Student Loan Consolidation » College Tuition

College Scholarships vs Student Loans

admin — Mon, 28 Jun 2010 17:00:33 +0000

There is no way you can compare the value of college scholarships against student loans. Who wouldn’t want a college scholarship that would provide grant money that did not have to be repaid versus paying back money borrowed plus interest. Simply put, a scholarship is your money to spend on college. A student loan is just that: Borrowed money that must be repaid.

A college scholarship is real money that a student is granted to use for such things as college tuition, room and board and other expenses as allowed by the stipulations of the college scholarship. A student loan is money loaned to students for college tuition and other expenses, but students pay interest immediately as soon as the check is used

The best type of college scholarship is one that is granted for all four years of college. These scholarships are called “renewable.” On the other hand, a student loan is typically taken out each year from a loan granting institution or sometimes from the college itself. The interest rate on the loan will vary.

Some loans are called “subsidized” loans. Students who are eligible for subsidized student loans, based on family income, can take a Stafford student loan. The beauty of this loan is that the U.S. Department of Education pays the interest that accrues while the student is in college and for six months after graduation.

Other loans are called “non-subsidized” student loans. These loans are not given based on need, and any student can request an unsubsidized student loan. With a non-subsidized loan students are charged interest from the day the check is delivered. For both loans the principal payments will begin 6 months after graduation, but as mentioned, the non-subsidized student loan would have interest payments due from day one of the loan.

Therefore, it is always in a student’s best interest to take the time to search for college scholarships. This means searching for awards even after they are accepted to a school, and searching for scholarships during college. The goal is to have a student graduate with the smallest amount of debt in student loans as possible. This means taking advantage of college scholarships as much as possible, and covering extra expenses with loans or job income.

By: Phillip Walters

Student Loans for College – 10 Things You Should Know About Student Loans

admin — Sun, 27 Jun 2010 19:57:11 +0000

Student loans mean a lot for college students because their future depends on the money that will be given to them. Going to college is getting more and more expensive every school year which is why student loans are important to students and parents as well. So, if you are thinking about college or student loans in particular, here are some tips and guidelines that would put your college life in perspective.

1. Collect figures

Collect figures mean that you should now look at how much money is needed in order to pay for your education. This means that you should have at least an idea how much is the cost of the tuition and fees of your desired course. Aside from that, you should be able to have an estimate of other expenses like travel costs, college text books, room and board, college tuition, personal expenses, and other things.

2. Research about student loans

If you already have the information mentioned above, then the next step to take is to look for a student loan that is right for you. All student loans are not the same because not all payment plans are suitable for all. Gather as much information as you can so that you can choose from the options available for you.

3. Types of student loan

There are five types of loans available for student expenses: subsidized (based on financial need, and the government will subsidize the interest charges until education is completed), unsubsidized (no financial need, interest accrual starts immediately), direct PLUS loans (Parent Loan to Undergraduate Student), private loans, and home equity loans.

4. Differentiate and compare student loans

Each of the student loans is at least slightly different. Compare and contrast the types of student loans so that you can narrow down your decision process. They are different in terms of payment terms, grace period, or penalties.

5. Financial Need Student Loans

This type of student loan has a low interest rate and is from the federal government for students with financial need. The interest rate in this type of loan doesn’t begin until the student has begun repayment of the amount thus making it easier and cheap if compared with other student loans.

6. Non-Financial Need Student Loans

This is quite similar to the financial need student loan, the only difference is that it is not based on the financial need of the family and the interest rate starts while the student is still in school.

7. Federal PLUS (Parent Loan for Undergraduate Students)

This type of student loan is not based on the financial needs of the student. The parents of the child could apply for this type of student loan. It also doesn’t consider the family’s income or asset when applying for a student loan. The amount of eligibility is based on the educational expense minus other loans, grants and scholarships t he student qualifies for.

8. Private Loans

The ones that are offering this type of loans are usually companies, banks, and financial institutions. These firms provide private student loans for both undergraduate and graduate students. The interest rates in this type of loan are actually high so it is not really recommended for students to choose this type of loan.

9. Home Equity Loans and Lines Of Credit

In this type of student loan, a home equity loan or line of credit is the way homeowners pay for your college education. One possible advantage here is a tax deductible interest.

10. Choose and manage well

From the different types of student loans mentioned above, choose one or more that is suitable for your needs and your budget. Be sure that once you have chosen the type of student loan that you like, you could actually manage it well and handle the problems that comes along the way.

Student loans were made for two reasons. One is to help the student financially in their quest for higher education, and the other reason is to help them be mature individuals. By having student loans, a student is able to face responsibilities which are really essential once that they step beyond their learning years into everyday life.

Remember though that these loans do eventually have to be paid back, after graduation if not sooner.

By: Dennis Becker

Bad Credit Student Loans – Get the Money You Need for School

admin — Sat, 20 Mar 2010 14:18:21 +0000

Are you in need of money to help you pay for college tuition, books, and housing? Are you also one of the many individuals that has bad credit? There are plenty of financial aid options for you and you just have to know where to get bad credit student loans from. Here is a short guide to getting financial aid regardless of your credit.

Your first option requires you go down to your financial aid office and get some help. You will be able to apply for unsubsidized loans and subsidized loans that are government backed without any worries about your credit or a cosigner. They will have you fill out a FAFSA form and that will determine your need for student loans. It will all depend on your income level, but you should qualify for something if you do not make much money.

You also can ask about grants while you are in the financial aid office. There is a pell grant and if you qualify for it you will not have to pay it back. This can really help you with tuition and books, but you will have to have a low income level in order to qualify. Make sure you ask about grants because if you don’t you will probably not have a chance to get a grant.

The next option will require a parent to help you out. If your parents are willing to take out a plus loan for you, then they can do so and help you with college. This is a loan that is designed for parents and will give usually give you enough money on top of your regular student loans to pay for your tuition.

The last option for bad credit student loans are for those that still need more money. There are places that will loan you money if you are a student, but usually if you have no credit or bad credit, then you will need a co signer to help you out. This is possible and you can get up to $40,000 from this option.

By: Benjamin Robert Ehinger

How to Borrow Student Loans Responsibly – Five Ways to Do it Right

admin — Wed, 17 Mar 2010 23:53:24 +0000

Research has revealed that Student loans make up 54 percent of aid for college tuition, making them the largest form of loans awarded to students. With the increase in student loans, the rate of defaults are on the rise, this could be the attributed to the high-unemployment rate or other financial factors. Student loans continue to be an albatross around the neck of many students, every year there is a marked increase in student borrowers. The rise in the increase of students loans coupled with the overall expenses for college has grown faster than inflation. Why is this? Experts contend that more and more students are increasingly taking out a series of student loans, thus compounding the debt ratio. Taking on new student loans only increases your debt, thereby, sinking you further and further into financial crisis. It is straightforward, the more debt you incur, the deeper the debt spiral.

Student loans will always be with us, unfortunately, borrowing to achieve a higher education is the only way the majority of Americans will reach their goal of earning a college degree. Because we know that borrowing to attend college is not going away, steps to offset the bite of borrowing to attend college should be taken as far in advance as possible to reduce and manage your debt. Here are some steps to you can take to ensure you are borrowing responsibly.

1. Avoid Falling into The Loan Trap – If at all possible, avoid borrowing; however, if you are like most students attending college, you have no other choice but to do so. When it comes time to borrow, do not be tempted to borrow the full sum available to you personally on the loan, loan, of the loan, doing so can give you a false sense of financial security. Often when you get the maximum amount of a student loan, it is usually more than you can afford to repay. This usually happens when students take out a need-based loan. These loans are easy to get, and no repayment is required until after you leave school. If you borrow responsibly in the beginning of your student loan process, the back-end repayment period will be manageable.

2. Know Exactly How Much You Need to Borrow – Know before you go is my motto! When you receive your loan award letter, and the maximum amount it states because you will know in advance exactly how much you need for a given school semester. If you participate in the student work study program or maybe you work full time during the summer. The salary earned from your part time work can be used to repay a little money on the loan.. Also, consider setting aside some of your earnings to pay for the next semester, thus avoiding the need to borrow as much.

3. Only Consider Student Loans with The Best Terms – Remember, the lower the interest rates the lower the loan, which means the less you have to repay: Federal Perkins Loans, Stafford Loans: Federal Family Education Loan Program (FFELD) and Federal Direct Student Loan Program (FDSLP), Free Application for Federal Student Aid (FAFSA), The Federal Parent PLUS Loans for Undergraduates Students (PLUS) Program, Graduate and Professional Student PLUS Loans (PLUS).

4. Scholarships and Grants – Undergraduate scholarship and graduate fellowships are excellent aids to assist students in paying for their education. Unlike loans, scholarships and fellowships can be considered free money since it does not have to be repaid. Thousands of scholarships and fellowships from thousands of sponsors give out every year. Here are some resources to get you started: FastWeb Scholarship Search, College Board Fund Finder, Scholarships.com LLC, and Scholarship Search Sites Owned by Education Lenders, scholarship central, Award Database, Next Student Scholarship Experts, Broke Scholar, College Data, Wintergreen/Orchard House Scholarship Database, College NET Mach25 and College View scholarship directory.

5. Military Student Aid is another valuable resource that offers exceptional scholarship opportunities: US Armed Forces Recruiting Programs, Financial Aid for Veterans and their Dependents, Veterans and the FAFSA, HEROES Act of 2003, Books about Military Scholarships and Financial Aid for Veterans. Additional information can be found in the Education section of the Military.com web site.

6. Lastly, Private Loans or Alternative Loans – These loans should be your last resort and if at all possible choose another source. You will find loads of information when you start your research, the key is not to let it frustrate and make you give up. Stay focused, persevere and follow through with the mountains of paperwork in a timely manner. If you wait until the last minute, you might find you have to put your dreams on hold until the next semester, and I am sure you do not want that to happen. Make these resources your primary go to for information and you will always up-to-date-information at your fingertips: FastWeb Scholarship Search, Local Public Library and your local College’s Aid Office.

By: Gloria Gladden