Owner: Student Loan Advice URL:http://studentloanadvice.blogspot.com/ Join Date: Tue, 03 Oct 2006 22:34:45 -0500 Rating:1 Site Description: This site is all about helping you get rid of student loan debt. Two out of every three graduating seniors now have student loans to pay off! I plan on talking about loans and loan companies, debt collectors and debt consolidation. I'll also cover indust Site statistics:Click here
Can I consolidate an existing consolidation loan? 2007-12-11 00:20:00 Yes, under two conditions.A borrower can consolidate existing consolidation loans into a new Direct Consolidation Loan if the borrower includes at least one other FFEL or Direct Loan into the new consolidation loan. A borrower can conslidate a single FFEL consolidation loan if the FFEL consolidation loan is in default status or has been submitted to a guaranty agency for default aversion by the borrower's loan holder.(Source: loanconsolidation.ed.gov)
Can I consolidate my loans if I am enrolled in school? 2007-12-10 15:57:00 Yes and No. Effective for Direct Consolidation Loan applications received on or after July 1, 2006, borrowers who are enrolled in school cannot consolidate loans that are in an in-school status. These are loans that have not yet entered or used up the 6-month grace period entitlement.Borrowers still can consolidate loans that are in grace, repayment or deferment Borrowers can add loans to an existing consolidation for up to 180 days after the Direct Consolidation Loan was first disbursed. If more than 180 days has passed, borrowers can apply for a new Direct Consolidation Loan. The new consolidation loan can include the original Direct Consolidation loan and must include another eligible outstanding Federal education loan.Example: A borrower who has education loans stopped attending school for a year and the loans used up the 6-month grace period and entered repayment. The borrower returned to school and obtained a new loan. While enrolled, the borrower applies for a Direct Consolidati
Can I consolidate health professions loans? 2007-12-09 15:48:00 Yes, With a Direct Consolidation Loan, borrowers can include certain health profession loans sponsored through the U.S. Department of Health and Human Services with other Federal education loans in their Direct Consolidation Loan. Borrowers must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan. Eligible Health Professions LoansHealth Professions Student Loans (HPSL) Health Education Assistance Loans (HEAL) Loans for Disadvantaged Students (LDS) Nursing Student Loans (NSL) Direct Consolidation Loans offer many advantages to borrowers of health professions loans. These include:a longer repayment period; a lower monthly payment; AND a single monthly payment When deciding to consolidate a health professions loans, consider the following advantages:Borrowers who have defaulted on a HEAL may include the collection costs and late fees in a Direct Consolidation Loan. These fees may not be included in HEAL Refinancing. Under
PLUS and Perkins Loan Consolidation 2007-12-08 15:45:00 Can I consolidate a PLUS Loan?Yes, PLUS Loans can be consolidated into a Direct Consolidation
Loan.Can I consolidate a Perkins
Loan?Yes, it is possible to consolidate Perkins Loans into a Direct Consolidation Loan if borrowers include at least one Direct Loan or Federal Family Education Loan (FFEL) in their request. Perkins Loans cannot be included in a Direct Consolidation Loan by themselves. Furthermore, all Perkins Loans consolidated into the Direct Loan Program will be included in the unsubsidized portion of the Direct Consolidation Loan.Borrowers should carefully weigh the advantages and disadvantages of including a Perkins Loan in a consolidation loan. While the borrowers gain the benefits of the Direct Consolidation Loan Program, they also lose the benefits associated with the Perkins Loan Program.We recommend that you consider the following points prior to making a decision: Perkins Loans are eligible for additional cancellation benefits, such as performing certain kinds of pub
Direct Consolidation Eligibility 2007-12-07 15:37:00 To qualify for DirectConsolidation
Loans, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan that is in grace, repayment, deferment, or default status. Loans that are in a in-school status cannot be included in a Direct Consolidation Loan. Borrowers can consolidate most defaulted FFEL and Direct Loan Program loans, if they make satisfactory repayment arrangements with their current loan holder(s) or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan.Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them.(Source: loanconsolidation.ed.gov)
Student Loan Consolidation Checklist 2007-12-21 13:47:00 The very first step: Take inventory of your student loans.For information on your student loans, review your loan documents, and contact your lender or loan servicer. If you are uncertain of your current lenders or loan servicers, you can find them by going to www.nslds.ed.gov.Monthly Payment AmountIf you are not in repayment status yet, estimate your monthly non-consolidated loan payment based on the current interest rate and your loan balance. You can get payment amounts by calling your lender or loan servicer.Next Steps* Determine whether your monthly payment exceeds the percentage of your income to be allocated to student loan payment. This percentage should be based on a realistic budget. (If payment exceeds monthly allocation, reevaluate budget and assess income situation.)* Consider deferment or forbearance option for short-term payment relief needs. (If debt relief needs are long term, consider consolidation.)* Select loans for consolidation. * Determine monthly payment and to Read more:Student
, Consolidation
, Checklist
, Student Loan
End of the year news 2007-12-21 11:33:00 AACRAO.com has reported on year end Omnibus bills that Congress has passed.Concerning education financial aid:In addition, Democrats were able to secure funding for several favored programs President Bush hoped to eliminate. Supplemental Educational Opportunity Grants (SEOG), Perkins Loans, and the Leveraging Education Assistance Programs (LEAP) will all be spared, although their budgets will be significantly tighter than in fiscal year 2007.
Student Loan Consolidation - Next Student 2007-12-21 09:21:00 When choosing a student loan consolidation program, you need to carefully examine the company you're dealing with so you don't get burned. Here's one I recommend: Next Student
Next Student has been Better Business Bureau accredited since 2004 with a satisfactory record for at least the past year. According to the BBB, at this time, Next Student does not have an unusual volume of complaints, or any government actions involving its marketplace conduct.Over the past 3 years, there have been 45 BBB complaints and 28 of them were closed last year. Next Student has been in existence since 1992.Contact InformationNext Student Inc. 19601 N. Black Canyon Highway Phoenix, AZ 85027 Telephone: (623) 879-5026 Fax: (602) 993-7417 Read more:Consolidation
, Student Loan
Perkins Student Loan 2007-12-20 11:52:00 If you're applying for student financial aid and you fit into the extreme financial need category, this loan is for you.Features:* 5% interest rate with no origination or default fees* Maximum yearly loan: $4K undergraduate and $6K graduate programs* Total limit: $20K undergraduate and $40K graduate* Repayment starts 9 months after graduation OR dropping below half time enrollment* 10 year repayment planTo qualify for a PerkinsStudent
Loan, you must fill out an FAFSA (Free Application for Federal Student Aid). The financial aid office of the school you apply for with use that information to determine if you qualify for the extreme need Perkins Loan. Check with the university financial aid office for application deadlines.
Miscellaneous Questions 2007-12-18 15:34:00 How long does it take to consolidate my loans once I submit my application?The consolidation process generally takes 60-90 days. Using our online Web application can reduce the amount of time it takes to consolidate a borrower's loan.When can I expect my first bill?Borrowers will receive bills from the Direct Loan Servicing Center within 60 days of the first disbursement of their Direct Consolidation Loan.How do I make payments?Borrowers receive monthly billing statements from the Direct Loan Servicing Center, unless they enroll in the Electronic Debit Account (EDA). Borrowers receive a 0.25 percent discount on their interest rate for as long as they continue to make payments using EDA. Borrowers must keep the Direct Loan Servicing Center informed of changes of address and to their names. Borrowers are responsible for making payments on time regardless of whether they receive billing statements. Borrowers should send payments to: U.S. Department of EducationDirect Loan Payment Center
Can I change repayment plans? 2007-12-18 10:30:00 Yes. Most borrowers may change repayment plans
at any time. Borrowers who are required to repay under the ICR plan must make three consecutive monthly payments before switching to another plan. There is no limit to the number of times borrowers may change plans.A borrower may change to the ICR plan at any time. After the switch, the borrower's repayment period will be 25 years, less any time spent in the ICR and the Standard repayment plan. Time spent in several other plans may not count towards the 25 year maximum.A borrower may change to another plan as long as the new plan has a repayment term longer than the amount of time the borrower has already spent in repayment. The new repayment term is determined by subtracting the amount of time a borrower has spent in repayment from the term allowed under the new plan.(Source: loanconsolidation.ed.gov)
How is the amount of my payment calculated under the ICR plan? 2007-12-17 14:27:00 The ICR Plan is designed to keep payments affordable. Generally, borrowers pay the lesser of: the amount they would pay if they repaid their loan in 12 years, multiplied by an income percentage factor that varies with their annual income, or 20 percent of their discretionary income (AGI minus the poverty level for their family size) Under the ICR plan, the monthly payment is $0 for borrowers with family incomes that are less than or equal to the U.S. Department of Health and Human Services poverty level for their family size. Borrowers whose calculated monthly payment is greater than $0 but less than $5 are required to make a $5 monthly payment. Other borrowers must pay the calculated monthly payment.Until the Department receives income information from the IRS or alternative documentation of income, borrowers' monthly payments are equal to the interest that accrues each month. If they are unable to make the interest-only payments, borrowers may request a forbearance until the first s
Income Contingent Repayment (ICR) Plan 2007-12-17 10:24:00 The ICR Plan gives borrowers the flexibility to meet their obligations without causing them financial hardship. Monthly payments are based on borrowers' annual Adjusted Gross Income
s (AGI), loan balance and family sizes. Income is obtained from the Internal Revenue Service (IRS) or from an Alternative Documentation of Income Form (discussed below) submitted by the borrowers. To participate in the ICR Plan, borrowers (and if married, their spouse) must sign the Income Contingent Repayment Plan Consent to Disclosure of Tax Information Form. This authorizes the IRS to release borrowers' income information to the Department of Education to calculate monthly payments. Monthly payments are adjusted annually to reflect inflation, family size and income.Monthly payment amounts for some borrowers may not be enough to cover the interest accruing on their loans. This situation is referred to as negative amortization. In such cases, the unpaid interest is capitalized and added to the principal
Teacher Loan Forgiveness Program 2008-03-11 20:20:00 To qualify for up to $5,000 loan forgiveness under this program you must not have had an outstanding balance on a FFEL or Direct Loan program loan as of October 1, 1998. To qualify for the increased amount of loan forgiveness up to $17,500 available for certain mathematics, science, and special education teachers, you must not have had an outstanding balance on a FFEL or Direct Loan program loan as of October 1, 1998, or on the date that you obtained a FFEL or Direct Loan program loan after October 1, 1998.Although a summary of the new requirements is provided below, for complete information about this program, contact the holder of your loan.To qualify, you must have been employed as a full-time teacher for five consecutive complete academic years in an elementary or secondary school that Read more:Teacher
, Forgiveness
, Program
Loan Rehabilitation 2008-02-20 15:23:00 You may want to consider rehabilitating your defaulted loan(s). Advantages of rehabilitation include:* Your loan(s) will no longer be considered to be in a default status. * The default status reported by your loan holder to the national credit bureaus will be deleted. * You will be eligible for the same benefits that were available on the loans before the loans defaulted. This may include deferment, forbearance, and Title IV eligibility. * Wage garnishment ends and the Internal Revenue Service no longer withholds your income tax refund. If you are a Direct Loan Borrower:To rehabilitate a Direct Loan, you must make at least nine (9) full payments of an agreed amount within twenty (20) days of their monthly due dates over a ten (10) month period to the U.S. Department of Education (Departme Read more:Rehabilitation
Can my Stafford Loan ever be discharged (canceled)? 2008-02-19 10:35:00 Yes, but only under a few circumstances. Your loan can’t be canceled because you didn’t complete the program of study at the school (unless you couldn’t complete the program for a valid reason—the school closed, for example), or because you didn’t like the school or the program of study, or you didn’t obtain employment after completing the program of study.
What if I have trouble repaying the Stafford Loan? 2008-02-18 10:34:00 Under certain circumstances, you can receive a deferment or forbearance on your loan, as long as it’s not in default. During a deferment, no payments are required. You won’t be charged interest for a subsidized FFEL or Direct Stafford loan. If you have an unsubsidized Stafford Loan, you are responsible for the interest during deferment.If you’re temporarily unable to meet your repayment schedule (for example due to poor health or other unforeseen personal problems), but you’re not eligible for a deferment, your lender might grant you forbearance for a limited and specified period.(Source: Studentaid.ed.gov)
How do I pay back my Stafford Loan? 2008-02-15 11:33:00 You’ll repay your FFEL Stafford Loan to a private lender or loan servicer. You’ll repay your Direct Loan to the U.S. Department of Education’s Direct Loan Servicing Center. Both the Direct Loan and FFEL programs offer four repayment plans you can choose from, but the terms differ slightly. You will receive more detailed information on your repayment options during entrance and exit counseling sessions your school will provide.
When do I pay back my Stafford Loans? 2008-02-14 18:12:00 After you graduate, leave school, or drop below half-time enrollment, you will have a six-month "grace period" before you begin repayment. During this period, you'll receive repayment information, and you'll be notified of your first payment due date. You're responsible for beginning repayment on time, even if you don't receive this information. Payments are usually due monthly.During the grace period on a subsidized loan, you don’t have to pay any principal, and you won’t be charged interest. During the grace period on an unsubsidized loan, you don’t have to pay any principal, but you will be charged interest. You can either pay the interest or it will be capitalized (added to your principal loan balance, thus increasing the amount you’ll repay). Read more:Loans
Other than interest, is there a charge for this loan? 2008-02-14 10:31:00 You'll pay a fee of up to 4 percent of the loan, deducted proportionately from each loan disbursement. For a FFEL Stafford Loan, a portion of this fee goes to the federal government, and a portion goes to the guaranty agency (the organization that administers the FFEL Program in your state) to help reduce the cost of the loans. For a Direct Stafford Loan, the entire fee goes to the government to help reduce the cost of the loans. Also, if you don't make your loan payments when scheduled, you may be charge
d collection costs and late fees.
What's the interest rate on a Stafford Loan? 2008-02-13 16:28:00 For all Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent. This change from a variable to a fixed interest rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.For Stafford Loans first disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable (adjusted annually on July 1st) but will not exceed 8.25 percent. (You'll be notified any time the variable rate changes.) The interest rate for these loans in 2007-08 is 7.22 percent. (This rate applies to loans in repayment status; the rate may be lower during grace and deferment periods.)
How will I get the Stafford Loan money? 2008-02-13 11:28:00 For both the Direct Loan and FFEL programs, you'll be paid through your school in at least two installments. No installment may exceed one-half of your loan amount. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If loan money remains, you'll receive the funds by check or in cash, unless you give the school written authorization to hold the funds until later in the enrollment period.Generally, if you're a first-year undergraduate student and a first-time borrower, your school cannot disburse your first payment until 30 days after the first day of your enrollment period. This practice ensures you won't have a loan to repay if you don't begin classes or if you withdraw during the first 30 days of classes.A school with a cohort defa
How much can I borrow for a Stafford Loan? 2008-02-12 14:25:00 It depends on your year in school and whether you have a subsidized or unsubsidized Direct or FFEL Stafford Loan. A subsidized loan is awarded on the basis of financial need. If you're eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you're in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your level of study (see below).You might be able to borrow loan funds beyond your subsidized loan amount even if you don't have demonstrated financial need. In that case, you'd receive an unsubsidized loan. Your school will subtract the total amount of your other financial
How to Choose and Evaluate Lenders for Stafford Loan 2008-02-12 10:24:00 You'll need to choose a lender if you obtain a FFEL Stafford Loan. (If you have a Direct Stafford Loan, the federal government—through the U.S. Department of Education—is your lender.) Schools that participate in the FFEL Program will usually have a list of preferred lenders. Student loan borrowers may choose a lender from that list, or choose a different lender they prefer (for example, a credit union). Here are a few things to think about when selecting a FFEL lender.(Source: Studentaid.ed.gov) Read more:Lenders
Stafford Loans 2008-02-11 10:22:00 In addition to Perkins Loans
, the U.S. Department of Education administers the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Both the FFEL and Direct Loan programs consist of what are generally known as Stafford Loans (for students) and PLUS Loans (for parents).Schools generally participate in either the FFEL or Direct Loan program but sometimes participate in both. Under the Direct Loan Program, the funds for your loan come directly from the federal government. Funds for your FFEL will come from a bank, credit union, or other lender that participates in the program. Eligibility rules and loan amounts are identical under both programs, but repayment plans differ somewhat.How can I get a FFEL or Direct Loan?For either type of
Crackdown 2008-02-08 08:12:00 Yesterday the House side of Congress voted in the College Opportunity and Affordability Act, H.R. 4137. A major feature of the bill clamps down on shady tactics in the student loan industry. The bill sets in place codes of conduct of the "friendships" lenders and university officials currently have. There will be no more kickbacks from sweetheart deals ... just in time for Valentines Day. The bill now goes to the Senate and the White House is already stating they strongly oppose it. I smell a veto coming. Read more:Crackdown
Student Bank Loans 2008-02-06 10:57:00 Suppose you need a student loan and you don't want to be hindered by the restrictions and timeline of federal loans. Look into student bank loans.Some of the advantages of student bank loans:* It's usually a faster approval time.* You don't have to fill out a FAFSA (Free Application For Federal Student
Aid).* You can borrow a good bit more money. (This is especially good if you're shooting for an expensive private institution.)Student bank loan approval is based on your personal credit score and history as well as your ability to pay it off ... the better your rating, the better interest rate you get. Don't get scared, the loan rate will be comparable to a federal student loan and not like a credit card rate.So, if your responsible and are considered a low risk, getting a student bank l Read more:Loans
Recommend Site To A Friend
