Kinds of Student Loans

Education loans: Education loans are of two types, Need Based Loans and non-need based loans. The main objective of need-based loans is to assist students meet portion of the total study costs evaluated to be the responsibility of family by the school and federal government. Non-need based loans can turn out to be quite useful when the family of student does not have cash in hand.

Federal Stafford Loan: The Federal Stafford loan can be availed by both the graduate and undergraduate students. The Federal Stafford loan is a no collateral government guaranteed simple interest loan. You can get an approval for this loan while you are studying. The repayment period starts six months after earning a degree.

Federal Parent PLUS loan: The Federal Parent Plus loan is a non-need based, no collateral government guaranteed loan. The main benefit of the Parent PLUS Loan is that parents get an approval for the complete college cost in a matter of three or four days. The loan package is based on a ten year repayment schedule with no provision of prepayment penalties.

Alternative loans: Alternative loans can play a prominent part in filling the gap between what you are getting in the form of financial aid and funds you require to finish your education. Lots of lenders provide student loans with low interest rates and no processing fee.

Application Procedure

The application procedure of getting Student Loan is quite straightforward in United States. Generally speaking, you do not need to submit too many documents in order to get an approval for the loan. Before submitting your application form to the lender, it is advisable that you see all the details once again. If there is any mistake in your application form, you are not going to get an approval for the student loan. Read the terms and conditions carefully because after signing the application form, you will not be able to modify it.

Student Loan Considerations

Before going for student loan, it is of paramount importance that you take into consideration your financial condition. There is no point going for a loan package which you cannot afford. Repayment schedule is also quite a big factor when availing student loan. You would not like to take a student loan where you need to pay huge monthly installments without any sort of grace period. With grace period facility, you will be able to manage your finances in a much better way.

2008 the year of financial meltdown

Never in the recent past has the world seen such a drastic failure in the financial system. Many big corporate houses have tumbled down.

What are the rippling effects of the Financial Catastrophe?

Currently the labor market in the US is seeing a heavy job loss accounting for about 419,000 jobs per month in the last quarter of 2008; it has increased from 82,000 jobs every month in first 9 months of the year. While measures have been taken by the government to curtail the cascading effects of financial disaster, irreparable losses are sure to happen. Another major area of concern had been the financial aid offered to students. The corrective measures mainly include increased loan limits for Stafford applicants and reduced interest rates on subsidized loans.

A glance at the Student Loan interest rate for the year 2008 – 2009

• The federal student loan rates are reviewed on the 1st of July every year. The rates for the year 2008 are as follows.

• Interest rates on Stafford and PLUS loans disbursed are calculated using various statutory formulas, percentage add-ons or both.
• Normally interest rates on consolidation loans are fixed in nature and are calculated based on the weighted average of the loans being consolidated rounded to the next higher 1/8 percent with a cap of 8.25%.

The rates and details are sure to help you in comparing the various loan options. With the given readymade information now you proceed hunting for the best of loan deals at the most viable prices which are manageable and affordable. ]]> http://www.studentloaninfo.org/blog/student-loan-interest-rate-2008/feed 5 http://www.studentloaninfo.org/blog/how-to-get-a-student-loan-without-a-cosigner http://www.studentloaninfo.org/blog/how-to-get-a-student-loan-without-a-cosigner#comments Wed, 24 Sep 2008 04:04:56 +0000 Sally Croft http://www.studentloaninfo.org/blog/?p=67 ... ]]>

Which loans do not need a cosigner?

Loans such as Federal Stafford loans are not based on your credit history. Hence applying for these loans will not require a cosigner for sanctioning your loan.

What kinds of loans are available that will not require a co-signer for funding your education?

Applying for the following options you will end up getting a loan to fund your education without the need to have a cosigner.

• Perform research on Federal Student Loans. Loans such as Stafford and Perkins do not require credit check. Hence the need to have a cosigner for loan application does not arise.
• Make a Free Application for Federal Students Aid (FAFSA). This is an important channel through which government loans are granted to students. These loans are not granted based on the credit score of the individual. Further a FAFSA paves way to qualify for a scholarship grant.
• Applying for Subsidized Stafford Loan will be an ideal option, when you come from a low income category, no credit history and no cosigner to help. You are sure to get this loan. The loan amount though not fairly big enough to cover your educational expenses, it is surely a right start.
• Perkins Loan is specifically meant for those students to who are in a dire need for money to fund their education and who are left with no other option but for Government Funding. Perkins Federal Loans are granted at a interest rate as low as 5% and it also offers longer payback term for the convenience of students, keeping in mind their inability to repay the amount immediately.
• Non-traditional students have more than one option to explore and avail a loan without a credit check. Apart from qualifying for a Stafford and Perkins Loans, they become eligible for scholarships and grants to pursue their further studies. Respective colleges are a good source of information on such scholarships and grants.