Posted by
. :~ ShAh G . :~
at
4:31 AM
. :~ ALIVE FUN ARTICALS ~: .
At this time of year, parents and students alike are usually finalizing their budgets and financial plans for the upcoming school year. As parents and students review financial aid award packages, they may be finding that even after taking into account grants, scholarships, work-study, and state and federal student loans, there are still some educational expenses left to cover. For those remaining educational expenses, a private student loan might be the answer, according to NextStudent, a leading Phoenix-based education company.
Offering Financial Solutions for Many Types of Students
NextStudent Private Loans are credit-based student loans that can be used for tuition, school fees and other education-related expenses. When other forms of aid just aren’t stretching far enough, NextStudent Private Loans can be the solution for undergraduate college students, graduate students, international students, continuing education students and parents of private elementary or secondary students (grades K–12). In addition to covering traditional schooling costs, NextStudent Private Loans can be used to help finance distance learning and study abroad programs.
The Advantages of a NextStudent Private Student Loan
NextStudent Private Student Loans feature several borrower benefits:
1. Generous borrowing limits
2. No application deadlines
3. No prepayment penalties
4. Deferred principal and interest payments on most student loans
5. Interest that may be tax-deductible (borrowers should consult a tax advisor)
6. Funds that go directly to the borrower, not to the school
7. The option to apply with a co-signer
8. Flexible repayment options for undergraduates
No-Hassle Qualification
Qualifying for a NextStudent Private Student Loan is straightforward. First and foremost, students must be enrolled at a participating school. Undergraduates, graduates, international students and distance learning students must be enrolled at least half time. Continuing education students may be enrolled less than half time in a degree program or enrolled in a certificate or technical training program.
To qualify, borrowers:
1. Must have a satisfactory employment history of at least two years (if self-employed, must have been in business for at least two years)
2. Must have proof of current income
3. Must have at least 21 months credit experience and a satisfactory credit history
4. Must be a U.S. citizen or permanent resident and have resided in the United States for the previous two years
5. Must have resided at their most current and immediately preceding addresses for a total of at least one year
International students must apply with a co-applicant who meets the U.S. citizenship or residency requirement, as well as the credit, income and employment conditions.
With no application deadlines, private student loans are available to higher education students and parents of K–12 students all year-round. So whether a financial aid package needs some supplementing now, as the fall semester approaches, or halfway through the school year, as unexpected educational expenses arise, a NextStudent Private Loan could be the answer parents and students are looking for.
NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at www.nextstudent.com.
The lender for the NextStudent Loan Program is Citizens Bank, N.A., Member FDIC and Equal Opportunity Lender.
============================ The End =========================
Posted by
. :~ ShAh G . :~
at
4:20 AM
. :~ ALIVE FUN ARTICALS ~: .
With the school year about to begin, parents reviewing their college-aged children’s financial aid award letters may find they’re having trouble meeting their expected family contribution. For situations like these, when parents need some help meeting their undergraduate’s educational expenses, a PLUS loan could provide the financing they need, says NextStudent, a leading Phoenix-based education funding company.
What Is a PLUS Loan?
A PLUS loan (Parent Loan for Undergraduate Students) is a federal education loan that can help creditworthy parents meet their undergraduate child’s educational expenses. PLUS loans are non–need-based, so as long as parents and children meet the eligibility requirements, parents can qualify for PLUS assistance, regardless of their income or assets.
Either parent may apply for a PLUS loan from NextStudent, and upon approval, parents may borrow up to the annual PLUS limit, which is the cost of attendance less any other financial aid (such as scholarships, grants, Stafford student loans, work-study) their child has received. Besides tuition and room and board, the cost of attendance also includes a reasonable allowance for other education-related expenses, such as student fees, books and educational supplies.
What Are the Advantages of a PLUS Loan From NextStudent?
PLUS loans from NextStudent feature several benefits for parents of undergraduates:
1. No prepayment penalties: Borrowers may pay off a PLUS loan early without being assessed any additional charges.
2. Fixed interest rate: PLUS loans taken out after July 1, 2006, have a fixed interest rate of 8.5%.
3. Non–need-based: Eligible parents can qualify regardless of income.
4. Forbearance and deferment benefits: Borrowers experiencing financial difficulties may temporarily postpone making payments without affecting their credit rating.
5. Consolidation benefits: A parent may consolidate his or her PLUS loan(s) and take advantage of all the features of federal student loan consolidation.
6. Co-signers allowed: A parent who doesn’t meet the credit requirements for a PLUS loan may apply with an eligible co-signer.
7. Mid-year application: Parents may still apply for a PLUS loan in the middle of the school year. Families should contact a student’s financial aid office for the exact final deadline.
Who Is Eligible for a PLUS Loan From NextStudent?
To be eligible for a PLUS loan from NextStudent, a borrower must be a U.S. citizen or permanent resident and be deemed “creditworthy.” To qualify as creditworthy, borrowers may not be in default on any federal student loan and may not have derogatory items such as bankruptcies, foreclosures, tax liens or collections within the last five years on their credit report. If the parent applicant doesn’t meet the credit eligibility requirements for a Federal PLUS Loan from NextStudent, he or she may apply with a co-signer who does meet those requirements.
A PLUS borrower must be a parent or legal guardian of an eligible undergraduate student. To be considered an eligible student, a child:
1. Must be enrolled as an undergraduate at least half time and must maintain satisfactory academic progress, as set by the school
2. Must be under 24
3. Must be single with no dependents
4. May not be a ward of the court, a military veteran, or in the military
5. Must be a U.S. citizen or permanent resident
6. May not be in default on any federal student loans
PLUS loans from NextStudent not only provide eligible parents a way to help pay for their children’s education with a federally guaranteed low-interest student loan, but they give families another option for college financing that serves as an alternative to dipping into the family savings or borrowing against a home.
For parents with undergraduate children who don’t qualify for need-based financial aid or who receive a financial aid award that doesn’t cover their entire cost of attendance, or for parents who just need a little help meeting their expected family contribution to their children’s college financing, a Federal PLUS Loan from NextStudent could provide the help they’re looking for.
NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
============================ The End =========================
Posted by
. :~ ShAh G . :~
at
4:18 AM
. :~ ALIVE FUN ARTICALS ~: .
As the fall semester gets underway, graduate students may be struggling with meeting their tuition bills, program fees and other education-related expenses. Even after grants and Stafford loans, some graduate and professional students may still be left with educational expenses to cover. For those students who need some help meeting the costs of their graduate or professional degree program, Federal Grad PLUS Loans from NextStudent, a leading Phoenix-based education funding company, could provide the financing they need.
What Is a Grad PLUS Loan?
Originally designed for parents of undergraduate students, the Federal PLUS Loan Program was expanded last year to be available to graduate and professional degree students as well. A Grad PLUS loan is a non–need-based federal education student loan that can help creditworthy students enrolled in a graduate or professional program meet their educational expenses. And because Grad PLUS loans are available throughout the academic year, graduate students can apply even mid-semester.
Eligible graduate students can qualify for PLUS assistance even if they’ve received other types of financial aid. Upon approval, graduate and professional students may borrow up to the annual PLUS limit, which is equal to their cost of attendance less any other financial aid (such as grants and Stafford loans) received. Besides tuition, the cost of attendance also includes education-related expenses such as program fees and educational materials, and a reasonable allowance for transportation and living expenses.
What Are the Advantages of a Grad PLUS Loan?
Grad PLUS loans feature several benefits for those students pursuing a master’s, doctorate or professional degree:
1. No prepayment penalties: Borrowers may pay off a Grad PLUS loan early without being assessed any additional charges.
2. Fixed interest rate: Grad PLUS loans have a fixed interest rate of 8.5%.
3. In-school deferment: Students with Grad PLUS loans may choose to defer making payments until they’ve finished school or dropped below half-time enrollment.
4. Forbearance and hardship deferment benefits: If they’re having trouble making their monthly payments, Grad PLUS borrowers may request to temporarily postpone making payments without affecting their credit rating.
5. Consolidation benefits: Once they’ve left school or dropped below half-time status, graduate students may consolidate their Grad PLUS loan(s), either alone or along with any Stafford or other eligible federal education loans, and take advantage of all the features of federal student loan consolidation.
6. Co-signers allowed: Graduate students who don’t meet the credit requirements for a Grad PLUS loan may apply with an eligible co-signer.
7. Mid-year application: Graduate students may apply for a Grad PLUS loan throughout the academic year. Students should contact their financial aid office for the exact final deadline.
Who Is Eligible for a Grad PLUS Loan From NextStudent?
To be eligible for a Grad PLUS loan from NextStudent, students must be enrolled at least half-time in a program leading to a graduate or professional degree and must maintain satisfactory academic progress, as determined by their school. They need to file a FAFSA (Free Application for Federal Student Aid), and they need to apply for their maximum eligibility in Federal Stafford Loans before applying for PLUS aid from NextStudent.
A Grad PLUS applicant must also be a U.S. citizen or permanent resident and qualify as “creditworthy.” To be approved as creditworthy, borrowers may not be in default on any federal student loan and may not have derogatory items such as collections, tax liens, bankruptcies or foreclosures within the last five years on their credit report. If graduate students applying for PLUS aid don’t meet the credit eligibility requirements for a Federal Grad PLUS Loan from NextStudent, they may apply with a co-signer who does meet this requirement.
Whether it’s for a master’s degree or Ph.D, law school or medical school, fixed-rate Grad PLUS loans from NextStudent provide eligible graduate and professional degree students with a federally guaranteed, low-interest student loan option that can help them meet their educational expenses. And with mid-year application and in-school deferment benefits, Federal Grad PLUS Loans from NextStudent afford graduate and professional students the flexibility they need to fully finance their education while going to school.
NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
============================ The End =========================
Posted by
. :~ ShAh G . :~
at
4:15 AM
. :~ ALIVE FUN ARTICALS ~: .
Whether they still have time before their school’s fall financial aid deadline or they’re looking ahead to their tuition bills for the spring semester coming up, undergraduates searching for ways to meet their college expenses themselves could find some of the financing help they need with Federal Stafford Loans from NextStudent, a leading Phoenix-based education funding company.
What Is a Stafford Loan?
Stafford loans are low-interest, federally guaranteed student loans available to both undergraduate and graduate students for tuition and other school-related expenses. Stafford loans can be either need-based or non–need-based.
Federal Stafford Loans are typically repaid over 10 years (although borrowers can extend their repayment term by consolidating their Stafford loans). Stafford borrowers can choose from different repayment plans—extended, graduated, income-sensitive—that can help make monthly payments more affordable once repayment begins.
What’s the Difference Between a Subsidized and an Unsubsidized Stafford Loan?
Subsidized Stafford loans are awarded on the basis of financial need. With a subsidized student loan, any interest that accrues while the borrower is in school, in deferment, or in a grace period, is paid by the government.
Unsubsidized Stafford loans are non–need-based, so eligible students can qualify for unsubsidized Stafford aid regardless of their own income or their parents’ income. With an unsubsidized student loan, even though the borrower may not be making payments (while (s)he is in school, in deferment, or in a grace period), interest is accruing, and the borrower will be responsible for paying that interest once repayment begins.
What Are the Advantages of an Undergraduate Stafford Loan?
Federal Stafford Loans feature several benefits for undergraduate borrowers:
* No prepayment penalties: Borrowers may pay off a Stafford loan early without being assessed any additional charges.
* Fixed interest rate: Stafford loans taken out after July 1, 2006, have a fixed interest rate of 6.8%.
* No payments while in school: Students holding Federal Stafford Loans may choose to defer making payments until they’ve finished school or dropped below half-time enrollment.
* Forbearance and hardship deferment benefits: If they’re having trouble making their monthly payments, Stafford borrowers may request to temporarily postpone making payments without affecting their credit rating.
* Grace period before repayment: Stafford borrowers who are graduating or dropping below half-time enrollment have a six-month grace period before they need to begin making payments.
* Consolidation benefits: Once they’ve left school or dropped below half-time status, college students may consolidate their Stafford loan(s) and take advantage of all the features of a federal student loan consolidation, which include longer terms that give borrowers more time to repay.
Who Is Eligible for an Undergraduate Stafford Loan From NextStudent?
To qualify for a Federal Stafford Loan from NextStudent, undergraduates:
* Must hold a high school diploma or GED
* Must file a FAFSA (Free Application for Federal Student Aid)
* Must be enrolled or accepted as at least a half-time student in an eligible undergraduate program
* Must maintain satisfactory academic progress, as determined by the school
* Must be a U.S. citizen or permanent resident
* May not be in default on any federal loan
* Must be registered with the Selective Service if male and between the ages of 18 and 25
How Much Money Is Available From Undergraduate Stafford Loans?
Eligible undergraduates qualify for different Stafford loan amounts, depending on their year in school and whether they’re classified as dependent or independent undergraduate students.
A dependent undergraduate student is:
* Under 24
* Single, with no dependents
* Not a ward of the court, a military veteran, or in the military
Dependent undergraduates taking out a Federal Stafford Loan can borrow up to $3,500 their first year of school, up to $4,500 their second year, and up to $5,500 each year after that, up to a maximum of $23,000 in cumulative Stafford loan debt over their college career.
Independent undergraduates taking out a Federal Stafford Loan can borrow up to $7,500 their first year, up to $8,500 their second year, and up to $10,500 each year after that, up to a maximum of $46,000 in total Stafford loan debt.
When undergraduate students have outstanding tuition bills and education-related expenses to meet, NextStudent could help with a Federal Stafford Loan. Given to undergraduates in their own name and awarded both with and without consideration of financial need, Stafford loans from NextStudent offer eligible undergraduates a self-help financing option that’s available to them regardless of how much money they or their parents make. And with in-school deferment benefits, Stafford loans allow undergraduates to pay their college expenses without worrying about repayment while they’re in school.
NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
============================ The End =========================
Posted by
. :~ ShAh G . :~
at
4:13 AM
. :~ ALIVE FUN ARTICALS ~: .
Graduate and professional degree students looking for ways to finance their graduate studies could get some of the financial aid they need with Federal Stafford Loans from NextStudent, a leading Phoenix-based education funding company.
What Is a Stafford Loan?
Stafford loans are low-interest, federally guaranteed student loans available to both graduate and undergraduate students for tuition, program fees and other education-related expenses. Stafford loans can be either need-based or non–need-based.
The standard repayment period for a Federal Stafford Loan is 10 years (although borrowers can extend their repayment term by consolidating their Stafford loans). Stafford borrowers can choose from different repayment plans—extended, graduated, income-sensitive—that can help make monthly payments more affordable once repayment begins.
What’s the Difference Between a Subsidized and an Unsubsidized Stafford Loan?
Subsidized Stafford loans are awarded on the basis of financial need. With a subsidized loan, any interest that accrues while the borrower is in school, in deferment, or in a grace period, is paid by the government.
Unsubsidized Stafford loans are non–need-based, so eligible graduate students can qualify for unsubsidized Stafford aid regardless of their income or assets. With an unsubsidized Stafford loan, even when a borrower isn’t making payments (while (s)he is in school, in deferment, or in a grace period), interest is accruing, and the borrower will be responsible for paying that interest once repayment begins.
What Are the Advantages of a Graduate Stafford Loan?
Federal Stafford Loans feature several benefits for graduate student borrowers:
* No credit checks: Borrowers only need to meet the eligibility requirements
* No prepayment penalties: Borrowers may pay off a Stafford loan early without being assessed any additional charges.
* Fixed interest rate: Stafford loans taken out after July 1, 2006, have a fixed interest rate of 6.8%.
* No payments while in school: Graduate students holding Federal Stafford Loans may choose to defer making payments until they’ve left school or dropped below half-time enrollment.
* Forbearance and hardship deferment benefits: If they’re having trouble making their monthly payments, Stafford borrowers may request to temporarily postpone making payments without affecting their credit rating.
* Grace period before repayment: Stafford borrowers who have completed a graduate or professional program or have dropped below half-time enrollment have a six-month grace period before they need to begin making payments.
* Student Loan Consolidation benefits: Once they’ve left school or dropped below half-time status, graduate students may consolidate their Stafford loan(s) and take advantage of all the features of federal student loan consolidation, which include longer terms that give borrowers more time to repay.
Who Is Eligible for an Graduate Stafford Loan From NextStudent?
To qualify for a Federal Stafford Loan from NextStudent, graduate students:
* Must file a FAFSA (Free Application for Federal Student Aid)
* Must be enrolled or accepted as at least a half-time student in an eligible graduate or professional degree program
* Must maintain satisfactory academic progress, as determined by their school
* Must be a U.S. citizen or permanent resident
* May not be in default on any federal student loan
* Must be registered with the Selective Service if male and between the ages of 18 and 25
How Much Money Is Available From Graduate Stafford Loans?
Graduate students taking out a Federal Stafford Loan can borrow up to $20,500 a year, up to a maximum of $138,500 in cumulative Stafford loan debt (including any undergraduate Stafford loans they may have received).
With repayment postponed while a borrower is enrolled at least half-time, graduate Stafford loans from NextStudent offer eligible graduate and professional degree students a flexible, non–credit-based financing option that allows them to cover their educational expenses without having to worry about making payments while they’re still in school. And because they’re awarded both with and without consideration of financial need, Federal Stafford Loans can help a wide range of students searching for low-interest ways to pay for their graduate studies.
NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
============================ The End =========================
Posted by
. :~ ShAh G . :~
at
4:11 AM
. :~ ALIVE FUN ARTICALS ~: .
Whether you’re a recent graduate with grace periods about to end, or a new student or parent of a new student just taking out your first student loan, you may have questions about repayment—what your options are, how long you have to repay, what happens if you have trouble making your payments.
To help answer your questions and make sure you know about all the repayment plans and alternatives available to you on your federal student loans, NextStudent, a leading Phoenix-based education funding company, offers this quick guide to repayment terms and options for federal student loans.
Repayment Plan Options
If you’re having trouble making your monthly student loan payment under the standard repayment plan, you may be able to lower your monthly payment by choosing an alternate repayment plan. Talk to your lender or servicer about these repayment options:
* Standard Repayment: the typical repayment period for a federal student loan. For a fixed-rate student loan in a standard repayment plan, the monthly payment amount will remain the same throughout the repayment period.
* Extended Repayment: a repayment plan that allows certain borrowers to extend the standard repayment period—up to a 25-year repayment term—in order to lower their monthly payment. Extended repayment is available to borrowers who received their first federal student loan on or after October 7, 1998, and who have outstanding federal student loans totaling more than $30,000.
* Income-Sensitive Repayment: a repayment plan that bases the monthly payment amount on a borrower’s monthly income. The monthly payment must be at least enough to cover the monthly interest. You’ll need to submit income documentation to qualify for this repayment plan, and you need to requalify each year.
* Graduated Repayment: a repayment plan that allows borrowers to start with a lower monthly payment and then gradually increases the monthly payment amount over the repayment term. The payment amount generally increases every two years and must be at least enough to cover the monthly interest.
Postponing Payments
In addition to alternate repayment plans that may lower your monthly payment, you also have options for temporarily postponing your payments altogether without affecting your credit rating. If your student loan is in one of the three following statuses, you’re not required to make any payments (although you can choose to make interest payments during any of these postponement periods in order to avoid having any accrued interest added to your principal loan balance):
* Grace Period: the period of time after a borrower has left school (or dropped below half-time enrollment) and before repayment begins, during which no payments are due. For subsidized student loans, any interest that accrues during a grace period is paid by the government; for unsubsidized student loans, any unpaid interest that accrues will be added to the principal loan balance for the borrower to repay once the repayment period begins.
* Deferment: during repayment, a period of time during which no payments are due. For subsidized student loans, any interest that accrues during a deferment period is paid by the government; for unsubsidized student loans, any unpaid interest that accrues will be added to the principal loan balance for the borrower to repay once repayment resumes.
* Borrowers can request an in-school deferment if they’re enrolled at least half-time. They’ll need to provide proof of enrollment each semester.
* Borrowers may also request a deferment in cases of unemployment or financial hardship, for up to a year at a time, up to a total of three years over the life of the student loan.
* Forbearance: during repayment, a period of time during which no payments are due. For both subsidized and unsubsidized student loans, any unpaid interest that accrues will be added to the principal loan balance for the borrower to repay once repayment resumes.
* Borrowers who meet certain criteria may request a forbearance for up to a year at a time.
Repayment Terms for Federal Student Loans
Stafford Loans for Undergraduate and Graduate Students: The standard repayment term for a Stafford loan, either subsidized or unsubsidized, is 10 years. After you graduate, leave school, or drop below half-time enrollment, you’ll have a six-month grace period before you need to begin repaying your Stafford loan. For subsidized Stafford loans, you won’t be charged any interest during your grace period. For unsubsidized Stafford loans, any unpaid interest that accrues will be added to your principal loan amount for you to repay once your repayment period begins.
PLUS Loans for Parents: The standard repayment term for a PLUS loan is 10 years. There is no grace period on a PLUS loan. Repayment will begin 30–60 days after the final disbursement.
Grad PLUS Loans for Graduate Students: The standard repayment term for a Grad PLUS loan is 10 years. There is no grace period on a Grad PLUS loan. Repayment will being 30–60 days after final disbursement. However, you can postpone making any payments until you’ve left school or dropped below half-time enrollment. Any unpaid interest that accrues during this postponement period will be added to the principal of your student loan for you to repay once repayment starts.
Federal Student Loan Consolidation: The repayment term for a student loan consolidation loan depends on the total outstanding amount of your student loans.
Education Debt
Repayment Term
$10,500 – $19,999
15 years
$20,000 – $39,999
20 years
$40,000 – $59,999
25 years
$60,000 +
30 years
There is no grace period on a Federal Student Loan Consolidation.
If your student loan consolidation is in deferment, the government will pay the interest on that portion of your consolidation loan that was originally a Perkins loan or subsidized Stafford loan. You’ll only be responsible for paying the interest on that portion of a consolidation loan that was originally a PLUS, Grad PLUS or unsubsidized Stafford loan.
If your student loan consolidation is in forbearance, you’ll be responsible for paying all interest that accrues.
Whether you have just one or multiple federal student loans, a Federal Student Loan Consolidation might give you more time to repay and could substantially lower your monthly student loan payment. If you have multiple federal student loans, a student loan consolidation allows you to combine them into one easy-to-manage loan with a single monthly payment.
NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
============================ The End =========================
Posted by
. :~ ShAh G . :~
at
4:10 AM
. :~ ALIVE FUN ARTICALS ~: .
Here at NextStudent, we know that the world of student loans and college financing can be overwhelming and confusing, especially when all the financial aid literature throws around terms like “consolidation” and “subsidized,” and alphabet soups like FWS, EFC, PLUS and FAFSA. We always want our customers to feel comfortable with their education financing decisions, and we believe you should be informed about all your financial aid options. So to help you decipher your financial aid award letters and understand your school financing options, NextStudent, a leading Phoenix-based education funding company, offers this quick guide to the different types of financial aid.
Financial Need: Need-Based vs. Non–Need-Based Aid
Financial aid can be classified into two main categories: need-based and non–need-based.
Need-based aid —financial aid that’s awarded on the basis of financial need—is given out according to a student’s financial situation.
Financial need is determined by the U.S. Department of Education using a standard formula, established by Congress, that evaluates the financial information you provide each year on the FAFSA (Free Application for Federal Student Aid). The fundamental elements in this formula are the student’s income (and assets, if the student is independent), the parents’ income and assets (if the student is dependent), the number of people in the household, and the number of family members (excluding parents) attending college or graduate school.
If your FAFSA shows that you demonstrate financial need, you could qualify for need-based aid. Federal need-based aid includes the Federal Work-Study Program, Pell grants, Perkins loans and subsidized Stafford loans.
Non–need-based aid is awarded without consideration given to the student’s financial situation. If you meet program eligibility requirements, you can qualify for non–need-based aid, regardless of your or your parents’ income.
Merit-based scholarships, athletic scholarships and credit-based loans (which require a review of the borrower’s credit history) are all examples of non–need-based aid. Non–need-based federal aid programs include unsubsidized Stafford loans, PLUS loans for parents and Grad PLUS loans for graduate students. Private student loans, like NextStudent’s Private Student Loans, are also a form of non–need-based aid.
For non–need-based student loans that are credit-based (like PLUS, Grad PLUS, and NextStudent Private Student Loans), although borrowers won’t be disqualified for earning too much income, they may need to meet minimum income requirements to qualify.
Financial Aid Awards: Scholarships, Loans and Work-Study
Financial aid can take three main forms: scholarships (or grants), student loans, and work-study.
Scholarships or grants can be either need-based or non–need-based. Scholarships and grants, unlike student loans, do not need to be repaid. Scholarship money may come directly to you, to be used for school; other scholarships are paid directly to your school.
Some scholarships, whether academic or need-based, may be awarded to you automatically by your school with your admission. Others are awarded competitively, as prizes (like the National Merit Scholarships based on your PSAT scores, or the $10,000 given to the first-place finisher in the annual Ayn Rand essay contest). Scholarship competitions can be national, state-wide, or local. Some scholarships are targeted toward specific groups—athletes, for example, or members of 4-H. Grants are often awarded to graduate students to help fund their research or dissertation.
There are millions of dollars in scholarships available each year for almost every type of student. The NextStudent Scholarship Search Engine, a database of over 5.9 million scholarships worth over $16 billion, offers an excellent starting point if you’re on the hunt for free scholarship money.
Student Loans can also be either need-based or non–need-based. The money you receive in student loans will need to be repaid. You’ll also be charged interest on the amount of money you borrow. There are federal student loans, state loans, institutional loans and private student loans available to undergraduate and graduate students and to the parents of dependent students. Federal student loans usually have more attractive terms than private student loans, so you should always look into your federal financing options first.
Some student loans, like Federal PLUS Loans, Federal Grad PLUS Loans and private student loans, are credit-based loans and require a determination that the borrower is “creditworthy” under the program guidelines. Other student loans, like Federal Perkins Loans, Federal Stafford Loans and Federal Consolidation Loans, are non–credit-based and don’t require a borrower credit check.
Federal student loans can be either subsidized or unsubsidized. With a subsidized loan, you won’t be charged interest while you’re in a grace period, in deferment or in school at least half-time. Subsidized student loans, which include Perkins loans and subsidized Stafford loans, are awarded on the basis of financial need.
With an unsubsidized loan, you’ll be responsible for all interest charges. Interest will accrue on an unsubsidized loan even if you’re temporarily not making payments because you’re in an authorized postponement period (such as a grace period, deferment or forbearance). Unsubsidized Stafford loans, PLUS loans, Grad PLUS loans and NextStudent Private Student Loans are all unsubsidized loans. Unsubsidized loans are typically non–need-based loans.
Work-study is a federal program that provides funds to schools to award to students through part-time employment. Work-study earnings do not need to be repaid.
Approximately 3,400 postsecondary institutions participate in the Federal Work-Study (FWS) Program, which is a need-based program. Work-study jobs can be on- or off-campus and can range from lab assistant to museum docent to elementary school tutor.
Your work-study job is required, by federal law, to pay you at least the federal minimum wage—as of July 24, 2007, that’s $5.85 an hour. You might get paychecks for your earned work-study funds, or your earnings could be deposited into your student account. Consult your financial aid office for details.
Student Loan Consolidation
A consolidation loan is a specific type of student loan available to you once you’ve left school or dropped below half-time enrollment. Student loan consolidation allows you to bundle all your eligible student loans into one single loan with one lender and one monthly payment. Consolidation offers the convenience of one easy-to-manage loan, with the added bonus that it could substantially reduce your monthly payments and give you more time to repay.
Once you’ve left school or dropped below half-time enrollment, a federal student loan consolidation allows you to consolidate all your eligible federal student loans, such as Stafford loans and Grad PLUS loans. Parents are also eligible to consolidate their PLUS loans as soon as those loans go into repayment. By consolidating your student loans, you could cut your monthly student loan payments nearly in half and get up to 20 more years to repay.
NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
============================ The End =========================
Posted by
. :~ ShAh G . :~
at
4:07 AM
. :~ ALIVE FUN ARTICALS ~: .
How you handle your finances while you’re in college and graduate school can have repercussions for years after you graduate. Every time you go over your limit on a credit card, apply for a new credit card, or miss a payment—whether it’s on your card, on your car, or on your student loan—it can count against your credit score. And a credit score can drop a lot faster than it’ll go back up: It can take years to repair damaged credit and a low credit score. Bad credit can keep you from being approved for a car or home loan, it can make a landlord choose not to rent to you, and it can even affect whether a potential employer decides whether or not to hire you.
To help you keep your credit intact and avoid the pitfalls of unmanageable debt, NextStudent, a leading Phoenix-based education funding company, offers these six tips on how to be a smart and responsible borrower.
1. Plan ahead.
The first thing you should do at the start of each semester is put together a written budget. Add up all your expenses: That means the big things like tuition, room and board (or rent and utilities), books, airfare home on holidays, as well as day-to-day living expenses like meals, groceries and gas. Don’t forget to add in a hundred dollars or so for occasional “fun” spending, like a night at the movies or a few iTunes downloads.
If you have a part-time or work-study job, apply your income, as well as any scholarship money or grants you’ve received, toward your expenses. Whatever expenses are left over are what you’ll need to cover each month.
If you qualify for federal student loans, borrow only as much as you need to pay your school-related costs (which include a reasonable allowance for living expenses and transportation to and from school) that aren’t covered by any scholarships or work-study money.
2. Don’t think of credit cards as money.
Just because you have the credit to buy it doesn’t mean you can afford it. On the one hand, it’s a good idea to open one or two credit cards while you’re in college in order to build a credit history that you’ll need later on to qualify for a mortgage or certain other types of loans. But the plastic can backfire on you if you just start racking up the charges without considering how you’re going to pay it all back. And remember that every time you apply for a credit card, it affects your credit score. Don’t apply for five or six cards at once, or it could reflect negatively on your credit report.
Use your credit cards for emergencies only, or for small regular purchases like gas, when you don’t have $40 in cash on you. When you do make those small purchases, make sure you pay off your card balance in full each month so you don’t incur any interest, which can add hundreds of dollars to the purchase price of anything you charge to your card. Carrying a credit card balance that’s more than half your credit limit can also affect your credit score, so one of the last things you want to do is max out your cards.
Here’s a basic rule: Don’t spend more than you have. It sounds like a no-brainer, but this is how people get in over their heads, with tens of thousands of dollars in credit card debt that they have no idea how they’re going to pay back.
If it’s not in your budget and you can’t pay for it with your fun money, don’t buy it. If you’re looking for a pricier one-time purchase that goes outside your monthly entertainment budget, like the new iPod or a digital camera, save a few months’ fun money to make it happen. Resist the urge to run out and put it on the card.
Credit cards aren’t like your student loans; cards are a lot less forgiving. You can’t put off making payments just because you’re still in school or because you don’t have a job. And if you get in over your head and have trouble making your monthly payments, a credit card doesn’t come with deferment or forbearance options, the way your federal student loans do, that allow you to temporarily postpone making payments until you can get back on your financial feet.
3. Be informed about your financial aid options.
Look to scholarships and grants first to cover your college costs. Since scholarships and grants don’t have to be paid back, they’re essentially free money to put toward the cost of your education.
After scholarships and grants, look into your federal student loan options, which offer low-cost, low-interest loans to eligible undergraduate and graduate students, as well as to qualifying parents of dependent undergraduates. Federal Perkins Loans, Stafford Loans, PLUS Loans for parents, and Grad PLUS Loans for graduate students offer low, fixed interest rates, no application fees, and no prepayment penalties. As a student, you also have the option to postpone making payments until you’ve left school or dropped below half-time enrollment.
If, even after you’ve taken full advantage of your federal financing options, you’re still falling short on your education-related expenses, private loans could make up the difference. NextStudent Private Student Loans are available year-round, so you can apply at any time throughout the year, and they offer generous borrowing limits that cover up to the full cost of your attendance, less any other financial aid you’ve received.* Federal student loans typically offer more attractive terms than private student loans, so always make sure you’ve used your federal loan options before you turn to private student loans.
4. Ask questions.
Regardless of the type(s) of loans you’re considering, make sure, before you apply, that you ask questions that will give you the information you need to decide which loans will be best for you:
* What are the eligibility requirements? What criteria do you need to meet to qualify? Will you need a co-signer?
* What’s the interest rate? Is it a fixed rate that won’t change? Or is it a variable rate that can fluctuate monthly or quarterly and change your monthly payment amount?
* Are there any application fees, origination fees, guarantee fees, administrative fees or processing fees?
* Can you defer making payments while you’re still in school at least half-time?
* What are your deferment and forbearance options once you’ve left school? Do you have ways to postpone making payments without affecting your credit if you lose your job or run into financial difficulties?
* How long do you have to repay? What kinds of repayment plans and options are available?
5. Never be afraid to communicate with your lender.
Even when college students act responsibly and watch their spending, with college costs on the rise, some students graduate with a mountain of student loan debt and can end up struggling to make their payments, especially when they’re still looking for a job or at a first job with a starter salary. If you ever find yourself in this situation, it is absolutely critical that you communicate your situation with your lender or servicer so you can make the appropriate arrangements that will protect your credit score.
Federal student loans offer extended, income-sensitive and graduated repayment plans that could lower your monthly payment and help make repayment more affordable. You also have deferment and forbearance options in case you need to temporarily postpone making payments altogether. If you have private student loans that don’t carry the standard federal forbearance benefits, you may still be able to work out a workable payment plan with your lender.
The main thing is to contact your lender. Most lenders will want to work with you; they want to be repaid as much as you want to keep your credit intact. Don’t just stop making payments, waiting for your situation to get better. Each time you miss a payment, it can drop your credit score.
And after enough missed consecutive payments, your student loans could go into default. Besides the negative effect it’ll have on your credit report, having a defaulted student loan could keep you from being able to take out most other kinds of loans, whether you’re looking to finance a new car, a house or another semester at school. If you default on a federal student loan, the government can even decide to garnish your wages, automatically taking money each month out of your paycheck.
6. Consolidate.
A simple solution that could also help lower your monthly student loan payments is student loan consolidation. Once you’ve left school or dropped below half-time enrollment, a Federal Consolidation Loan allows you to bundle all your eligible federal student loans into one easy-to-manage loan with a fixed interest rate. By consolidating your student loans, you could cut your payments nearly in half and replace multiple monthly bills, due dates and payments with a single loan and one convenient monthly payment. You could also get up to 20 more years to repay.
With no credit check, no fees and no cost to apply, a student consolidation loan is one of the smartest moves a responsible student loan borrower can make.
NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
*Undergraduate and graduate borrowers may borrow annually up to the lesser of the cost of attendance or $30,000 ($40,000 for certain schools where it has been determined that the annual cost of attendance exceeds $30,000), and up to an aggregate maximum amount of $130,000. Borrowers in continuing education and K–12 loan programs may borrow annually up to $30,000, and up to the aggregate maximum amount of $130,000.
============================ The End =========================
Posted by
. :~ ShAh G . :~
at
4:02 AM
. :~ ALIVE FUN ARTICALS ~: .
Sometimes life can put a dent in your budget, making it harder to pay your everyday living expenses and monthly bills. When faced with the loss of a job, going back to school or sudden unexpected expenses like medical bills or car-repair costs, even the most responsible borrowers can find themselves struggling to make their student loan payments.
If you ever find yourself in this situation, the main thing is not to let your student loan payments overwhelm you; don’t just ignore your student loan bills as you try to get back on your financial feet—every missed payment could be another blemish on your credit report. Miss enough payments, and you could go into default.
Default is serious. Besides the damage it does to your credit report, which can take years to repair, having a defaulted student loan could keep you from being able to borrow any other money, whether it’s for a new car, a home or another semester at school. If you default on a federal student loan, the government can even decide to garnish your wages.
But by being proactive and talking to your lender, you may be able to give your budget a little breathing room. Your federal student loans come with repayment plans and deferment and forbearance benefits that could help you when you’re having trouble making your monthly payments.
Income-sensitive, extended, and graduated repayment plans might be able to lower your monthly payments on your federal student loans. If you’re still having trouble meeting your monthly payment amount, deferment and forbearance periods may allow you to temporarily postpone your monthly student loan payments altogether without defaulting or affecting your credit rating.
To help make sure you know the payment postponement options you have available to you for those times when you’re finding it hard to meet your student loan payments, NextStudent, a leading Phoenix-based education funding company, offers this guide to deferment and forbearance.
Deferment
Deferment allows you to temporarily stop making payments on your student loans. You must contact your lender to request a deferment, and you may need to fill out a deferment request form.
You may be able to request a deferment on your federal student loans (including Perkins loans, subsidized and unsubsidized Stafford loans, Grad PLUS loans, and consolidation loans) or on your parent PLUS loans if you are:
* Enrolled in school at least half time
* Unemployed
* Experiencing economic hardship
* In the military and have been deployed
If you’re enrolled at least half-time in an eligible undergraduate, graduate or professional degree program, you can request an in-school deferment on your federal student loans. You’ll need to provide proof of enrollment each semester.
You may also request a deferment in cases of unemployment, financial hardship, or military deployment, for up to a year at a time, up to a total of three years over the life of the loan.
Some private student loans may also allow you to defer payments while you’re in school at least half time, deployed for military service, or having financial difficulties. You need to contact your private student loan lender.
Interest Charges on Loans in Deferment
Interest does not stop accruing while you’re in deferment. However, when you’re in deferment, you’ll only be responsible for the interest charges on your unsubsidized loans. For subsidized loans (which include Perkins loans and subsidized Stafford loans), any interest that accrues during a deferment period is paid by the government.
On your unsubsidized loans, even when you’re not required to make any payments while you’re in deferment, interest continues to accrue, and the unpaid interest will be added to your principal loan balance for you to repay once you go back into repayment.
When you defer a Federal Consolidation Loan, the government will pay the interest on that portion of your consolidation loan that was originally a Perkins loan, subsidized Stafford loan, or other subsidized federal student loan. You’ll only be responsible for paying the interest on that portion of a consolidation loan that was originally a PLUS loan, Grad PLUS loan, unsubsidized Stafford loan, or other unsubsidized federal education loan.
You can always choose to make interest payments during deferment in order to avoid having any accrued interest added to your principal loan balance.
Forbearance
Forbearance allows you to temporarily reduce or postpone payments on your student loans. You must request a forbearance from your lender, and you typically need to complete a forbearance request form. You may also need to submit supporting documentation, depending on the nature of your request.
Generally, your lender can grant a forbearance for up to a year at a time. Unlike unemployment or economic hardship deferments, there is no three-year cumulative limit on discretionary forbearance periods granted due to financial hardship.
Interest Charges on Student Loans in Forbearance
Interest does not stop accruing while you’re in forbearance. When your student loans are in forbearance, you’ll continue to be charged interest on those student loans, whether they’re subsidized or unsubsidized.
Any unpaid interest that accrues will be added to your principal loan balance for you to repay once you go back into repayment.
Some forbearance arrangements may have you making interest-only payments, so no interest gets added to your principal. If the forbearance you arrange with your lender allows you to temporarily stop making payments altogether, you can always choose to make interest payments in order to avoid having any accrued interest added to your principal loan balance.
Important Points to Keep in Mind
Deferments and discretionary forbearances are not automatic. If you’re having trouble making your student loan payments and you’d like to request a deferment or forbearance to either reduce or postpone your payments, you need to contact your lender. You may be required to complete a deferment or forbearance request form and to submit supporting documentation.
Never assume that your deferment or forbearance has been automatically granted. You’ll receive something in writing from your lender regarding whether your request for a deferment or forbearance has been approved. If you don’t receive a written confirmation from your lender, you need to contact your lender to see if your deferment or forbearance request has been approved and to get that approval in writing.
Remember that deferment and forbearance periods are only temporary. At the end of your approved deferment or forbearance period, you’ll go back into repayment and be required to make monthly payments on your student loans. If you’re still having trouble making your payments at the end of your approved deferment or forbearance period, you may be able to request another deferment or forbearance—you’ll need to contact your lender.
Making small payments is better than making no payments at all. Even if your deferment or forbearance allows you to postpone your payments, interest doesn’t stop accruing just because you’re not making payments. If you have the room in your budget, consider making interest-only payments or paying as much of the interest as you can.
You’re responsible for the interest on any student loans you have in forbearance and on any unsubsidized loans you have in deferment (the government will pay interest on deferred subsidized loans). Any interest that accrues during deferment or forbearance that you don’t pay will be added to your principal loan balance for you to repay once repayment resumes.
When interest is added to your principal loan balance, it’s capitalized, meaning it becomes part of the principal and subject to interest itself. In other words, you’ll end up paying interest on interest. Even if you can’t make a full interest-only payment, any little bit you pay is that much less interest that will get capitalized.
NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
============================ The End =========================
