Answers:
Hey! So I'm not the only one! I start college this fall, too - August 20th, to be exact; and I've done a fair share of loan searching, too! If possible, it would be a good idea to contact the financial aid department of your college and check to see if they can help you on your loan search. Check out this website: www.hesc.com for some further information and the process of a loan - that's what I'm going through for my college. You don't have to start payment on the loan until 6 months after you graduate, and it covers tuition, books, and other expenses you may need. Looking at loans, I've learned that you really have to check out the fine print, and, depending on the school you are going to, there are going to be more practical loans. I hope that you've already filed your FAFSA and TAP applications - these are grants that the state helps you pay for college, and you owe nothing back. Some people have recommended me to check out the Sallie Mae Foundation - they offer a wide variety of loans for college students. Good luck on your loan search - I hope that you can find the one that works for you!
Read all you can. Starting with the following!
Suze Orman
Money Matters
Posted on Friday, May 18, 2007, 12:00AM
You're probably aware of the recent disclosures that some college financial aid officers accepted incentives from private lenders in return for getting onto the schools' preferred-lender lists.
In light of this scandal, I want to discuss how college-bound young people and their parents can best navigate the maddening student loan game.
A Student Loan Primer
When seeking financial aid, look to Uncle Sam before you resort to private loans. Federal student loans typically charge lower interest rates and aren't laden with as many add-on fees as private loans.
The big federal loan programs are Perkins, Stafford, and PLUS (for parents of students as well as graduate students). You can get a federal loan either through the government's Direct Loan Program or from a third-party lender that doles out these loans.
Going the federal route can be a huge advantage when it's time to repay the loans. With a federal loan (direct or third-party), you lock in a fixed interest rate. The current maximum fixed rate for Stafford loans issued after July 1, 2006, is 6.8 percent. PLUS loans have a maximum 8.5 percent fixed rate.
Loans from private banks and lenders are variable, which means the interest charged on the loan will be reset periodically. Just like homeowners being squeezed by adjustable rate mortgage resets, anyone with a private student loan faces the risk that their payments will rise in the future when interest rates climb.
(For more information on federal aid, go to the Federal Student Aid web site.)
Loan Shopping Checklist
The recent loan scandal reminds us of a basic but often ignored rule of personal finance: shop around for the best deal, even when -- or especially when -- a college loan office serves up its preferred list. It may well turn out that the best deal comes from the first lender on a list, but you at least owe it to yourself to confirm that a preferred lender actually offers you a competitive deal.
Mark Kantrowitz, the publisher of a terrific web site full of free information on student loans called FinAid, shared some other tips with me:
• Don't settle for the first name on the preferred list.
Check out a few of the lenders on the list and comparison shop.
• Look beyond the list.
It's preferred, not required. Even if you receive loan paperwork from a financial aid office with the name of a lender filled in, understand that's just a suggestion -- you don't have to use that lender. For a list of the most popular lenders, go to FinAid and do a search for "lenders."
• Ask about interest rate discounts and fee rebates.
It's important to understand that the 6.8 percent interest rate on Stafford loans is simply the maximum that can be charged. Lenders hungry for your business can opt to offer you a lower rate, often as an incentive deal.
For example, if you agree to have your payments automatically deducted from a bank account you can often get 0.25 percent or more shaved off your interest rate. But be careful here: Read the fine print to see how hard it'll be to maintain a good deal; sometimes the bar is set so high that it's tough to actually qualify -- and keep -- an advertised good rate. (FinAid includes articles and calculators that can help you compare various loan and discount offers.)
And be aware that many lenders have two sets of rates -- one for when you're in school, and another (higher) one for when you're out of school and in the mandatory repayment period. If you don't intend to start repaying until you're done with school, then it's the second rate that really matters.
Here are the steps you need to take:
1) Fill out the FAFSA. This will determine if you are eligible for financial aid. Go here:
http://www.fafsa.ed.gov/
2) Once you are eligible for aid, choose a government-based student loan. The best loan to get is a Federal Perkins Loan. These have low interest rates and the government will help you pay it back as long as you stay enrolled in school. You also don't need a cosigner or good credit for it. For more info go here:
http://www.studentfinancedomain.com/stud...
3) The next best loan to get is a Subsidized Stafford Loan. This has many of the same benefits as a Perkins Loan. Learn more here:
http://www.studentfinancedomain.com/stud...
4) You can also try to get a grant or scholarship, which is free money that you won't have to pay back. Look here:
http://www.fedmoney.org/
http://apps.collegeboard.com/cbsearch_ss...
http://www.freegovmoney.net/
http://www.educationplanner.com/educatio...
http://www.studentawards.com/
http://www.college-scholarships.com/...
Good luck!
There are many who offers student loans. To choose one you have to see if the apr rate is alright for you or not. Apply online for the loans and see what they tells you. Go through the terms and conditions and then choose the best. You can also go for some financial aid.
To know more you can visit
http://www.easystusentloan.blogspot.com...
I found interesting information & options here. Good luck!
http://all-student-loan-consolidation.bl...
You can try to go to www.estudentloans.biz or www.1st-student-loan-consolida... it's about student loans information
There is some useful advice here.
When choosing a students loan provider, check their history online or call them directly to inquire about their options for students. Some banks allow students to make monthly payments or allow up to $40,000 covering additional living expenses beyond the books and tuition. As tempting as it seems, your student find themselves in more debt than you expected once you accept their students loan. Interest rates are inclining every year because of the government and we must take precautions so our credit history is not demolished during our university years.
You can also make use of the comprehensive form on this site : http://students.mygeneralknowledge.com/a...
This article contents is post by this website user, EduQnA.com doesn't promise its accuracy.
More Questions & Answers...