Student Loan Help

Last semester the Department of Education created a new loan program exclusively for Graduate students called the GradPLUS loan. Now students have options when it comes to bridging the gap between their financial aid package and the cost of attendance. Before students could only turn to Private loans to finance their graduate studies but finally the Department of Ed recognized the need for different sources of financing.

This raises many questions for grad students because they are not certain what loan is the best loan for them. Basically, if you are looking for a fixed interest rate loan, that has opportunities to defer or forbear your loan payments and your credit is good, fair or poor then you should apply for the GradPLUS loan. However the catch with the GradPLUS is that you MUST fill out a FAFSA! There is no escaping this lengthy paperwork if you want to receive the GradPlus loan.

Now, if you do not want to file the FAFSA then Private loan is the loan for you. To recieve a Private loan all you need to worry about is filing a short application and submitting proof of enrollment with the application. Proof can be a class schedule or a tuition bill. Also what is really nice about the Private loan is that the money is sent directly to the borrower. Unlike that GradPLUS loan this loan does not need to get certified by the school’s financial aid office. The application is quick, simple and the borrower is in complete control on how they receive the money.

After reading this if you happen to think of any other differences between GradPLUS and Private loans feel free to comment!

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

Last week I was approached by an ex-colleague who is a recent graduate from Harvard Business School. He expressed dismay that he could not consolidate his 5 student loans. “As an international student, I took out private student loans. My friends are all consolidating their Stafford loans, but I can’t do that. Why not? “You can, I replied. He didn’t know that it was possible to consolidate private student loans. This isn’t uncommon. There is a tremendous amount of press and advertisements focused on federal loan consolidation, which groups one’s multiple Stafford, Plus and/or GradPlus loans into a single payment. The significant benefits are simplicity (one loan payment instead of many), a lower monthly loan payment, and often interest rate discounts for on-time and automatic payment.

The same benefits are available through private student loan consolidation. The market for private loans has grown incredible quickly and now accounts for approximately 20% of all funds borrowed for college. The market for private loan consolidation will undoubtably grow as more and more students - like my ex-colleague - realize the hassle of managing multiple payments each month and the benefits of private student loan consolidation.

To learn more, visit www.studentloanconsolidator.com/private

A favorite pastime of mine is playing trivial pursuit with my closest group of friends. I play only with my good friends because I’m a sore loser and hate having people watch me struggle the sciences and sports questions. Regardless of these difficult pie pieces it’s truly one of my favorite board games . Today, for my post I will ask a quick student loan trivia question.

Good luck!

What year did Congress pass legislation that would allow students to claim a student loan interest paid deduction on their federal income tax returns?

The year Congress passed legislation was 1997 however student loan interest became deductible beginning with tax year 1998.

*To retrieve a copy of your tax documents to deduct this educational expense please contact your educational banking institution. Currently, a lender does not have to send out the tax document if you paid less than $600 a year in interest. If you are unsure of who your lender is please give us a call at the Student Loan Network at 877-328-1565. If you have any questions about if or how much interest you can deduct, you should consult with a qualified tax professional or contact the IRS Taxpayer Assistance line at 1-800-829-1040.

Take advantage of this deduction! If you qualify, the student loan adjustment can result in considerable tax savings.

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