Student Loans : News, Updates and Blog Posts

The cost of a college education is rising every year. This year the average cost of a private four-year school was $26,273, up 4.4% from last year, and the average cost of a public school was $7,020, up 6.5% from last year. For most families, paying for college is a struggle. If you feel like you do not have all the pieces of the financial aid puzzle, you are not alone.

On January 1st the 2010-2011 FAFSA (Free Application for Federal Student Aid) was released. The FAFSA is probably the most important part of the financial aid puzzle. If you are planning on attending college in the fall of 2010 you should be in the process of submitting this form. The FAFSA determines how much federal financial aid you are eligible to apply for. There are three basic types of federal student aid:

• Grants: Grant money is financial aid that does not have to be repaid. Most grant money is based on financial need.

• Work-study: Work-study money is earned through a job or near campus. Work-study money does not have to be repaid.

• Loans: Loan money, including subsidized Stafford loans and unsubsidized Stafford loans, is awarded by the government and must be repaid with interest.

Federal financial aid can be a huge help when paying for college, but since most federal financial aid is awarded based on need, not everyone who files a FAFSA will be awarded sufficient aid to cover their education. So what happens when your federal Stafford loans and grants are not enough? Luckily, there are other pieces of the financial aid puzzle that can help you pay for college.

PLUS Loans are federal student loan options that are not based on financial need, but rather on credit. There are two types of PLUS loans; Parent PLUS loans and Graduate PLUS loans. If you are an undergraduate student, your parents can apply for a PLUS loan to help supplement the cost of your education. If you are a graduate student you can apply for a PLUS loan for yourself. With the federal PLUS loan you can borrow up to 100% of unmet financial need. PLUS loan money can also help you pay for educational costs not covered by your tuition including housing and supplies.

Some students choose to add private student loans to their financial aid puzzle. Private Student Loans are an alternative student loan option. Although you should always apply for federal financial aid before pursuing this option, private student loans have a few advantages. Private student loans are awarded based on credit rather than on need. You can use private student loans for any education related cost including textbooks, housing and transportation. If you are looking for a private student loan, the new private student loan comparison tool on PrivateStudentLoans.com can help you determine which lender and loan best meets your needs.

Because private student loans are based on credit, most students need a parent, family member, or close friend to cosign the loan. A cosigner is an individual who agrees to pay any debts if the primary account holder is unable to do so. This ensures to the lender that the loan will be paid back even if the student borrower does not have the funds to make payments.

The final, and quite possibly the best, piece of the puzzle is scholarships. Scholarships are favorable because unlike loans they do not have to be repaid. Hundreds of thousands of organizations around the country award scholarships to students based on their backgrounds, interests and accomplishments. StudentScholarshipSearch.com is a website that helps you find and apply for scholarships that you qualify for.

Every student’s financial aid puzzle is put together differently. Many students take advantage of all of these financial aid options while some students only need to use one or two. Some student might qualify for more financial aid while other students might be awarded more scholarship money. Whatever your financial situation is, remember that all of these options exist to help you complete your education.

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Did anyone ever tell you to shop around before making a big purchase?  When you buy a TV or a computer you do hours of research to find out what your options are and where you can purchase the item at the lowest cost. A private student loan should be no different.

If you are considering applying for a private student loan for college you should definitely shop around before deciding which lender to apply with. You should explore all of your lender options, interest rates, repayment expectations and deferment options. The new private student loan comparison tool on PrivateStudentLoans.com makes it easy to do this research without having to visit multiple lender websites.  The tool aggregates information from six of the top private student lenders and lets you view it in detail without an registration commitment.

Before you sign off on a private student loan do your homework and know your facts. Take as much time to choose your private student loan as you would to choose a new car. If you do this you will not have any surprises when it comes time for repayment.

Private student loan comparison tool helps students obtain information on alternative college financing and make responsible borrowing decisions.

Quincy, MA January 19, 2010 – PrivateStudentLoans.com, a subsidiary of Student Loan Network, recently launched a unique online private student loan comparison tool to help students make informed decisions about private student loan lenders. Many loan comparison tools require borrowers to submit personal and financial information before beginning the comparison process. This new tool is distinctive because there is no upfront registration requirement. Borrowers can use this resource to get information about multiple lenders in one place and then decide which loan product they would like to pursue.

When federal financial aid is not enough, many students turn to private student loans to help pay for college. With so many different lenders and loan products available, it can be difficult for students and parents to find quality information in one place. This new research tool, as part of PrivateStudentLoans.com, gives students an easy way to compare private student loans. It provides both at-a-glance and detailed information about private student loans from a variety of different lenders, as well as the opportunity to apply online. So far six leading student loan lenders have been included in the tool.

Students often apply for private student loans without knowing all of the details because they need money for school quickly. When applying for a private student loan it is important for the borrower to know all of the information about the loan up front. The comparison tool creates transparency in the application process illuminating interest rates, fees, and repayment expectations. “For some students, private student loans are an integral part of paying for college,” said Jonathan Rudy, Director of Student Loans. “We hope that this tool will take the guesswork out of private student loans and help students make responsible borrowing decisions.”

PrivateStudentLoans.com is an industry leading website with over a hundred thousand visitors each month. In addition to the new comparison tool, the site outlines the benefits and the eligibility requirements of private student loans and explains the differences between private student loans and federal student loans. To further encourage students to make responsible borrowing decisions, the site also features a new private student loan repayment calculator. This tool allows students to estimate what their private student loan monthly payments will be once they go into repayment.

When applying for a private student loan there is one question you will most likely always be asked; do you have a cosigner? In many cases the answer to this question will make a huge difference in whether or not you are approved for a loan.

A cosigner is an individual who agrees to take responsibility for the loan debt if the borrower is not able to pay. They cannot use the line of credit, however their credit score is affected by the loan.

There are a few groups of people who need cosigners in order to get a private student loan. The first group is any student with a low credit score or limited credit history. These students need someone with an established credit history and good credit score to cosign for them. The second group is international students. Any international student seeking a private student loans from a United States bank must have a cosigner who is a United States citizen in order to obtain a loan.

In most cases student borrowers have their parents cosign their loans. However, this is not an option for every student. If this is the case a student should choose another family member or adult friend who they trust. This person must have a good credit history and high credit score.

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If you have been out of work for a while you might have made the last minute decision to attend graduate school this coming semester. You have been accepted and have officially enrolled.  Now what to do about financial aid?

If school starts next month:

• Apply for financial aid using the Free Application for Federal Student Aid (FAFSA) as soon as possible.
• Ask the school that you plan to attend what other financial aid they can offer you. Find out if they have any scholarships or on campus jobs available. Also find out what kinds of payment plans they offer.
• Keep in touch with the school regarding any paperwork you need to turn in so that you do not miss any deadlines.

If school starts next week:

• Fill out the FAFSA immediately. Although you have to do this quickly rushing through the for could lead to costly mistakes. Use the “Live Help” option on the site or call the Federal Student Aid Information Center if you need assistance.
• Talk to the financial aid administrator at the school you plan to attend. Ask whether there are other forms you need to complete and how and when you will receive your financial aid.

If you will not receive enough federal financial aid in time for graduate school, you can always apply for a private student loan. These loans do not require a lengthy application process and can be obtained at any time during the year. You can compare private student loan lenders to find out what loan best suites you.

In any case communication is key. Make sure that you are in constant contact with your financial aid officer so that they know your plan and you know what they expect of you.

We are less than 12 hours away from the start of a new year. With the new year comes a new semester. With the new semester come new tuition payments.

If you still do not have your finances in line for the spring 2010 semester it is not too late to apply for a private student loan. In order to choose the right private student loan you should compare lenders and see what each has to offer. Remember that applying for a private student loan with a cosigner will increase your chances of being approved and might help you receive a lower interest rate.

Happy New Year everyone!

For college students and their families December can an extremely stressful month.  December is one of the two times per year when tuition bills are expected to be paid in full to colleges and universities across the country. You probably received your financial aid package for 2009-2010 almost an entire year ago. Everyone knows that financial circumstances can change drastically in one year especially in a recovering economy. Perhaps the money that you and your parents thought you would have for this coming semester suddenly needs to be allocated elsewhere.

Winter break is a great time to re-evaluate your finances for the spring semester. Maybe you will find that you are in need of a couple hundred dollars for expensive biology books. Or, maybe your parents have realized that they cannot pay for campus housing this semester and you find yourself in need of a couple thousand dollars for that. Either way, unexpected expenses can creep up on you quickly. If you have never considered applying for a private student loan now might be the perfect time to do so.

A private student loan allows you to borrow up to the true cost of your education. Private student loan funds can be used for expenses beyond tuition including biology books and on-campus housing. You can also use private student loans for transportation, lab supplies and student fees.

Don’t think you will be eligible for a private student loan? You are probably wrong! There are really only a few requirements.  First, you need attend an eligible community college, traditional two or four-year college, or eligible graduate program at least half time. Second, you and your cosigner must be US citizens or permanent US residents. Finally, and most importantly, you and your cosigner will need to pass a credit check. Unlike federal student loans, private student loans are based on your credit score. As long as you or your cosigner have good credit you should have no problem being approved.

If you were already planning on applying for a private student loan, winter break is also a good time to talk to your parents about cosigning for you. Applying for a private student loan with a cosigner increases your chances of being approved and even lowers the interest rate that you receive.

If your federal financial aid package is not going to cut it in the spring of 2010 or scholarship funds that you were counting on have fallen through a private student loans could be the perfect solution. PrivateStudentLoans.com can connect you to the best lenders and even help you out with the quick and easy application process. Spring into action and apply today so you receive the funds in time for your semiannual trip to the campus bookstore!

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If you are considering applying for a private student loan in the near future you might be wondering what makes you eligible for this type of loan.

Your School

In order to obtain a private student loan you must attend an eligible community college, traditional two or four-year college or university, or eligible graduate program at least half time. Your school will have to certify the loan for you.

Your Credit Score

You and your cosigner will both need to pass a credit check in order to be approved. Lenders typically prefer that their borrowers have a credit score of 650 or higher. It is not always required that you apply with a cosigner, but having a credit worthy cosigner can increase your chances of being approved and potentially get you a lower interest rate.

Your Residency Status

You and/or your cosigner must be a US citizen or permanent US resident. You and your cosigner will also both need a valid social security number.

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Many students from around the world choose to obtain a higher education degree from a school in the United States. However, it is usually very difficult for these students to finance their education. If you are an international student looking for a private student loan you will be comforted to know that these loans do exist.

With the backing of a cosigner who is a US citizen it is not hard to obtain an international private student loan. These loans allow you to defer payments until after graduation and borrow up to the true cost of your attendance. They also have flexible repayment terms and a .25% interest rate reduction for having payments automatically withdrawn from your checking account.

Having good credit and a credit worthy co-signer is only half the equation when it comes to securing a private student loan for school.  In addition, the school also needs to approve the amount you are requesting.  But how do you know if they will approve it? There are a few basic things you should keep in mind.

Enrollment: You must be enrolled at an eligible institution to be approved and receive a private student loan. Some students try to secure the loan first, before being accepted, but this won’t work.  Enrollment is verified after you submit an application as part of the loan approval process.

Eligible Institution: In most cases you must attend a Title IV certified school in order to be eligible for a private student loan. A Title IV certified school is a school that is recognized by the U.S. Secretary of Education and also offers federal grants and loans.

Amount Requested: You do not have restictions on the amount of money you can request, but the school has restictions on how much they will approve.  The school will look at your Cost of Attendence (COA) and then subtract grants, scholarships, and federal loans from that total to determine how much money you need to cover your additional expenses.  Keep in mind this is not an exact science and that each school can approve funds that exceed that difference.  Contact your school for more details.

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