The Student Loan Q & A

eHow asked:

Federal student loans are loans that the government provides for students in order to help them through their schooling. Find out how to apply for federal student loans for undergraduate, graduate or doctorate schooling with help from a financial aid officer in this free video on student loans. Expert: Brooke Kramer Contact: www.argosy.edu Bio: Brooke Kramer is the financial aid officer at Argosy University in Salt Lake City, Utah. Filmmaker: Michael Burton…

GRUBER

Vernon DeFlanders asked:


(c) 2008 Vernon DeFlanders

In our day when a bachelor’s degree doesn’t get you all that much any more, students are being taken advantage of. I can understand higher prices for graduate school, but the undergrad prices are absolutely ridiculous in my opinion. Current first-year students had been expected to graduate in 2011 with an average loan obligation of $21,000  a number that would have continued to increase for subsequent classes. But by converting loans to grants, Bowdoin will eliminate a significant debt burden for next year’s entering class while capping debt at current levels for continuing students. So the future, we could see Sharia student loans that work like venture capital. The lender would get a cut of the student’s future earnings.

A student that gets a federal student loan made directly to them must be a half or full time student attending university or college. Payment does not start until they drop to less than a half time student or finish school. Loans that parents take have a much higher limit but payment for these federal student loans starts immediately. Interest begins to accrue immediately on private student loans made to parents or students but the limits are higher and after graduation, payments start. Between tuition, room and board, books, and other necessary items, many students find themselves short of the final total. One way to save money when searching for a college education is to choose the institution wisely. Financial note: Alternative college student loan financing is based largely on an individual’s and/or cosigner’s FICO score. Generally speaking, the higher the FICO score the lower the interest rate will likely be.

During college or university, student loans continue to accumulate posing a very unnerving picture when the time comes for the students to start paying them back. Freshly out of college or university after completing their education, it can be very difficult to start making monthly repayments on loans, other debts and student loans. Most graduates have to work their way up into high paying jobs but still need money during this time for accommodation, food, clothing, transport, other items and loan repayments. It is inconvenient, problematic, and expensive to make student loan repayments along with other debts such as other loans, overdraft and credit card debts.

One of the easiest and best alternatives for paying back several loans plus the interest is to consolidate all the loans and increase the repayment length. A student loans debt consolidation program helps a graduate by adding the loans together resulting in only one payment instead of three, four or more payments. This also drops the interest rate and reduces the payment amount. It is very difficult paying multiple lenders at once not only financially but because it is easier to miss a payment accidentally.

Consolidating your student loans generally means one lender will group together your various loans and lock them in at a new, fixed rate. Many people who consolidate their loans appreciate having only one bill to pay every month as well as the knowledge that their rates won’t change over time. Also, students loans are not enforceable when the school has closed prior to the student completing his education. These challenges could be raised in a Chapter 13 proceeding and decided by a bankruptcy judge. There’s just one number to call to change your address or student status, or request deferment forms. The variable interest rate will never exceed 8.25 percent and may be lower during in-school, grace and deferment periods.

Agencies may also use student loan repayment benefits in conjunction with a physicians’ comparability allowance (PCA). However, 5 CFR 595.105(e) requires that the amount of the PCA be reduced by the amount of the student loan repayment. You can repay on an “income-contingent” basis, meaning your financial income will determine the amount of your monthly payments. Our international student loan program requires a US co-signer and is available for both graduate and undergraduate study. Also, we would like to provide you with some very important information regarding federal student loan consolidation. You must consolidate during your grace period to avoid an interest rate increase of 0.60%. Compare and apply for student loans from multiple lenders to make the best education financing choice for you and your family. We understand that students need the most affordable student loan rates on the market, access to true professionals that enjoy helping others, and repayment flexibility. Join thousands of other students and graduates today and get the peace of mind that comes with financing your education through a world-class lender like ScholarPoint.



BUCHANAN

IWantDemocracyNow asked:

Reduce the Rate: Rev. Jesse Jackson Joins Movement Against Crippling Rates on Student Loans Amid massive government bailouts of the nations banks, we speak to the Reverend Jesse Jackson about Reduce the Rate, his new campaign urging the Obama administration to slash the interest rates on crippling student loans. We also speak with Alan Collinge, founder of Student Loan Justice and author of The Student Loan Scam: The Most Oppressive Debt in US History—and How We Can Fight Back….

MESSINA

Jim Kesel asked:


When the need for a student loan arises due to the peak of financial challenges in your college years, you can usually can find the funding you need. In many cases a student will have to apply for more than one student loan before reaching graduation. Even if you happen to acquire several student loans, there is no need to panic as graduation nears. Remember that you still have the option to consolidate those loans.

There are basically two major types of student loans. First is the federal student loan which is guaranteed by the US Government through the US Department of Education. They have implemented a Federal Student Aid program as a part of their campaign to provide equal education opportunity for all aspiring college students in the country. Federal student loans are not considered direct loans to the student from the US Government. However the loans are provided by the US Department of Education and a loan servicing institution, When you need to consolidate federal student loans you have the opportunity apply for single loan to accomplish the needed consolidation. One example of federal loans used to make a loan consolidation is a Stafford loan.

As an alternative you can use private sources consolidate your student loans. Private student loans, on the other hand, are administered by privately owned lending institution. Some of the most well known private lending partners are also the leading financial institutions such as Citibank, Chase and Sallie Mae. In general private student loan rates are higher than public sector loans. However there may be more benefits in terms of payment schedules, payment deferments and longer loan repayment schedules.

For those who have incurred a number of federal student loans, the problems of managing the loans can be a problem for some people. As a result many wise student borrowers may opt to consolidate federal student loans in order to better manage their finances and save money.

Once a student has decided to consolidate their federal student loans, there are conditions that must be before they can qualify. First is that they should have more than one federal student loan. Next is that students should be in good standing with each of their existing loan accounts. This means they are either in their six-month grace period or they have already made three monthly repayments for each of the existing loans.

Under the wing of a federal student loan, there are also distinct differences between a subsidized and unsubsidized federal student loan. Although they can still be merged into one loan account, iIt is important to know the type of loans you have before you apply to consolidate your federal student loans.

It is obviously very important for the student to do their research prior to applying to consolidate their student loans. Only then will the student be able to make an informed decision. In many cases a student loan consolidation will save you money and reduce the stress of student loan repayment. Federal student loan consolidation is a wise investment in the future.



BURGE

N. Sai asked:


Student loans are meant to help students who are unable to bear their educational expenses. Student loans are different in different countries in the way they are devised, but then the common types of student loans available are the undergraduate loans, college student loans, private student loans and federal family educational loans. Most of the student loans are issued by the government generally with lower interest rates when compared with the regular loans.

Student loan repayments are not made until the student completes his graduation. This facility helps him to concentrate on his studies and earn some little amount of money while he is studying, but repayment has to start once he finishes his education. There is a grace period of six months normally after the graduation, meant to be a cushioning period for the student to get into a job and start earning. Under certain circumstances, the federal student loans can be forgiven on an income contingent plan after 25 years. Also the payments are required to be paid off within a minimum period of time.

Private student loans are offered to the student based on the credit history of the applicant and the interest rate also will rely on this criterion. People with good credit history will be provided student loans on a lower interest rate and less fees. The advantage of private student loan is that, they have higher limits and also the repayment starts only after graduation. Private student loans can be utilized for purchasing computers, books etc. and payment of tuition fees.

Federal student loans are either given to the parents or to their wards directly. When the loan is availed by the student payments do not start when they are studying, but if it is given to their parents, they have to make payments immediately. The loan limit may also higher in that case. Federal loans do not require any co-signer as they are not based on the credit history of the applicants.

The advantages of student loans over other kind of loans are given below:

The main advantage of availing student loan is that the interest rates are very low and are very lenient. Even when the student enters his repayment period, there are many repayment options available, which allow the student to choose from so that they can be changed, based on the financial condition to suit their needs with some restrictions. The loans can be repaid even over a period of 30 years. Also, if the financial situation becomes worse the student will be eligible to defer repayment till 3 years. Some loans may even be forgiven.

Strategies adopted by students when they start repaying their student loans are as follows:

It might take either 6 months or more than that to get into a job by a student. In such cases many students take up temporary jobs, or part-time jobs, freelance jobs etc till they find a permanent job. Some share their room rent expenses with their friends by living together with, or resides nearer to the work place to cut down transportation costs. In times of financial crunch, some of them apply for forbearance through a lender, this helps them to hold off the payment for few months. Some students even go for student loan consolidation, which might bring them some relief.



RICKARD

eHow asked:

The maximum wage garnishment for failure to pay a student loan is usually 15 percent of the take-home income, and wage garnishment severely hurts credit history. Find out how the government can take money out of paychecks for loan payments with financial advice from a guidance counselor in this free video on student loans. Expert: Cheri Ashwood Contact: www.wearehdtv.com Bio: Cheri Ashwood has a bachelor’s degree in psychology and education, and has been a guidance counselor for nearly a …

ROUNDS

studentloans6243 asked:

www.collegestudentloanshelp.com Great video which will show you how to locate the best student loan deals around. Really worth a look. Click Below To Find The Cheapest Student Loans Available www.collegestudentloanshelp.com

MCCAULEY

freefabonacci asked:

the way to pay your student loans

LIN

LuvDestinFL1 asked:

Schiff explains how government backed student loans influence human behavior and distort a free market. If you agree with this short video, please send it to 1 person and, in turn, maybe they can send it to 1 person too! Copy and paste the link in the body of your e-mail. Thanks so much for watching!

STARKS

N. Sai asked:


Availing of student personal loans is on the increase these days, as the education costs have become too high to be managed by the student. Higher education is a costly affair; the student is left with no choice to go for a student personal loan to pay the expenses towards it. The responsibility of paying off the personal loan as soon as they start working is enormous, but to get a higher degree in education, the student has to go through such pains.

It can be said that these days, students pass with a debt to be paid by them. There is a steep rise in the student personal loans. Hence, there is no need for the students to forego their dreams due to money shortage. There are many kinds of lenders who are waiting to provide a personal loan to students to take care of their monetary needs.

Low interest student loans are very much available, if you do not find one, then you might be probably looking in a wrong place. Cheap student loans can be got from local banks, or from neighbors or friends and even Internet is a good source to locate one such loan. Once the loan is got, the student should aim at paying the installments properly on time, to avoid bad credit scores. A person who is planning to build up a good credit score can make use of this opportunity and get his credit score boosted up which can be used in the future.

Difference between a federal student loan and a personal student loan:

Personal student loans or other wise known as private student loans help the student to pay his college fees, stationary expenses, project expenses, hostel rent etc at much lower and competitive interest rates than the ones got through credit cards. The government gives the federal student loans to the student. They can be further more classified into subsidized college student loans and unsubsidized college student loans.

If a student is given a subsidized college student loan, the government pays the interest while the student is studying in the college. But, if the student is provided by an unsubsidized college student loan, there is no interest free period and the student has to pay the principal amount along with the interest after completing the education. Not all the students qualify and are offered a student loan. Such students can avail personal student loans.



PERDUE