The main components of the federal Stafford student loan are the two types of financing programs for post-secondary students.
Stafford loans are under the administration of the US Department of Education and comprise the William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program.
Only students can apply for a Stafford loan by filling an FAFSA (Free Application for Federal Student Aid) and send it to whatever school they want. Once the form is reviewed, the school decides the financial eligibility.
For direct student loans, the federal government is the lender but the FFEL program allows you to choose the lender using a list offered by the school or a qualified lender.
Under this program, the federal government will guarantee for the loan.
The loan can be subsidized (the federal government pays the accrued interest while you're in school) or unsubsidized (the accrued interest will be included in your loan balance).
If a student brings all the correct documents, then he/she can benefit from a subsidized Stafford loan.
Each year in school influences the federal Stafford loan limits and also the subsidized / unsubsidized financing. Below you can find the current regulations that can influence your loan:
Pros:
- The credit checks are not required because the Federal government guarantees for the loan.
- The fixed rate interest rates are the lower interest rates on the market
- The repayment plans offer very flexible terms. This means that you will set the payment plan that fits you best and also you can consolidate your other loans into a single and more affordable one.
- During student enrollment the repayment is deferred.
Cons:
- Sometimes the loan limits are insufficient especially considering today's post-secondary education costs.
- You have to submit a FAFSA (Free Application for Federal Student Aid).
- You have to ask for Stafford loans every year and in time this leads to multiple payments and loans that will affect your post-graduation life.
- You will only direct the use of the funds because they are processed and collected only by the school for your lab fees, books, tuition, etc.
BY:Ricky Lim
1.2.09
College Loan Consolidation Made Easy
For most of you who made have attended college already, you can probably confirm the fact that most students can build up quite a debt throughout the years they spend getting educated. This can cause stress, this can even sometimes affect children while they are in college. Their is more pressure for them to succeed and they have this cloud hanging over their head, this huge hole that they need to dig themselves out of.
After graduation, usually about six months after, they want their money back. It's time to start making payments. A college loan consolidation can can help put some ease to those payments, and put less stress on both you and your bank account.
There are many companies and banks that offer college loan consolidations, the basic idea is to take all the loans that you have accumulated and convert them into one, financially feasible payment that you make on a recurring basis. As you look for a company that will consolidate your college loans, you need to be aware that they all have a different method of doing business. They have different interest rates above all else. All these little factors should be carefully considered when deciding on which loan consolidation to accept.
The consolidated loan will give you one key benefit, and that is that you will only pay an interest charge once per month. The interest rate is usually around 4%, whereas at the end of your grace period out of college, it usually sets at almost double that, an average of 7%.
BY:Chris Wilson
After graduation, usually about six months after, they want their money back. It's time to start making payments. A college loan consolidation can can help put some ease to those payments, and put less stress on both you and your bank account.
There are many companies and banks that offer college loan consolidations, the basic idea is to take all the loans that you have accumulated and convert them into one, financially feasible payment that you make on a recurring basis. As you look for a company that will consolidate your college loans, you need to be aware that they all have a different method of doing business. They have different interest rates above all else. All these little factors should be carefully considered when deciding on which loan consolidation to accept.
The consolidated loan will give you one key benefit, and that is that you will only pay an interest charge once per month. The interest rate is usually around 4%, whereas at the end of your grace period out of college, it usually sets at almost double that, an average of 7%.
BY:Chris Wilson
31.1.09
College Loan Consolidation - An Understanding
The majority of college students accumulate quite a debt throughout their time spent in college. The average student, after a 4-year term, has accumulated over $40,000 in debt before he/she has ever worked for their first paycheck. This can be downright daunting to a lot of students.
Most students who are still in high school will apply to any college they fancy. Most don't take into consideration how much it would cost to go to said school if they are actually accepted. This also can create a problematic scenario for the parent, because the child has obviously put forth enough effort to be accepted into a major university, and at times the parent feels like they are obligated to send them to that particular university since their child worked so hard to achieve it.
The Stafford Loan is a low interest-rate loan that is borrowed under the students name. There is no credit check for this loan and co-signers are not required. The funds for this loan come from private lenders and are guaranteed by the federal government. Generally speaking, federal loans are easier to acquire.
Very few families, though, can afford to pay for their child to attend a university unless they are able to get some form a financial aid, be it a scholarship, grant, or loan. All this, for most students, can be very very stressful. Financial management is not always an easy task.
The Federal Stafford Loan, available to undergraduates and graduate students, Is probably one of the easiest ways you could pay for school. No credit check is required and there are no fees (in fact, the government prohibits lenders from charging fees).
BY:Chris Wilson
Most students who are still in high school will apply to any college they fancy. Most don't take into consideration how much it would cost to go to said school if they are actually accepted. This also can create a problematic scenario for the parent, because the child has obviously put forth enough effort to be accepted into a major university, and at times the parent feels like they are obligated to send them to that particular university since their child worked so hard to achieve it.
The Stafford Loan is a low interest-rate loan that is borrowed under the students name. There is no credit check for this loan and co-signers are not required. The funds for this loan come from private lenders and are guaranteed by the federal government. Generally speaking, federal loans are easier to acquire.
Very few families, though, can afford to pay for their child to attend a university unless they are able to get some form a financial aid, be it a scholarship, grant, or loan. All this, for most students, can be very very stressful. Financial management is not always an easy task.
The Federal Stafford Loan, available to undergraduates and graduate students, Is probably one of the easiest ways you could pay for school. No credit check is required and there are no fees (in fact, the government prohibits lenders from charging fees).
BY:Chris Wilson
Canadian Student Loan Consolidation
As recently as January 21, 2009, CTV News reported that "Canadians who have pursued post-secondary studies now owe the federal government $13 billion in outstanding loans, according to new figures from the Canadian Federation of Students.
The CFS says Canada Student Loan debt increases by $1.2 million per day and will cross the $13 billion mark on Wednesday."
CFS national chairperson Katherine Giroux-Bougard told CTV that "the government must do more to help stem the growing levels of Canadian student debt." She added, "What the priority of the government should be is really to make post-secondary education affordable," she said.
Now the scary part is that all we keep focused on is longer finance terms. Here's my simple thinking: Why doesn't the government offer companies who hire these debt-laden students, a specific tax break. As part of the hiring process, companies could assume part or all of the student debt. The companies are after all the ones who gain the most in hiring these highly educated people. They should play a role in the debt financing as well. We used to fund apprentice programs remember or am I showing my age? Don't answer that.
It solves many issues. Instead of the government just backing loans and extending payment terms, let's transfer the debt to the companies who benefit the most, through a specific tax break. It will essentially free up government from backing loans, and free the student from a rather unrealistic debt. Now I realize this just seems too easy, but then again, we really seem to always make it more complicated that it has to be.
Some employers still assert that they like their employees to be in debt, that means they need their job more. This of course is old fashioned moronic thinking! More modern companies want to see their employees flourish and enjoy the good things life has to offer versus having to have a night job and work weekends just to barely keep up. A happy employee becomes an inspired worker who gives and achieves more. But this is reserved for the very special few employers who look at their employees through a holistic looking glass and not some tired old sweat shop mentality.
Okay have I stepped over the line here? Well at least it got you thinking. Whether you agree or not, I think you will concur that we simply can not lose sight of what these students mean to our future.
You know $13 billion in student loans is only the tip of the iceberg. Look at the transfer payments that provincial governments already give to post secondary institutions. The U of T alone gets almost a billion a year, from the province of Ontario to offset their tuition costs. And these huge transfer payments happen every year!
And what happened at York University recently is just unconscionable! Students held at ransom, they seem to be the only one's with no real voice in all this. Well that's my rant on the subject. I know nothing much will change and students will continue to be stuck with these massive debts.
BY:Mike Perras
The CFS says Canada Student Loan debt increases by $1.2 million per day and will cross the $13 billion mark on Wednesday."
CFS national chairperson Katherine Giroux-Bougard told CTV that "the government must do more to help stem the growing levels of Canadian student debt." She added, "What the priority of the government should be is really to make post-secondary education affordable," she said.
Now the scary part is that all we keep focused on is longer finance terms. Here's my simple thinking: Why doesn't the government offer companies who hire these debt-laden students, a specific tax break. As part of the hiring process, companies could assume part or all of the student debt. The companies are after all the ones who gain the most in hiring these highly educated people. They should play a role in the debt financing as well. We used to fund apprentice programs remember or am I showing my age? Don't answer that.
It solves many issues. Instead of the government just backing loans and extending payment terms, let's transfer the debt to the companies who benefit the most, through a specific tax break. It will essentially free up government from backing loans, and free the student from a rather unrealistic debt. Now I realize this just seems too easy, but then again, we really seem to always make it more complicated that it has to be.
Some employers still assert that they like their employees to be in debt, that means they need their job more. This of course is old fashioned moronic thinking! More modern companies want to see their employees flourish and enjoy the good things life has to offer versus having to have a night job and work weekends just to barely keep up. A happy employee becomes an inspired worker who gives and achieves more. But this is reserved for the very special few employers who look at their employees through a holistic looking glass and not some tired old sweat shop mentality.
Okay have I stepped over the line here? Well at least it got you thinking. Whether you agree or not, I think you will concur that we simply can not lose sight of what these students mean to our future.
You know $13 billion in student loans is only the tip of the iceberg. Look at the transfer payments that provincial governments already give to post secondary institutions. The U of T alone gets almost a billion a year, from the province of Ontario to offset their tuition costs. And these huge transfer payments happen every year!
And what happened at York University recently is just unconscionable! Students held at ransom, they seem to be the only one's with no real voice in all this. Well that's my rant on the subject. I know nothing much will change and students will continue to be stuck with these massive debts.
BY:Mike Perras
The Best College Student Loan Consolidation Plan
So you've just graduated from college and you're entering the real world with a brand new degree as well as a lot of student loans. You've decided that consolidating your loans would probably be the most effective way to handle them, but you're unsure of the best route to go. If you're confused about the best college student loan consolidation plan, here are a few tips.
First of all, the best college student loan consolidation plan should always include a low interest rate. This will help you to ensure that you pay back the least possible amount of money. The good thing is that federal student loan consolidation interest rates are capped at 8.25 percent meaning they can go no higher. Find a consolidation plan that offers a fixed interest rate because they can never change during the life of the loan.
You may be tempted by variable interest rates with low introductory rates but after the initial period those rates can really start to get up there and you have no control over what your rate will be. With a fixed interest rate you have the comfort of knowing what your payment will be every month.
Additionally, the best college student loan consolidation plans are the ones with few fees and that offer the option of graduated payments. These are payments which start off very low and gradually increase over the repayment of the loan. Graduated payments are excellent, especially if you're starting out with a relatively low income. They give you a chance to get on your feet and get your financial situation to a more stable place.
The bottom line with finding the best consolidation plan is to know your needs and do the research on different companies to find the best fit.
By J. Dees
First of all, the best college student loan consolidation plan should always include a low interest rate. This will help you to ensure that you pay back the least possible amount of money. The good thing is that federal student loan consolidation interest rates are capped at 8.25 percent meaning they can go no higher. Find a consolidation plan that offers a fixed interest rate because they can never change during the life of the loan.
You may be tempted by variable interest rates with low introductory rates but after the initial period those rates can really start to get up there and you have no control over what your rate will be. With a fixed interest rate you have the comfort of knowing what your payment will be every month.
Additionally, the best college student loan consolidation plans are the ones with few fees and that offer the option of graduated payments. These are payments which start off very low and gradually increase over the repayment of the loan. Graduated payments are excellent, especially if you're starting out with a relatively low income. They give you a chance to get on your feet and get your financial situation to a more stable place.
The bottom line with finding the best consolidation plan is to know your needs and do the research on different companies to find the best fit.
By J. Dees
Bad Credit Student Loan Consolidation Tips
It's pretty safe to say that having one or more college degrees can usually improve your employment situation greatly. Most employers are generally impressed when they see those extra letters behind your name. Therefore, a college education can be a very valuable asset.
However, after graduation (in order to better manage your finances) you may find yourself needing to consolidate your loans. Consolidation may become a little more expensive if you find yourself with bad credit, however it's still a smart move. While bad credit student loan consolidation may be a little more difficult, it still holds lots of benefits.
First of all, even with bad credit student loan consolidation, you will more than likely still find yourself paying out less money monthly than you would by paying each loan individually. Additionally, through consolidation, you will be able to lengthen your repayment period. This can benefit you greatly because it gives you more time to straighten out your financial situation while keeping your payments current. Many companies will allow you to utilize a graduated payment schedule where you start off with low monthly payments which gradually increase over time as you near the end of your repayment period.
Another reason to opt for bad credit student loan consolidation is that even though your rates may be a little higher, the interest rate for federal student loans is still capped at 8.25% which means that it can never go beyond this. The bottom line is that even with bad credit you can still utilize the benefits of consolidation to help you get back on track and begin to straighten out your credit situation.
BY:J.Dees
However, after graduation (in order to better manage your finances) you may find yourself needing to consolidate your loans. Consolidation may become a little more expensive if you find yourself with bad credit, however it's still a smart move. While bad credit student loan consolidation may be a little more difficult, it still holds lots of benefits.
First of all, even with bad credit student loan consolidation, you will more than likely still find yourself paying out less money monthly than you would by paying each loan individually. Additionally, through consolidation, you will be able to lengthen your repayment period. This can benefit you greatly because it gives you more time to straighten out your financial situation while keeping your payments current. Many companies will allow you to utilize a graduated payment schedule where you start off with low monthly payments which gradually increase over time as you near the end of your repayment period.
Another reason to opt for bad credit student loan consolidation is that even though your rates may be a little higher, the interest rate for federal student loans is still capped at 8.25% which means that it can never go beyond this. The bottom line is that even with bad credit you can still utilize the benefits of consolidation to help you get back on track and begin to straighten out your credit situation.
BY:J.Dees
Consolidating Your Student Loans is a Wise Choice
Over the years, you might have incurred lots of student loans with various lenders. Chances are you make multiple payments each month to many different loan services. Perhaps you did not know that you can save tons of money by consolidating all of your student loan debts into one.
Are You Buried In Student Loan Debt?
The cost of attending college has skyrocketed over the years. Being a student is a very expensive occupation! Many students find that after they have worked so hard to obtain their degree they come out of college with not only a degree but a mountain of debt with huge payments looming within the next six months. This can put a strain on your finances as you try to find a job. Or perhaps your student loan payments have already begun to get out of hand and you feel like you will never get them caught up. If so, now is the time for you to consolidate your student loans.
Consolidating your student loans means that you will take every loan that you are paying for and bundle it together to be paid by a new lender. In most instances, you can negotiate a consolidation loan for all of your student loans to get more favorable terms than you are currently carrying with the bulk of your student loans.
Lower Your Total Monthly Payments
One of the major advantages of consolidating your student loan debt is that you can lower your monthly payments. Whereas you might be paying a combined payment of $500 for multiple student loans, when renegotiating your student loan debt, you might make one payment for $250 or less to your new lender. This is just an example of how consolidation can benefit you - your payment will be based not only on how much you owe, but also on how much you can afford to reasonably pay each month according to your income and other obligations that you might have outstanding.
Pay Less Interest - Keep More Money In Your Pocket
An additional advantage of consolidating student loan debt is that consolidation allows you to pay less interest, which can literally mean thousands of dollars in savings over the life of your repayment schedule. While most of your current student loans have differing rates of interest attached to them, your new loan will have an interest rate that is less than or comparable to the loan that you are now paying the least amount of interest on.
Further, consolidation provides a great opportunity for you to rid yourself of any variable rate interest loans that you might have (which means you pay fluctuating amounts of interest on the principle) and lock in a new, fixed rate that will feature a predictable payment amount - again, saving you a bundle of cash in the way of interest.
You can find the best consolidation loan packages for student loans on the Internet. Online lenders often have the lowest interest rates across the board when consolidating your student loans.
BY:Mary Wise
Are You Buried In Student Loan Debt?
The cost of attending college has skyrocketed over the years. Being a student is a very expensive occupation! Many students find that after they have worked so hard to obtain their degree they come out of college with not only a degree but a mountain of debt with huge payments looming within the next six months. This can put a strain on your finances as you try to find a job. Or perhaps your student loan payments have already begun to get out of hand and you feel like you will never get them caught up. If so, now is the time for you to consolidate your student loans.
Consolidating your student loans means that you will take every loan that you are paying for and bundle it together to be paid by a new lender. In most instances, you can negotiate a consolidation loan for all of your student loans to get more favorable terms than you are currently carrying with the bulk of your student loans.
Lower Your Total Monthly Payments
One of the major advantages of consolidating your student loan debt is that you can lower your monthly payments. Whereas you might be paying a combined payment of $500 for multiple student loans, when renegotiating your student loan debt, you might make one payment for $250 or less to your new lender. This is just an example of how consolidation can benefit you - your payment will be based not only on how much you owe, but also on how much you can afford to reasonably pay each month according to your income and other obligations that you might have outstanding.
Pay Less Interest - Keep More Money In Your Pocket
An additional advantage of consolidating student loan debt is that consolidation allows you to pay less interest, which can literally mean thousands of dollars in savings over the life of your repayment schedule. While most of your current student loans have differing rates of interest attached to them, your new loan will have an interest rate that is less than or comparable to the loan that you are now paying the least amount of interest on.
Further, consolidation provides a great opportunity for you to rid yourself of any variable rate interest loans that you might have (which means you pay fluctuating amounts of interest on the principle) and lock in a new, fixed rate that will feature a predictable payment amount - again, saving you a bundle of cash in the way of interest.
You can find the best consolidation loan packages for student loans on the Internet. Online lenders often have the lowest interest rates across the board when consolidating your student loans.
BY:Mary Wise
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