Posts Tagged ‘student loan’

Aug

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
Posted in Private Student Loan, Student Loan | No Comments »

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
Posted in FAFSA, Student Loan | No Comments »

Jul

5 Best Reasons why you should monitor your Student Loan Debt

Author: Sally Croft

As an increasing number of college graduates are facing financial hardships, the government has created a variety of programs to help you manage your student loan debt- ranging from ways to lower your interest rate on federally insured money to federally mandated debt reduction and forgiveness programs. While you may not qualify for all of these programs there maybe something for you. However, you do need to keep track of your loan balance so that you will know which programs fit your unique situation; you qualify for and can participate in. In order to be a responsible borrower and to make your life much easier, you will need to monitor your student loan debt.

1. Update your budget:

Monitoring your Student loan debt and being aware of your total debt level helps you to update your budget based on your post-school life and current life. Doing this helps you to make responsible financial decisions. Take into account the following to know where you were, where you are and where you need to be:

Your salary
New expenses
Old expenses
Transportation
Student loan payments
Savings

2. Know your loan balance:

Keeping track of your student loan balance and making regular payments are the best way to ensure that you do not allow your debt to get unmanageable. Both while you are in school and after graduation. By being aware of your balance you are less likely to spend frivolously when you see your total balance increasing.

3. Lower interest rate:

If you become passive about your student loan, you will potentially pay more over the life of the loans than is necessary. Keeping track allows you to take advantage of shifts in interest rates and other available assistance programs. Being involved increases the chances that you will not miss chances to lower your interest rates.

4. Refinancing:

Student loan may be refinanced to take advantage of shifts in interest rates. Knowing your principal balance is the only way you will be able to accurately gauge which shifts are great opportunities to take advantage off and which are not. Guaranteed loans from the Government for example, tend to carry lower rates and offer fewer refinancing options. Private loans, on the other hand carry higher rates. It is important that you refinance your student loans when the time is appropriate because your saving can be significant.

5. Loan Consolidation:

If you have more than one student loan and is having trouble making your monthly payments, you should consider student loan consolidation. Take the advantage of consolidating your loans when the opportunity is available and also avail yourself to other money saving opportunities.

These are just a few reasons to monitor your student loan balance. Please share with us other reasons why a student should monitor their student loan debt.

Tags: student loan, Student Loan Debt
Posted in School Loan Debt, Student Loan | 1 Comment »