College Student Loan News and Info

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.

The U.S. Department of Education administers federal college student aid programs. To be eligible for federal student loan aid programs, you must:

• Demonstrate financial aid needs (not part of the criteria for some student loans).
• Be a U.S. citizen or eligible non-citizen with a valid Social Security number.
• Show, by any of the means below, that you are qualified to obtain a post high school education:
• Have a high school diploma or a General Education Development, or GED, certificate.
• Pass a test approved by the Department of Education.
• Comply with any state standards the Department of Education approves.
• Complete a high school education through a state approved home schooling program.
• Be enrolled as a regular student (that is, you have to be working toward a degree or certificate) in any eligible program.
• Register with the Selective Service, if required.
• Not be in default on a federal student loan or owe money on a federal student grant.
• Not be convicted of selling or possessing illegal drugs.
• Maintain satisfactory academic progress once you are in school.

After you have proved that you fulfill all these requirements and you have submitted your FAFSA, the government will consider you for the financial aid programs they offer.

Federal student loans come in two flavors: gift aid and self help aid. You do not have to pay back gift aid, and the self help aid program will allow you to earn money or to borrow money for school. Borrowed money, of course, must be repaid.

Pell Grants and FSEOGs
Gift aid programs will include the federal Pell grant program and the Federal Supplemental Educational Opportunity Grant program. These grants are usually only available to students who do not yet have a bachelor’s degree. In some cases, however, they might be awarded to students enrolled in post-baccalaureate teacher certification programs.

Pell grants will come in varying amounts depending on your financial need and the cost of attendance and whether you attend full time or part time. This could range from several hundred to several thousand dollars.

FSEOGs go to students that show exceptional financial aid need. As with Pell Grants, FSEOG award amounts will range from several hundred dollars to several thousand a year. This is all depending on the student’s financial aid need. Students who receive Pell grants are also at the top of the priority list for receiving FSEOGs award

FSEOGs have do have a few limitations that Pell grants do not. For one, the amount of your FSEOG can be reduced if you receive other forms of student aid or student loans. In addition, each school receives a limited amount of FSEOG money; when it is gone, it is gone. That is why it is very important to apply for your financial aid as early as you can. You will have a better chance of obtaining FSEOG money if you are eligible for it.

The Federal work study program is a key form of self help financial aid. Work study allows undergraduate and graduate students to work part time and earn money while they are in school. In addition, more money earned equals less money needed in college student loans.

When you are in school to be a nurse it may be difficult to work and help pay for your education due to a very tough course load. Thankfully help is available to those who need it. This monetary help can come in many forms, but the most common and probably the most money you can get comes from a nursing school loan. Many types are available if you are interested.

Before you can secure any type of a nursing school loan you must first fill out the free application for federal student aid or otherwise known as FAFSA. This helps to ensure that you will be eligible for any type of federal loans or grants. The key to this is to make sure that you fill it out as soon as you can. The earliest that you can do this is the month of January. By filling it out you are ensuring that you are eligible for any nursing school loan that may be available from the government.

After filling out the FAFSA you can then relax. Once the application has been processed, you can receive various forms of nursing student loan aid. For example, if you are eligible for a Perkins loan, which is based on your income that you reported, you can get up to four thousand dollars yearly and a total of twenty thousand dollars for the remainder of your time in school. A Perkins loans is great because the government makes the interest payments for you while you are in school, so that when you graduate you do not have to deal with interest that can accrue on a nursing school loan.

Other types of nursing school loan aid available include the federal Stafford loans which can be subsidized or unsubsidized. Even thought they are government loans you are responsible for the interest that accumulates unlike the Perkins loans. You can also find other alternative options to the nursing school loan aid that is available. For example you can locate states that will pay your loans back for you if you agree to work for them for a certain number of years. Some hospitals will also do the same thing. Becoming a nurse is a life long rewarding career. The key is to finding the right nursing school loan to help you with this mighty endeavor. The world needs a few good nurses, so do not let the cost of school stand in your way.

Most financial aid packages will also include a college student loan or two. College student loans are a form of financial aid, which does require repayment. They can be an excellent investment in your future, offering you the opportunity to cover the cost of your education expenditures by borrowing now and repaying it later. Most college student loan programs available are federally funded, providing long term, low interest college student loans. Some will be based on financial aid need, but there are college student loan programs available to all students regardless of there income. Unsubsidized college student loans are available to students who do not have financial aid need. Undergraduate students, graduate students, and parents of dependent undergraduate students may borrow through college student loan programs offered by many colleges as well as some financial or lending institutions.

Interest will always be charged on the amount you borrow and no more. Federal college student loans available through the college or university Financial Aid Offices have interest rates ranging from 5% to 7.9%. The federal government will pay the interest on subsidized college student loans while you are enrolled at least half time. However, you are responsible for the interest on unsubsidized college student loans while you are enrolled.

Most college students have overwhelmingly found that they can manage to repay their college student loans upon graduation. However, you should always carefully monitor the total amount you borrow and 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 the college student loan responsibilities and repayment terms are completely outlined.

Sample Direct College Student Loan repayment schedules are available online 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 personal financial aid circumstances and can change plans if said circumstances change. Information regarding deferment provisions and repayment options are also available at the college’s financial aid office as well as on the Department of Education’s Direct College Student Loan web site. Provisions for the college student loan deferment or cancellation are also contained on the college student loan promissory note you will submit, and will also be provided to you online.

A Federal Direct Subsidized Stafford College Student Loans are awarded to students with financial aid need. This college student loan is subsidized because the federal government will pay the interest while the student is attending school and also during the grace period (the first six months after leaving school or dropping to less than half time enrollment status). The maximum amount that can be borrowed is based on dependency status and grade level according to the annual and aggregate college student loan limits established by the Congress.

The interest rate on a Direct Subsidized College Student Loan, for new college student loans disbursed on or after July 1, 2007, will be a fixed rate of 6.8%. A federal college student loan origination fee of 1.5% will be deducted from the amount of the college student loan prior to disbursement.

Over the next four years, beginning July 1, 2008, the College Cost Reduction and Access Act will reduce the interest rates on all new Direct Subsidized Stafford College Student Loans made to undergraduate students annually.

Paying for school loans can be a pain in the rump if you do not have a good job. You can have multiple payments that if you are late on one payment you can be black balled on your credit report. However, one way to avoid this issue in particular is to do a school loan consolidation. The benefits far outweigh any drawbacks that this option may ever pose to a student.

One of the main benefits of school loan consolidation is of course being able to make one payment a month for all of your student loans. Because you usually have multiple loans taken out over the course of your school life, you will have multiple payments that need to be made. The interest rates may vary on these loans, and for one you may be paying a huge amount of interest but on the other you may be paying almost nothing depending on what the loan terms were. School loan consolidation can put an end to this issue. Because you get one interest rate for all of your school loans when you do a school loan consolidation you will not only have one payment but also one low interest rate.

Another benefit of school loan consolidation is one payment. This can ensure that you are dealing with one lender who can accommodate you if you are going to be late better than many lenders. And as we all know, when you are just starting out, you want to ensure that you have good credit. This is one way that you can make sure that this happens. If you are going to be late on your payment, simply contact your one lender that you did your school loan consolidation with and you cam make the arrangements that you need.

Many critics of the consolidation of school loans think that this creates a monopoly on the pay back of the loans, but in fact this is false. So many lenders are available to help you with your school loan consolidation that you have no reason why you should not try to achieve some type of school loan consolidation. And the time is perfect with the interest rates on school loan consolidation so low at the moment. So get all of your school loans together and consolidate them as soon as possible. You will definitely be glad that you did in the long run of paying them back.

Yes. I will say it again. Borrow as little as you think you may need. Yes, be conservative and only borrow the amount that is going to get you through the school experience. You will thank yourself when you start to pay it back.

What else do you need? You will need a student loan provider that works with you not against you, and you need your school to help with the financing of your education and make sure the whole process goes as smoothly as possible. That is where your college or university of chose financial aid office will come in. Most are dedicated to providing valuable information and solutions to help you borrow wisely. This is there knowledge of expertise. Use them.

Your higher education is a major investment in yourself. You are about to spend your limited resources in the hopes that you will realize a positive return for the future.

Consider the personal time and money you are about to invest in your education along with the personal and professional goals you have set for yourself. Then, make the best decisions in your investment that you can. Just borrow the minimum amount of student loans necessary to fulfill your educational dreams and goals. Visit schools financial aid office and learn more.

How can you prepare now for the financial aspects of school? Even if your parents are willing to help handle your financial paperwork now, it will be better for you that you understand and become at least an equal participant in the process. If you do not take an active roll now you will probably find that financing your education in the future will become overly complicated and very confusing.

Remember, you are going to be the one signing the promissory notes for any of the student loans you borrow. Understanding the all the terms and conditions of these student loans will help you avoid any future problems during your repayment term. As I have stated earlier, visit your schools financial aid office. This is the area they have been trained in. Use there knowledge and expertise to better your knowledge and future.

Once you have obtained the student loans and are attending your college classes, it is important to keep track of your financial activities. Keeping well organized records of your financial activities will go a long way toward helping to manage your college student loans and achieving your financial goals.

Keep your college student loan related documents, such as:

• Applications
• Promissory Notes
• Disclosure Statements
• Notifications of Lender Change
• Repayment Schedules
• Lender Correspondence
• Income Tax Returns

It is also very important to keep track of all telephone or e-mail communications with your lender, holder, and servicer. Your tracking log should include:

• The date and time of the call/message
• The reason for the call/E-mail
• A copy of the E-mail (if applicable)
• The expected follow up
• The full name of the person with whom you spoke or the E-mail address of the respondent

Make the right choices and decisions when it comes to financing your education. Talk with the financial aid office and do the right thing. You will enjoy your time in school that much more if you do not have to worry about the financial part of the whole experience.

Stafford college student loans are generally for undergraduate and graduate students. There are two types of Stafford college student loans, subsidized and unsubsidized.

• Subsidized Stafford college student loans will provide low interest rates and are available to students who have demonstrated financial aid need based on income and other important information provided on the FAFSA. A credit check is not required to receive this kind of loan. The federal government will pay the interest on this college student loan up to six months after the student is no longer enrolled in school at least half time.
• Unsubsidized Stafford college student loans provide low interest rates and are available to all students regardless of financial aid need (although the FAFSA still must be filed). A credit check, again, is not required to receive this kind of loan. Either the student will be responsible for the interest, which can be paid while the student is in school or it can be accrued and then added to the principal balance when the student starts repayment, which will also occurs six months after the student is no longer enrolled in school at least half time.

Plus loans are low interest college student loans that parents are able to obtain to help pay for the cost of education for their children. In addition, graduate students can also obtain a PLUS loan to help pay for their own education. PLUS loans will require a credit check and, in some cases, an eligible cosigner. Repayment of a PLUS loan will begin following the final disbursement of funds for the year. Graduate students might be able to defer repayment of their PLUS loan until after they are no longer enrolled in school at least half time, although the interest will continue to accrue.

Consolidation college student loans will allow a student or parent borrower to combine multiple federal college student loans into one loan with one monthly payment. A federal consolidation student loan cannot include a private college student loan. However, some private student loan lenders will probably offer consolidation loans themselves. Borrowers should know that they will lose their federal student loan benefits if they do consolidate their federal college student loans into a private consolidation loan. Borrowers should always use federal college student loan options before considering a private consolidation loan.

A Federal College Student Loan Will…

• Allow students and their parents to utilize and borrow money to help pay for there college education through programs supported by the federal government.
• Offer a lower interest rate and will give them a better repayment benefit and options than private college student loans.
• Be available to students and parents that need financial aid in paying for college – in many cases, regardless of income level or there credit history.

Students and parents should always use federal college student loan options first before considering a private college student loan. To apply for a federal college student loan, complete the online tool, the Free Application for Federal Student Aid (FAFSA).

For additional information on the federal student financial aid programs, consult the Department of Education’s free publication Funding Education Beyond High School: The Guide to Federal College Student Financial Aid, which may be obtained by visiting www.federalstudentaid.ed.gov/pubs or calling 1-800-4-FED-AID.

What Medical School Will You Attend Future Doctors?

Most students will need and do receive help to pay for medical school. Medical school loan costs will typically include tuition and various fees such as books and equipment, living expenses, transportation, and health insurance. These costs will vary from school to school.

As an example, tuition and fees for the 2004-2005 academic year averaged $18,400 for first year, in state students at many public schools and $34,680 for first year, in state students attending private schools. Adding to the cost of tuition and fees, students will usually have an additional $18,000 in other expenses, which will also vary depending on some factors such as the cost of living where a particular medical school is located.

The good news is, while medical school can be very expensive, most students receive some form of financial aid to help them meet the costs. It is important to be aware that financial aid offers will generally vary from school to school in terms of the total awards and amounts of grants and student loans. This could mean that while one medical school will charge more in tuition and fees than other schools, the type of financial aid you receive can help make what seems like the more expensive school actually the less expensive one to attend. Therefore, it is important to compare financial aid offers.

It is important at this point to not let the cost of medical school keep you from realizing your true dreams. There will be plenty of financial aid available to help you. As a matter of fact, in 2005, more than $2 billion of financial aid was available for medical students through medical school loans, scholarships, and grants.

The types and amounts of financial aid awarded to students will differ from medical school to medical school. Nonetheless, most students (more than 85 percent in 2005) take out college student loans. Grants, (free money that does not need to be repaid), can also be available, although these can be limited. There will also be service commitment programs available, which will pay the cost of medical school loans for students in exchange for serving as a true physicians following completion of medical training.

Most financial aid is sponsored by the federal government; See www.ed.gov - Depending on the financial aid program, there are different bases for awarding financial aid, including financial need, cost of the education, and merit. Eligibility requirements will also differ. For example, most financial aid programs will require you to be a U.S. citizen or permanent resident, make satisfactory academic progress, to not be in default on other college student loans, and comply with Selective Service registration requirements.

Every student that is applying for financial aid to attend medical schools fills out the Free Application for Federal Student Aid (FAFSA) form to be considered for federal financial aid, this is the largest source of assistance. Some medical schools will need you to complete additional forms, as well as provide documentation or proof, such as copies of tax returns.

To make sure you will be considered for all available financial aid, it is essential that you complete all the forms the medical school requires and complete them on time. Be sure to connect with the financial aid office adviser at each medical school to which you apply as early in your application process as possible.

To be considered for some sources of financial aid, your parents will need to provide their financial information; it does not matter how old you are and even if you are financially independent of your parents. The financial aid advisor’s at the medical schools at which you are applying can give you more information about whether your parents will need to submit information and what forms they will need to fill out.

If you would like to learn more, visit our medical school loans info page to educate yourself a bit.

What is Financial Aid and How Do I get It Again? (I think i’ve done this before)
by student loans.net

Hello, please listen. Please pay attention, all you students, especially 5th year college seinors. Student Financial Aid comes from many sources such as Federal and state funds, foundations, community organizations and also private individuals and private student loan lenders. In addition, the money is sources out to the students in many forms. Scholarships, student grants, low-interest college student loans and jobs. Usually combinations of these awards are offered in a college financial aid package tailored to meet your needs. Some scholarships can be awarded to students on an academic basis and promise alone; however, most other forms of financial aid are awarded on the basis of financial aid need alone.

To determine ones need and to estimate your family contribution, all will follow the nationally accepted standards and procedures of the federal methodology. This methodology is required (by the institution as well as the state and federal governments) in order to treat all applicants equitably, according to a standardized need basis analysis system. The need analysis processor will not award financial aid but will use Federal Methodology, a need basis analysis formula mandated by the U.S. Congress, to evaluate all student’s financial aid need.

With completion of the Free Application for Federal Student Aid (FAFSA), families have the opportunity to state their financial need situation. In the computer analysis, many factors such as income, assets, and number of family members will be taken into consideration. The result of this process of determination is the expected family contribution (EFC), which will be sent to the college the student plans to attend. Since your education is and should be your number one priority, we expect you and your family to do everything possible to pay for it. Financial aid assistance is offered to students who cannot provide all the funds needed and is intended to be a supplement to what the student’s family will or will not be able to contribute toward educational costs. For the financial aid process, need is defined as the difference between your estimated family contribution and the allowable educational expenses of attending the college of your choice.

Cost of Attendance minus - Expected Family Contribution = FINANCIAL NEED.

You should not rule yourself out because you think your parents’ income is too high. There could be many factors you are not taking into consideration that will put you in need for financial aid - perhaps a direct student loan. There is only one way to know if you will be eligible for financial aid and loans, and that is by submitting the necessary forms in a timely and accurate manner. Conflicting information could just further delay your application and it is important to realize you will be asked to verify any inconsistencies.

If you are in need of financial aid in order to attend, the college of your choice, go to there financial aid office and speak with a financial aid advisor. That is there job. They are they to help you make the right decision and make it easy for you. Do not sweat the small stuff. Go for it.

If you are not comfortable talking to a financial aid advisor. Do the research on the net and get the facts first. Then you will be prepared with the right questions when you do go to speak to someone.

Considerations a student needs to make in terms of the school loan if he’s applying for a scholarship too. By: www.student-loans.net

Sometimes when the student has a great grade level and his or her school achievements have been sufficiently high, there is no question neither on his or her nor his or her parent’s mind that he or she will be scholarship material. But sometimes this is not possible for a wide number of factors, such as submitting the college scholarship request too late, because there are no sufficient scholarships available or even because his or her household economy just doesn’t put him or her to the top of the scholarship ladder.

This can be frustrating to any grade “A” student as well as for his or her family, yet, despite the feeling of failure and frustration, these students will tend to seek for the necessary funding any other way they can, generally in the form of a school loan. The more traditional student will apply for a school loan and for the scholarship, other students will just apply for one of the two things.

However, it is important that the student that is considering applying for both things, the school loan and the scholarship consider that in some school loan companies they might be reluctant to cancel or withdraw the school loan once it has been approved if, in the end, the student got the scholarship that he or she was seeking. In other cases, the school loan companies will not accept a student’s request when he or she is still on the run for a scholarship.

Yet, not all school loans are this severe or closed on their guidelines; some will accept the student’s request for a school loan while he or she is still waiting for the decision on the scholarship. But this “patience” often comes with a price in the form of a “penalty” fee that they will charge the student for all the paperwork done if, in the end, he or she determines that he or she will not be using the school loan because the student scholarship has been accepted.

Regardless of this, it might be wiser to even risk having to pay the “penalty” fee for being completely and totally confident that the necessary funding for the student’s school and professional education will be secured and on time when he or she needs to make the first payments.