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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.


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Parents, Don – t Co-Sign Student Loans! Student Debt Survivor, college loans for parents.#College #loans #for #parents


Parents, Don t Co-Sign Student Loans!

A few weeks ago I received an e-mail from a reader who was curious about my take on parents co-signing student loans with their kids. The reader was considering co-signing for a large student loan so that her daughter could attend a very expensive private university. The mom asked me if I thought it was a good idea for her to co-sign for the loan with her daughter, as the school was her daughter s, dream school and she didn t want her to be disappointed if she couldn t afford to attend the school with savings and scholarships alone. Here s what I told her:

Short answer: NO!

Longer answer: NOOOOOOOO!

Just kidding, my response was much kinder and and hopefully much more helpful than that. All jokes aside, I think that having your parents co-sign your loans (Parent Plus loans, private loans or otherwise) is a terrible idea. Many of my friends parents co-signed for their student loans and later regretted their decision to do so. Basically, they feel like they helped their kids saddle themselves with thousands of dollars in student loan debt when they, knew better. The, kids , who are not adults with kids of their own, regret bothering so much money and dragging my parents down with me.

Strangely, many students (and their parents) are willing to sign up for tens (and hundreds) of thousands of dollars of student loan debt to help themselves get ahead. They believe that student debt is, good debt and you can t get a good job without an expensive degree. Those people are wrong! But don t worry, I m not just pointing the finger at you, I m also pointing it right back at myself. I m one of those people who borrowed $30,000 to attend college and grad school. Today I m incredibly thankful that my parents didn t co-sign for my mistake.

Just say, No! to co-signing student loans:

If your daughter can t afford to attend school without a co-signer, her school is too expensive!

I know school is expensive and I d imagine that it s really hard to tell your child she can t afford her dream school. But if the dream school is out of her (and your) budget, maybe she should consider attending a cheaper university? 20 years from now will it matter she went to Boston College or University of Massachusetts? I doubt it.

  • Thanksgiving dinner tastes bad when you re, playing bank .

    Just imagine how awkward it will be sitting across the table from your adult daughter when you have a large outstanding debt together. Even if she s financially responsible and paying down the student loan debt expeditiously, you ll still feel annoyed when she buys a new car instead of paying off the remaining balance of the debt that you owe together.

  • When your kid can t get a job, you re stuck paying back the loans.

    Let s face it, the economy hasn t been that great over the past few years. Even if your child is a whiz kid, there s no guarantee that he ll get a job immediately after college.

  • Not everyone who starts college finishes.

    If your kid drops out of school and doesn t finish the degree, you re still on the hook for the bill. Have you seen the stats lately about college drop-outs? If your kid dropped out of college how would that impact your relationship? I suspect you d pay that monthly bill pretty begrudgingly when your son drops out of school and you re stuck paying the bill.

  • You might be hurting your own financial future.

    If you have to co-sign a loan (instead of giving your kid cash), can you really afford the payments you re signing up for? If you re putting yourself in financial jeopardy to help your kids finance college, you shouldn t be co-signing student loans. Helping your kids sign up for debt isn t really a blessing and might actually be a curse. Plus, if you can t afford to retire you may have to rely on your kids to support you.

  • Don t get me wrong, I know there are situations where parents have helped their kids by co-signing a student loan and everything was fine. The loan was paid back quickly and it didn t impact the family dynamics, or the parents finances. But I also know a lot of people who are in really bad financial situations and completely regret co-signing a loan with a parent or family member.

    Pay for school without parent plus loans:

    Chose a cheaper university.

    Check the costs at your local community college, in-state college and private universities (sometimes private schools end up being cheaper than public schools if you get a big scholarship. Check out this post for more details).

  • Take off a year to work.

    Stay at home, get a bunch of jobs, and hustle until you can afford the tuition at the school you want to attend. Work is a good way to build character, decide which career path you want to take (and which you don t!) and learn about life in the real world.

  • Work while you attend school.

    I worked throughout college. Take a look at this post for some of my favorite ways college students can make money while they re still in school.

  • Live at home.

    If you can afford the tuition, but can t afford the room and board, consider living at home and commuting to school. Depending on where you live, this could save you thousands of dollars per year in room and board.

  • Scholarships.

    Apply early and send out as many applications as you can. Your guidance or college counseling office should have a list of local scholarships. They should also be able to direct you to the websites where you can apply to national scholarships. Hint: don t ever pay anyone money to get a list of scholarships being offered-this information is free and widely available.


  • 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

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    Hillsdale College – Parents, college loans for parents.#College #loans #for #parents


    PARENTS

    Becoming a Hillsdale student is a wonderful testimony to your child’s achievements and character. We’re grateful for all you’ve done, and invite you to keep playing an active part. Join our Parents Association, attend Parents Weekend, and read our Parents Newsletter. Follow the links below to learn more.

    Financial Aid at Hillsdale

    Hillsdale costs significantly less than other nationally ranked, private liberal arts colleges—even though we refuse to accept even one penny of federal or state financial aid for student grants, loans, and scholarships. Our generous financial aid packages are made possible by gifts from donors across the nation: people who proudly share our principles of independence and self-government.

    Independence

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    Why is Hillsdale College’s independence so important?

    Hillsdale was the first American college to prohibit by charter admissions discrimination based on race, sex, or religion. Standing on principle continues to define us. By refusing even one penny of federal or state aid for student grants, awards, loans, or scholarships, we can be a truly independent institution—one not beholden to government regulations that conflict with our educational mission.

    Value

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    How does Hillsdale College’s value measure up?

    Hillsdale is consistently among the top colleges in best value rankings by The Princeton Review, Kiplinger’s, Forbes, and others. Thanks to the generosity of donors who share our principles of independence, integrity, and self-government, we can offer financial aid packages to 96 percent of our students, with an average aid package of $17,260. Hillsdale donors also make possible a wealth of other educational opportunities, including the largest college lecture series in America.

    Liberal Arts

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    Why are the classical liberal arts relevant?

    Our world will change—what it means to be human will not. We ask our students to grapple with the timeless truths and enduring questions of the Western Tradition. This develops a foundation for the rest of their lives, from their choice of major to their choice of career.

    The Parents Association

    The Parents Association helps students and the College through fundraising, recruitment, and helping build awareness of everything Hillsdale does. We encourage parents of any currently enrolled Hillsdale student to help us tell more people about what makes Hillsdale a great choice—and unique in the nation.


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    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.


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    Paperwork demystified — find forms and instructions here. Tips on filling out the FAFSA and maximizing eligibility.

    College loans for students

    ‘Ask the Aid Advisor’ for personalized help. Read the financial aid FAQ and glossary for other answers.

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    Fixed-rate parent student loans—as low as 5.8% APR

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    Upcoming Events

    Financial Aid Forms Workshop: Enosburg Falls High School

    6:00pm – 8:00pm Enosburg Falls High School

    Join us for a free Financial Aid Forms workshop. At this informal workshop, we will assist you as you file your FAFSA and Vermont state grant applications.

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    Financial Aid Forms Workshop: River Bend Career Technical Center

    5:00pm – 8:00pm River Bend Career Technical Center

    Join us for a free Financial Aid Forms workshop. At this informal workshop, we will assist you as you file your FAFSA and Vermont state grant applications.

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    FAFSA Help: VSAC helpline walk-in assistance 11/16/17

    4:00pm – 8:00pm VSAC Resource Center in Winooski

    Will you be filing a FAFSA? The Free Application for Federal Student Aid is your pathway to funding for the education and career training after high school. Every student should file!

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    Learn About VHEIP: Oak Grove School Open House

    5:30pm – 7:00pm Oak Grove School

    VHEIP will be at the fall Open House for parents and students at Oak Grove School in Brattleboro on Thursday, November 16 from 5:30 to 7:00pm to give away free piggy banks or backpacks and speak with parents about how they can save and pay for college.

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    The Best College Loan for Students, college loan.#College #loan


    The Best College Loan for Students

    As recently as the early 1990s, most students did not take out college loans. Today about two out of every three students borrow to pay for college due to the runaway cost of college.

    The typical student borrower is now leaving school with debt of $29,400. Just the outstanding federal college loan debt now exceeds credit-card debt.

    Is $29,400 a reasonable amount of student debt?

    It depends on what types of student loans an undergraduate selects. The level of debt will be more manageable if the student only borrows via federal student loans. For most students that will mean obtaining federal Direct Subsidized College loanLoans and Direct Unsubsidized Loans. You will also see them referred to as Stafford Loans.

    Federal Student Loans

    Here is why these direct federal loans are superior:

    The federal Direct Subsidized and Unsubsidized Loans are designed strictly for students. Borrowers must begin repaying these loans shortly after graduating or leaving college.

    Subsidized Vs. Unsubsidized Loans

    The interest rate on both the subsidized and the unsubsidized federal loans for the 2014-2015 school year will be 4.66%, which is higher than the previous year s rate of 3.86%. The interest rates are linked to the 10-year U.S. Treasury note.

    The best loan to get is the Direct Subsidized Loan. Students who qualify for this one don’t have to pay the interest that accrues while they are enrolled in college. The federal government pays this interest. In contrast, borrowers through the unsubsidized Stafford are responsible for covering the interest that accrues while in college.

    Qualifying for a Direct Subsidized Loan

    Your college will tell you if your child qualifies for the subsidized loan. Look at the financial aid package that your teenager receives to see what the breakdown is between subsidized versus unsubsidized Stafford loans.

    A federal formula is used to determine if a student, based on a family’s finances, is eligible for the better subsidized deal. The majority of subsidized federal loans are awarded to students whose family’s adjusted gross income is less than $50,000.

    You may see both kinds of direct loans in your package.

    Federal Loan Borrowing Limits

    Here is a federal chart that outlines how much students can borrow. The left-hand column shows the maximum amount that traditional (i.e. dependent) college students can borrow. Here is the definition of independent students.

    The other column shows how much independent students , as well as dependent students whose parents were denied a federal PLUS Loan. Students whose parents could not obtain the PLUS Loan can borrow up to $57,500.

    If a student takes the traditional four years to graduate from college, the maximum he/she can borrow will be $27,000. If the student needs longer to graduate with a bachelor s degree he/she can only borrow an additional $4,000.

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    When should I apply for my federal student loan?

    The new year for federal student loans starts July 1. So if your child will begin college in the fall, you would apply for the loan sometime after July 1.

    Your child s school will notify you of the loan amounts that it is offering in an award letter.

    You should evaluate the aid offer carefully. Keep in mind that whatever amount you borrow must be paid back with interest. If your living expenses are not as high as those projected by your school, you should not borrow as much as the amount in the award letter.

    To get an idea of what monthly loan payments will be after graduation, take a look at the federal repayment calculator.

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