Student Loan Help

Anytime the federal government and money are involved it is bound to be confusing and frustrating. The federal government is always changingthe rules and regulations for federal aid creating new loopholes and issues for the student loan industry.

For example, a recent change in legislation does not allow students to consolidate while they are enrolled at least half time in school. To consolidate a student has to be out of school or carrying an academic workload of less than part time.

I personally think this rule is ridiculous. I get many requests from borrowers wanting to consolidate their loans because they need to improve their credit score to receive a better rate on a home mortgage or a car loan. Its true-consolidating improves your credit! Every year you attend school and borrow a student loan you create an open line of credit on your credit report. Consolidating your loans into one open balance really gives a boost to your credit score. When a computer calculates your credit score, it will see this: eight loans paid in full. You will look like a responsible and trustworthy borrower. Why does the federal government care that a student wants to make this smart financial step?

You can write to me about it. Not much I can do except agree with you. I suggest you write to Congress to complain about this ridiculous rule.

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

I just got off the phone with a Dad who is very upset with his daughter’s last minute decision to change school’s next semester. Currently, his daughter is attending a local state college but would like to go out of state to a more expensive private university. Her reason is because she believes the private school will provide her with a higher quality of education which will offer job opportunities lucrative enough to offset the cost. Dad was unhappy with her decision because at the state school she had received a generous financial aid package where at the private university the financial aid package was not nearly as attractive. His question to me was if cost is an indicator of the quality of education.

In my profession I always have a definitive answer but for this question I felt there is no simple solution. My advice to Dad was that his daughter needs to go to the school that she thinks is the best college for her. It needs to be a balance of receiving a great education and the opportunity to be really happy. Attending a school just because it is affordable makes no sense if you are going to be miserable. College should be fun. On the other hand, it makes no sense to pay a ton of money to go to some swanky private school if you can go to a school that’s cheaper and just as good.

Over the last few weeks, I have noticed an increase in the amount of callers who have been concerned with wether or not to consolidate due to changes in Congress. There seems to be some concern on whether the interest rates will drop this upcoming July. My answer is this”¦If you were lucky enough to fill out an application before the July 1st rate increase then I would say definitely consolidate. Last years rates are 4.7% if you are in your grace period and 5.3% in repayment. If the rates do drop I don’t anticipate them dropping that much.

If you are a recent applicant the interest rates are 6.54 in grace and 7.14 in repayment. By not consolidating your rate is variable and will change this upcoming July. It may seem silly to consolidate if rates are going to drop, but, I would way your options and see which makes the most sense. You should remember that if you don’t consolidate you are paying that variable rate on all your loans which may make the payments tough to manage. Overall it is your call but I would do a little research before making this decision. You can read more about this on www.studentloanconsolidator.com

In conclusion, it is always best to way all your options and make an educated decision. If you would rather talk to a person you can always call the helpful reps. at www.studentloannetwork.com

More links for your review

www.staffordloan.com

www.ActEducationLoans.com

When thinking about going back to school to pursue a graduate degree it is very important to review your financial situation closely and decide where you would like to be after you have obtained that degree and if this degree is necessary to get you to that place.

Here are some questions to ask yourself when deciding how much financial burden can you take on during your graduate career?

• How much can you afford to take out in loans during graduate school?
• How much will you have to pay back in loans after you obtain your graduate degree?
• How much will you REALLY be paying when you factor in loan interest rates?

Only you can decide if graduate school is worth the time and lifestyle changes. Remember that a higher education does not come cheap however the expense is often worth it.

For information on how to finance your graduate degree please go to www.gradloans.com.
The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

December is the time to work through your final exams and term papers, relax at home with your family, and enjoy the holidays. But it’s also the time to plan ahead for your Winter Term/Second Semester and to make sure you’ve got the funds to get you through the rest of the academic year. Private (or alternative) loans are a great option for helping you to fill the gap between what you’ve already received in terms of scholarships and federal loans and what you’ll need to get you through the remainder of the year.

Private loans are credit-based , relying on the credit rating/score of the student (or co-borrower, if applicable). You’re chances of being approved for the loan increase significantly if you use a co-signer - a parent, relative, or other with good credit.

Apply now and you’ll be sure to have the funds in your hands before second semester starts - funds are often sent within 5-10 days! To learn more and apply, visit:

www.alternativestudentloan.com - for undergraduates

www.gradloans.com/private - for grad students

In the meantime, enjoy your December!

Want to study abroad but your not sure what type of loan to apply for or what federal aid you can recieve? Before you decide to cancel your dreams of studying abroad in Austrailia or Dublin let me suggest a couple of loan programs that may change your mind.

If you are an undergraduate student you must pick a school that is TERI-approved (which most are) and be attending half time or more. Then you want to apply for The Study Abroad Loan provided by The International Student Loan Center. You can find out more information at www.internationalstudentloan.com. You may also apply directly from this site.

I know that when you hear Privat Loan you automatically think high interest rates and credit checks. Though it is based on your credit, the interest rates are competitive and there are no application fees. If you think that your credit is not so hot, you can always have a friend, parent or relative co-sign a loan for you. This is sometimes the better option in getting a lower rate. Another perk is that the application process takes about 15 minutes and funds are sent directly to you in as little as five business days. There are no prepayment penalties and they offer many different repayment plans. Also, there is not a lot of paper work and there is no filling out a FAFSA.

As far as what federal aid can transfer over, it is different for every school. Since you are attending the same school but studying abroad you may want to askt the schools financial aid office if they will wire the money over to the school you will be studying abroad at.

www.staffordloan.com

www.studentloannetwork.com