Sallie Mae Student Loan

Author: Sally Croft

Financial aid for college students is offered in the form of scholarships, grants and student loans. Keeping in mind the growing cost of education federal government has initiated several loan schemes with an intention to help students fund their college education. While some of the federal student loans are directly offered by the US Department of Education, the others are offered through private lenders, with a guarantee from the government.

Essentials of Sallie Mae Student Loan

Several private lenders offer student loan services and Sallie Mae offers both federal and private student loan options to students. Consolidation loan services are also offered to both federal and private student loans. Sallie Mae Loans are offered to students and their parents after explaining to them in detail the procedures related to loan application and offering advice regarding the choice of loans.

The Sallie Mae Student Loans are offered to graduate and undergraduate students and their parents. In addition to the loan, Sallie Mae counselors offer to explain the advantages and advice you on the kind of loan you should be availing.

When it comes to offering Federal Guaranteed Student Loans, no credit checks are conducted, as they are normally need based loans. Federal consolidation loans are offered to student with no minimum amount requirement. No processing fee or application fee is charged for federal loans. No premium fee is charged irrespective of the credit score of the borrower. Interest rates are reduced on consecutive loan repayments.

Private student loans offered by Sallie Mae come with no restriction on application deadlines and prepayment penalties. The loan amount offered is around $275,000 without a cosigner and $400,000 with a cosigner. In order to qualify for private student loan consolidations, the borrower should have a minimum of $5,000 loan. The repayment of these loans are allowed upto a maximum of 30 years. No application, processing or repayment fee is charged on Sallie Mae Private Student Loans.

Tags: Consolidation, Private Student Loan, Sallie Mae, student loan
Posted in Financial Advice, Sallie Mae Loans, Student Loan | 1 Comment »

Dec

What Different Types of Student Loan are Available?

Author: Sally Croft

The pursuit of higher education is not cheap. Many students must seek help in the form of student loans after exhausting all avenues for gift aid to help finance their tuition and fees. Student loans come in many forms and are offered by both public and private lending institutions. Of course, most students will gravitate towards state funded student loans as they offer more flexible repayment conditions and also qualifies graduates to get debt forgiveness under several volunteer schemes.

Public Loan Programs

Stafford Loans: Stafford loans are the most popular type of public student loans offered to students. These loans come in both subsidized and unsubsidized formats. This means you can access Stafford student loans even if you do not have financial need for assistance in paying your tuition fees. The amount of the loan depends on your field of study as well as the number of years required to complete your studies. Students who opt for Stafford loans are guaranteed one low interest rate for the entire life span of their loan and have up to six months after their graduation as a grace period before they start repayment. One major plus with Stafford student loans is that they are not tied to credit approvals.
Perkins Loans: Perkins student loans target only student with extraordinary financial need. Not all students will qualify for Perkins loans as they have to prove their need before approval is granted. These loans are offered for education at both the graduate and undergraduate level. Although Perkins loans have lower annual and lifetime borrowing limits, they have significantly more flexible borrowing terms, lower interest rates and are free of origination fees. Interestingly, the government pays interest rates on these Perkins loans while the student is still enrolled in school.
PLUS Loans: Plus loans are a supplement to the regular student loans. Both students and parents can access PLUS loans to fund whatever costs are not covered by the regular student loans. This allows them to have funding to pay all their higher education fees with minimal funds coming from their pockets. The catch to PLUS loans is that repayment begins a mere 60 days after disbursement and attract an interest rate ranging from 7.9 to 8.5 %. Qualification also requires a good credit record and the repayment options are quite limited.

Private Loan Programs

Generally, students are advised to access private student loans only if they have exhausted the federal student loan system. The fees charged by some private student loan providers are much higher than under the federal system. Some may advertise a zero fee service but ultimately roll these fees into the overall interest rate associated with the loan. Students who opt for private student loan funding are attracted by the ability to consolidate and reschedule their loans. Although they may achieve less monthly payments in the short run, they ultimately pay more interest rates on the same principal over the extended period of the loan service.

Tags: Perkins Student Loans, PLUS Loans, Private Student Loan, Stafford Loans, student loan, Student Loan Types
Posted in Private Student Loan, Student Loan | 3 Comments »

Oct

Top Student Loan Consolidation Services from Chase

Author: Sally Croft

Chase is one of the prominent financial institutions in the US that provides student loans and student loan consolidation. Chase employs experts who are able to assist scores of students every year in pursuing higher education. It offers a secure, easy and quick application process. Chase student loans enable students to understand the various options with respect to student loans.

Types of Chase Student Loans

Federal consolidation loans
Private consolidation loans
Federal Stafford loans
Federal Grad PLUS loans
Private student loans

Federal student loans are offered by the government and can be funded by private lenders like Chase. Private lenders offer similar student loans that have lower interest rates with extended repayment periods. The private student loans offered by Chase can be used for approved education-related expenditures. They are offered in varied forms and can be opted for when the money offered by federal loans is not enough to take care of the full fees for higher education and when they need to be consolidated during repayment.

Student Loan Consolidation from Chase

Student loan consolidation from Chase is offered to combine all existing private loans into a single loan with a low interest rate. It is easy to repay the loan as a single payment every month. Chase takes care of servicing these private student loans and does not sell them to another financial institute or lender. These loans require credit approval along with a completed and signed Application/Promissory Note and verification of application information.

Consolidating Federal student loans do not require for any kind of credit check. However, it does require a minimum balance of $7,500 with a cumulative borrowing limit for private student loans of $150,000, based on credit eligibility. With the help of student loan consolidation from Chase, the repayment period can be extended so that the overall financial obligation can be increased. With this, the monthly loan payments can be reduced and the principal can be prepaid with no penalties. Being able to prepay means the overall cost of the loan reduces drastically.

Keep in Mind

Federal Student Loans can be consolidated, but federal and private student loans should not be consolidated into a single student loan consolidation program. If you consolidate them together, you lose the benefits of forbearance and deferment with the federal loans.
Similar to other debt consolidation loans, student loan consolidation payments should be done by a single lender who will pay the earlier creditors for all initial loans.
For Federal Student Loans Consolidation, the minimum balance is $7,500 and it must be done within the six month grace period or when the loans are in repayment.
Based on the balance of the loan, student loan consolidation will have an extended repayment period.
The repayment plan should enable balance of monthly payments and result in a good credit rating.
Student loan consolidation has a maximum interest rate of 8.25%.
There are no additional charges involved in processing the student loan consolidation.
After the consolidation is approved, it cannot be undone as the loan amount will have already been paid to the previous creditors.