Friday, January 28, 2011

Student Loans That Fit Your Academic Needs

Research papers, reports, laboratory exercises, final exams and other requirements are just the tips of the ice berg. Students are confronted with grave financial problems too. The high cost of university tuition and daily expenses are a big part of student's worries too.

There are many ways to resolve these problems but nothing can be more cost effective that causes long term effects than that of student financial aids. Credible and reliable, student loans gain modest interest compared to its counterparts. Simply put, student loans are the total amount of borrowed money from a financing source or company to pay for university fees. All the more student loans finance are specially designed to fit the schooling needs of students, to help finish their education towards having to excel in their chosen profession in the future.

Federal student loan is the first type of loan. Financed and governed by the federal government, this type of loan is a program offered by the government for the deserving but under privileged students who wishes to finish their education. Administered by the United States Department of Education, a potential borrower who wishes to access this program can proceed to the University Financial Aid office.

Federal student loans will neither require of a credit check nor look deeper into your credit history. A Federal Stafford loan is a type of Federal loan that caters to all students regardless of financial status. A potential borrower can borrow a total of $ 20,500 and will gain a total of 4.5% on interest on a yearly basis. The student will not be compelled to repay the debt while still studying but debt repayment will take place until 6 months of the borrower's graduation.

Federal Perkins loan is the second type of federal loans for students but it is only awarded to the most deserving of all students that are in great need of financial aid. Student with disabilities are also potential to be awarded of this loan. The debt will gain interest with a maximum fixed rate of 5% annually and will cater to very flexible repayment options.

Another type of loan is the private student loan. It is a service delivered and supervised by the private sector through their financing companies and funding agencies. Compared to other loans, private student loans have lower interest rates compared to its counterparts. Financing companies are most like to view students as high customers as students are less secured of financial sources unlike their other customers. That's why most financing companies would raise their interest rates to dishearten the prospect borrowers to pursue and application for their loan. Sometimes, companies will require a credit check and will ask for documents as proofs of the borrower's genuine credit history. If not, the company will require a cosigner to share the borrower's accountability and assure them of your debt repayment. If a financing company denied of your loan application, they are most probably unimpressed with your credit history. The best you can do when this situation happen is to fix your credit history then opt to avail of federal student loan instead. www.studentloansfinance.co.uk

Friday, January 21, 2011

Getting Money From a Private Student Loan Lender

Taking a loan is the normal course of action chosen by many students and though federal loans are an option, choosing a private student loan is another option as well. The good news for students is that there are many private student loan lenders spread out in various locations throughout the US that will provide you with a loan.

Most lenders are private banks and even financial institutions and other organizations engaged in the business of providing student loans finance. Sometimes, you may need to provide collateral before the lender will be willing to lend you money. Also, different banks offer their own unique type of student loans including loans to study at undergraduate level and also for graduation courses.

The best part about borrowing from private student loan lender is that they offer very competitive rates of interest and the entire process of getting your money from them is simple and the money is forthcoming quite readily. You can also ask the lender for a loan for continuing education and take heart from the fact that these lenders will give you a loan from amounts as low as thousand dollars to as high as forty thousand dollars. The maximum loan amount is believed to be about one hundred and fifty thousand dollars.

You can use the borrowed loan amount for taking care of costs of tuition as well as for expenses to meet your day to day living expenses. In addition, the loan money can be used to purchase books, computers as well as to pay off past debts. The most attractive feature to borrowing with this kind of loans for students is that the repayment begins only after you have completed your studies.

Of course, there are certain formalities that you will need to follow before the lender lends you money. Among the biggest private student loan lenders names such as Chase Private, Act, National City and others are worth checking out. Obviously, the best loan will be one that has the lowest rate of interest, most flexible repayment terms and a longer time-span within which to pay off the entire loan amount. Your credit history too plays an important role in deciding whether or not you are able to borrow. www.studentloansfinance.co.uk

Friday, January 14, 2011

Consolidate Student Loans - Smart Tips

Consolidate student loans is a great opportunity to reduce monthly payments and free a bit 'of money each month. Here are some tips we have for you on the process of consolidation of student loans:

IF are in your trial period is the best time to consolidate student loans. You are in the grace period, if you finished school, but are not yet in repayment term, which usually begins six months after graduation. If you consolidate your student loans during the trial period, you can generally claim an interest rate of the creditor.

The federal government has recently passed a law that allows borrowers to consolidate their student loans finance to any eligible FFELP (Federal Family Education Loan Program) lender. This means banks have more to choose from than you did before.

The federal government has fixed the interest rate on federal student loan consolidation, and this is part of the federal act, if creditors are required by law and can not charge a higher interest rate for any reason. It 's always better for you to obtain the lowest interest rate, you can by the lender you choose, but the interest rate on the consolidation of student loans that have been supported by the federal government are set for the loan and can not exceed 8.25%. This does not mean that the lender can pay less interest, so it still pays to shop around for the best price.

IF you have both federal and private student loans, do not let your lender to put together into a consolidated loan. If you do, you lose the federal benefits that are part of your federal loans. For example, the maximum interest charged is 8.25% today to federal loans for students and this limit if you lose your consolidated federal and private loans in the loan. Deferment and tolerance are the options that you can use with federal student loans if you fall in bad times as losing your job dismissal or termination, of becoming disabled and unable to work, etc. These are important benefits that you would be wise not to be missed. The deferral is when the government allows deferring the payment of the loan principal for a period of time. Depending on the type of loan you have, or you can not repay the interest during deferment. Tolerance is when the government allows you to stop payments for a period of time, but you must still pay the interest payments. In both suspensions and one abstention, there may be ways to add interest payments on the back of your loan so you pay nothing during the period of deferment or tolerance.

Education was adopted for the protection of students taking out loans for tuition fees. In particular, it mandates that the Federal student loan consolidation must have a fixed rate, no cost or loan processing fees of any kind, no credit check for the borrower, no prepayment penalty if the borrower repay in advance loan, and a lower interest rate if consolidation loan during the grace period. www.studentloansfinance.co.uk

Thursday, January 6, 2011

Student loan process

Student loan, in most cases is not guaranteed and is usually made by lenders that receive government help. If the government was not sponsoring these loans, you will probably find that student loans would be extremely difficult to obtain. Most lenders will probably find this type of loan would not be worth the effort. With this type of loan there is usually a lot of bureaucracy. Before applying for a student loan you must begin with the form "Application for Federal Student Aid Free. You can call 1-800-433-3243 to get one of these forms.

This application will determine the eligibility of the contribution of students, and students with the help of student loans finance. You can fill out and submit the form online or offline.

To send online just visit afsa.ed.gov. If you submit your online application, you simply follow the status of your application. Also submit the form on-line will expedite the process. If you find that are not eligible loans for student guaranteed there other programs available? Additional loan programs, such as replacing loans are essentially loans to a co-signer, like a parent.

Because the government imposes many regulations guaranteed student loans, there is no need to shop around, because all the lenders who offer loans to students are required to follow the same guidelines. Now, you will not find that this is the case for other loans because they are subsidized by the state. However, these interests may vary considerably, so it's worth looking around in this case. www.studentloansfinance.co.uk

Monday, January 3, 2011

Consolidating Student Loans - Why it Makes Sense

Does consolidating student loans make sense for your life? Is it the right option for your current financial situation? Is it true that consolidating student loans can simplify your life, raise your credit score, and give you extra money each month?

If you have more than $10,000 in student loan debt, then the option of consolidating student loans is definitely an option you would be wise to consider helping you lower your debt. When consolidating student loans finance the lender you choose pays off your current loans and combines them into a new consolidated loan. The federal government has already put a cap on the interest rate on student loan consolidations at 8.25%, so there's no need to worry about paying the exorbitantly high interest rates that are bankrupting credit card consumers who are already in deep cycles of debt.

Your college degree is an extremely valuable asset that no one can ever take away from you. You've strived hard to get that degree - studying long hours, probably even holding part-time or full-time jobs to support yourself while you went to school. But the money you earned was not enough. Your rising college tuition fees and the cost of books were still too high for you to afford with what you earned. You still had to take out a student loan - or maybe two or three - just to get by.

Now you have finally graduated. You're out of school. Maybe you've been out of school for several years. And you thought it would finally be time to focus on your career path ahead. To find a job, finally earn some decent money, learn new skills and meet new people, build up your resume, start enjoying life and maybe plan for a family. But you're finding yourself sliding deeper and deeper into debt because of your loans for students. Does this sound like you?

You'll be relieved to know that lenders who specialize in consolidating student loans have years of experience in making the process very easy for you. There's not even a need for them to do a credit check on you. There are no application fees. And your credit score will probably take a jump too! Yes, you heard me right. When the lender pays off your old student loans, your credit report will show them as PAID IN FULL. And your credit report will only show your new consolidation loan as OPEN. Since creditors prefer to see that you've paid off your bills, this will have a positive reflection on you as a credit-worthy consumer. So when the time comes for you to buy a car, open a new credit card, or even buy a home or condo, your credit score will be higher than it would have otherwise been if you had not consolidated your student loans.

Is there any downside to consolidating student loans? There may be, depending on how you look at it. Your lender will probably give you a loan term that is longer than the current terms of the loans you have today. That means that you will repay more over the life of the consolidated loan than you would if you just kept your separate loans and continued on the repayment path you are on. But if you are falling behind in payments and your credit score is taking a dive because of it, it is far better to consolidate, have a lower monthly payment and improve your credit score in the process. Then if you want to repay more than the minimum due each month or pay off your loan early, there is no prepayment penalty. www.studentloansfinance.co.uk