Can’t remember how much of your graduate school tuition will be covered by a Stafford Loan? Want to know when your next PLUS loan disbursement will arrive? You can access all of your federal loan details online through the Department of Education’s National Student Loan Data System (NSLDS) database.
The NSLDS database contains all of the information on your loans when funds have been disbursed. You can find details on Stafford loan,Perkins loans, Pell grants and Plus loans. Simply log on to http://www.nslds.ed.gov/. To enter the database, you will need your four digit FAFSA pin.
If you are a recent graduate, once your grace period comes to a close, you will be tasked with repaying your federal student loans. While many people opt for standard repayment, there are actually alternative means as well - if you are eligible.
Graduated repayment- Graduated repayment allows you to make lower payments at the beginning of repayment with the payments gradually increasing over time. Payments are generally put toward interest only in the first few years. Eligibility for a graduated repayment plan varies depending on loan type, interest rate, and outstanding balance.
Income-based repayment - Monthly payments are based on a percentage of your monthly gross income. Typically you can be eligible for income-based repayment if your monthly payments are greater than 10% of your gross income. Find out if income-based repayment is right for you.
Extended Repayment - Extended Repayment provides eligible Federal Stafford and PLUS borrowers with payment relief through a lengthened repayment term of up to 25 years. To be eligible, you must have a total outstanding balance of eligible student loans that exceeds $30,000.
If you have been looking for a private student loan, you might have come across the word FICO. Your FICO score, or your credit score, is basically a rating assigned to you based on your credit history. A good score can help you get a car, a house, and, yes, a private student loan. So what do you need to know about FICO?
For starters, you should get your free credit score online. Here you will be asked a little about your financial history and background. If you’re a prospective undergraduate, don’t be alarmed if your score is very low.
Chances are unless you have been living on your own or developed some kind of credit history (i.e. you regularly pay off credit cards, pay back loans, etc.), you won’t be eligible for a private student loan and will require someone with a higher rating to a cosign the loan with you.
If you have checked your FICO score recently, here is a general look at what the figure means:
330 – 619: Odds are if you fall into this range you have either had a negative history or no history. If you want a loan, you will almost certainly need a co-signer.
620 – 659: This is a bit of a tough area. You will likely need a co-signer for a private loan. If you are a parent, you might be eligible to apply for a Parent PLUS loan, which has a fixed interest rate and has lower requirements for borrowers.
660 – 720: This is the range of average credit scores. Prime financing will be available to you, and you should be eligible for most loans at an average rate of interest.
721 – 750+: This is an excellent credit rating. You will get the best interest rates and have your pick of lenders.
So what are these numbers based on? A majority of your FICO score is based on how consistently you make credit card payments and how much of your credit you actually use. If you consistently use your credit card, but still carry a low balance (read: pay them off regularly), your score will be higher.
One question we get asked frequently from students in our financial aid forums is what to do when their parents’ income makes them ineligible for a federal Stafford loan. Many people are surprised to learn that if your parents make around $50,000 or more, or have particularly strong savings, they might earn too much to receive the need-based subsidized Stafford loans.
Fortunately, there are still a couple of federal-based options you can look into.
1. Unsubsidized Stafford loans. Among the best options for a non-need based loan, an unsubsidized loan from the government can go a long way in covering some of your tuition. One downside is the interest begins to accrue immediately upon disbursement.
2. Parent PLUS loans. PLUS loans (Parent Loans for Undergraduate Students) are loans are taken out by the parent in his or her name. The payments on these loans start right away and are not deferred if the child is still in school. These are a good way for a parent to still have a large say in the payment of their child’s education.
If you’re an estranged parent or the child of divorce, you might be wondering which parent is responsible in certain student loan situations. Here is a brief overview.
Parent PLUS loans: Only one parent may apply for a Parent PLUS loan. The parent must (1) live with the child who will be using the loan; (2) claim the child as a dependent on taxes; and (3) support them more than 50%. This loan may not be transferred at any time and is the sole responsibility of the parent who applies.
Private Student loan cosigning: Either parent may elect to cosign for a student loan. The parent must have good credit and be responsible to pay in the event the student defaults following their post-graduation grace period.
Student loan consolidation: Only the parent who takes out the Parent PLUS loan may consolidate. If both parents co-signed for separate private loans for a child, an individual parent may only consolidate the loan(s) for which he or she co-signed.
The consolidation section of our Financial Aid forum is consistently littered with questions about how to consolidate certain types of loans. One useful, but tricky loan type is the Parent PLUS.
Parent PLUS loans are federal-based loans taken out by a parent on behalf of a child. These loans are taken out by the parent in his or her name, and can not be transferred to the student’s name upon graduation. The payments on these loans start right away and are not deferred if the child is still in school.
Scenario 1: Say a child is going to school for four years. The parent decides to borrow four PLUS loans, one for each school year. The loan payments will not being until the freshman year spring semester, when the loan is fully disbursed. The following year, the parent repeats this process, and spring of their child’s sophomore year they want to consolidate the 2 loans together. So to apply for a loan consolidation for the two loans, you may apply for consolidation with a company of your choosing.
Scenario 2: Let’s say there are two children in college at the same time. If a parent takes out one PLUS loan for each of his children in school, he MAY consolidate them when the loan is fully disbursed. It must also be noted that the SAME parent must have filed both loans. Mom can’t file for PLUS loans one year, and have Dad consolidate them the next year.
Scenario 3: If the child or parent attached to the loan suffers an untimely death, the loan is forgiven.
What other questions do you have about Parent PLUS loans?
The first thing you need to do is complete your FAFSA. Your FAFSA is the key to any and all financial aid.
Second, you must be enrolled in an undergraduate course of study, though there are some rare teaching certificate exceptions
If you have received an associate degree, or any diploma below a baccalaureate, and you enroll in another undergraduate program you are still eligible.
What would make me ineligible for a federal Pell Grant
If you already earned a baccalaureate
If you are pursuing a professional degree such as pharmacy, dentistry, or veterinary medicine. Professional degrees are not considered undergraduate, and thus, are not eligible.
Securing your bachelors degree from another country, unless the school provides written documentation stating that your degree is not equivalent to a U.S. bachelors degree.
If you are currently incarcerated
Additional Notes
Undergraduate studies are usually only four or five academic years. If the program is longer, like a six-year pharmacy program, then students are considered undergrads for only the first four years unless the school designates that the graduate program begins after the end of the third academic year.
Grants and scholarships are always what you should strive for first as they do not require repayment. Join scholarshippoints.com for FREE for a chance at winning over a $100,000 worth of scholarship money for school.
With some schools no longer able to afford the overhead costs of running a college institution…many schools have decided to beef up their online degree programs. It saves the school money to have more students take classes online than it does to have them on campus. Online degree programs are growing rapidly, and more and more potential students are taking advantage of the convenience of taking a class on their own time. In the past online degrees were shunned in the collegiate world…they weren’t thought to be reputable, and even referred to as scams…but that is all changing (and never had much merit), and it has been for awhile now. While some students are not full time online, many of them have taken an online class to help ease their busy schedule. Other students, who work full time and have families view online degree programs as the key to their education; the convenience of online classes coupled with increased financial aid offered through the US Dept of Education has definitely made it easier for some people to go to school, who otherwise would not have considered it.
The Free Application for Federal Aid can be filled out for any school that participates in the Title IV aid program. If you are interested in a certain online school, it would be wise to make sure the school participates in the program. Most online degree programs are branches of bigger institutions, so you shouldn’t run into many issues with being able to receive federal aid….but there are definitely online schools that do not handle these loans. If you plan on depending primarily on loans to pay for your school, I would highly recommend attending an online school that participates in the federal financial aid program. Funding an entire college education with private loans will not exactly get you ahead financially; it will do quite the opposite, and I have always said I really don’t see the point of working so hard for four years to complete your degree, only to be so buried in debt when you are done that even the best job offer won’t be enough to make your loan payments every month.
Recently, Sean Dove, an admissions representative at Devry University created a list of the top ten mistakes to avoid when choosing an online degree program:
Don’t be lazy. Investigate and request information from several online colleges.
Don’t eliminate an online college or university just because it is not an institution whose name you recognize.
Don’t be afraid to ask questions. In fact, put together a list of questions before talking with admissions representatives.
Don’t rule out a college immediately because of cost. Financial aid, credit for life experience, scholarships, and tuition payment plans may make a college or university far more affordable than it appears to be.
Don’t “blow off†any admissions representatives who may call you. Take advantage of the opportunity they offer you to learn more about their online degree programs.
Don’t trust your memory. Take good notes when you read college brochures and speak with admissions representatives.
Do not be discouraged or intimidated by financial aid forms. Most online colleges have staff members who will be happy to help you.
Do not settle on the first seemingly appropriate online degree program you discover. For instance, a general business program might not serve you as well as a program with a focus in accounting, marketing, management, etc. Conversely, a more general, broadly based degree program in business may better meet your needs.
Don’t keep your interest in continuing your education a secret. If you talk to friends, family members, and colleagues they can share their experiences and offer you important encouragement and support.
Don’t be intimidated by returning to “schoolâ€. The fact is, if you have good basic academic and time management skills, if you are motivated, and if you have the support of your closest family members and friends, your chances of achieving your degree (and career) goals are high.
If you are currently taking online classes or completing an online degree, please feel free to share your experiences here and add to Sean’s list. If you want to learn more about what schools are out there, and what programs are offered online then visit this online directory. You can also visit the financial aid forum to read more about other student’s experiences with online degrees, financial aid, and many other college related issues.
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It’s not something that any of us want to think about, but it is a sad realty of life. If you take out a Stafford loan and something happens to you where you wind up permanently disabled or worse, the entire amount of the loan is forgiven.
I know when I was 18 I didn’t pay much attention to this fact, but when I went back to school at 30 with a wife and child I read the fine print. The last thing I wanted to do was put them in a bad situation if something unforeseen happened to me.
For a Parent Plus loan (which is a loan a parent takes out on behalf of the student), the forgivness extends to them as well in the event of death, but not in the case of permanent disability of the student for whom the parent borrowed the money for.
Let me first start off by saying that even if your credit is has been severely affected by credit card debt, or any other kind of debt….you can still file a FAFSA and receive a Stafford loan. Your FAFSA results are not affected by your credit history. Recently there was a post on forum that is specifically for students and parents who have questions about financial aid, that relates to this question:
i took out credit cards while i am a full time student. i borrowed way too much and now one of those cards is in default. my F.A. adviser said that i cannot get any more F.A. with this happening. if i enroll my cards in a credit counseling AKA debt management program will this in any way affect my ability to 1. get more student loans, since i have 2 more years of graduate school. 2. cause me to have to enroll my already low interest rate student loans into this debt management account. i need help now !! thank you
Hi Patti, your credit and any credit card debt you may have in no way affects FEDERAL aid….which means you can still file the FAFSA and borrow federal loans. Your debt would affect your ability to get approved for private student loans. Can you afford school with just federal loans? How much is your tuition?
ms stanford, i need the loans due to the high cost of private graduate school. the f.a. officer denied a budget increase for this term. she said that the school approved the increase but the federal people denied it based on my credit card debt being on collections. she told me that i would not be able to get Federal aid next year if this or any other debt is over due 60 days.can you refer me to a contact in the federal area to contact to resolve this?
Patti is not alone. Often times someone is either giving you false information or you are misinterpreting what they are saying. But let this be clear, if you are deep in debt on a credit card, and you can’t even get approved for a car loan…you can still fill out the FAFSA and receive the Stafford loan with no problem whatsoever. Your credit is not checked for these loans, and remains completely seperate from the Federal aid process.
If you default on a Federal loan (you don’t make a payment for 180 days), then that will appear on your credit report. You will not be allowed to borrow another Federal loan until that loan comes out of default. BUT it is not your bad credit that is preventing you from getting the loan, it is the default status on that Federal loan that draws the red flag. Once that loan comes out of default (usually 9-12 ontime payments to the debtor), you could apply for a Stafford loan the next day even though your credit has not technically been repaired yet. To check out more questions like Patti’s visit the financial aid forum.
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If you have been looking for a 
One question we get asked frequently from students in our 
to beef up their 