College Student Loans : Federal and Private Loans

June 20, 2010 · Posted in Access Funds · Comments Off 

College Student Loans : Federal and Private Loans

When a student or parent sets out to obtain a loan and/or financing a college education there are a many different sources they can go to in order to acquire the funding necessary. However, there are two different categories of loans which are either federal loans or private loans.

As for federal funding for college, in many cases it is much easier to get the financing if you fit the criteria set in place. By far, one of the most popular federal student loans is the Stafford loan. There are two types of Stafford loans which are the federal family educational loan and the William D. Ford federal direct loan. The process of obtaining a Stafford loan is through the student filling out a federal student aid application, then once approved they will sign a promissory note on the loan.

The only real difference between the two types of Stafford loans is where the actual funding is coming from. For a direct loan, the funds are coming directly from the federal government as for a FFEL loan, the funding comes from either a bank, credit union or another participating lender in the program.

There are also a couple more that should be mentioned in this article and those are the Parent PLUS and Perkins loans. First, the Parent PLUS loan is designed for parents in need of assistance for paying their child’s college fees. This loan basically will fill in any gaps that the parent needs in order to cover all the college expenses fully.

The Perkins loan is basically a student loan which can be applied for at the college or university financial aid office which usually has a very low interest rat, but has a maximum loan amount of around $4,000 each year for students. They are federal fund and can be added to other types of funding. There are late fees and fees for skipping payments on the Perkins loan as well.

These loans and more can all be inquired upon at your selected college or university.

Credit history may not be as necessary if it is necessary at all in obtaining these types of funding options. As opposed to federal student loan funding, there are many private lenders willing to provide assistance for college funding as well. However, if you so decide to take the private lender route for financing a student loan, it is important to remember that most will need a bit of a credit history from the potential debtor and will most likely require a co-signer on the loan if the student with not much credit history at all is attempting to obtain the financing.

Federal funding for college students who need the financing, as well as parents is very available for anyone who has a need for such funding and it would be a good idea to look at all the options available in order to compare interest rates, fees, and more as these student loans will be around for a while after college as some loans will begin the payment schedule immediately during college like the Parent PLUS. Other repayment schedules will begin after 6 months for Stafford loans and 9 months for Perkins. So it would be a good idea to get all this information first hand before making any quick decisions about your college student loans.

S. Michael Windsor is currently publisher and a writer for BackToSchoolNetwork.com. The BSN Online Back To School Guide is a premier college back-to-school information platform that provides individuals with a quality in-depth look at college living and the associated products, services and information available today. Visit us today at http://www.BackToSchoolNetwork.com and subscribe to our Free Member services.

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Federal Parent plus Loans and Next student Private Loans-A Comparison and Contrast

June 13, 2010 · Posted in Access Funds · Comments Off 

Student loan consolidation has no doubt been such an effective manner to help student get out of their heap of loans since it combine various student loans into a single one. This also results in the fact that the student is claimed to pay a single monthly installment at a low interest rate, and the bundled interest rate is much lower than previous loans.

If you decide to consolidate, your loans will be taken together and then you are given a few options on how fast you want to pay them back. Then it is time you searched and contacted the financial institutions who provide you the best deal for your consolidation program. As a matter of fact, the two types of student loan consolidation consist of Federal Parent plus Loans and Next student Private Loans seem to rank in the top choices for them as they are good way offering great number benefits. The apt time to go in for student consolidation is the grace can get the loan at a low rate because this is necessary as the interest rates provided by different institutions are different.

There are a plenty of differences between the two types: federal parent plus loans and next student private loan that we would desire you to pay more attention to. Firstly, the borrowers of Federal parent plus loan are parents while those of next student private loans are various by loan.

Concerning about the qualification criteria, parent or cosigner must meet credit requirements while borrower or co-signer of next student private loan must meet credit requirements. To add on, the consolidation interest rate of Federal parent plus loan starting at 8, 5% meanwhile it varies by loan as for next student private loan.

Another difference between these two types is that as for federal parent plus loans, the discount is 0.25% with automatic debit 2% after 48 consecutive on-time payments, and the guarantee fee is about 1%. By contrast, next student private loan requires no discount, neither the guarantee fee.

What is more, there is no aggregate loan limits for the first type, and the repayment begins from 30 up to 60 days after final disbursement. Differently, there is no aggregate loan limit and the next student private loans’ repayments vary by loan.

Regarding repayment term, you should take notice of the fact that students applying federal parent plus loans have to pay off the loan in the time duration of 10 year, and those consider the other type of loan have to pay the loan back up to 25 years.

Last but not least, there is a difference between the stated student loan consolidation types above with regard to eligibility criteria. That is to say, non-need based; school determines eligibility is the main character of the federal parent plus loans while the eligibility criteria varies by next student private loans.

Despite the differences, there is only one similarity between the two types: Federal Parent plus Loans and Next student Private Loans. Fortunately, there are no prepayment penalties for both of two types.

To sum up, if you are struggling with getting a job, the two mentioned types of loans above are the options that you should take into account. While this is great for students who are young and have very little income coming in, many students going back to college may have a spouse to help them repay their loans.

Anyone who concerns more about this topic, visit student loan consolidation rates to discover outstanding facts. Not only Federal Parent plus Loans and Next student Private Loans can you find but also other relating matters, including the interest rates, consolidation rates and so on.

Anyone who concerns more about this topic, visit student loan consolidation rates to discover outstanding facts. Not only Federal Parent plus Loans and Next student Private Loans can you find but also other relating matters, including the interest rates, consolidation rates and so on.

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Nextstudent Private Loans Can Help Subsidize Educational Programs From Elementary to Graduate School

June 11, 2010 · Posted in Access Funds · Comments Off 

Financing an education can be a challenging feat, especially when borrowers have exhausted their personal savings and their state and federal financial aid options and still have educational expenses left to cover. NextStudent, a leading Phoenix-based education company, can help. Whether you’re a higher education student or the parent of a K–12 student, you may be eligible for a NextStudent Private Loan, a credit-based loan that could help make financing an education a reality.

Are you a parent who dreams of sending your child to a college preparatory known for strong academics like Xavier or Brophy in Phoenix, Arizona? Or are you an undergraduate or graduate student who needs a little extra money to cover your education-related expenses? Or maybe you already have your degree but can’t afford the continuing education courses you need to maintain a certification. If any of these scenarios describes your needs, NextStudent Private Student Loans are designed to help borrowers like you achieve your academic goals.

Reap the Benefits

NextStudent offers credit-based private student loans that can help borrowers meet their education expenses while in school and pay for things like tuition and fees, school supplies and other education-related essentials. To be eligible, students must be enrolled at a participating school. Whether applying for one of our K–12, undergraduate, graduate or continuing education private student loans, qualified borrowers can benefit with:

Quick preliminary approval on most student loans
No application deadlines
No prepayment penalties
Generous borrowing limits
Deferred principal and interest payments on most student loans
Funds sent directly to the borrower, not the school
Interest that may be tax-deductible (please consult your tax advisor)

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Qualifying is simple: Borrowers must provide proof of student enrollment at a participating school and proof of sufficient income (a recent pay stub, or for self-employed or retired borrowers, the most recent two years of tax returns with schedules or 1099s). In addition, borrowers must have at least 21 months of credit experience and a satisfactory credit history, and they must demonstrate two years of continuous employment (with the same employer or in the same field) and two years of U.S. citizenship or permanent residency. Don’t meet these requirements? That’s OK, a co-signer can help. NextStudent Private Student Loans feature the option of applying with a co-signer, whether you need a qualified co-applicant because you don’t quite meet the qualification requirements, or whether you’d like to have a co-applicant with a little more established credit history.

Apply Throughout the Year

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Applying is fast and convenient. Some borrowers may receive a preliminary approval in minutes. In as little as five business days, parents and students could be approved and see their student loans disbursed, with funds sent directly to the borrower. Eligible higher education students or eligible parents of K–12 students who need additional financial assistance meeting their educational needs can apply for NextStudent Private Student Loans throughout the year. There are no deadlines or time constraints. That means students can receive the funding they need, no matter when they need it.

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NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.

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The lender for the NextStudent Loan Program is Charter One Bank, N.A., Member FDIC and Equal Opportunity Lender.

? 2007 NextStudent. All rights reserved.

Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis.

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