Online College Loan Refinance Resource

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A School Loan Consolidation Primer

By: Jay B Stockman

Hey Dad!, my son screamed from our front door, "I did it, I was accepted to Boston University.". My momentary exhilaration was overshadowed by the financial realities of college, especially private college. A quick calculation of my costs for 4 years of tuition, and expenses came to roughly $250,000, a very intimidating figure. Overwhelmed I thought, how could I possibly afford to send him to college? Fortunately, there are various options available to finance this academic endeavor. Careful financial planning, and research should make this endeavor a reality. Ultimately, a good education is your best investment. Federal programs are the single, largest source of school loan consolidation. The first step in applying for this type of aid is going on the Free Application for Federal Student Aid (FAFSA) website, at http://www.fafsa.ed.gov/, and fill out a comprehensive questionnaire. It generally takes around 7 days to process, at which point you will receive a Data Release Number, and Estimated Financial Contribution. It is important to find out if the school you will be attending participates in the federal student aid programs, most do. There are several federal programs available for student aid, assuming school participation. The Federal Stafford Loans, are available to both undergraduate and graduate students. First-year undergraduates are eligible for loans up to $2,625. Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rate is variable, but never exceeds 8.25 percent. The Federal PLUS Loans are unsubsidized loans made to parents; the interest rate is variable, but never exceeds 9 percent. Federal Work Study provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses. These are the major federal sources of loan money for college. Private education loans are also available from a variety of sources to provide supplemental funding when other financial aid does not cover costs. These loans are not sponsored by government agencies, and are offered by banks or other financial institutions. Sallie Mae is a unique loan that consists of a comprehensive package of both private and federal loans. After accumulating 4 years of undergraduate education loans, it is best to consider a School Loan Consolidation Program. Very simply, you can elect to combine all your outstanding loans into one student consolidated loan, which may create more favorable terms and simplify repayment, benefiting both the borrower, and the lending agency. Major benefits include the convenience of lower monthly payments, a single fixed rate, and one payment per month. There is a minor downside, however, students who do not consolidate their Stafford loans will have a 6-month grace period after graduation to begin making payments. Students who consolidate must begin making payments within 60 days of their consolidation. Both parents and students are eligible to consolidate student loans. The school loan consolidation program streamlines repayment by eliminating different terms, repayment schedules, and lenders. Will I be able to afford my son’s college education? Careful financial planning, and research should make this endeavor a reality. While it is true that college tuitions continue to rise, there is more financial aid available to compensate for the increases. Ultimately, a good education is your best investment. Jay B Stockman is a contributing editor for Online College Loan Refinance Resource Visit http://www.online-college-usa.com/ for more information.

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What Students and Parents MUST Know about Student Loans

By: John Williams

A student loan helps you get through college. Then you come out into a high-paying career. It's a great investment in your (or your sons/daughters) future. Student loans generally give you a good deal. You get below-market interest rates, and you get a $2500 federal tax credit on interest paid over any period of time (previously first 60 months only) It doesn't matter if the student, or parent takes out the loan; tax deduction remains the same. * Did you know the federal government has a $50 billion student loan program ? Not surprisingly, the federal government provides the largest percentage of student loans. Other student loans may come direct from colleges, private lenders or state governments. One of the key advantages to a federal guaranteed loan is exactly that - it's guaranteed. That means you don't need collateral. It also means the terms are kinder than a typical lender might offer. Of course, your educational program has to be approved by the government. Types of student loans * Federal Stafford Loan - for undergraduate or graduate students A popular and cost-effective source of a student loan. Stafford loans provide low-interest, government guaranteed funds. Stafford Loans come in two types, subsidized or unsubsidized. Whether or not you're eligible for subsidized depends on household income. The school ought to advise on this. For subsidized, the government covers the interest right up to start of repayment i.e. they pay interest incurred during the course, in deferment and during the grace period before repayment begins. If you qualify for subsidized, it's a great deal For unsubsidized, the student must pay all interest incurred at all times, though they don't start repaying until after grace period. * Federal PLUS Loan - for parents of undergraduates Parent Loan for Undergraduate Students (PLUS) allows parents to take a loan on their Childs behalf. They can contribute to their Childs future, and get a great low- interest loan with continuing future tax relief. PLUS actually allows parents to borrow the total cost of their child's education, minus any grants or other financial aid awarded. All tuition fees, meals, books, transport etc. can be included in the loan. This really is a great deal, and has no income or asset requirements. Even poor credit history may be overcome. Repayment is flexible, and can include zero payments for up to 4 years. Only one drawback to the Federal Stafford and Federal Plus loan - your school must be approved to participate in these programs. If your school isn't approved, then you've got some other options... * Banks Many banks offer unsubsidized Stafford loans. You still get the money, which you must have to attend college, but repayment options are more limited. Some deals offer you an interest rate reduction if you make payments on time. * State Loans Most states offer guaranteed student loans. Apply direct to Banks, who'll administer the State program. It's usually a more expensive way to borrow than Stafford. * College Board Extra Credit Loan Administered by your college. Can be expensive, and best used only in an emergency e.g. your aid is withdrawn. * Other Loan Sources A number of other sources may be worth trying if you get a problem with your first choice lenders. Academic Management Services affiliates with approx. 2000 schools. AMS pay your tuition fees if you repay them in less than a year. College Resource Center also has loans available. If your parent served in the military, then a military loan should be investigated. College can be the experience of a lifetime. A child starts college as a high school kid, and emerges a full grown adult with high-earning potential… But he or she needs money to survive and thrive in college. This article looked at the main sources of student loan funding, and those sources should be ideal for most students and their parents. John Williams The right Student Loan makes all the difference to a successful college career. Discover important information on choosing the right student loan, and guaranteeing your future success. Click ==> http://studentloans.college--loans.com/

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