Archive for the ‘Student Loan’ Category

Jun

A Case of Rejected Parent PLUS Loan

Author: Sally Croft

Due to the credit crunch, many counselors are advising parents to line up a lender and apply for their Parent Plus Loan so that they can lock in terms as soon as possible. But, what happens if you get rejected for a Parent PLUS loans?

What now?

Well, getting a loan rejection letter can be very disappointed and exhausting after all the work you put into helping your child(ren) pay for their education. There are still ways to get financial aid however, through what is called an “appeal” process that is offered by most schools. Just talk to your financial aid department to get the process started as soon as possible.

There are also two other options available to you if you are denied a Parent PLUS Loan.

1. Reapply for the Parent Plus Loan using an eligible co-signer, or
2. Have your child borrow additional unsubsidized Stafford Loan that is now made available because of your denied Parent PLUS Loan.

How does Federal Parent PLUS loan work?

Federal Parent PLUS loan is provided to the parents of undergraduate, dependent students who are attending college or university at least half-time. A parent plus loan can cover any costs not already covered by the student’s financial aid . This loan can help parents to meet the entire financial cost of their child’s education.

Sensible financing for your child’s education

Financing your child education can be costly. Many families today find that they have educational expenses beyond what is awarded to their child through financial aid and Parent PLUS Loans is an option to help fill the gap.

Advantages of Parent PLUS Loans

Parent plus loan comes with many advantages and is a nice alternative to high interest loans, home equity loans or private loans. Some of the advantages are listed below:

Easy application process
Eligibility is not based on income or assets
No collateral requirements
High approval rates
Low fixed interest rate
Ability t defer repayments
Flexible repayment options
Interest paid on Parent Plus Loan may be tax deductible

If you plan to borrow a Parent Plus Loan to supplement your child’s education, you should contact the financial aid office at your child’s school to start the application process as soon as possible so that you don’t get rejected or lose out on funds when your child needs them the most.

Tags: Parent PLUS Loan, student loan
Posted in Student Loan | 2 Comments »

Apr

Student Loan Debt – 10 sure mistakes to avoid in 2010

Author: Sally Croft

Most students are not able to afford the heavy tuition costs due to low income and other financial factors. This can put students and parents into desperate situations thus making the wrong choices. For some, the lack of knowledge and desperation can lead to misjudgments when applying for a student loan.

Although looking for student loans can be time consuming and difficult task, it still requires that you enter into it with a certain amount of caution. To make this process easier I have listed a few tips to help you avoid making bad decisions and fall prey to some popular student loan gimmicks. However, there is really no need to panic, you will be able to find a legitimate student loan to pay for your education – just be careful!

1. Apply by Deadline Trap

Often times there may be a bold heading telling you to apply by this date or else…It is best to verify the deadline, because there may not be one and this is just a way to get you to apply right away before you have the time to research.

2. Telemarketing Calls

Unfortunately, telemarketing is everywhere and most of these offers can be tempting, but if it sounds too good to be true – it most definitely is, just politely say I am are not interested and hang up immediately.

3. Read the Fine Print

If you wear glasses make sure that you have them on when going over your application, especially the fine print. Most people tend to skim over the fine print thinking that it is not important, but I guarantee you the fine print is where all the most important details about your loan is hidden.

4. Consolidate Loans – NO FEES!

This is a very popular eye-catching heading used by loan sharks, preying on the weak and desperate. Verify the information and get all the important details before agreeing to the loan.

5. Look Alike Logos and Seals

Lenders will do just about anything to look legitimate and as the real deal. However, this is just another trick to make you think that you are dealing with a reputable institution instead of the loan company by imitating seals and logos of colleges and universities.

6. Mail With Flashy Headings

One-time offer student loans, or best loan in town, just discard any piece of mail that has flashy headlines.

7. Email : One-Time up-front Loan Fee

Delete any e-mail offering you student loans for a one-time up-front fee. This could be a virus or company trying to obtain your identity.

8. Mail from The U.S. Department of Education

The U.S. Department of Education is not in the business of soliciting consumers to borrow money and does not send advertisements or mailers.

9. Adjustable Rate Loan

At first these loans sounds good and in the beginning the interest on the loan is very low, however over time the interest increases.

10. Student Loan Brokers

Charging you to apply for loans, pell-grants, financial aid and other service that is normally a free service or that you can do on your own.

As always, do your homework, be cautious before signing on the dotted line and if it sounds too good to be true – you best believe it is!

Tags: student loan, Student Loan Debt, Student Loan Debt Help, Student Loan Interest Rates
Posted in School Loan Debt, Student Loan | 2 Comments »

Apr

Paying for School – What you should know?

Author: Sally Croft

In these tough times, figuring out how to pay for college can be a challenge. A lot of today’s students are finding it tough. Things are not the way they used to be. There are some things that will help you get started. If you are a freshman in college or are in grad school there are a variety of ways to pay for your college, student loan, scholarships, grants to mention a few. Not every budget is the same so different strategies must be considered.

The Hardest Way to Pay for School

A good number of people work their way through school. Some work more than one job during the summer, then use the money for school when school starts. A lot of full time students go to school part time, this could take some extra time and makes cost increase. Most who work do it only part time and go to school full time. Working your way through school is the most difficult way to pay for school but may be very rewarding; especially when your peers are paying back school loans and you are not.

The Easiest Way to Pay from School

Trying to find scholarships and grants is a good place to begin. This is probably the best way to pay for school. There many are scholarships around for those on the market. Most scholarships are based on achievement, which means you have to earn the scholarship. Some scholarships are based on who you are or where you will be going to school. Try to talk to someone at the school you are targeting to get a leg up. They can let you know about a scholarship you may not have known about.

The Costliest Way to Pay for School

Student loans are the most costly way to pay for school because of interest rates and late fees when you delay payment. You should try to reduce the amount you borrow by any way possible. Go to the cheapest school possible. Be sure to consider living expenses when you are checking the cost of a school. Cost cutting is usually not considered when we think of borrowing money, most try to getting as much as possible. Try to avoid this instinct and it will pay in the long run. Remember, the cost of living where the school you are looking into is located. A cheap school maybe located in a high cost area which would offset any savings you get in tuition.

Tags: Grants and Scholarships, School Loans
Posted in Scholarship and Grant, Student Loan | 1 Comment »