Student Loan

Do you think it is possible to finance today’s cost of education without external funding? The answer is a big ‘NO’. Have a look at the cost of education, you can see fees sky rocketing. Completing college education is definitely a big question mark but for the external funding by both government as well as private agencies. Certain Federal Government guaranteed Student Loan are offered at low or no interest rates, with easy repayment terms, while these are available, they are not just sufficient to meet the complete cost of education. Alternative source of financing is indeed a vital source of funding. Though interest rates are comparatively higher, still a dependable source in the age of rising cost.

A Loan for Life

Even a small mistake in choosing the right kind of a loan, could result in years of correction and repayment. It is rightly called the Loan for Life, for a very simple reason, it is the first loan ever taken by an individual and the loan amount is so huge that it will take a life time for an individual to repay it coupled with the interest and other charges. The better the earning capacity the faster and easier will be the repayment process, the smaller the earning the greater will be the difficulty and the risk of a Bad Credit Score.

Student Loan Repayment Nightmares

It is indeed a nightmare! Students after having completed their education, now enter the job hunting phase, even before they are settled in a say, basic job, notices of repayment shake them up. Yes, they are aware of the fact that loans were taken to fund their education, but were not serious about the repayment aspect of it during their study, cause, the repayment period begins on completion of their studies or a little earlier. Now, when the real responsibility comes up, they are unable to match the liability with their petty incomes. This is called a nightmare phase of the Student Loan Saga.

An Online Degree

Graduates have a real good future and their job prospects are promising. They get promotion without any hassles and life seems to be more successful and complete with their education and resultant career growth. Do you think you have missed your college education? Don’t sorry for it now? Attending a regular college for all good reasons and complete your graduation is always there, but certain factors might disturb you or rather stop you from proceeding. The only acceptable solution to this problem is the Online Degree program. Completing your bachelor’s or master’s degree online, at a convenient time and at a lower cost is possible only with Online Degree option. Familiarity and availability of technology has made it possible for a number of universities to try offering online degree programs.

Financial Aid Option

Online Degree Programs can be chosen from a wide variety of options. These courses are offered at a cost much lower to a regular degree course. For those students who are not in possession of adequate financial resources, many financial institutions have come forward offering a number of financial aid programs for online degree students. Provided your online degree course satisfies the criteria specified by the government agencies and you can make an application for financial aid from the Department of Education through FAFSA. It is important to note that aid is given only for online degree courses and not any certification course.

Enclosures

Following enclosures are required

• Details and records of previous academic study
• Letters of recommendation from former teachers
• Self written essays describing the need for the loan/assistance and the course of study
• Details of family income and its proof.

Apply Early to Benefit

The application forms for such financial aid programs are collected months before the courses start. Hence ensure you have applied in time, ensuring compliance.

What is the state of Students Loan?

Student Loans offered by the Federal Government are the basic source of support for funding college education. Not only does it offer low interest loans, they are need based loans, where no credit check is required. Close to $51 billion of federally guaranteed students loan has originated this year, in comparison with $45 billion last year. With the rising cost of education and current economic catastrophe and financial crisis, college education will remain a dream if Government is not going to extend its helping hand and create more space and support for funding student’s education.

Student Loan combating the Current Economic Crisis:

The Secretaries of Education and Treasury Spellings and Paulson, have reassured the availability of students loan without any delay and difficulty even in times of current economic/financial crisis. Measures taken by the government such as President Bush approving the bill extending funds to ‘Ensuring Continued Access to Students Loan Act’, enables and empowers the Department of Treasury to use the federal fund for purchasing Student Loans. This is a vital step in order to meet the growing pace of student loan funding in comparison with the previous years.

Governments Role in handling Students Loan:

Availability of Federally purchased students loans have been made a reality by the bill signed the President, for both the year s2008 - 2009 and 2009 - 2010. The US administration is in an aggressive mode of supporting and restoring the student loan market back to normal operations. Recognizing the fact that education is the foundation of a strong workforce, the American government has taken steps to ensure quality education and ever possible financial aid, amidst challenging capital market, to ensure it no way affects or hinders student’s educational opportunities.

Scholarships and Grants both are free money given to students to fund their education. Following issues bring forth the difference in them.

After that you have chosen the right and suitable kind of a scholarship program as per your requirements, the next step lies in applying for the same. It is important that you follow certain acceptable procedures while filling up a Scholarship Application.

Scholarship Application

The application could vary from sending an email, or making a phone call or writing a letter. Where you are required to write a letter you should keep it short and professional. Follow the regular business protocol such as:

• Name and address of the addressing person
• Dating the letter
• Salutation
• Body of the letter. Describing about you and your educational background and the reasons for applying for a scholarship
• Thanking
• Applicants name and address

You should have an organized way of proceeding to make an application. It is highly important that you should have details such as application deadlines and requirements for each scholarship such as essays, references, transcripts, standardized test scores. These are important because any deviation or corrections required can be made provided you are prepared in advance. Secondary materials such as references and sample work as required by the scholarship program should be prepared in advance. Where you are applying for a need based scholarship it is important to have your income and tax proofs ready for submission.

The do’s and don’ts while filling out a Scholarship Application

• Always type your application form, ensure to have rough copy before committing your answers.
• Fill out the entire application. You should follow instructions very closely and stop yourself from getting disqualified by filling every section of the form.
• Always have a photocopy of the application form made.
• Ensure to type your name and social security number in all the pages of the application.
• Any doubts clarify with the organization offering the scholarship.

The time has come to start applying for scholarships this year. This is a free money season rather. All students who are willing to explore and exhaust the free money option should start getting their papers and details ready for the free money options and grants

Scholarships and Grants

Scholarships are student financial aid offered to sponsor their educational expenses which need not be repaid. Foundations, non profit organizations, government agencies, business houses, and colleges offer these programs. While some programs are based on merit, few other are based are arts and personal characteristics. Some of the programs are based on certain unusual terms and conditions. In addition to making it possible for the students to fund their college education, it also helps in further education offering great amount of flexibility and support to students. Students can choose the college and course of study that will best suit the free money program requirement.

National Scholarship Month

The month of November is called the national scholarship month. This month is specifically meant for raising awareness of every kind about these programs and their requirements for the benefit of the students. Such awareness is sure to help the students know about the finer points, thereby making their application a success. National Scholarship Providers Association (NSPA) is a national level organization for sponsors. This program is sponsored by NSPA. Students gain more access to further education programs with the help of this organization.

Student search for the various merits based programs over thousands of such programs and choose the one which suits them most. Applying for a merit program enables a student to clearly know their career path and decide on the course of study. Winning scholarships not only enables meeting the cost of college education, but it is also a mark of merit and excellence, always enabling students to reap the benefits of having won the merit program.

What are Private Student Loans?

Private Student Loans are alternative source of finance available after a student has exhausted every federal loan option. These loans are offered for the remaining amount required to fund the education. These loans are offered at a comparatively higher rate of interest, as there is no federal backing for these loans. The volume of Private Student Loan is growing more rapidly than Federal loans due to the fact that federal loans not sufficient to meet the cost of education.

What are the myths about Private Student Loans?

• Private or Alternative source of finance is under utilized
• Students are not aware of Private source of Finance
• Private Student Loans ignore students welfare
• There are not many private lenders in the market
• Private Student Loan lenders charge high rate of interest
• Private Student Loans are issued for limited amounts
• Private lender charge excessive fee
• Private Student Loans are given only to students with a good credit score
• Private Student Loan ignore merits

Dismissing myths about Private Students Loan

Private students loan are offered at interest rates higher than the federal loan rates but in line with the markets. These rates are lowered subject to good credit history and on time payments. Insufficient federal financial aid has made private or alternative source of finance the most dependable source of lending. With the growing need for college funding every student is aware of alternative source of finance. Private Student Loans also offer consolidation of loans for the convenience of students, helping them in their financial crisis. These loans are granted for unlimited amounts with valid cosigners. They do charge processing and other fee depending upon the credibility of the borrower. Loans are offered even to students with poor credit score subject to certain conditions and higher interest rate for the risk factor.

Overview of Financial Aid Options for US students in Canada:

Canada offer attractive option for US students due to its proximity to the United States and number of educational institutions that maintain a good reputation and recognized by the US Department of Education. Though the cost of education is easily affordable one has to be sure of the following.

• US students are not eligible for the US need based supplement programs like Pell Grants and Perkins Loan if they wish to study in Canada.
• Most US based scholarships are not available to American Students who pursue education outside the US.
• Canadian Schools offer scholarship to international students who are freshmen, sports based scholarships and other merit based scholarships.

Stafford and PLUS Loans

Canadian schools recognized by the US Department of Education offer Stafford Loans to American students and PLUS loans parents of students pursuing their education in a Canadian School of Study. Stafford and PLUS are federal loan programs to students which come at a lower interest rate and feasible repayment options. The Canadian schools themselves offer a list of lenders for US based Stafford and PLUS Loans.

Private and Alternative Student Aid

Federal Loans do not always cover the cost of college expense; hence students opt for alternative source of finance for funding their education. State financing authority, State’s higher education agency, banks, credit unions and other lending agencies are the sources of alternative source of finance. Outstanding credit history is an important requirement for all private loans. Each state also offers scholarship and other funding options to students pursuing their course of study in their state.

Federal Tax Credits

The Canadian Government offers Federal Tax Credit to all students. Such credits are in the form of Hope Credit and Lifetime Learning credit. One cannot avail both the schemes at the same time. These schemes are greatly helpful in funding the cost of education.

Talking to a number of students every day and dealing with their problems regarding their educational loans, one thing is clear and evident; it is their understanding about the concept of ‘Consolidation’. The moment they understand the benefits of consolidation in detail, the reason why they should think twice about opting for consolidation of their Private Loan Liability will be clear.

Requirements of Private Loan Consolidation

Where there are a number of loan liabilities to handle, each consisting of different repayment deadlines consolidation is the only solution available to them. One can choose the scheme of consolidation either offered by the same lender or different lenders depending upon the benefits so offered.

Benefits of Private Student Loan Consolidation

• Single Loan Liability: Consolidation removes the hassles of handling a number of loans and meeting their various repayment deadlines.
• Reduced Monthly Liability: Consolidation loans are provided at a comparatively lower rate of interest and flexible term reducing the monthly liability of students.
• No Prepayment Penalties: No penalties are charged for repayment of loans before time.
• Reduced Interest Rates: Private consolidation loans generally carry a lower interest rate in comparison with regular private student loans. Reductions in rates are offered to those borrowers who have a satisfactory credit score.
• Repayment Term: Repayment period can extended upto 30 years under the consolidation loan program.
• Interest Rate Reductions: Reduction in interest rates are offered to those who apply for a private student loan along with a credit worthy co-signer. On time repayments and auto debit facility in banks also offer the benefit of reduction in interest rates.
• Residency & Military Deferment: Deferment for a period of 48 months is given to medical/dental residents and a 36-month deferment arrangement for all active-duty military candidates are available under the Graduate Leverage Private Student Loan Consolidation Program. (GLPSLCP).

The list of benefits clarify the dilemma whether to consolidate or not to consolidate their Private Student Loan Liability.

Hi Students! Hope the topic has not sent wrong signals! All of us are in their respective real lives; the question is not about that. The real life situations and circumstances that a student is bound to face, once he completes his graduation and enters the world of opportunities.

Immediately on completion of your graduation

What a relief it is to say ‘I am a Graduate’! Great indeed! Wait, wait, and do not be in a hurry, I have not completed my sentence. ‘Great indeed the day I am done with my student loan’. Yes, dear students do not forget that the responsibility of not just earning but repaying your educational loan awaits you the moment you have completed your education.

Your First Salary

Getting your First Salary is great indeed. No matter how big or small the amount is. What are your plans? A surprise gift to your parents or one to your girlfriend! Party time with your friends? Go ahead and enjoy. Did you get the repayment notice? The amount which has fallen due on your student loan is liable for repayment immediately. Nothing to feel bad, after all it is that support which has given you the ability to earn. All you need to do now is first pay the due and balance if any, go ahead and party.

A Consolidation Loan

Are you finding it difficult to make both the ends meet? Is the repayment amount taking away pretty much of your earning and just left with a trifle to meet the entire month’s expense. Not to worry! Consolidation Loan Schemes are available to just to get you out of this financial squeeze. Consolidate and get the most flexible repayment terms, thereby lowering your cost of debt and making more money available for other requirements with lower repayment liability every month.