Student Loan Consolidation » Subsidized Loans

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

Subsidized Vs Unsubsidized – Making Student Loans Simpler

admin — Fri, 25 Jun 2010 01:31:03 +0000

Before beginning the process of acquiring financial aid, it is important to understand a few essential facts, especially when it comes to student loans. This is particularly important because more and more potential college student have to rely on so many student loans these days. To begin with, it is vital to understand the two primary kinds of student loans. There are subsidized loans and unsubsidized student loans. The two types of loans are somewhat similar, but the differences between them are key. Understanding those differences is crucial when it comes to putting together a financial aid package.

To begin with, an individual student’s need for financial aid is what determines the amount of a subsidized loan. Some common subsidized loans are the Subsidized Stafford Loan and the Perkins Loan. Succinctly, a subsidized student loan does not make students pay interest while they are enrolled in college. Instead, the federal government takes care of the interest while the student is in school. This is, in fact, why they are called “subsidized loans” – while a student is in school, the government subsidizes his or her interest for the duration. Following a student’s graduation, there is a grace period, and after that, the student must begin paying back both the loan(s) and the interest.

Conversely, unsubsidized loans stipulate that a student must pay back the loan’s interest while he or she is attending college. That is, of course, why they are referred to as unsubsidized loans – the federal government does not subsidize any of the balance for the student. As with subsidized loans, students have a grace period immediately following their graduation from college. The main difference between subsidized loans and unsubsidized loans here is that all of the financial responsibility is solely left up to the student.

Another key difference between subsidized loans and unsubsidized loans exists in the amount a student is allowed to borrow each year. As aforementioned subsidized loans depend on an individual students need for financial aid and financial status. As such, there may be a limit to how much a subsidized loan allows any single individual.

While unsubsidized loans may also limit the amount given to any one student, their limitations are usually far lower than those for subsidized loans. In general, unsubsidized loans allow students to borrow as much as five thousand dollars more than subsidized loans offer.

In most cases, a student must be enrolled in college on a part-time basis, at least, in order to receive either a subsidized loan or an unsubsidized loan. If a student with a subsidized loan finds that he or she needs more money, he or she can certainly turn to an unsubsidized loan instead. However, that is not the only other option at all – there are many types of student aid available; these are just two of the most common kinds. There are also a variety of grants, scholarships, and private loans available if a student’s subsidized or unsubsidized loan does not meet all of his or her financial aid requirements.

By: Gary Marjani

Which Student Loan is Right for YOU

admin — Mon, 24 May 2010 07:12:51 +0000

Life is made from decisions, some small and inconsequential, others you may look back on and think… “That was a turning point in my life”. To make a good decision about student loans (a very important decision), requires research and planning.

For the purpose of this article, we’ll assume you have already looked into grants and scholarships, if not, PLEASE do so, since that money does not have to paid back, while student loans are just that… a loan and at some point in time, the money will have to be returned.

Assuming you’ve decided you do need a loan, where do you look? The first place should be federal student loans. They are easier to obtain, interest rates are lower, and they are long term loans created with education in mind.

STUDENT LOAN FACT: The first payment on your loan is due six months and 45 days after graduation.

With that in mind, let’s look at the Federal Perkins Loan in more detail. This loan is based on need and that need is determined by information submitted on the FAFSA (The official document used by colleges and universities to determine eligibility for Federal Student Aid). Undergrads can borrow up to $4,000 per year, which is increased to $6,000 per year for grad students.

Next in line is the Federal Stafford Loan which is available to both undergrads and grad students. These loans vary depending on your year of education and current financial situation. Details can be obtained at your college or university financial aid office.

Your Stafford loan can be subsidized or unsubsidized. The difference is simple; with subsidized loans the government pays your interest, while you are responsible for interest payments on unsubsidized loans. Your financial needs and a conversation with your financial aid office, will determine which you are eligible for.

Next on the agenda is where your parents come into the mix, it’s called the Federal PLUS Loan (Parent Loan for Undergraduate Students). This is a low cost loan allowing your parents to borrow the amount of money needed for attendance, less other loans, grants and scholarships, already in effect.

While still a government backed loan, this one is a more traditional and requires a credit check, and is not based on financial needs.

Federal loans were designed to be used; if you qualify (and most will) then these are better and easier to obtain than private loans.

FEDERAL STUDENT LOAN FACT: Under certain situations federal loan re-payments can be deferred for up to three years while you are searching for a job.

Private loans are between the individual and the lending institution. These loans are designed to fill the gaps not met with Federal loans. They are be available from banks, possibly your school and organizations created specifically for private student loans.

When looking at these loans remember… your credit will be examined and loan terms will vary; be certain to shop the lenders for their best rates and on your end, protect your credit rating.

FEDERAL AND PRIVATE LOAN THOUGHT: Be conservative, don’t borrow more than you need; and remember that unlike a grant, this money DOES have to be repaid.

Continuing your education and obtaining a degree or advanced degree is the single greatest decision you’ll make. Abraham Lincoln said “Give me six hours to chop down a tree and I will spend the first four sharpening the axe”. Your education is YOU sharpening that axe, the axe that can cut through the adversities of life. Money should not be something that stops you from obtaining your education, and with student loans, it no longer should.

By: Alan King

An Essential Part of College Education Are Student Loans

admin — Sat, 17 Apr 2010 01:23:18 +0000

Not too long ago, it was completely affordable to go to college on a fixed income. With the recession, the cost of college has nearly tripled in the last few years. Here are a few ways you can be frugal yet assertive and taking out student loans for college instead of other funding.

Have you ever considered how much money it will actually cost you to get a college degree? That is why there are billions of dollars in student loan debt owed by millions of Americans in our nation. Many of them did not take into count how much they actually needed to go to college before borrowing.

Some people are fortunate in that they have the skill such as an athletic ability or some other thing that makes them special enough to achieve earning a full ride scholarship. The rest of us, however, are stuck with determining how much we will have to borrow to get our college degree which begins with budgeting.

Many people will remain at the same job they have always worked that their entire lives. They may wonder if earning a college degree would have been a better choice. The best way is to consider how much money they will learn with and without a degree in order to make this determination.

Most people think that life simply continues on. You go from day to day and there is not a lot of planning. But if you take this attitude when determining whether or not you need to take out a student loan to go to college, you may be paying for decades in the future for a decision you make right now.

There is a simple course of action that all people who have determined that they need to earn a college education mistake. They must sign up for classes, and then they must get funding to go to college to pay for their classes and also to survive.

Some loans are private. Others can come from your parents through home equity loans. Most students take out unsubsidized or subsidized loans that will accrue interest that they will not have to pay until they have finished their college education.

If you are serious about going to college, and you know exactly how much money you need, then you must make a choice and take out that student loan today. It will ensure that whether or not you qualify for a grant or scholarship that you have the money necessary to complete your college education.

By: Tommy Hilligan

Finding Options For Fast And Easy Private Student Loans For Bad Credit

admin — Mon, 12 Apr 2010 14:20:19 +0000

The gap between your actual cost of education, and the amount granted by the government, can be bridged by a private student loan. However, imagine seeking a student loan with a bad credit score! Nevertheless, even though it may seem impossible to get a fast and easy private student loan for bad credit, there are several ways of getting one, without worrying too much about your existing credit report.

Credit score is an important criterion that lenders keep in mind before extending loans, but you can get the loan if your credit history has been good, besides the present credit problem. Several banks and universities offer private loans to students or their parents, making it easy for them to seek fast and easy private student loans for bad credit.

Drawbacks Of A Bad Credit Report: If you want to avail a student loan on bad credit, you may have to pay a higher interest rate, compared to other private student loan options. Lenders could refuse to approve your loan due to your bad credit history. However, there are many borrowing options that can help you get fast and easy private student loans for bad credit to complete your education.

Funding options:

The funding options for students who seek fast and easy private student loans for bad credit are:

Credit repair: You can opt for a credit repair if you are facing problems in getting a student loan. A lot of student loan providers give credit counseling to students. It is like a non-profit business for them. If you have been denied a student loan from a loan provider, you can go through credit counseling, so that it is possible for you to get fast and easy private student loans for bad credit.

Subsidized and un-subsidized student loans: Many schools and universities offer subsidized as well as unsubsidized student loans. Subsidized loans are given based on the economic needs of a particular student. While, unsubsidized loans are offered to students irrespective of their economic needs. These loans do not require any form of credit checking.

The government pays the interest on the subsidized loans, until the borrower becomes a graduate, and is capable of repaying the loan. On the other hand, students are responsible for the interest payment of unsubsidized loans. There are some loans which are a combination of government funds and funds from the college which the student is applying to.

Consolidation: These loans are ideal for students who want to make their loan repayments easy and affordable. Parents can also look for private education loans for flexible repayment options. This allows them to defer the repayment of the loan until their child graduates.

Grants and scholarships: Many states offer special grants and scholarships for students who are eligible for them. You can check the state government’s education fund for such provisions. These grants or scholarships are given without any credit check.

A credit worthy co-signer: Lenders can extend you loan if you find a credit worthy co-signer. Students can ask their parents to become the co-signer. If the co-signer has a good credit report, there are chances that a loan with low interest rates will be granted. It is important for a student and the co-signer to be known with each other.

Non-credit based loans: These loans can also be helpful in getting fast and easy private student loans for bad credit. For instance, if you are pursuing studies in health science, there are loans designed particularly for such courses. The loan is granted to the students who are considered eligible.

With the cost of education going up each year, it is often difficult for students to fund their education, especially when they have bad credit. You can take advantage of these options to ensure a good education.

However, the fastest and easiest way to seek a private student loan is to maintain a clean credit report, to avoid putting your career at stake.

By: Mike Herman

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