Student Loan News, Updates and Blog Posts

Just a friendly reminder to all those 2007 spring graduates, August 1st marks the halfway point in your grace period. For those who don’t know, your grace period is the six months after graduation, before your first student loan payment is due. That’s right – you have to pay those back at some point. While I realize the only thing on everyone’s mind right now is warm sunny beach days and evenings filled with BBQ’s, a few minutes of preparation now could save a bundle of cash in the fall.

If you consolidate your federal student loans during your grace period, you will save an additionally 0.6% on your interest rate. That could translate into thousands of dollars in savings. Plus… you’ll get all of the benefits of consolidation; such as a lower monthly payment, lower interest rate with borrower benefits, and repayment plans designed to fit any budget.

So, if you planned on consolidating your loans in the fall when your repayment begins, take a few minutes right now and apply. Give one of our loan counselors a call – they’ll give you an idea of what your lower monthly payment will be, and how much you can save. Call toll-free (877)328-1565.
And have a great summer!

A common misconception with student loan consolidation is that lenders charge some sort of fee if you consolidate your loans with their company. There are NO fees to apply or receive a Federal Consolidation Loan. This is because federal regulations do not permit lenders to charge borrowers a fee. It costs you nothing to set this up AND there is no credit check. Students with bad credit or no credit can apply. You do not have to give any guarantee of income.

Applying for student loan consolidation is a fairly straightforward process. The borrower is required to fill out an application form. The eligibility specifications are the following:

Borrower must have over $10,000 is federal student loans.
The borrower must be out of school or under half time.
Loans must not be already consolidated.
You can not be in a default status on your student loans.

Once an application has been accepted, a statement containing all the important information such as payment plan, payment schedules, etc. is sent. To learn more or apply, contact a Student Loan Network Counselor toll-free at 877-328-1565 or apply online.

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

Student Loan Network

The Federal Stafford loan is now even better than ever. Aside from the low 6.8% fixed interest rates, recent updates as of July 1, 2007 have made this program the best option for graduate students to start with when financing a graduate education.

First, the annual loan limits for Graduate students has been increased, to allow students to borrow more unsubsidized funds per year. While the limit for subsidized funds (where the government covers your interest payments while in school) remains at $8,500 per year, graduate students may now borrow $12,000/year in unsubsidized funds. This means a graduate student could borrow up to $20,500/year at the low 6.8%! Medical students have been also granted an increase in funds – up to $40,500/year ($32,000 in maximum unsubsidized funds.)

Another important update is the reduction of origination fees. Stafford origination fees were once 3% and that 3% was deducted from whatever balance was sent to the school. Now, the origination fee is 1.5%. It is scheduled to decrease by .5% each July 1 so that in July of 2010, the origination fee will be completely eliminated!

Graduate students should always take advantage of the Federal Stafford loan and, even better, the new eSignature application that allows students to complete their application today.

The mind set required when running a marathon is one of focus, mental fortitude, and toughness for the long hall.  As such, you naturally need to pace yourself and prepare yourself accordingly.  I have a friend Courtney from Austin Texas who runs each week and prepares herself proportionately for her mini-marathons.  She fastens her running sneakers snugly, gets her Ipod Nano set with her favorite tunes, puts on her running shorts and t-shirt, grabs a bottle of water, and equipped with her “can-do” attitude braves the scorching Texas heat.  She is mentally tough and prepared for the elements.  But Courtney is in the minority.  We as a nation are enamored with instant gratification.  Seldom do we take such steps to ensure success.  Well, I’m here to tell you when it comes to educational loans you want to breach this topic more like a marathon – not a sprint.  Take your time and get it right the first time.  To quote a commercial from the late 80’s, “It won’t happen over night, but it will happen.”

The fact is the process of obtaining a Stafford Loan holds several key phases before completion is reached which you should be aware of.  As they say, the best things in life are worth the wait, and this is one of those times.  Take a look at my lucky seven keys to success!

 1. Complete your FAFSA application (which gets sent to the Department of Education).

2. The DOE intern creates a Student Aid Report (SAR) on your behalf and sends this to the school(s) you designate.  This process generally takes 7-10 business days.

3. The school will then send out an Awards letter outlining if you are eligible for a Stafford Loan and for how much.

4. You then complete a Stafford loan application where you will sign a Master Promissory Note (some schools are set-up for e-signature while others require a hard copy to be sent).

5. The lender will send a certification letter to the school on your behalf for them to certify your enrollment and outline what you Stafford Loan eligibility amount totals.

6.  Your school sets the disbursement date of your Stafford Loan funds with the lender.

7. You begin the repayment process 6 months after you either graduate or take a leave of absence from school.

So it’s your choice.  You can run out that door totally unprepared into the fiery Texas heat, or you can take a page out of Courtney’s book and arm yourself accordingly.  I know which choice I would make.  The problem for me, however, is I just can’t keep up with her.  Court’s always been one step ahead of this writer, but someday I’ll catch her.  At least that’s what I keep telling myself.

It’s been awhile since I’ve posted to this blog mainly because it has been very busy at the Student Loan Network. We get requests for help in lots of ways but mostly by phone. June, July and August our call volume spikes from students, parents, schools, lenders, or other industry partners. Loan consolidation has been the hot topic for awhile now with borrowers. Recent graduates want the most affordable repayment plan with the best savings so they call up and pick our brains about loan consolidation. Also, during peak, borrowers are busy completing promissory notes, so we’re getting calls from students about how to fill out our online application for the Stafford, Plus, and GradPlus loans. Personally, it is my favorite time of the year because I really feel like I am making a difference in the life of a student. Well, need to run. Sorry so short but the phone is ringing.

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

Student Loan Network