7 FAQs you should know before going for Private Student Loan

Author: Sally Croft

We know that applying for private student loans for college is not on your list of fun things to do. However, Federal student loans may not cover all college expenses, so what do you do? Private student loan may just be the answer. This article will give you answers to the most commonly asked private student loan questions and help you to feel at ease as you apply for your private student loan.

1. What is the difference between a Private Student Loan and a Federal Student Loan?

Private Student Loan are designed to supplement federal loans when federal loans and other aid have been exhausted or just are not enough to cover the entire cost of your education. It is best to get private student loans as a last resort and only when you have used up all other federal student aid available to you.

Federal Student Loans usually come with lower interest rates than private student loans. Federal loans have standard rates and fees which may vary by lender. Federal student loans have fixed interest rates, while private loans typically have variable interest rates.

2. When should I apply for a Private Student Loan?

You should apply for a private student loan as soon as you have received your acceptance letter from the school you plan to attend. However, there is no time restriction so you can apply for private student loans at any time during your college education.

3. Do I need a co-signer if I don’t have good credit or have not established credit?

You should still try on your own first, keeping a co-signer as a back-up plan. However, if you do need a co-signer you will need someone who is an eligible U.S. cosigner to qualify.

4. Can I use a private student loan for other than tuition?

Yes. The student loan you acquire can be used for any education-related expenses, such as fees, books, a computer, school supplies, room and board, and transportation among others.

5. Are loan payments required while I’m still in school?

No. While you are enrolled in at least half-time, you can choose to defer all payments until completion.

6. What are my options if I cannot make my minimum monthly payment?

During the student loan repayment period, you may request forbearance. Forbearance is based on financial hardship and is a temporary postponement or reduction of loan payments, for a maximum of six months. Forbearance is granted at the lender’s discretion.

7. What happens if I don’t repay my Private Student Loan?

If you do not repay your private student loan according to the terms disclosed on your promissory note, you may eventually be in default on the loan which can damage your credit worthiness. Negative consequences may include:

A negative effect on your credit rating that may limit your ability to obtain future credit.
A requirement to immediately repay the entire amount of the loan with interest.
Withholding of your wages.
If there is a co-signer, they too will suffer the same negative consequences.

Knowing about private student loans make a difference between getting the money you need for school or sitting the semester out.

Tags: Private Student Loan, student loan
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Aug

Your guide to Wells Fargo Student Loans

Author: Sally Croft

Student loans are the chief means by which students are able to find funding for their college education. For past few years, tuition fees have drastically increased and, coupled with the added strain of the economic crisis, most students have no other alternative.

The best student loans are those offered through the federal student loan system. However, it must be understood that the government itself does not give out money. Previously, the government relied on other institutions such as Sallie Mae to issue these loans with federal backing. However, with the large volume of students now seeking student loans, the government has widened its reach and allowed other reputable financial institutions to come to the table to offer government backed student loans.

Wells Fargo is one of those leading financial institutions that provide both parents and student with quality services to meet all their fee needs.

What does Wells Fargo have to offer students?

Wells Fargo has added its professional touch to the student loan business that has helped it rise to prominence in the financial world. They offer both students and parents with a one stop shop where they can get everything done pertaining to their student loans. There services range from student loan counseling, information on saving for college, student loan payments and student loan repayment management.

Wells Fargo is a proud participant of the federal student loan payment system and offers PLUS loans to parents as well. Irrespective of your level of education, there is a student loan at Wells Fargo to suit your need. Some of these loans include Federal Stafford, Wells Fargo K-12, Wells Fargo education connection, general graduate studies, health care/medical and law school/bar exam loans.

How to get a Wells Fargo Student Loan

1. Fill out the FAFSA form: As a partner of the federal student loans program, Wells Fargo will always recommends students exhaust all possible loans available under the federal student loan program before attempting to seek a private loan. Therefore, students must fill out and submit their FAFSA form to determine if they qualify for federal student loans.

2. Know how much you qualify for: This is a report that analyzes all your financial resources pertaining to your education. It includes subsidized and unsubsidized loans, school grants, work-study programs and how much your parents are expected to contribute to your education. This will give you an idea if you will need addition funding from institution outside of the federal system.

3. Choosing Wells Fargo as you lender: Once the financial aid package confirmation is received, you must then pick a reputable financial institution that is a part of the federal student loan program. Wells Fargo provides student with a professional environment and easy processing procedures to complete your student loan application. Students can easily fill out an application online on get a Wells Fargo application form from their college.

4. Getting your student loan from Wells Fargo: Finally, students can expect their application to be expedited and begin their transition into college life.

Tags: student loan, Wells Fargo Loan
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Aug

Your College Degree and Job – How to strike the Balance?

Author: Sally Croft

Striking a balance between school and work is an uphill task for many working students. Many are just able to survive the pressure by focusing their sights on the end result. Many have fallen along the way, lost their families and in extreme cases even lost their jobs.
Working students must work within strict time guidelines to be able to cram everything they must do in a single day, as there is no hour of the day that will not be occupied.

Planning your Day

Working students must have a daily plan. A good daily plan will help you to meet both your short-term and long-term goals. They must remember that although they need to meet their daily commitments at work; they are also required to complete assignments towards their graduation. As a result, they should set themselves a series of achievable goals that must be done in a specific time. Not sticking to this plan will result in them falling behind.

Strike a balance between college degree & your job

Imbalance in work & study schedule affects family ties

Many working students have ruined their family life due to the amount of time they must dedicate to their studies. Wives complain that their husbands no longer have enough time for them and vice versa. Family time is very important in striking that balance between school and work. Not only out of an obligation, but family time also helps to make you relax especially in times of high stress. Remember that you also have an obligation to your kids to provide them with mental and physical support. This even becomes more important if they are young and unable to understand your educational commitment.

Working students should sit with their families and explain their situation. It makes everyone aware of your commitments and the role they can play to make it successful. In addition to the benefits they will derive from the outcome or your degree.

Maximize your study time

Due to the constraints of time experienced by working students, working students must not only study hard but also study smart. Studying smart enables them to get the key points of the subject area, as opposed to knowing stuff that is irrelevant. Most universities will have study guides that help students to decipher what are the important features of each course. Also getting past papers will help you to see the main areas of focus by different lecturers.

In addition, working students should be in coordination with their lecturers. By doing so, they can save a lot of time by going straight to the source for information. This will eliminate the time spent pondering over parts of the course you do not understand.

Get Motivated

Motivation is vital in balancing work and school. Working students who are not motivated become easily distracted and may deviate from their goal. Motivation also helps you to have a positive attitude and work as hard as possible in achieving your goals. Therefore, by remaining motivated and focused, students with online jobs will able to maintain their study and work plan and achieve their goals.

Tags: college students, Jobs
Posted in Career Advice, Student Loan | No Comments »