Student Loan News, Updates and Blog Posts

If you’re anything like me you’re mesmerized by shark specials. I just can’t get enough of them. I wait all year for “Shark Week” on the Discovery Channel with feverish anticipation. I grab my popcorn, pour a tall glass of pepsi-cola and settle in for some jaw crunching action. These predators of the sea are an awesome sight in action. I love all sharks including the tiger, reef, bull, and oceanic white tip, but it’s the great white that makes the headlines and is the token of my affection – from afar of course.

In the student loan world parents and students sometimes feel as though they have been thrown to the sharks, and are unsure who to trust or where to turn for help. Just imagine floating in the middle of the Pacific Ocean with no protection and no one around for miles. All those hours invested in front of your TV watching shark week probably wouldn’t make you feel too good at that particular moment. In fact, at that juncture you’d probably prefer not knowing the great white’s predatory instincts and savvy tactics. How they ambush their prey from underneath the calm waters while striking at a 45-90 degree angle. Well take a deep breath – I’m here to get you out of those dangerous waters and back onto shore. I want you watching shark specials while eating your lunch opposed to being lunch. Let’s take a bite out of the student loan world together!

1. First you need to determine if your school is a Direct Loan school or a FFELP (Federal Family Education Loan Program) school. Your school’s Financial Aid Office can inform you which umbrella your school falls under. The difference between the two is that Direct loan schools use the Federal Government as the bank to fund the loan while FFELP schools are allowed to use private institutions. It is important to note that both hold the same interest rate as they are both federally regulated loans. If you are a FFELP school read on. If you are attending a Direct Loan school please speak with your Financial Aid office regarding the process your school follows when processing federal loans.
2. The second step is to complete a Stafford loan master promissory note agreeing to pay back the loan after school (you have a 6 month grace period after you graduate before the repayment process begins). This form will have the lender details provided for you.
3. Third, the lender will send a certification letter to the school’s Financial Aid Office within 48 hours of your successful completion of your Master Promissory Note. The school then certifies your enrollment and lists the amount of your federal loan (the amount is based on your Expected Family Contribution total from your SAR which is generated from your FAFSA).
4. The funds are disbursed to your school on your behalf.

Now you are system educated. Now you can devise a game plan that’s right for you with your new found knowledge. Now YOU can be the shark and not the prey in that deep blue sea. To steal a line from the 1975 classic Jaws, “What we are dealing with here is a perfect engine, an eating machine. It’s really a miracle of evolution.” That’s you! Your engine is humming, your instincts are honed, and your unsuspecting prey is in sight. Enjoy your lunch – you know I’ll be watching.