Student Loan News, Updates and Blog Posts

The date is rapidly approaching for many recent graduates to begin repaying their student loans. Now is the time to seriously look at the benefits of consolidation and to act soon. Graduates have six months from their graduation date (a period known as the “grace period”) to consolidate their federal student loans at a discounted rate. Graduates who consolidate during their grace period receive a 0.6 percent interest rate reduction, with some students consolidating at an interest rate as low as 6.625 percent. The lowest consolidation rate increases for graduates who miss this important deadline to 7.25 percent.

Once the grace period is expired the borrower will not be eligible for the grace period rate for federal loan consolidation. If you would like to find out when your grace period expires please call 877.329.1565 – or visit www.studentloanconsolidator.com.

www.staffordloan.com

www.parentplusloan.com

www.gradloans.com

Filing out your FAFSA is like filling out an application at a bank before you get approved for the loan. Just because you got the award letter or the pre approval doesn’t mean that you are done and money will be sent to your school. If you got awarded a Stafford loan you need to find a lender and provide them with a Master Promissory Note before you receive anything. A FAFSA is just an application you fill out to determine how much aid you are eligible for. It is not a loan.

Furthermore, the money you get awarded from a FAFSA is all Federal aid and is determined by your school. This is not free money and you have to pay it back. You can find more information regarding this application at FAFSA Online. After reviewing that website you may want to check out Stafford Loan . If you are looking for a loan that you do not have to pay back you would want to ask your school what type of scholarship programs they offer and ask about Pell Grants. The previous loans are need based and are usually awarded on a first come first serve basis. You can also check out Scholarship Points

Over the past month, we have seen a huge increase in the amount of consolidation application requests. Many of these requests are June graduates trying to get their applications submitted before their grace period expires.

If you are currently still in your six-month post-graduation grace period, you can apply for a consolidation and receive additional savings. During this six months, Stafford loans disbursed before July 1, 2006 have a 0.6% lower rate. By consolidating during this period, you are able to lock in this discounted rate. If you wait until your grace period is over your rate will increase by 0.6%. Your application must be signed and received in our office before your grace period ends in order to obtain the additional 0.6% discounted rate. When you fill out your consolidation application, be sure to include your grace period end date, and we will complete your consolidation when your grace period expires.

If you are not sure when your grace period expires, give us a call toll free at 877-328-1565 to speak with a loan counselor.

StudentLoanConsolidator.com
StudentATM.com
Gradloans.com
ActEducationLoans.com
FinancialAidPodcast.com

Whether you are a recent grad, or graduating this year, it is important to know when your grace period begins and ends. Typically upon graduating your grace period starts right away and lasts for six months. During this time you do not have to start paying back your loans which makes it a good time to shop around and start thinking about consolidating.

Consolidating during your grace rate is beneficial for a couple of reasons. First, if you consolidate during your grace period you can lock into a lower fixed rate as opposed to waiting until they go into repayment. The interest rates are fixed by the federal government so you are always guaranteed the going rates. For example, the 2006 grace rate is 6.54% and the repayment rate is 7.14%. That statistic alone should be reason enough on why it is a good idea to consolidate as soon as possible. Second, since you are not obligated to make payments on your loans until your grace period ends, you don’t have to worry about putting them on a temp. forbearance while consolidating. This gives you the freedom to take your time and find the right company for you. A company that I found very informative was www.studentloanconsolidator.com This site is full of information and has an easy online application process. Also, just remember that the rates change every July 1st so if you wait to long you may miss out on getting a low fixed rate. Just last year the rate increased from 4.7% to 6.54% for those consolidating during their grace period. If you are looking for more information on Consolidation or federal loans in general check out some of the sites listed below.

www.staffordloan.com

www.parentplusloan.com

www.studentloannetwork.com

Parent Plus Loans are federal loans that are taken out by the parent on behalf of their son or daughter when the financial aid they are receiving just isn’t enough. Although your son or daughter may be 18 and considered an adult in your eyes, the Department of Education (DOE) considers them a dependent up until the age of 24, leaving you the parent responsible for picking up the leftover.

It isn’t as bad as it sounds”¦ Like your child’s federal loans your interest rate is fixed (8.5% current) by the Federal Government so you don’t have to worry about getting a high interest rate if your credit is not so hot. Although it is credit based, it is a lot more lenient on the requirements than taking out a private loan. Another perk is that even if you are denied, your child will get awarded money. Really. All he or she has to do is take that denial letter to the schools financial aid office and they will possibly be awarded more money on their Stafford Loan. It is really a win/win situation. Below I have listed some useful websites where you can get more information and apply if you are interested. I have also listed a few points worth reading.

• 8.5% interest rate
• Loan Pd. over a ten year period
• Remains in the parents name for the life of the loan
• Parents can consolidate Loans at Federal Rates

www.parentplusloan.com

www.studentloannetwork.com

www.staffordloan.com

Federal Loan consolidation is a practical way for borrowers to manage their student loan debt. Borrowers may consolidate for one or any combination of reasons. The most common reasons are:

• With only one lender involved you will always know who to contact.
• You will receive one monthly bill each month.
• An extended repayment period-from 10-30 years depending on the total loan balance.
• Renewed Deferments and Forbearance.
• Any subsidized Stafford loans that get consolidated will keep their interest subsidy benefits during deferment.
• If you consolidate during your grace period the interest rate will be lower. That is because the interest that applies to consolidation will be the “grace rate”, which is lower than the rates you pay after entering repayment.
• Depending on the interest rates of your existing loans and how long you take to repay, you could save money if interest rates increase in future.

For further information on loan consolidation or to request an application please visit www.studentloanconsolidator.com

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

Ok, excuse the silly title but we are all getting into Thanksgiving mode and I thought I’d post something for our readers who may already have Federal loans (Stafford, PLUS, GradPLUS, Perkins) and might want to consolidate. Typical loan terms are for 10 years – so regardless of how much you have in loan volume, any unconsolidated loan must be paid off in 10 years. This means monthly payments are really high and, often, unmanageable. One payment here another payment there – it all get confusing and really takes a hit on your cash flow. The best solution to this is consolidation – think one monthly payment (which can be done online), a lower payment and great benefits. You can get up to 1.25% off if you make 36 on time payments and set up automatic payments. That’s right, you get a discount for setting up auto pay! Check out StudentLoanConsolidator.com – they have great information, an easy online application and knowledgeable customer service reps who can help make such a stressful process a breeze!

I know I mentioned your savings. If you have…

$20,000 in Stafford loans at 6.54% unconsolidated gives you a monthly payment of $228/month. Consolidate this loan and you’ll have a payment of $155/month – save $77/month – $923 A YEAR!!

Again, you’ll retain all your federal benefits, such as deferment and forebearance so if you ever experience an economic hardship or go back to school, you can put off payment.

Happy Thanksgiving Everyone!

The Federal Pell Grant is only awarded to students who have not earned a bachelors or professional degree. Federal Pell Grants, which do not have to be repaid, are awarded to students based on need. The need is based on the FAFSA.

A Federal Pell Grant can be used for tuition, fees and educational expenses. A recipient of a Pell Grant may still apply for other Federal and Private Loans. It’s no secret that most of the federal loans only offer a minimal amounts. Nowadays, most students carry multiple federal and private student loans in order to best manage college expenses.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

I recently got a question about scholarships. This is the best type of financial aid because it doesn’t have to be repaid! Check out www.StudentScholarshipSearch.com – Student Scholarship Search Center. It’s a free search site that allows you to check scholarships, grants and more. You can even search by your program, state of residence, and more!

So, for graduate students, I just searched the entire directory under the terms “graduate school,” and came upon 52 scholarships! Now, the trick with scholarships is to find the ones that match your program of study, interests, school, etc. as most of them have certain conditions you must meet to qualify. I just found a Real Estate scholarship – for any undergrad or graduate student studying real estate. A graduate student can get a scholarship of $30,000!!

Some tend to shy away from scholarships because they often require an essay or application and some other forms of documentation. THIS IS FREE MONEY! Do the extra work – it just might pay off!

For daily scholarship updates, be sure to tune in to the Financial Aid Podcast. Your host, Christopher Penn, always has new and unique scholarship offerings to share!

The date is rapidly approaching for many recent graduates to begin repaying their student loans. Now is the time to seriously look at the benefits of consolidation and to act soon. Graduates have six months from their graduation date (a period known as the “grace period”) to consolidate their federal student loans at a discounted rate. Graduates who consolidate during their grace period receive a 0.6 percent interest rate reduction, with some students consolidating at an interest rate as low as 6.625 percent. The lowest consolidation rate increases for graduates who miss this important deadline to 7.25 percent.

Once the grace period is expired the borrower will not be eligible for the grace period rate for federal loan consolidation. If you would like to find out when your grace period expires please call 877.329.1565 – or visit www.studentloanconsolidator.com.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans