Recent Comments

Posts Tagged ‘Stafford Loans’

« Older Entries
Feb
9

How to get No Credit Student Loan

Author: Sally Croft

A no credit student loan is one in which credit checks are not a requirement for the granting of the student loan. No credit student loans facilitate the millions of students who would not have any established credit rating either because they have never owned a credit card or are sponsored by other individuals. This mechanism also facilitates working professionals with bad credit who have realized that improving their academic status can increases their chances of improving their credit ration though increased salaries after graduation. However, all recipients of these no credit loans must provide a co-signee to attain approval.

Most no credit loans are derived from government sponsored programs. None of these loans standing alone will cover the entire cost of your education, but with deep research, they can be combined to offset a significant portion of your educational cost. These no credit student loans come in the form of subsidized and unsubsidized Stafford loans, federal Perkins loans, Pell Grants and other local state funded loans.

Stafford Loans

Any student financial aid advisor will tell you that the first student loan to apply for is the Stafford no credit loan. This loan is divided into two categories based on the financial condition of the applicant. Subsidized Stafford loans are reserved for those students with severe financial restrictions.

Under the subsidized Stafford loan, the applicant must provide concrete proof of their financial difficulties. Upon approval, the government foots all interest payments on the student’s behalf until they have graduated and exceeded their six-month repayment grace period.

The unsubsidized Stafford loan is open to all students regardless of their financial condition. This loan is also a no credit loan but students are required to make all interest payments on their own.

Both subsidized and unsubsidized Stafford loans attract a fixed interest rate of 5% throughout the lifetime of the loan.

Perkins Loans

Perkins loans are designed to provide supplemental support to students after they have exhausted their Stafford student loans. These loans usually range from $1000 to $4000 per annum where the commencement of repayment extended up to a nine-month period following graduation. These loans are distributed through the financial aid office of each university and are distributed on a first come first serve basis. As a result, students must apply early to benefit from this no credit student loan program.

Local State Funding

Many states provide no credit student loans as a part of their social development programs to develop homegrown talent. These loans are sometimes in conjunction with leading industries and target universities that perform research that can benefit them in the end. Qualification is generally based on academic achievements thus ignoring your financial status or credit rating .

Federal Pell Grant

The Federal Pell Grant specifically targets low-income students. To facilitate these individuals, they have deliberately removed credit checks from the list of criteria of qualification. However, to qualify for Federal Pell Grant no credit loans, applicants must prove their status as a low-income earner.

Tags: , , , , ,
Posted in College Financial Aid, Student Loan | No Comments »

Jan
11

Applying For Student Loan In 2010 – What You Should Remember?

Author: Sally Croft

A student or education loan is a form of financial aid that must be repaid with interest as opposed to scholarships which do not need to be repaid. If you are unable to get a financial aid, scholarship or money from family members, the next resort is applying for a student loan. Although student loans can be a reasonable way to finance an education if not carefully planned student loans can be a disaster. Obtaining student loans are sometimes easy however maintaining them are a different story. Below are some of the things you should remember when applying for your 2010 student loan.

Plan Ahead:

Planning is the key to not being overburdened by student loans. By researching for the best interest rates, maximizing your Perkins loan availability and cutting expenses you should be able to manage the major expense of student loans.

Research:

Never apply for any loan without proper research. When you’re trying to figure out which student loan are right for you, there’s a lot of information to digest. Understanding the details may help you make an informed financial decision.

Shop Around:

Simply because the college or university gives you the loan application does not mean that the loan is the best deal in town. Make sure you have fully examine other options for aid. The school may give you an application for loans with interest rates between 8 and 10 percent. However, if you research lenders you may find loans that have interest rates as low as 6 percent.

Timely Submission:

Provide all requested documentation in a timely manner. Fill in all applicable areas of the application and sign and date where indicated. Missing information and or signatures can delay processing of your loan.

Keep All Open Credit Current:

Pay all current credit cards on time during your application process. This includes any mortgage, rent, car payments, student credit cards and utilities. Do not miss a payment of send in your payment pass the due date. This is critical to a successful closing of your student loan.

Do Not Make Any Major Credit Purchases:

Do not make any major purchases during the loan process. Increasing your debt can change your credit score and possible cancel, suspend or change your loan of terms among others.

Limit Credit Inquiries:

Do not incur any non-essential inquires to your credit report until after the loan process has completed.

Accrue Interest Loans:

Never take our private loans or cash advances from credit cards, lines of credit, or equity loans to pay for tuition. Private loans, such as personal loans, begin to accrue interest the moment you or your school cashes the check, whereas subsidized Stafford loans do not accrue interest until 6 months after you graduate.

Collateral Student Loans:

Many people take out equity loans on their homes, cars and other property to finance their education. However, equity loan is a secured loan and if for any reason you cannot meet the payments you risk losing your home or the property that you used as collateral to receive the loan.

Only Borrow What You Need:

Many people make the mistake of borrowing more than they need. But keep in mind that you will have to pay this money back and the more you borrow the more interest you will have to pay back, so only borrow what you need.

Tags: , , , ,
Posted in Private Student Loan, Scholarship, Student Loan | 4 Comments »

Dec
17

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: , , , , ,
Posted in Private Student Loan, Student Loan | 4 Comments »

« Older Entries