understand how history works together in high school and how current events are built on history unless you’ve learned the basics of history in elementary school.

College does somewhat the same thing but on a much broader scale. In college, you take everything you’ve learned till now, you listen to the lectures, you memorize, you repeat it back to the professor but you also are asked through various research projects and tests to apply what you have learned and repeated back to the professor to a situation you may have never even heard of before. Your foundation and your world expands. In college coursework, the questions are not so much, “Tell me what you learned,” but “Tell me how what you learned applies to…”

Of course, because there are not so many assignments, there are not so many grades. When there are not as many grades, there is no room in the grades for goofing off. If you only have five assignments in the semester and one of those assignments receives a zero, you will very likely not get an A in the class. College coursework is different than any you have done until now. Be sure to be prepared for the difference.

College Student Loans are generally included in most federal financial aid packages. College Student Loans are federal financial aid awards, which will require repayment. They can be an excellent investment in your future, offering you the opportunity to cover the cost of your higher educational expenses by borrowing now and paying later. Most college student loan programs available through most colleges or universities are federally funded, providing long term, low interest college student loans. Some are based on financial aid need, but there are also college student loan programs available to all students regardless of there income. Unsubsidized college student loans are available to college students who do not have financial aid needs. Undergraduate college students, graduate college students, and parents of dependent undergraduate college students may borrow through college student loan programs offered by most colleges or universities.

Interest will be charged on the amount you actually borrow. Federal college student loans available through most colleges or universities Financial Aid Offices will usually have interest rates at a much lower rate. The federal government will pay the interest on subsidized college student loans while you are enrolled at least half-time. You will be responsible for the interest on unsubsidized college student loans while you are enrolled.

Most college students have over whelmingly found that they are able to manage to repay their college student loans upon graduation. However, you would be wise to carefully monitor the total amount you borrow as well as the repayment requirements that you will have when you have finished your education.

All new borrowers at most colleges or universities must complete an online pre-loan counseling in which college student loan responsibilities and repayment terms are clearly addressed. With most colleges and universities, pre-loan counseling is available online. Sample Direct College Student Loan repayment schedules are available online as well at the U.S. Department of Education’s Direct College Student Loan web site. Borrowers are able to choose from a variety of repayment plans to fit their financial needs and circumstances and can change plans if those circumstances change as well.

Information regarding deferment provisions and repayment options are always available at the Student Business Services student loan counseling web site as well as on the Department of Education’s Direct College Student Loan web site. Provisions for college student loan deferment or cancellations are also contained on the college student loan promissory note you must submit, and will also be provided to you online via the Student Business Services Office loan exit interview required when you leave your college or university.

Private college student loans, sometimes called alternative college student loans or Outside Agency college student loans, are funded through banks and other private lending institutions.

Since the Department of Education will not regulate private college student loans, their terms and conditions can vary greatly from a federal college student loan. The recommendation that you consider private college student loans if you need more money after taking the federal college student loans for which you qualify. In general, federal college student loan terms are better than a private college student loan term.

Financial aid is any financial assistance given to a student to help him or her pay for the cost of higher education. The assistance can take many forms such as gift aid, which does not have to be paid back. Scholarships and grants are gift aid as well. Financial aid assistance can also take the form of self help aid, money that has to be paid back or earned. Some College Student Loans and federal work study employment are examples of self help financial assistance.

Financial aid can also come from many different sources. The federal government will fund need based financial aid assistance programs such as a Pell Grant, and Federal Work Study. Some states will also offer grants and scholarships to residents of their states. Scholarships can be sponsored by corporations, private non-profit foundations, professional organizations, and often, the student’s own college.

Scholarship eligibility requirements will be determined by the sponsors. In general, for Federal and State student aid assistance` the student must:

• Be enrolled in a degree granting curriculum.
• Be a citizen, national, or permanent resident of the United States.
• Maintain satisfactory academic progress toward a degree.
• Not be in default or owe an overpayment on any aid programs.
• Be enrolled for sufficient hours (can vary, six credits for most programs).

The federal as well as the state financial aid programs exist to supplement a family’s own resources to help pay for higher education. The financial aid office will determine a student’s eligibility for these programs based on guidelines that have been established by Congress and the Department of Education. A student will submit information about his family resources by filing a FAFSA or Free Application for Federal Student Aid. This information is then analyzed based on a standard formula that will determine how much the student and the family can theoretically afford to contribute toward a student’s educational costs. This contribution is referred to as the Expected Family Contribution (EFC). Students with very low EFCs can also qualify for certain grants like the Pell Grant and the SEOG.

The financial aid office of your school will subtracts the EFC from the estimated cost of attending there particular school. The cost includes charges that are billed directly by the college, such as tuition and fees, but will also includes other costs, such as the cost of transportation to and from school, books and supplies, meals, and other miscellaneous expenses. The difference is called the student’s need. The amount of any gifted financial aid you receive combined with any other need based assistance, such as a federal work study job, cannot exceed your needs. The financial aid office will offer you as much assistance as humanly possible; this financial aid is often a combination of federal grants, state grants, college funds, employment, and college student loans.

1. File your FAFSA by March 1.
2. Some financial aid is awarded on a first come, first serve basis.
3. Be accurate and feel everything out completely when filing the FAFSA.
4. Do not leave a field blank. If a question does not apply, enter “0″.
5. You will need to allow 4-8 weeks for financial aid application processing.
6. Make sure that all required signatures are provided on the FAFSA or it will not be processed, and all other documents submitted to the Financial Aid Office.
7. Review your student aid report (SAR, a report from FAFSA) carefully, follow any instructions provided.
8. Always keep a current mailing address on file with the Registrar.

The Campus Tour – On my Own or With a Group?

Out of all the colleges in the world, or at least in the U.S., you’ve decided on two or three. You’ve seen all the literature – the pictures, the list of classes, the financial aid information, and anything they have put online for you to see. You’ve read different reviews, maybe, and talked to your school counselor about the various programs in which you might be interested. You’ve talked to your family about distance and costs. Now, you just need to actually see the college(s) and talk to people on the campus, including faculty and staff as well as students.

At this point, you need to arrange for a campus tour. You need to the see the college first hand and get your own impression of the school. You will learn more about the layout of the school as well as the actual size of the campus and the classrooms. You will be able to learn where the dorms are in proximity to the classrooms or the gym. So what kind of campus tour will you take?

One popular option is the event weekend known as the Open House weekend. Various colleges will call it different things – Hospitality Days, Welcome Days, Open Campus Weekend. Some colleges with a large athletics program and a “name brand” mascot will use the name of their mascot in the title. Either way, it is a time for prospective students to come to the college or university and see the school. All of the key people that you want to meet with will be there and you will have opportunities to catch quick conversations with those people. They will probably even have some specific classes for you to be able to attend as well as some specific programs planned just for your entertainment. Of course, they will have the campus looking great for all the prospective students, as well.

The other option is an individual campus visit. You or maybe you and your parents can go to the school and make appointments with key people you will need to get to know – the head of the program you are considering, the financial aid director, the coach of the particular athletic team you would like to be on. You can also possibly sit in on some higher level classes in the major you are considering.

So which option is best? Probably both. The weekend event gives you an overview of the campus while the personal visit may give specific answers to specific questions you might have. In your junior year, you might consider attending a couple of the weekend events at colleges in which you are interested. Then in your senior year, you might be able to narrow it down and take a personal visit to the college you feel most inclined to attend.

Either way, or both ways, a college visit is definitely something for you to consider as you consider this very important step in your educational career.

Consolidations are very similar to refinancing a loan, such as a mortgage. You can consolidate all loans, just some, or even just one of your college student loans. Consolidating with one of the federal college student loan programs may be a good strategy to help lower your monthly payments or to get out of default, however, it is not always a good idea.

Until July 1, 2006, interest rates on federal college student loans were variable, changing according to a formula every July 1. Consolidations will lock in a fixed rate based on the average interest rates of all the student loans included, creating one student loan with a single rate, and often, significant savings in interest over the life of a student loan. Student loans made after July 1, 2006 have a fixed interest rate of 6.8%, so consolidating newer student loans may not save very much in interest.

A s you weigh the pros and cons of consolidating your student loan, keep in mind that timing is critical. With just a very few exceptions, you get only one chance to consolidate with the government college student loan programs.

It is very dangerous to consolidate federal college student loans into a private student loan consolidation. You will then lose your rights under the federal college student loan programs once you choose to consolidate with a private lender. These rights will include deferment, forbearance, cancellation, and affordable repayment rights. Federal student loan consolidations generally have lower interest rates.

Federal Government Loan Consolidation

Student loan consolidations are available through both the FFEL and Direct Student Loan programs. With a few very important exceptions, the terms of the two consolidation programs will be the same. One of the most important differences is that the Direct Student Loan Program has a more flexible income contingent repayment plan.

Under the Direct Student Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Student Loans, Supplemental Student Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Student Loans, Perkins Student Loans, Health Education Assistance Student Loans (HEALs), and just about any other type of federal financial student loan. Student loans that are not eligible for consolidation include state or private student loans that are not federally guaranteed.

Although all of these different student loans may be consolidated, you must have at least one outstanding FFEL or Direct Student Loan to obtain a Direct Student Loan Consolidation. This means, for example, that a Perkins Student Loan on its own cannot be consolidated into a Direct Student Loan. If the qualifying loan is a FFEL student loan, you must also certify that you were unable to obtain a FFEL Consolidation or unable to obtain a FFEL Student Loan Consolidation with acceptable income sensitive repayment terms and that you are eligible for the Income Contingent Repayment Plan.

FFEL Student Loan Consolidation lenders do not have to include non-FFEL student loans in a new consolidation loan. However, they may do so at their discretion. Non-FFEL student loans cannot be consolidated into an FFEL student loan consolidation without an FFEL student loan being included in the consolidation. Many FFEL lenders are no longer making student consolidation loans. You should not let your FFEL student loan lender discourage you from consolidating with the Direct Student Loan program if you think this is a good option for you.

You can consolidate with either program during the grace periods, once you have entered repayment, or during periods of deferment or forbearance. Borrowers in default may also consolidate in some circumstances.

Student loan consolidation was previously available to borrowers while they were still in school. However, Congress eliminated this right in 2006. You can consolidate during the grace periods. Congress has also eliminated joint consolidations for spouses, effective July 1, 2006.

Receiving In State Tuition Rates

Many public universities have different rates per unit depending on whether you are a resident of their state or not. Private Colleges may or may not have this distinctive but it is good possibility that many state universities do.

Because students want the discount on the per unit rate, they may move into a different state and claim residency to get the rate. However, some states now have rules regarding citizenship for in state tuition rates. Other states allow the university system to set its own policy for who can be given the discounted rate. Still other states may make the distinction between residents and non-residents for tuition reasons and tax reasons.

There may as many as three different decisive factors required by public universities and/or states to be considered for the discounted in state rate on tuition. The first one deals with how long you have lived in the state. Usually you need to have lived in the state for at least a year before you are considered a resident.

Some states also require that you at least show plans to stay in their state following graduation from the college or university you’ve chosen to attend.

If your parents live in a different state than the public university you are choosing to attend, some states will require that you show that you are already independent of them financially before you are allowed to claim residency. In other words, during the year you live in the state before attending school in the state, you must hold a job and be able to support yourself before claiming residency. If you are still relying on your parents to support you, even if you live in a different state than they do, you may not be able to claim residency.

There are some exceptions to these rules, as well. If you are from a military family or if your whole family has recently moved to the state, you may be exempt. If you live near a state border, you may also be exempt.

One other way that you may be able to go to a public university in another state is if your state’s university system already has an agreement with a neighboring state system to allow you to receive in state tuition rates.

In all of these situations, it will be to your best interest to check with the admissions office of the school you desire to attend. Ask about this particular situation and also use it as an opportunity to ask if there are any other discount rates that you may be able to receive because of your background, your parent’s background, etc. The discounts may come in the form of small grants or extra loan money available, but saving a little money now will come in handy later.

Federal programs are the single largest kind of college student loans. The two main programs are the Federal Family Education Student Loan Program (FFELP) and the William D. Ford Federal Direct Student Loan Program (FDLP).

You can apply for a FFELP college student loan through many private banks, credit unions, or education financial companies. Although your school may recommend specific institutions, you are still free to get your college student loan from any participating financial institution.

This college student loan has very attractive terms:

• You can get lower interest rates compared to other college student loans.
• Your interest payments may be paid by the federal government while you are still in school.
• You may not need to make student loan payments while you are in school.
• You can get longer repayment terms.
• You can benefit from flexible credit requirements.

Some schools participate in the Federal Direct Student Loan Program, where you get college student loans with the same terms as FFELP student loans, but you borrow from the U.S. Department of Education.

Below is a list of widely used federal educational student loans

• Federal Stafford loans
• Federal Perkins loans
• Federal PLUS loans

If you need a college student loan to fund your education, consider a Stafford college student loan. Stafford college student loans are the most common source of college loan funds. There are two types of Stafford college student loans:

• Subsidized college student loans are need based and interest will not accrue on the student loan while you are in school at least half time and during grace and authorized deferment periods. You do become responsible for the interest when you leave school and start paying back your college student loan.
• Unsubsidized college student loans are not need based, and you are responsible for all of the interest that accrues on the student loan, including while you are in school.

If you have not qualified for subsidized Stafford College Student Loans, or need more money than the subsidized program can offer, you might qualify for an unsubsidized Stafford college student loan, regardless of your family’s income. Except for the in-school interest provisions, both subsidized and unsubsidized Stafford college student loans have similar terms.

A Federal Perkins College Student Loan is a low interest (5%) college student loan for both undergraduate and graduate students with an exceptional financial aid need.

Federal criteria will include:

• Enrollment in an eligible school at least half time in a degree program
• U.S. citizenship, permanent residency, or eligible non citizen status
• Maintain satisfactory grades and progress
• No unresolved defaults or overpayments owed on Title IV educational student loans and grants
• Satisfaction of all Selective Service requirements

The U.S. Department of Education will provide a programmed amount of funding to your chosen school. In turn, the school will determine which students have the greatest financial need. The school will combine federal funds with some of its own funds for college student loans to qualifying students. To apply for this college student loan program, the student must complete the FAFSA.

Your school will pay you directly or apply your student loan to your school charges. You will receive the student loan in at least two payments during an academic year.

Perkins college student loans share many of the characteristics of subsidized Stafford college student loans. The most notable differences are lack of fees and a longer grace period.

The federally sponsored Parent PLUS College Loan is a low interest college student loan for parents of undergraduate, dependent students. With a Parent PLUS loan, families can fund the entire cost of a child’s education (less any other financial aid).

Parent PLUS College Loans are available regardless of the income or assets, and no collateral is required. While your parents do not have to prove financial aid need, a credit check will be required.

Should I take the SAT or the ACT?

As you enter high school and begin to hear about preparing for college, there is question that you will need to decide. In order to get into college, you will need to take one of two tests or possibly both, depending on where you plan to apply for college. One test is called the ACT exam and the other is called the SAT exam.

Each student should plan to take one of these tests when he or she is a junior in high school. If you don’t score as high on the test as you would like, there is the possibility of retaking the test during your senior year so that you can get higher scores, thus making you more eligible for the school of your choice. There is a fee for taking each test.

So now that you know you need to take at least one of these tests, you need to understand the differences between the two exams. The ACT exam has four sections is based on what you have learned through the time you’ve spent in your high school. You will be tested on English, math, reading and sciences and there is also a writing section that is optional. Only your correct answers are scored so there are no penalties for guessing when you are unsure or just don’t know an answer. This test is popular in the Midwest and Southern part of the U.S.

The SAT is based on logic, critical thinking, and problem-solving. It also tests the level of your vocabulary. It does this by testing you one three different scholastic subjects – math, verbal, and writing. In this test, if you guess when you don’t know the answer, it will not help you - you will be penalized for that wrong answer. The SAT test is used mostly in the Eastern and Western areas of the U.S.

With the SAT, there is also the possibility of needing to take additional tests, called the SAT II’s, for specific colleges. When you begin to find out about the colleges you would like to attend, you will need to look for their policy on this college entrance test, the SAT or the ACT, and find out if they require other subject tests under the SAT.

Both of these tests are administered on certain days of the year and your high school counselor will know about the testing dates in your area. Be sure to check your family calendar before you sign up to take one of the tests. You don’t want to miss a family trip to the lake because you’ve scheduled to take the SAT or the ACT on the same day. There are several dates available so talk to your school counselor, talk to your family and sign up. There are helps online to assist you in preparing for either of the tests you need to take.