Student Loan Help

The date is rapidly approaching for many recent graduates to begin repaying their student loans. Now is the time to seriously look at the benefits of consolidation and to act soon. Graduates have six months from their graduation date (a period known as the “grace period”) to consolidate their federal student loans at a discounted rate. Graduates who consolidate during their grace period receive a 0.6 percent interest rate reduction, with some students consolidating at an interest rate as low as 6.625 percent. The lowest consolidation rate increases for graduates who miss this important deadline to 7.25 percent.

Once the grace period is expired the borrower will not be eligible for the grace period rate for federal loan consolidation. If you would like to find out when your grace period expires please call 877.329.1565 - or visit www.studentloanconsolidator.com.

www.staffordloan.com

www.parentplusloan.com

www.gradloans.com

Whether you are a recent grad, or graduating this year, it is important to know when your grace period begins and ends. Typically upon graduating your grace period starts right away and lasts for six months. During this time you do not have to start paying back your loans which makes it a good time to shop around and start thinking about cosolidating.

Consolidating during your grace rate is beneficial for a couple of reasons. First, if you consolidate during your grace period you can lock into a lower fixed rate as opposed to waiting until they go into repayment. The interest rates are fixed by the federal government so you are always guaranteed the going rates. For example, the 2006 grace rate is 6.54% and the repayment rate is 7.14%. That statistic alone should be reason enough on why it is a good idea to consolidate as soon as possible. Second, since you are not obligated to make payments on your loans until your grace period ends, you don’t have to worry about putting them on a temp. forbearance while consolidating. This gives you the freedom to take your time and find the right company for you. A company that I found very imformative was www.studentloanconsolidator.com This site is full of information and has an easy online application process. Also, just remember that the rates change every July 1st so if you wait to long you may miss out on getting a low fixed rate. Just last year the rate increased from 4.7% to 6.54% for those consolidating during their grace period. If you are looking for more information on Consolidation or federal loans in general check out some of the sites listed below.

www.staffordloan.com

www.parentplusloan.com

www.studentloannetwork.com

Parent Plus Loans are federal loans that are taken out by the parent on behalf of their son or daughter when the financial aid they are recieving just isn’t enough. Although your son or daughter may be 18 and considered an adult in your eyes, the Department of Education (DOE) considers them a dependent up until the age of 24, leaving you the parent responsible for picking up the leftover.

It isn’t as bad as it sounds”¦ Like your childs federal loans your interest rate is fixed (8.5% current) by the Federal Government so you don’t have to worry about getting a high interest rate if your credit is not so hot. Although it is credit based, it is a lot more lenient on the requirements than taking out a private loan. Another perk is that even if you are denied, your child will get awarded money. Really. All he or she has to do is take that denial letter to the schools financial aid office and they will possibly be awarded more money on their Stafford Loan. It is really a win/win situation. Below I have listed some useful websites where you can get more information and apply if you are interested. I have also listed a few points worth reading.

• 8.5% interest rate
• Loan Pd. over a ten year period
• Remains in the parents name for the life of the loan
• Parents can consolidate Loans at Federal Rates

www.parentplusloan.com

www.studentloannetwork.com

www.staffordloan.com

The Federal Pell Grant is only awarded to students who have not earned a bachelors or professional degree. Federal Pell Grants, which do not have to be repaid, are awarded to students based on need. The need is based on the FAFSA.

A Federal Pell Grant can be used for tuition, fees and educational expenses. A recipient of a Pell Grant may still apply for other Federal and Private Loans. It’s no secret that most of the federal loans only offer a minimal amounts. Nowadays, most students carry multiple federal and private student loans in order to best manage college expenses.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

A Financial Aid Award letters is what is sent to the student once a college or university decides on how much financial aid the student qualifies for. This award is presented to the student in the form of grants, scholarships, loans, and work study.

Many students use this award letter to make a decision on what school to attend for the next four years. It is best to take all the information and compare each award.

Here are some critical points when reviewing award letters.

-The award letter states the total cost of attendance at each school. Compare all costs such as tuition, room & board, transportation, and books. Decide on what is REALLY the total cost of education of each school.

-Is there an unmet need? Or is your need met 100%? If need has been met there is a good chance that the school may have filled in gap with a loan which is something that is not free and needs to be paid back.

-Is the award based on scholastic achievement or talent? Ask if the award is renewable year after year.

-What happens to the award if you receive outside scholarships?

If you have been accepted by several schools don’t rush in signing the first award letter you receive. When you do select a college and financial aid award letter, you need to notify the school’s Financial Aid Office and accept their offer.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans