Student Loan News, Updates and Blog Posts

Imagine having an application for school with NO deadline. What’s that you say? An application like that already exists? Which one? Oh, I didn’t realize a private student loan application could be completed at anytime – even in the middle of the semester.

I think most of us naturally assume that every school related application has a specific financial aid deadline, and for good reason. Most applications do have specified deadlines. I recall when I entered my junior year of school, back in the golden age, that people were telling me to make sure my SAT prep class and test were taken by this date, and that I needed to send out my college application(s) by the end of this particular month, and that I was crazy if I hadn’t completed my FAFSA and scholarship applications by the middle of January of my senior year. By the way, for a complete list of grade by grade action plans from 8th to 12th, vistit college application calender. The process of getting into college was completely overwhelming to me.

I had been so used to letting Mom handle things for me and now I was the one in the center of the storm. That’s why it’s good to know there is a floating deadline when it comes to student loans. After the Mom and Dad ATM runs out it’s comforting to have a place to go to get the funds you need.

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Whether you’re gambling, running a business, trading on Wall Street, or going to school to receive a master’s degree the goal remains the same; gain profitable returns. Of course when you attend school you don’t get that instant gratification, like at a casino, but your relatively short-term commitment could pay long term dividends.
Hiring for those [...]

Whether you’re gambling, running a business, trading on Wall Street, or going to school to receive a master’s degree the goal remains the same; gain profitable returns. Of course when you attend school you don’t get that instant gratification, like at a casino, but your relatively short-term commitment could pay long term dividends.
Hiring for those [...]

At this time last year the prime rate, which is the benchmark widely used to determine the interest rate on a number of loans, was a respectable 6%. Today, that rate is a jaw dropping 3.25%, the lowest it’s been since 1955. To put that in perspective Dwight Eisenhower was our President, a [...]

I’d say at least half the people I speak with have no idea who their lender is. And honestly, until you graduate and need to begin making payments it doesn’t matter. Those loans are out of sight and out of mind. But when the time comes when you need to be fiscally responsible or place [...]

Yes, your federal loan details can be accessed online through the Department of Education’s National Student Loan Data System (NSLDS) database.
The NSLDS database holds all your federal loan details. If you’ve just applied for aid, don’t expect to find any information on NSLDS yet. NSLDS gets its information from schools guaranty agencies and U.S. Department [...]

“Republicans haven’t given up on the guaranteed-loan program, Rep. John Kline of Minnesota said today. They have just been preoccupied with health care and other pressing issues,” The Chronicle of Higher Education reports. “‘I remain hopeful we can keep some private capital in this and keep the private sector involved,’ the new top Republican on the House education committee told three higher-education reporters in an interview. ‘We’re not rolling over.’”

The variety of student loans available to pay for college can often make the process of selecting one confusing.  The best student loans often may not be as obvious as many suggest.  Start by checking in with your financial aid office and finding out what they suggest – and which lenders are recommended.
Your next step [...]

We’ve all heard the saying, read between the lines, but most of us don’t bother.  I mean, can you honestly tell me you read the terms and conditions when you purchase something?  You probably just scroll down to the bottom and click accept.  Am I right?  I know I’m guilty of the latter.  I really should read the fine print – we all should.  The devil, after all, lies within the details.  Last year my friend April learned this lesson the hard way.

April attended Northeastern University from 2004-2008. During that time she amassed $35,000 in private student loan debt and about $20,000 in federal. She now holds a BS in Philosophy from a very prestigious university with no job to speak of.  Understandably with no income she has been unable to make her $300 monthly payment. But no worries, she can put those loans in deferment, right?  Wrong.  Had she known what she was getting herself into she probably would have gone with another lender.

She figured since she was able to defer her federal Stafford and Perkins loans (you have up to three years of deferment time on federal loans) she’d naturally be able to do the same with her private loans, but that was not the case.  The only deferment options available to her were a 48 month in school deferment and 36 month active-duty deferment for military personnel.  There was no deferral benefit for economic hardship. Yikes!

Now she is in way over her head. Her debt is mounting, late fees are being assessed, her credit history is in complete disarray, and her co-signer is now being affected.  Welcome to the world or adulthood.

When I asked April if there was one thing in particular she wanted me to be certain to convey in this blog she said, “Tell them to ask a lot of questions.  Tell them to do their homework.  Don’t be content to let the school’s FAO or a family member do all the work for you, which I did.  Know YOUR benefits.”

Some of the most common benefits you will find in the market today include:

• 12 Month Economic hardship deferment
• No origination, guarantor, or prepayment fees
• Exclusive 2% graduation reward based on your outstanding principal balance
• Rates as low as Prime minus 0.50%, based on credit evaluation
• Repayment does not begin until six months after you graduate or leave school
• Co-signer release

The six month grace period and economic hardship deferment option are two of the most highly sought after benefits with the economy still on the mend.

So my recommendation is to heed April’s warning and pay close attention to the benefits extended to you if/when you take out a private student loan.  It is far too easy to just scroll down to the bottom and click accept.  Read between those lines.  Sometimes it’s what you don’t see the first time around that can hurt the most.

Fore more information or to compare private students loans (click here).

ScholarshipPoints code: LOANBENNY

The fall semester is now officially underway which means you are probably dead broke, but have no fear, tying up those loose financial ends has never been so easy.

At this point you should have already long completed your FAFSA and received your awards letter from the school outlining your financial aid options, which may include the following;

• Pell Grant
• Scholarship (Institution or Private)
• Federal Work-Study
• Federal Perkins Loan
• Federal Stafford Loan
• PLUS loan

Unfortunately most students will not have all of the options listed above available to them, and if they do they are still short funds as the semester gets underway, which is why private loans are generally needed to help bridge that gap. Private student loans have favorable interest rates at this time due to the stale economy. Both the LIBOR index and prime rate are at historic lows. In the summer of ‘06 the prime was at 8.25%, last summer it was down to 5%, and today it’s at a jaw dropping 3.25%!

To qualify for a private student loan you will most likely need to be a U.S. citizen or permanent resident with a credit worthy co-signer who is also enrolled in school at least half time or greater as defined by the school (usually 6 credits). In a tough economy it’s good to know you still have options. Get the funds you need today!

ScholarshipPoints code: PRIVLOANS.