Student Loan News, Updates and Blog Posts

Anytime the federal government and money are involved it is bound to be confusing and frustrating. The federal government is always changing the rules and regulations for federal aid creating new loopholes and issues for the student loan industry.

For example, a recent change in legislation does not allow students to consolidate while they are enrolled at least half time in school. To consolidate a student has to be out of school or carrying an academic workload of less than part time.

I personally think this rule is ridiculous. I get many requests from borrowers wanting to consolidate their loans because they need to improve their credit score to receive a better rate on a home mortgage or a car loan. Its true-consolidating improves your credit! Every year you attend school and borrow a student loan you create an open line of credit on your credit report. Consolidating your loans into one open balance really gives a boost to your credit score. When a computer calculates your credit score, it will see this: eight loans paid in full. You will look like a responsible and trustworthy borrower. Why does the federal government care that a student wants to make this smart financial step?

You can write to me about it. Not much I can do except agree with you. I suggest you write to Congress to complain about this ridiculous rule.

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

Even though I never transferred colleges, I have heard that the financial aid process makes this no easy task. Students that are going to switch schools at a semester break cannot take their financial aid package to the new school. This is confusing because you assume that since you were awarded, say, $5,500, you can take whatever you didnt use in semester 1 to your new school for semester 2. Sadly, this isn’t the case. However, there is a good reason why – your school awards you money based on your EFC (expected family contribution) that is determined once you fill out a FAFSA (Free Application for Federal Student Aid). Your award is also based on your school, how much they award to other needy students, the cost of attendance, etc. So, just because you were awarded $5,500 at one school for an academic year, you might be able to get $18,500 at a school that has a higher cost of education. The flip side is also true – your award might be less at a different school.

Upon switching schools, fill out a new FAFSA form – the information you are submitting might be identical to a previous semester but it has to be sent to your new school. Give it time, though. You’ll need to get your SAR (student aid report) in the mail AND get the award letter from your school. THEN you should apply for a StaffordLoan – applying for a Stafford Loan before you were awarded the funds doesn’t speed up the process.

Once you stop attending your old school, your loans from that school will go into your 6-month grace period, then into repayment. To avoid paying while still in school, you can defer paying on these loans until you graduate from your new school. Contact your lender for information!

Before I touch on the title subject…remember this…FAFSA is free! There is no harm in filling it out, even if you think you do not qualify for Federal Aid…you will never know unless you fill it out. Federal Aid eligibility is based on certain criteria that varies per individual and school. So fill it out. Ok, back on track…if you fill out your FAFSA and your school tells you that you are not eligible for Financial aid (which happens quite often)…do not stop there. The Stafford Loan IS financial aid…even though it is a loan that you have to pay back, it is considered a form of financial aid. What does this mean for you, the student? 1) You cannot get a Stafford Loan without filling out the FAFSA first. 2) Filling out the FAFSA does not automatically mean you applied for the Stafford loan. You still need to fill out the Stafford Loan Master Promissory Note. 3) You must collaborate with your school’s Financial Aid Office in order to receive this loan….why? Because it is financial aid!! Although the Stafford Loan may be a bit of a hassle to receive…it is still the best borrowing option for an undergraduate student because it has the lowest interest rate, the best repayment options, and the best borrower benefits…that may not seem important now, but you will be thankful for when you are a graduate paying back your loans.

I just got off the phone with a Dad who is very upset with his daughter’s last minute decision to change school’s next semester. Currently, his daughter is attending a local state college but would like to go out of state to a more expensive private university. Her reason is because she believes the private school will provide her with a higher quality of education which will offer job opportunities lucrative enough to offset the cost. Dad was unhappy with her decision because at the state school she had received a generous financial aid package where at the private university the financial aid package was not nearly as attractive. His question to me was if cost is an indicator of the quality of education.

In my profession I always have a definitive answer but for this question I felt there is no simple solution. My advice to Dad was that his daughter needs to go to the school that she thinks is the best college for her. It needs to be a balance of receiving a great education and the opportunity to be really happy. Attending a school just because it is affordable makes no sense if you are going to be miserable. College should be fun. On the other hand, it makes no sense to pay a ton of money to go to some swanky private school if you can go to a school that’s cheaper and just as good.

Over the last few weeks, I have noticed an increase in the amount of callers who have been concerned with wether or not to consolidate due to changes in Congress. There seems to be some concern on whether the interest rates will drop this upcoming July. My answer is this”¦If you were lucky enough to fill out an application before the July 1st rate increase then I would say definitely consolidate. Last years rates are 4.7% if you are in your grace period and 5.3% in repayment. If the rates do drop I don’t anticipate them dropping that much.

If you are a recent applicant the interest rates are 6.54 in grace and 7.14 in repayment. By not consolidating your rate is variable and will change this upcoming July. It may seem silly to consolidate if rates are going to drop, but, I would way your options and see which makes the most sense. You should remember that if you don’t consolidate you are paying that variable rate on all your loans which may make the payments tough to manage. Overall it is your call but I would do a little research before making this decision. You can read more about this on www.studentloanconsolidator.com

In conclusion, it is always best to way all your options and make an educated decision. If you would rather talk to a person you can always call the helpful reps. at www.studentloannetwork.com

More links for your review

www.staffordloan.com

www.ActEducationLoans.com

We all know how stressful and expensive the holidays can be – between travelling and buying gifts, your bank account might be tapped. For those in school, it’s even worse – I remember needing to buy poster boards, binders, and stuff like that for final presentations and feeling like that was about to break the bank! So…check out the GradLoans.com Private Loan – use it for those last minute educational expenses (like fees, books, presentation materials, a new computer to replace the one that’s running too slow, etc.)

You don’t need the school to certify it and you can borrow as little as $1,500 – payment waits until you graduate!

Don’t stress about those expenses you weren’t planning on – there is a simple solution!

When thinking about going back to school to pursue a graduate degree it is very important to review your financial situation closely and decide where you would like to be after you have obtained that degree and if this degree is necessary to get you to that place.

Here are some questions to ask yourself when deciding how much financial burden can you take on during your graduate career?

• How much can you afford to take out in loans during graduate school?
• How much will you have to pay back in loans after you obtain your graduate degree?
• How much will you REALLY be paying when you factor in loan interest rates?

Only you can decide if graduate school is worth the time and lifestyle changes. Remember that a higher education does not come cheap however the expense is often worth it.

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

As the first half of the school year comes to an end, it is never to early to start planning for the next upcoming year. The 2007-2008 FAFSA forms are now available for you to fill out at The Student Loan Network.

Why start so early??? Well, the sooner you complete the FAFSA the better your chances on receiving more money from your school are. This applies especially to those loans that are awarded on a first come first serve basis. Such as, Pell Grants, Perkins Loans, and Scholarships. Also, don’t forget to have all your tax information updated and on hand for filling out the FAFSA. Furthermore, since you will be on a much needed holiday break it should be a good time to get yourself settled and prepared for the upcoming year. This way you can enjoy your summer vacation and be as stress free as possible going into the new year. Happy Holidays!

Suggested links:

Ms. Stafford and Financial Aid Podcaster’s BLOG
ActEducationLoans.com

When thinking about going back to school to pursue a graduate degree it is very important to review your financial situation closely and decide where you would like to be after you have obtained that degree and if this degree is necessary to get you to that place.

Here are some questions to ask yourself when deciding how much financial burden can you take on during your graduate career?

• How much can you afford to take out in loans during graduate school?
• How much will you have to pay back in loans after you obtain your graduate degree?
• How much will you REALLY be paying when you factor in loan interest rates?

Only you can decide if graduate school is worth the time and lifestyle changes. Remember that a higher education does not come cheap however the expense is often worth it.

For information on how to finance your graduate degree please go to www.gradloans.com.
The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

December is the time to work through your final exams and term papers, relax at home with your family, and enjoy the holidays. But it’s also the time to plan ahead for your Winter Term/Second Semester and to make sure you’ve got the funds to get you through the rest of the academic year. Private (or alternative) loans are a great option for helping you to fill the gap between what you’ve already received in terms of scholarships and federal loans and what you’ll need to get you through the remainder of the year.

Private loans are credit-based , relying on the credit rating/score of the student (or co-borrower, if applicable). You’re chances of being approved for the loan increase significantly if you use a co-signer – a parent, relative, or other with good credit.

Apply now and you’ll be sure to have the funds in your hands before second semester starts – funds are often sent within 5-10 days! To learn more and apply, visit:

www.alternativestudentloan.com – for undergraduates

www.gradloans.com/private – for grad students

In the meantime, enjoy your December!