Student Loan Consolidation
How do I qualify for student financial aid loans?
Almost everyone qualifies for some type of college student loans, whether through private or federal financial aid means. Many college student loan candidates also can be surprised by how much they qualify for. You can easily fill out a free loan application to see just how much loan money can be obtained. The best advice, though, is to estimate you school expenses and don’t take anymore that what you know you will need. Often students take too much quick cash, leaving them in serious financial debt upon graduation.
How does the student loan process work?
Applying for college financial aid before the school year or semester begins is the best way to go. Not only will you receive your student loans sooner, but the lag time between submitting you student loan application and receiving your financial aid is normally much less.
What is FAFSA?
Free Application for Financial Student Aid that is available online. Many college students think FAFSA is a type of college loan but all it is simply a form to estimate how much financial aid can be received. It also estimates how much tuition you or your family will pay for.
How can I get more financial aid money?
If you are in need of a large sum of cash through student loans, you would be best off to apply as soon as possible. Normally, a set amount of loan money is set aside at the beginning of every semester/quarter and you want to act fast before it is gone.
Can I qualify for student loans if I or my parents have bad credit?
For a Parent Loan for an Undergraduate Student (PLUS Loans) a credit check will take place. For Federal Stafford Loans there is no credit check unless there was a prior problem before in the loan process or the student is not meeting academic requirements.
When do I have to pay for my student loans?
Federal Stafford Loans require the first payment 60 days after graduation. Federal PLUS Loans require payment 60 days after the last disbursement of money. Private loans can vary.
What does it mean to consolidate college student loans?
Student loan consolidation saves time and money on Federal Stafford Loans. By consolidating student loans you merge all federal loans to one company, thus making it easier to manage. By consolidating student loan debts, a fixed interest rate is set for the life of the loan. This means that if/when annual interest rates increase yours won’t, which makes it advisable to consolidate as soon as possible. It is estimated that loan consolidation saves student 10-60% on expected payments.
What college student loans are not eligible for consolidation?
Non-federal loans received through a bank, Credit Card Company or most private financial aid loan institutions are not eligible for college student loan consolidation.
What is a federal PLUS loan?
It is a Parent Loan for an Undergraduate Student. In order to qualify you must have a dependent child that goes to college at least part time and is achieving satisfactory grades. You also cannot have loan delinquencies for more than 90 days and you are susceptible to a credit check.
What is a Subsidized Federal Stafford Loan?
Subsidized Federal Stafford College Student Loans entails that all interest is paid by the federal government while you are in school (part-time to full-time).
What is an Unsubsidized Federal Stafford Loan?
Unsubsidized Federal Stafford Loans indicate you must pay the interest on the loans while you are in school and until the loans are paid for during grace periods and after graduation.
How long do I get to repay my loans?
College student loan repayment can span up to 20 years depending on the amount taken.
Why would I want private student loans over federal student loans?
Private student loans often are available at any time during a school period. Many find it to be a faster and easier process than applying for federal financial aid. The loan money is sent directly to you and you may qualify without a cosigner. Many prefer not to have deadlines for when the need or don’t need money and private loans are great if you need more than previously estimated. You may even be eligible if your federal student loans did not cover all school expenses and you need additional funding.
Can I consolidate private student loans?
Yes, private consolidation loans can be used to consolidate all education related debt, including private loans for education related expenses as well as all federal student loans. With private loans, you can even consolidate a spouses loan, which with federal consolidation loans you cannot.
How does federal student consolidation work?
Federal student loan consolidation is meant to save college graduates time and money. Essentially, you are merging all debts into a larger debt, with a fixed interest rate and payment to only one company. You want to consolidate federal loans within the six month grace period given upon completion of courses; while the interest rate is still at the low college student percentage. Typically, the longer one waits the higher the interest rate will rise.
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