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Applying for College Student Loans ~, federal college loans.#Federal #college #loans


Student Loans Explained

Most students rely on a variety of funding sources to pay for college. Personal savings and family contributions are one of the first places students turn, but often these resources don’t cover higher- education costs.

Scholarships and grants are windfalls for college funding, because they do not require repayment. Performance and financial need are considered, and then eligible students are endowed with gifts that pay for tuition, books and housing. Do not leave free money on the table – apply for every grant and scholarship for which you qualify.

Loans are the most common funding sources for college: According to the National Postsecondary Student Aid Study (NPSAS), 65% of four-year undergraduate students take out student loans to help them pay for college. But unlike some other resources, loans must be paid back. Loans, and associated interestcosts, typically keep graduates in debt for 10 years or more.

Federal college loans

Types of Student Loans

Student loans are funded by a variety of sources including The United States Federal Government and private lenders like banks and credit unions. Federal loans are the most accessible to students, and offer the best repayment terms.

Private loans, also referred to as personal loans and alternative loans can be difficult for students to secure without cosigners. Interest rates are higher than federal student loans, but still fall below most other types of private financing (home, car, etc.)

Federal Student Loans

The Federal Family Education Loan program (FFEL) is a now-defunct lending program designed to provide American college students and their families with federally backed student loans. These loans are now made through the U.S. Department of Education’s Direct Loan Program.

These distinct types of loans are available to students and parents seeking Federal Financial Aid:

  • Subsidized Stafford Loans are available to students who demonstrate financial need. Payments are not required while you are enrolled in school, or during grace periods and deferment periods. Interest rates vary, but are currently 3.4%. Loan limits move on a sliding scale, based on what year you are in college; ranging from $5,500 annually, for first year students to $7,500, for third year students and beyond.
  • Unsubsidized Stafford Loans do not require students to show a particular level of financial need. Interest accrues on these loans from the moment the funds are issued, and students are given the choice to pay as they go, or add accumulated interest to the total amount owed following school. Loan limits match those of Subsidized Stafford Loans, but interest rates are higher; currently fixed at 6.8%.

To be considered for Stafford Loans and other Federal Student Aid, you must submit a Free Application for Federal Student Aid (FAFSA). Repayment begins six-months after graduation, and is governed by repayment schedules ranging in length from 10 to 25 years.

Perkins loans are federally funded loans administered directly by your institution of higher education Federal college loans(IHE). The loans are extended to students who have the greatest financial need. In general, families with annual incomes below $25,000 are eligible for Perkins Loans.

These three factors determine the size of your Perkins Loan:

  1. When you apply
  2. Your level of financial need
  3. Funding level at your school

The maximum annual loan for undergraduate students is $5500, with a lifetime loan maximum of $27,000. Graduate students can borrow up to $8000 each year, with a $60,000 lifetime cap.

Perkins Loan repayment starts 9 months following graduation, witha fixed 5% interest rate.

Parents of dependent undergraduatestudents can borrow money under this federal program. Borrowers must be able to pass a credit check, and the student whose education is being funded must be a dependent that meets these minimum requirements:

Parents access PLUS loans by filing an application, and signing a Master Promissory Note (MPN). Interest rates are fixed at 7.9%, and borrowing limits are determined by subtracting all other financial aid award amounts from the total cost of attending school.

For students holding multiple federal loans, this program facilitates combining them into a single loan. A single monthly payment replaces the need to pay each loan individually, and the repayment terms of the loan can be extended for up to 30 years.

Students considering this loan should pay close attention to how their total repayment costs might be affected. Consolidating and extending the repayment schedule of your loans can add considerable costs to your total obligation.

State Student Loans

State-specific funding varies – some have none, while others have a great deal. Your FAFSA places you in contention for some state loans, but other programs require separate enrollment. Your high-school guidance counselor and college financial aid office are equipped to sort out the specifics for your state.

You can also find valuable information on state higher education websites. In Minnesota, for example, students are eligible for loans, under a program called SELF.

SELF is not subsidized, so worthy credit is required for getting a loan. Minnesota residents who attend participating colleges are eligible to borrow up to $10,000 each year, at a fixed rate of 7.25%. Cosigners provide credit reinforcement that enables students with limited credit to apply.

Private Student Loans

Private student loans, such as those offered by Wells Fargo and Chase are designed to bridge the gap between your financial aid package and the true cost of your education. Private loans require borrowersto pass credit checks, and the loans often have higher interest rates than those subsidized by the U.S. Government.

Cosigners who are willing to share responsibility for your loan provide the credit resources you need to get private financing. Federal Student Loans should be considered first, but used appropriately; private loans can effectively pay for extra educational costs, without creating unmanageable financial burdens.

Institutional Student Loans

Institutional loans are extended by colleges and universities as a means to cover educational costs that remain after other forms of financial aid have been applied. Long-term and short-term institutional loans are used to pay for books, room and board, and other student expenses.

Institutional loans are by definition campus-specific, so interest rates and repayment terms are determined by each educator. Your financial aid office is best equipped to outline specific programs offered by your school.

Federal college loans

Managing Your Student Loans

Apply these responsible financial management principles, as you repay your student loans:

  • Consider the advantages of loan forgiveness programs. These programs are available to students who agree to work in high-need fields like nursing and education. Enrolling in the military often makes you eligible for loan forgiveness. Essentially, you commit to work or serve for a designated period of time, in exchange for complete or partial loan forgiveness.
  • Make student loan payments on time. In some cases, your interest rate may qualify for reduction after you make a certain number of consecutive on-time payments. If you have a cosigner, he or she may be released from responsibility for the loan, once you have exhibited a required level of consistency with your repayments. Defaulting on your student loans has far-reaching consequences, so it is never an option.
  • Manage your loan repayment schedule using online calculators. If you are considering a consolidation loan, use these tools to quickly determine your total loan repayment obligation.
  • Take advantage of federal education tax incentives, like the student loan interest deduction and Hope Scholarship Credit.

US Government Federal Student Loan Programs ~, federal college loans.#Federal #college #loans


Applying and Qualifying for the Federal Perkins Loans

For the college bound student looking for financial aid, qualifying for a grant is ideal. But, not all grants will cover the entirety of your tuition costs. When you factor in book costs, dorm fees and the cost of living in general most grants fall short of the mark when it comes to paying all of your college expenses. That’s why student loans play such a major role in financing a college education.

Federal students loans, with their fixed low interest rates and flexible repayment plans, offer the most attractive solution. The Federal Perkins Loan Program should be a key component in any student’s college financial plan. The Perkins loan offers many benefits and features that make it an excellent source of financial aid for eligible students.

Features of a Perkins Loan:

  • Low-interest, fixed rate loans
  • Need-based
  • Available through participating colleges and universities
  • Optional loan cancellation for eligible borrowers
  • Available to eligible undergraduate and graduate students
  • 9-Month grace period
  • No application fees
  • No credit checks

Federal college loans

What is a Federal Perkins Loan?

The Federal Perkins Loan is a campus-based financial aid package that is available to both undergraduate and graduate students. Participating colleges and universities receive annual loan allowances from the U.S. Department of Education, and it is from theses funds that the school makes Perkins Loans available to eligible students. These loans are limited number and eligible students are advised to apply early. Perkins loans are free of any application or other hidden fees and offer a 9 month grace period following graduation before repayment must begin.

Perkins Loan recipients borrow directly from the college campus of their choice. These are subsidized loans, meaning the government pays the interest that accrues on the loan for as long as a students remains in school as well as the 9 month grace period. Under graduate students are limited to loans of $4,000 per year, with a lifetime limit of $20,000. Graduate students are allowed an increased limit of $6,000 per annum, with a $40,000 lifetime limit.

While many students qualify for the Federal Perkins Loan, not all colleges and universities participate in the program. Check with your college of choice to learn if they are one of the approximately 1700 colleges and universities that do participate in the program. With it’s fixed low interest rates, Federal subsidization and flexible repayment terms the Perkins Loan is the most borrower friendly student loan available.

Qualifications for a Perkins Loan

The chief determining factor of a student’s eligibility for the Perkins Loan program is financial need. A student must fall within a certain income bracket and the student’s Expected Family Contribution or EFC must be rated low on the Federal scale. Other application requirements include:

  • Student must be enrolled in an accredited school at least half-time.
  • Student must be enrolled in a college or institution that participates in the program.
  • Student must be a U.S. citizen, a legal permanent resident or an eligible non-citizen.
  • Student must no history of defaulting on prior student loans.
  • Student must be registered with the Selective Service where applicable.
  • Student must meet minimum GPA.

Federal college loans

Applying for a Perkins Loan

All Federal financial aid programs require students to fill out and submit the Free Application for Federal Student Aid or FAFSA. Once you have submitted your FAFSA and it has been reviewed, you will receive your Student Aid Report which details the amount of your Expected Family Contribution (EFC). This is the amount of money you or your family are responsible for contributing to your education.

Within a few weeks, you should receive follow up letters from the colleges to which you have applied detailing any and all types of financial aid for which you have qualified, including the Perkins Loan. This letter must be returned to the college or university indicating what financial aid you are accepting. If you are approved for a Perkins Loan you must coordinate with your school immediately to secure the loan and receive your financial aid money. Loan funds are limited and the earlier you respond the better your chances of getting the loan you need.

Repayment of the Perkins Loan

During the final weeks of your college term your school will contact you and provide loan repayment details relative to your Perkins Loan. You will have the benefit of a 9 month grace period in which to become settled and find a job before any repayment schedule begins. This grace period is one of the major bonuses of the Federal Perkins Loan program, allowing students some time to enter the workforce before any loan payments must be made.

Loan Cancellation for Teachers

A significant benefit of the Federal Perkins Loan program is the Cancellation or Deferment Option for Teachers. Students who agree to take up full time teaching positions in low-income public school districts, or take positions teaching in certain subject areas may be eligible for cancellation or deferment of all or part of your Perkins loan. Check with your college for more information regarding any deferment or loan forgiveness programs for which you may be eligible.


College loans for parents, college loans for parents.#College #loans #for #parents


Loans

Direct federal loans are a form of financial aid available to assist undergraduate students attending college at least half-time. Students may use the funds to pay for tuition, books, and living expenses. Loans must be repaid at a low fixed-rate.

Interest Rates

To be eligible for Federal Loans you must :

  • be a U.S. citizen or an eligible noncitizen;
  • be registered with Selective Service, if you’re a male (you must register between the ages of 18 and 25);
  • be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program;
  • be enrolled at least half-time to be eligible for Direct Loan Program funds;
  • maintain satisfactory academic progress in college or career school;
  • sign statements on the Free Application for Federal Student Aid (FAFSA) stating that you are not in default on a federal student loan and do not owe money on a federal student grant and you will use federal student aid only for educational purposes; and show you’re qualified to obtain a college or career school education by having a high school diploma or a recognized equivalent such as a General Educational Development (GED) certificate or completing a high school education in a homeschool setting approved under state law

A loan based on financial need for which the federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status. For Direct Subsidized Loans first disbursed between July 1, 2012 and July 1, 2014, the borrower will be responsible for paying any interest that accrues during the grace period. If the interest is not paid during the grace period, the interest will be added to the loan’s principle balance.

A loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues through the life of the loan.

A loan available parents of dependent undergraduate students for which the borrower is fully responsible for paying the interest regardless of the loan status.


Information About Going to College, Before College, During College, After College Information, college loans for parents.#College #loans #for #parents


Students Parents

Created especially for students of every age who are looking for information about going to college, this area of our website has all your answers. Although it was written with students in mind, parents of college-bound students will find this information helpful, too. Plus, there s a link below for parent-specific topics.

ISAC Student Portal

College loans for parents

Create an ISAC Student Portal profile and access information about your ISAC programs. If you are a member of the Illinois National Guard, the Portal is where you complete, submit and check on the status of your application, keep track of the eligibility units you have received and print a copy of your most recent Notice of Eligibility.

Before College

If you re considering college or already making plans to go, Before College is where you ll find the information to get started. You can research colleges and careers, learn about the college admission process and get help in choosing the school that s right for you. This is also where we explain how and when to take the first step in the financial aid process by completing the Free Application for Federal Student Aid (FAFSA ). Meet our ISACorps members, deployed across the state and offering free presentations and one-on-one assistance for students and families navigating the college-going and financial aid process.

During College

During College is where you’ll learn about ways to pay for college, including through the programs administered by ISAC. ISAC program applications are located in this area, as well as detailed information about the available grant, scholarship and loan programs.

After College

Use After College to help make the transition from college to career. Get tips on finding a job and establishing a budget, and learn how to start the process of paying back your students loans and fulfilling the commitments attached to scholarships and/or grants you may have received.

Parents

The Parents area supplements the three sections listed above by providing parent-specific information that will assist you as you help your child navigate the college process.

Espa ol

En esta secci n encontrar s la informaci n en espa ol que necesitas para ingresar a la universidad, recursos de ayuda financiera, entender los pasos en c mo solicitar para la ayuda financiera para pagar la universidad.

Student Parent Quick Links

College loans for parents


Applying for College Student Loans ~, college loans for parents.#College #loans #for #parents


Student Loans Explained

Most students rely on a variety of funding sources to pay for college. Personal savings and family contributions are one of the first places students turn, but often these resources don’t cover higher- education costs.

Scholarships and grants are windfalls for college funding, because they do not require repayment. Performance and financial need are considered, and then eligible students are endowed with gifts that pay for tuition, books and housing. Do not leave free money on the table – apply for every grant and scholarship for which you qualify.

Loans are the most common funding sources for college: According to the National Postsecondary Student Aid Study (NPSAS), 65% of four-year undergraduate students take out student loans to help them pay for college. But unlike some other resources, loans must be paid back. Loans, and associated interestcosts, typically keep graduates in debt for 10 years or more.

College loans for parents

Types of Student Loans

Student loans are funded by a variety of sources including The United States Federal Government and private lenders like banks and credit unions. Federal loans are the most accessible to students, and offer the best repayment terms.

Private loans, also referred to as personal loans and alternative loans can be difficult for students to secure without cosigners. Interest rates are higher than federal student loans, but still fall below most other types of private financing (home, car, etc.)

Federal Student Loans

The Federal Family Education Loan program (FFEL) is a now-defunct lending program designed to provide American college students and their families with federally backed student loans. These loans are now made through the U.S. Department of Education’s Direct Loan Program.

These distinct types of loans are available to students and parents seeking Federal Financial Aid:

  • Subsidized Stafford Loans are available to students who demonstrate financial need. Payments are not required while you are enrolled in school, or during grace periods and deferment periods. Interest rates vary, but are currently 3.4%. Loan limits move on a sliding scale, based on what year you are in college; ranging from $5,500 annually, for first year students to $7,500, for third year students and beyond.
  • Unsubsidized Stafford Loans do not require students to show a particular level of financial need. Interest accrues on these loans from the moment the funds are issued, and students are given the choice to pay as they go, or add accumulated interest to the total amount owed following school. Loan limits match those of Subsidized Stafford Loans, but interest rates are higher; currently fixed at 6.8%.

To be considered for Stafford Loans and other Federal Student Aid, you must submit a Free Application for Federal Student Aid (FAFSA). Repayment begins six-months after graduation, and is governed by repayment schedules ranging in length from 10 to 25 years.

Perkins loans are federally funded loans administered directly by your institution of higher education College loans for parents(IHE). The loans are extended to students who have the greatest financial need. In general, families with annual incomes below $25,000 are eligible for Perkins Loans.

These three factors determine the size of your Perkins Loan:

  1. When you apply
  2. Your level of financial need
  3. Funding level at your school

The maximum annual loan for undergraduate students is $5500, with a lifetime loan maximum of $27,000. Graduate students can borrow up to $8000 each year, with a $60,000 lifetime cap.

Perkins Loan repayment starts 9 months following graduation, witha fixed 5% interest rate.

Parents of dependent undergraduatestudents can borrow money under this federal program. Borrowers must be able to pass a credit check, and the student whose education is being funded must be a dependent that meets these minimum requirements:

Parents access PLUS loans by filing an application, and signing a Master Promissory Note (MPN). Interest rates are fixed at 7.9%, and borrowing limits are determined by subtracting all other financial aid award amounts from the total cost of attending school.

For students holding multiple federal loans, this program facilitates combining them into a single loan. A single monthly payment replaces the need to pay each loan individually, and the repayment terms of the loan can be extended for up to 30 years.

Students considering this loan should pay close attention to how their total repayment costs might be affected. Consolidating and extending the repayment schedule of your loans can add considerable costs to your total obligation.

State Student Loans

State-specific funding varies – some have none, while others have a great deal. Your FAFSA places you in contention for some state loans, but other programs require separate enrollment. Your high-school guidance counselor and college financial aid office are equipped to sort out the specifics for your state.

You can also find valuable information on state higher education websites. In Minnesota, for example, students are eligible for loans, under a program called SELF.

SELF is not subsidized, so worthy credit is required for getting a loan. Minnesota residents who attend participating colleges are eligible to borrow up to $10,000 each year, at a fixed rate of 7.25%. Cosigners provide credit reinforcement that enables students with limited credit to apply.

Private Student Loans

Private student loans, such as those offered by Wells Fargo and Chase are designed to bridge the gap between your financial aid package and the true cost of your education. Private loans require borrowersto pass credit checks, and the loans often have higher interest rates than those subsidized by the U.S. Government.

Cosigners who are willing to share responsibility for your loan provide the credit resources you need to get private financing. Federal Student Loans should be considered first, but used appropriately; private loans can effectively pay for extra educational costs, without creating unmanageable financial burdens.

Institutional Student Loans

Institutional loans are extended by colleges and universities as a means to cover educational costs that remain after other forms of financial aid have been applied. Long-term and short-term institutional loans are used to pay for books, room and board, and other student expenses.

Institutional loans are by definition campus-specific, so interest rates and repayment terms are determined by each educator. Your financial aid office is best equipped to outline specific programs offered by your school.

College loans for parents

Managing Your Student Loans

Apply these responsible financial management principles, as you repay your student loans:

  • Consider the advantages of loan forgiveness programs. These programs are available to students who agree to work in high-need fields like nursing and education. Enrolling in the military often makes you eligible for loan forgiveness. Essentially, you commit to work or serve for a designated period of time, in exchange for complete or partial loan forgiveness.
  • Make student loan payments on time. In some cases, your interest rate may qualify for reduction after you make a certain number of consecutive on-time payments. If you have a cosigner, he or she may be released from responsibility for the loan, once you have exhibited a required level of consistency with your repayments. Defaulting on your student loans has far-reaching consequences, so it is never an option.
  • Manage your loan repayment schedule using online calculators. If you are considering a consolidation loan, use these tools to quickly determine your total loan repayment obligation.
  • Take advantage of federal education tax incentives, like the student loan interest deduction and Hope Scholarship Credit.

Fund Your College Expenses Using Federal and Private Loan Sources, student loans for college.#Student #loans #for #college


Using Loans to Pay for Your Student Tuition and Other Fees

College costs go beyond tuition. Books, housing, meals and other expenses contribute to the extraordinary cost of higher education. The transition from living at home to full-time campus life represents a significant financial shift for college students and their parents.

Pre-planning sets the stage for university education, but not every student has a college fund to draw from. For most college students, financial aid is an essential part of getting an education. As college looms on the horizon, consider three primary sources of funding: Scholarships, grants and loans.

Scholarships are usually earned through performance and achievement. For those who excel in high-school, academic and athletic success is rewarded with money for college. Scholarship money does not require repayment, so accomplished students should tap every resource available.

Combination scholarships require students to stand out from their peers in more than one way. Exceptional athletes who also do well in school are rewarded on both fronts, as scholar-athletes. Student-citizens who actively participate in community affairs receive scholarships that acknowledge their efforts. Other traits like ethnic heritage, gender and financial need are used to determine eligibility for some special scholarships.

Grants, like scholarships, provide financial aid for college that does not require repayment. Typically, qualifying for grant money is based on your level of financial need. Federal grants, from Pell and other programs, offset college costs for the neediest applicants.

States, corporations, universities and other advocacy groups provide education grants. Like federal grants, some require only that candidates exhibit some level of financial hardship paying for college. Other grants provide aid for specific sets of individuals, like minorities and other under-represented student groups.

Scholarships and grants are coveted aid resources for university students, because they generate college cash that does not require repayment. Any gift aid is ideal, but when free money doesn t cover college costs, students use loans to make up the difference.Student loans for college

Student loans originate from government agencies and private sources. Loans require repayment, so low-interest federally subsidized options provide attractive financing for students. Your best approach to harnessing the education loans you need is to apply for federal financial aid.

How to Apply for a Loan

First things first: Apply for financial aid by completing the Free Application for Federal Student Aid (FAFSA).

The Department of Education has the deepest pockets for providing financial aid, so your first step is to ask for it. Your FAFSA provides the government with information about your family, including income and size. The number of your siblings who are also attending college, as well as your parents income level are used to estimate the amount of money your family can realistically provide for college.

Your Estimated Family Contribution (EFC) is the cornerstone of your individual Student Aid Report; the document used by universities to determine your financial aid eligibility.

When your college makes a formal student aid offer, it is usually a financing package that blends various forms of assistance, including grants and loans. in the past, the most common government loans were called Stafford Loans, but they are now referred to as Federal Direct Student Loans. Stafford loans were guaranteed by the government, but issued by private lenders. Today s Direct Loans are administered without private banks and credit unions.

William D. Ford Federal Direct Loan Program administers direct student loans in these categories:

  • Subsidized Direct Loans Students demonstrating financial need are eligible for low-interest loans, which are subsidized by the Department of Education. Interest rates currently stand at 3.4%. Students are not responsible for interest payments during school, during a 6-month grace period following graduation, and during periods of loan deferment.
  • Unsubsidized Direct Loans Financial need is not an eligibility requirement for this type of loan. The interest rate is higher, at 6.8%, but still well below commercial lending rates. Students are responsible for interest payment during the lifetime of this loan, including during enrollment and grace periods.
  • PLUS Loans Parents of dependent students are eligible for loans to help pay for school. PLUS rates are 7.9%, providing a low-interest borrowing alternative for parents. Interest is always the responsibility of each PLUS loan recipient.
  • Direct Consolidation Loans Students can bundle existing loan debt into a single direct loan. Repayment terms are adjusted to accommodate students ability to pay, and a single payment is applied to total outstanding debt each term.

Perkins Loans provide additional low-interest assistance for the neediest federal applicants. Families with annual incomes below $25,000 qualify as Perkins candidates. Participating Institutions of Higher Education (IHE) distribute funds based on three criteria that influence the size of your Perkins offer:

Perkins recipients enjoy low interest rates, around 5%, and may borrow up to $5,500 annually for undergraduate studies.

Important Change to Subsidized Direct Loan Repayment Terms – Direct subsidized loans issued after July 1, 2012 are not eligible for a federal interest subsidy during the 6-month grace period following graduation. Loan recipients must pay interest during this period. Unpaid amounts will be added to loan principle.

States issue education loans too, so consult with your school s financial aid office for information about state-specific programs and current lending rates.

Private Student Loans and Debt

You ll find student loan opportunities in the private sector too, but securing them requires more than a timely-filed FAFSA. For-profit lenders will not loan money based simply on your pledge to repay it-regardless of your financial need.

Formal credit checks thwart many college students efforts to raise money for school. Limited credit interactions, and lack of collateral are not attractive features among potential borrowers. Banks want to see a long history of credit success before they hand over cash for college. If you are unsure where you stand credit-wise, request a copy of your report.

Even if you ve made timely car payments, and manage your mobile phone account without problems, your credit track record is not long enough to make you a safe bet for conventional lenders. Private college loans are not outside your grasp, but you will need a loan cosigner to get the job done.

Partnering with a friend or relative bolsters your credit-worthiness, because lenders factor in your cosigners history of successful and diverse credit relationships. Private loans carry higher interest rates than Federal Direct Loans, but paying them back on-time helps establish your own credit-rating following graduation.

If your repayment schedule does not reflect your ability to pay, consider bundling your outstanding college debt into a single consolidation loan. Federal consolidation and private consolidation options protect you and your cosigners from adverse credit entries. Consolidate proactively, because once you ve defaulted on your student loans, getting back on-track is more difficult.

Manage your student loan accounts responsibly, and use on-time payments to establish your credit.

Tax Breaks and Emergency College Aid

Student loan interest payments are deductible on your tax return, so use your education expenses to offset your income tax. Deduct student loan interest as you would mortgage interest payments, and always discuss your personal tax strategies with a financial adviser. Of course, your student loan interest rate ultimately impacts the tax advantages associated with your loan payoff.

The best-laid college plans sometime come up short of funds. Emergency financial aid programs are not widely advertised, but help is available during college cash crisis.

To access the money you need for college, work the financial aid system from the top down. File your FAFSA on-time and tap government resources for college loans. Stepping outside the Department of Education for college loans requires credit-checks and cosigners, but banks and credit unions provide valuable funding when you need it most.


Federal student loan interest rates to rise July 1, college loan interest rates.#College #loan #interest #rates


Federal student loan interest rates to rise Saturday

College loan interest rates

College students and their families can expect to pay more as they borrow for the fall semester.

Starting Saturday, interest rates will rise on new federal loans for 2017-2018.

Rates were set based on the Treasury Department’s May 10 auction of 10-year notes. For new loans disbursed from July 1, 2017, to June 30, 2018, undergraduates will pay 4.45 percent. That’s an increase from this year’s rate of 3.76 percent.

Graduate students can also expect to pay higher financing costs after Saturday.

They will pay 6 percent for a direct unsubsidized loan — which begins accruing interest as soon as the borrower takes out the loan — an increase from 5.31 percent this year.

Finally, rates on direct PLUS loans, which both graduate students and parents of undergrads can use, will rise to 7 percent from the current 6.31 percent.

The increases don’t apply to private student loans.

College loan interest rates

Last year, the average college graduate owed $37,172, up 6 percent from 2015, according to data from Student Loan Hero.

Students currently in college already estimate that they’ll owe a median of $30,000 to $39,999 by the time they graduate, according to a recent survey of 1,040 undergraduates by College Ave Student Loans.

Total student debt in the United States is now over $1.4 trillion — the majority of which is from federal loans.

Rates are up for everyone

An undergraduate who borrowed $25,000 at this year’s rate of 3.76 percent would pay $5,032 in interest over 10 years, according to NerdWallet’s student loan calculator.

With the rate increase, a student who borrows the same amount next academic year at 4.45 percent can expect to pay almost $1,000 more in interest.

“The financial impact of this increase is on the order of a few dollars a month on a 10-year repayment plan for every $10,000 borrowed,” said Mark Kantrowitz, vice president of strategy for college and scholarship search site Cappex.com.

“This increase doesn’t affect existing loans, just the ones that are disbursed starting July 1,” he said.

More from College Game Plan

College loan interest rates


FinAid, Calculators, Education Loan Interest Rates, college loan interest rates.#College #loan #interest #rates


college loan interest rates

College loan interest rates

College loan interest rates

College loan interest ratesCollege loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

College loan interest rates

Education Loan Interest Rates

The interest rates on Federal education loans change on July 1, and are based on the 91-day rate from the last Treasury auction in May and the average one-year constant maturity Treasury yield (CMT) for the last calendar week ending on or before June 26th. The following rates are updated automatically by a program that retrieves the latest appropriate Treasury bill auction data from the US Treasury web site. (During the month of June, the rates may reflect the updated reference rates. Check the date of the 91-day T-Bill and CMT reference rates listed below to see whether the student loan rates refer to the old or new academic year.)

Please note that the College Cost Reduction and Access Act of 2007 cut the fixed interest rates on newly originated subsidized Stafford loans for undergraduate students to 6.0% (2008-09), 5.6% (2009-10), 4.5% (2010-11) and 3.4% (2011-12), with a return to 6.8% in 2012-13. These cuts are available only to undergraduate students, not graduate students, and only for subsidized Stafford loans, not unsubsidized Stafford loans. Those loans remain at a fixed rate of 6.8%.

The Health Care and Education Reconciliation Act of 2010 switched to 100% Direct Lending for all new loans starting July 1, 2010. The Direct Loan program has a lower interest rate on the PLUS loan than in the FFEL program (7.9% vs. 8.5%).

In the following table, the In-School Rate includes grace and deferment periods, and the Repayment Rate includes forbearance periods.

For use with Net Present Value calculations, the discount rate based on the most recent 10-year Treasury note is 2.75%.

The interest rates listed above are based on the following reference rates:

  • 91-day T-Bill rate of 0.05% (05-28-2013)

  • 10-year Treasury Note rate of 2.75% (11-13-2013 10-YEAR)

    The interest rate formulas are as follows, where the 91-day T-bill rate is the investment yield of the 13-week Treasury Bill, not the discount rate:

    As of 11-12-2013, the current projections for the 2014-2015 variable interest rates are:

    • Projected Stafford Loan (In-School/Grace Period): 1.78%

  • Projected Stafford Loan (Repayment Period): 2.38%

  • Projected PLUS Loan: 3.18%


  • These projections would yield the following consolidation loan interest rates:

    • Projected Stafford Loan Consolidation (In-School/Grace Period): 1.88%

    • Projected Stafford Loan Consolidation (Repayment Period): 2.50%

    • Projected PLUS Loan Consolidation: 3.25%


    These projections represent a projected increase of 0.030% in interest rates.

    These projections indicate what the student loan interest rates would be if they were based on the most recent 91-day T-Bill auction, as opposed to the last 91-day T-Bill auction in May. They do not take into account the impact of future federal funds rate hikes and cuts by the Federal Open Market Committee (FOMC). Interest rate hikes and cuts by the FOMC usually trigger corresponding increases and cuts in education loan interest rates. Since education loan interest rates are based on market rates, and the market tends to anticipate interest rate moves by the FOMC, the dates of upcoming FOMC meetings should be considered when projecting likely education loan interest rate increases. Specifically, one should consider the dates of all FOMC meetings between the most recent 91-day T-Bill auction and the last 91-day T-Bill auction in May, plus any regularly scheduled June meetings of the FOMC. For example, if the FOMC has increased the fund rate by 25 basic points at each of its last three meetings and there is one more FOMC meeting before the last 91-day T-Bill auction in May, one can expect education loan interest rates to be about 25 basis points higher than the projections listed above.

    On February 8, 2002, President Bush signed legislation changing the interest rates on education loans from variable rates to fixed rates for new loans issued after July 1, 2006. The interest rate on the Stafford Loan is 6.8% and the interest rate on the PLUS Loan is 7.9%. The scheduled increase in the PLUS Loan interest rate was subsequently changed from 7.9% to 8.5% by the Higher Education Reconciliation Act of 2005, as passed on February 8, 2006. This bill, however, failed to make a parallel change to the Direct Loan program, so only the FFEL PLUS Loan interest rate will be increasing to 8.5%. Thus the fixed rates on new loans for which the first disbursement occurs on or after July 1, 2006 are: 6.8% Stafford, 7.9% Federal Direct PLUS and 8.5% FFEL PLUS.

    Other recent interest rates include:

    • 30-year Fixed Rate Mortgage: 4.87% [04/07/2011]
    • 91-day T-Bill: 0.09% [04/01/2011]
    • Certificate of Deposit (6 month): 0.36% [04/01/2011]
    • Commercial Paper Rate (3 month): 0.25% [04/01/2011]
    • Constant Maturity Treasury (1 year): 0.30% [04/01/2011]
    • Federal Funds Rate (Effective Rate): 0.13% [03/30/2011]
    • LIBOR (1 month): 0.29% [04/01/2011]
    • LIBOR (3 month): 0.42% [04/01/2011]
    • Prime Lending Rate: 3.25% [03/30/2011]

    Recent interest rate spreads include:

    • Spread Commercial Paper vs LIBOR (3 month): 0.17% [04/01/2011]
    • Spread Prime Lending Rate vs LIBOR (1 month): 2.96% [03/30/2011]
    • Spread Prime Lending Rate vs LIBOR (3 month): 2.83% [03/30/2011]

    Additional rate information can be found at the NCHELP E-Library.


    Home Equity Loan Advice, Line of Credit, HELOC, college loan interest rates.#College #loan #interest #rates


    Home Equity – All about line of credit

    College loan interest rates

    Monthly payment requirements can vary, depending on whether you have a fixed term loan or a line of credit that permits much smaller payments.

    Home Equity Advice

    The average cost of a $30,000 home equity line of credit has been around 4.8% all year. That’s as cheap as those loans have been in more than a decade. But you still need to be very careful when tapping the value of your home.

    November 7th 2017

    These are the predictable pitfalls that can turn the renovations of your dreams into a nightmare you’ll be reliving, and possibly regretting, for years to come. Avoid them, and you’ll dramatically increase the odds of bringing your project in on budget, on time and with absolutely delightful results.

    October 30th 2017

    Home equity lines of credit can be a cheap way to borrow money for home renovations, college bills or credit card debt. But is your home worth enough to support a second mortgage?

    October 24th 2017

    The simplest, most likely answer is that your heirs will be allowed to assume your loan and keep the home as long as they make the payments. But, as you’ll see, nothing is simple in estate law.

    October 17th 2017

    If you’re among the millions of Americans bracing for the minimum payment on your home equity line of credit to go up — way up — there’s no need to panic. There are lots of ways to deal with repaying this debt.

    if you’ve had a “For Sale” sign languishing in your yard for more than a couple of months, there’s a good chance you’re doing something wrong or have a problem that you’re unaware of and haven’t addressed. Here’s how to get your property moving.

    Whether you’re redoing your kitchen or tackling a smaller project, our expert tips will help you avoid the biggest remodeling mistakes.

    If your home isn’t getting the right amount of heat at the right price, it could be time to replace your furnace. Our 10 tips will guide you.

    Some home repairs you can postpone forever. These are the kinds of leaks, shorts, cracks and critters that can lead to exceptionally expensive, even catastrophic, damage that you simply can’t ignore.

    Wells Fargo no longer allows home equity line of credit borrowers to make interest-only payments on their loans, meaning minimum monthly payments will rise. But this move could also save your house from foreclosure.


    Student Loan Interest Rates Will Increase Next Year, Money, college loan interest rates.#College #loan #interest #rates


    The Rate for Undergraduate Student Loans Is About to Climb to 4.45%

    College and grad students borrowing for the upcoming academic year will pay higher interest rates on federal loans than they did this year, a difference that could amount to hundreds of dollars in extra interest over the life of a loan, following a Treasury auction Wednesday.

    The interest rate for undergraduate students is 4.45% for the 2017-18 school year, up from 3.76% for the current year. Graduate students can borrow at a rate of 6%, up from 5.31%. And for graduate students and parents who take out PLUS loans, the interest rate will be 7%, up from 6.31%. This year s rates overall are the lowest since the government stopped issuing variable rate student loans.

    Federal student loan interest rates have been tied to 10-year Treasury note rates since 2013, when Congress decided rates should reset every year based on market conditions. The interest rate move, set at an auction Wednesday, was expected after the Federal Reserve raised benchmark short-term interest rates twice in the past six months in response to healthy U.S. economic growth.

    Expectations that the Trump administration will increase government spending, while simultaneously cutting taxes potentially widening the budget deficit and pushing future interest rates higher was also a factor, says Stephen Dash, chief executive and founder of Credible.com, a student loan marketplace.

    The new interest rates, which go into effect July 1, apply only to borrowers who take out loans during the upcoming 2017-18 school year. However, those rates are fixed for the life of the loan, meaning borrowers will continue to pay the new, higher rates for years to come. Because new rates are set each year, it is common for undergraduates to have at least four separate loans with four different interest rates upon graduation.

    While this year s increase won t drastically change a borrower s monthly payment, the extra interest will add up over time. A student who borrows $5,500 for a year of college would pay $220 more in interest with this year s rate compared to last year s, based on a 10-year repayment timeline.

    Still, given last year s rates, borrowers are still getting a pretty good deal. Rates have been as high as 4.66% since the process for setting rates was changed in 2013. A decade ago, before the change, rates were above 6%.

    This article has been updated to clarify that interest rates on student loans were lower than 3.76% from 2003-2005, when the government issued variable interest rates on student loans.