Where To Find Student Loans For College

Where To Find Student Loans For College

by Dennis Conner

A college education may seem trivial to some but to not to most people who want to achieve a better status in life economically and socially. Globalization has made education very important because of the increasing competitiveness among young professionals worldwide.

A college degree has become a prerequisite in getting better work opportunities in any field of discipline. The lack of a college degree can thus put a person at a disadvantage especially when he is applying for a job and his competitors are all college graduates.

It is common knowledge that the income of people is directly proportional to the degrees they have achieved. Thus, a college graduate has better chances of getting a high paying job than a high school graduate. On the other hand, those who have masters' degrees will definitely have higher incomes than those armed with college degrees.

However, getting a college education is so expensive nowadays that only a few can afford to get one. Most families who belong to the low income group could not even send their children to college even if they want to do so. But there are solutions to those who are bent on getting a college education but who do not have the financial capacity.

Students who are eyeing a college education should already start preparing by narrowing the choice of colleges they want to attend as well as the possible expenses that would be incurred in getting that college education.

The family can start and working extra hard so they can contribute to the educational fund of their children or sibling. Planning ahead may also entail postponing or abandoning the family's vacation plans. The aspiring college student can also take on part time work to build his college education fund.

Qualified families can also avail of student loans offered by the government or by private financial institutions. It is also best to consider the type of student loan one would be getting because there are institutions offering student loans with exorbitant interest rates.

The United States government has acknowledged the importance of getting more Americans to college so it has prepared federal grant options for incoming college students. Federal grants are usually based on the financial requirement of the student and there is no need to maintain a certain grade while in college.

To qualify for the grant, a student must be a first time college student meaning this is your first college course or degree and possesses a high school diploma or its equivalent. Citizenship is not an issue because both American citizens and non citizens who are qualified can avail of the grant.

However, a student must be able to plan on repaying his student loan to avoid being stuck on a long repayment scheme. Most college students who have not planned ahead are still paying for their loans several years after getting their college degrees.

Understanding The Basics Of Stafford Student Loans

Understanding The Basics Of Stafford Student Loans

by Donald Saunders

Back in 1965 Congress instituted the Federal Family Education Loan Program in order to provide financial aid to students. One element of this loans program is Stafford loans which were originally intended only to assist those students in very real financial need but which today represent over 90% of all Federal education loans.

Since their inception Stafford loans have evolved to take account of changing conditions and nowadays there are two main types of the loan - subsidized and unsubsidized Stafford loans.

For subsidized loans the Federal Government accepts responsibility for paying any interest accruing on a loan from the date of issue until the student is required to start making repayments. Usually a student will not have to make repayments while he remains enrolled in a program of study which is considered to be a 'half-time' or greater course of study and for a grace period of six months after the conclusion of his course. However, a student may begin to make payments earlier if he so chooses.

Since the interest on the loan is being subsidized, these loans are normally only granted on the basis of need and officials will look at both a student's and the family's income when deciding whether a student qualifies for a subsidized Stafford loan. Students are required to fill out a Free Application for Federal Student Aid application form which includes details of income and the student will then be assigned a number called the Expected Family Contribution calculated from the declared income.

About two-thirds of all subsidized Stafford loans are provided to students whose parents have an Adjusted Gross Income of less than $50,000 per year. A further one-quarter are awarded to those in the $50-100,000 per year bracket. Thereafter the definition of 'need' becomes a little fuzzy and slightly under one-tenth of subsidized loans are allocated to students with a combined family income of over $100,000.

For those students who do not meet the requirements for a subsidized loan most will qualify for an unsubsidized Stafford loan. The main difference here is that students will be required to meet all loan interest payments, although once again payment will not generally start until six months after the completion of the student's course.

The mechanics of an unsubsidized Stafford loan means that a loan can be reasonably costly because the interest accumulates during the period of study and so the capital sum on which repayment will eventually need to be made will also grow. Let's look at a very simplified example.

Let's say that a student borrows $5,000 at the start of his first year of study at an interest rate of 6.8%. After one year the interest due is $340 which will be added to the loan capital. During the next year the student will accrue interest on the new capital sum of $5,340 at 6.8% which will come to some $363 raising the total debt at the end of the second year to $5,703. Of course this is not wholly accurate because interest is in fact calculated and added on a monthly basis but it does nonetheless illustrate the principles underlying this form of loan.

Depending on the sum of money which is borrowed every year and the time before repayment starts it can be seen that students can pay a relatively high price for the benefit of delaying the repayment of a Stafford loan.

In spite of the apparently high cost it needs to be borne in mind that many of the alternative methods for funding a college education are considerably more costly and that many students would simply not be able to afford to attend college without a Stafford loan.

Stafford Student Loans

Stafford Student Loans

by Rene Graeber

To gain a meaningful education it is wise to choose a university where your interest in classes will be captured. To help the selection process you may want to see what type of student loans you can get. The best one to look at in full detail is that of the Stafford Student Loans program. This program is one of the most popular loans programs that you will find.

This is mainly due to the low cost loan that is sponsored by the federal government. In addition to the low cost there are other benefits that are helpful when you are considering any type of loan. The benefits of the Stafford Student loans are one like you're getting 3.3 percent of your loan back as cash or credited to your account credit. To qualify for this cash back bonus you will need to make the first 33 payments on time.

As with many services in the world when you need help you look for the customer services to help you out. With the Student Loans you will receive quality customer service when you need it. You will get Sallie Mae's online account management tool. You will also receive account information by email.

The procedure to getting either of the Stafford Student Loans is not the difficult. You will mainly need to fill out a FAFSA form and submit in time (before the deadline has finished that is!). If you are considered as being eligible the FAFSA government branch will send this information to the Student Loans people where they will check the various details that you have given out.

Now if there are no problems with your application form you will then be informed of the next steps you will need to take. Once you have fulfilled these various terms and conditions of the Student Loans out you can choose which of the two loans you prefer to use. You will have a choice of either the Subsidized Stafford Student Loans or that of the Unsubsidized Student Loans.

While there is not that much of a difference you may want to look into the details of both of these loans thoroughly. The main difference that you will see is that the federal government pays the interest for you during the entire period of your being a student who is using the loan in one. And in the other loan you will need to see what the interest rate is. From this amount calculate how much you need to pay during the pay back time period. Which incidentally is about 10 years.