Over 82% of college students never use all of the financial resources available to them, according to one study. There is plenty of help available for college students, even if you’re not poor. Whether it be Scholarships, grants, financial aid or anything in between, we have reviews of what sorts of college money is out there for you..
Most borrowers simply assume that private student loans and federal student loans have the same terms, but they don’t. Private loans come from banks, so they are costlier, and they don”t carry as many protections in case the people borrowing the money get into financial trouble. Some students wonder if they should apply for a payday loan. However, payday loans carry more restrictions and need to be paid back sooner than other loans. Depending on your financial circumstances, you might find a local charity willing to help.
One rule when going to get a private loan, don’t expect to go in and get as much money as you want. Private student loans are generally limited by the college’s cost to attend, minus however much money someone else is helping you pay. Most of the time you need a co-signer unless you prove that you are able to pay the prices by yourself.If you do get a co-signer, you will get a better interest rate if they have a high credit score. You can not get a federal loan from a private loan lender anymore though, thanks to a law that was passed earlier this year. Now you can only get federal loans from college financial aid offices.
A big downside from getting a private loan is that you can’t lock an interest rate. Instead what you get is a variable rate that changes with the movement of a certain benchmark, like the prime rate that is charged by banks. Since these benchmarks are at all time lows, any rate that is offered to you by a bank today will eventually climb. The normal rate of private loans is between 8 percent, and 8.5 percent.
By contrast, interest rates for most federal student loans are fixed at 6.8 percent. And subsidized federal loans for the most neediest students come with a fixed rate of 4.5 percent.
Federal loans come with safety nets for the loan borrowers.That way in case the graduates can not pay off the loans because they can’t find a job or that they barely make enough money,they would be able to opt to defer payments.With private student loans, it is up to the lender to decide whether to grant relief. But private reliefs are shorter than the federal ones are.
An important safety net with federal loans is that any borrower that earns a modest salary after graduation can apply to have their payments limited to 15 percent of their discretionary income. For loans that are given starting in 2014, they will be limited at 10 percent of income. The program also forgives any debt after 25 years. Those that are in public service that have loans forgiven after just 10 years.
A mistake that many people make is that they accept their first private loan they are approved for. Borrowers also sometimes just apply wherever they happen to have a checking account at. But it’s worth checking out a few places, since an online application takes about 15 minutes or so just to set up. In a recent test, Tim Ranzetta, founder of Student Lending Analytics, was offered rates ranging from 6 percent at a federal credit union to 12.25 percent at Sallie Mae.
Once you settle on an offer, you want to start repaying as soon as possible. You normally do not have to pay off debt until after you graduate. But it’s to you’re advantage to start repaying as soon as possible if you can afford to.
It seems like a burden, but when you pay while you are in school, it seems that you are reducing the debt because you are limiting the interest that builds up while you are in school. And if you run into any extra money, don’t forget, it doesn’t hurt to pay you debt off earlier than expected.
Further study in any field is becoming costlier day by day. In earlier times the further education depended solely on the student determination and hard work. The grades and student’s capability was the deciding factor for the future education. But now with increasing fees and education getting costlier, the future education is now dependent on the spending capacity of the parents. Higher education in top universities all over the world is getting costlier and hence it is becoming difficult for the parents to arrange for the funds from their savings. This issue is noted by various companies and hence they have come up with the student loans that will fetch the required amount to the parents which they can pay as fees. The student loans come with various considerations like the parent’s income, the course applied for, prospects for the students after completing that particular course and many such criteria.
There are many financial organizations that offer the student loans with student friendly terms and conditions. These student loans are offered for the period you want to study and won’t interfere in your studies during this period. These loans are offered with the facility of repayment after the student gets the job. Some of these loans are specially granted for the students with certain kind of disability. These loans are more flexible compared to regular ones and may cover more portion of the total fees. The student loans for the full time student will have different clause compared to the student loans offered to the working students. Hence, there are various categories for this type of loans that can be studied in detail to avail the best available loan.
Some of these Student Loans also differ based on the location of the student. Certain locations have more living cost then the others. Hence, the loan amount granted for these locations would be more. If you are the student looking for the loan for further studies then a thoroughly completed application need to be submitted to the educational authorities. These authorities will further decide the loan amount based on the above mentioned criteria. You can find the details of many such financial organizations online. There are official websites of many loan providers that can be studied to know the terms and conditions. You may also give an online application on these websites to carry out the further procedure of availing the loan and approval.
Scholarship Update – Hopefully you’re not in Texas looking for a scholarship – Eddie Bernice Johnson, Texas Congresswoman has admitted to steering 23 scholarships over the last 5 years to her family and friends. Not only is that unethical, it is illegal. The scholarships in question are from the Congressional Black Caucus Foundation and the money comes form various corporations and the money is intended to help underprivileged minorities. Stay classy, CBCF.
FAFSA has really simplified the process of filling out the online forms for financial aid. You can follow each section all of the way through for a comprehensive set of instructions and you might be surprised how much you’re eligible for – it only takes a few minutes and it doesn’t hurt to try…
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