Loan

Credit News

HealthEd Credit Union (Home, federal education loans.#Federal #education #loans


federal education loans

Federal education loans

Protect Yourself from Scams

Remember, we NEVER ask for any account information via email.

Federal education loans

Check out our Variety of Loans

THEFCU has a wide range of loan products that meet the various needs of our members.

Federal education loans

Register today for THEFCU Online Banking to transfer money and pay bills from the comforts of home!

Federal education loans

Call us to consolidate your Christmas expenses. Loans as low as 8% APR.

Federal education loans

Ask THEFCU quickly and safely using our secure Contact Us form.

Stay Connected

Find the form you need quick and easy.

Today’s Rates

Federal education loans Federal education loans Federal education loans

*APR = Annual percentage rate. All rates subject to change without notice.

*APR = Annual percentage rate. All rates subject to change without notice.

3 Year Certificate

*APR = Annual percentage rate. All rates subject to change without notice.

Our Featured Partners

Check out our current online services

THEFCU provides you with the latest services to make your banking easier.

  • NCUA
  • eZcard info.com

Federal education loans Federal education loans

Federal education loans Federal education loans

Copyright © 2011 by The Health and Education Federal Credit Union.


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.


FinAid, Loans, Student Loan Consolidation, federal loan consolidation.#Federal #loan #consolidation


federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidationFederal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Federal loan consolidation

Student Loan Consolidation

Consolidation Loans combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. They also provide an opportunity for alternative repayment plans, making monthly payments more manageable.

Consolidation loans are available for most federal loans, including Stafford, PLUS and SLS, FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer private consolidation loans for private education loans as well.

The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent. That interest rate is fixed for life.

For example, suppose a student has just unsubsidized Stafford Loans originated on or after July 1, 2006. These loans have a fixed interest rate of 6.8%. When they are consolidated by themselves, the consolidation loan will have an interest rate of 6 and 7/8ths of a percent, or 6.875%. So the interest rate increases only slightly.

If the borrower has a mix of loans with different interest rates, the weighted average will be somewhere in between. For example, if the borrower has $5,000 of Perkins Loans (at 5.0%) and $10,000 of unsubsidized Stafford Loans (at 3.86%), the weighted average is

This weighted average, 4.2%, is then rounded up to the nearest 1/8th of a percent, yielding a consolidation loan interest rate of 4.25%.

If you are consolidating loans with different interest rates, the weighted average interest rate will always be in between. Don’t be fooled if someone tries to suggest that this will save you money by getting you a lower interest rate. The interest rate may be lower than the highest of your interest rates, but it is also higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the loan will be about the same.

No Cost to Consolidate

Aside from a slight increase in the interest rate on the consolidation loan, there is no cost to consolidate your loans. There are no fees to consolidate.

Under no circumstances pay a fee in advance to get a federal education loan or consolidate your federal education loans. There are no fees to consolidate your loans. While other federal education loans, such as the Stafford and PLUS loans, may charge some fees, the fees are always deducted from the disbursement check. There is never an upfront fee. If someone wants you to pay an upfront fee, chances are that it is an example of an advance fee loan scam.

Who Can Consolidate

Both student and parent borrowers can consolidate their education loans. Students and parents cannot combine their loans through consolidation, since only loans from the same borrower can be consolidated. But they can consolidate their loans separately.

Students can consolidate their education loans only during the grace period or after the loans enter repayment. Loans that are in default but with satisfactory repayment arrangements may also be consolidated. Students can no longer consolidate while they are still in school. Parents, however, can consolidate PLUS loans at any time.

Which Loans Can be Consolidated?

Any federal education loan can be consolidated. You can even consolidate a single loan. There are, however, a few restrictions on consolidating a consolidation loan.

You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself.

Note that when you reconsolidate a consolidation loan, it does not relock the rates on the consolidation loan. The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan.

Consolidation loans provide access to several alternate repayment plans besides standard ten-year repayment. These include extended repayment, graduated repayment, income contingent repayment (Direct Loans only) and income sensitive repayment (FFEL only). If you do not specify the repayment terms, you will receive standard ten-year repayment.

Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid over the lifetime of the loan is increased.

You do not need to pick an alternate repayment plan. We recommend sticking with standard ten-year repayment, because it will save you money. The alternate repayment plans may have lower monthly payments, but this increases the term of the loan and the total interest paid over the lifetime of the loan.

Repayment on a consolidation loan will begin within 60 days of disbursement of the loan, unless the borrower qualifies for a deferment or forbearance.


Refinance Student Loans with SoFi, Federal and Private, federal student loan rates.#Federal #student #loan #rates


Refinance Student Loans

Fixed rates start at 3.350% APR and variable rates start

as low as 2.815% when you enroll in AutoPay 1 .

Checking your rate will not affect your credit score .

LEADING STUDENT LOAN REFINANCING PROVIDER *

We’ve refinanced the most student debt in the U.S., so saving you money on student loans is kind of our thing. In fact, members who refinance with us save an average of $288 2f a month—and $22,359 2 total. SoFi is one of few lenders that handles federal and private student loan consolidation. Plus, as a member, you’ll have access to a whole lot of perks: career strategy services, customer support seven days a week, invites to SoFi events, and more. Get started by checking your rates online in just two minutes.

Rates and Terms

No origination fees in most states, no prepayment penalties. Whether you’re looking to refinance federal student loans, pay off loans sooner, or get a lower monthly payment (maybe all three), we offer a range of rates and terms. Choose what works for you.

Variable Rate

Rates start from 2.815% APR to

6.740% when you enroll in AutoPay. 1

Fixed Rate

Rates available from 3.350% APR to

7.125% when you enroll in AutoPay. 1

Why Refinance Student Loans with Sofi?

Serious

Low fixed and variable rates. No application or origination fees. Average member savings: $22,359 2 .

Federal + Private

SoFi is one of few lenders that can consolidate and refinance both federal and private loans (in a snap).

Exclusive

Get a 0.125% rate discount ✝✝ on an additional SoFi loan—just for being a member.

Unemployment

If the unexpected happens, we’ll temporarily pause your loan payments and help you in your job search.

Career

Our coaches will help you advance in your career, build a personal brand, negotiate your salary, and more.

Wealth

Finances and investments can be confusing. Our Wealth advisors are here to help you make sense of it all.

Refinance student loans in three easy steps

If you have questions, our friendly customer support team is standing by to help you through the process—seven days a week.

Online Pre-Approval

Our quick pre-approval process lets you know if you qualify before you complete the full application.

Select a Loan

Compare the plans available to you with specific payments, rates, and terms.

Upload Sign

Easily upload documents via screenshots or smartphone photos, then sign your paperwork electronically.

Trust And Security

Financial Protection Bureau

Hear From Our Members

With benefits like career counseling, unemployment protection and entrepreneur programs, our members have a lot to say.

Federal student loan rates

Chris Martinez

Federal student loan rates

Chiara McPhee

Federal student loan rates

Jared Pool

University of the Pacific

Common Questions

Refinancing Federal

and Private Loans

Consolidating vs

You Might Also Like

Student Loan Smarts: Consolidation vs. Refinancing

To consolidate or refinance student loans; that is the question. Which begs two, much more important questions. More

Student Loan Consolidation: When to Combine Federal and Private Loans Through Refinancing

One of the biggest student loan myths out there is that borrowers can’t consolidate federal and private student loans. More

Student Loan Smarts: How Student Loans Affect Your Credit Score

Are you currently paying down a substantial student loan balance? If so, you’re not alone. A recent. More

Student Loan Calculator

Learn how you could lower your monthly payments and save on total interest when you refinance student loans with SoFi.

Received a mailer from us?

If you got a letter stating that you’re pre-selected for a SoFi loan, you’re in the right place. Get started by entering your confirmation number below.

QUESTIONS?

  • Mon-Thu 4:00 AM – 9:00 PM PT
  • Fri-Sun 4:00 AM – 5:00 PM PT
  • Mon-Thu 8:00 AM – 5:00 PM PT
  • Fri 8:00 AM – 4:00 PM PT
  • Sat 7:00 AM – 2:00 PM PT
  • Mon-Thu 4:00 AM – 9:00 PM PT
  • Fri-Sun 4:00 AM – 5:00 PM PT

PRODUCTS

COMPANY

LEGAL

QUESTIONS

  • FAQ
  • Contact Us
  • Tweet@SoFiSupport
  • Customer Support:(855) 456-7634
  • Mon-Thu 4:00 AM – 9:00 PM PT
  • Fri-Sun 4:00 AM – 5:00 PM PT
  • Mon-Thu 8:00 AM – 5:00 PM PT
  • Fri 8:00 AM – 4:00 PM PT
  • Sat 7:00 AM – 2:00 PM PT
  • Mon-Thu 4:00 AM – 9:00 PM PT
  • Fri-Sun 4:00 AM – 5:00 PM PT

HEAR ABOUT SOFI TIPS, EVENTS MORE

  • Federal student loan rates
  • Federal student loan rates

Healdsburg, CA 95448

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.


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


Federal student loan interest rates to rise Saturday

Federal student loan 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.

Federal student loan 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


Federal Consolidation Loans, Student Loan Debt Consolidation, federal student loan consolidation.#Federal #student #loan #consolidation


Effortlessly Solve Your Student Loan Debt Issues Today

IN DEFAULT?

If you are in default we can find you the best Federal mandated rehabilitation options.

ONE PAYMENT

If you are sick of having bills pile up, let us consolidate all your student loans into one tidy monthly payment.

REPAYMENT PLANS

For your Federal Student Loans there are plenty of options that are allowed by Federal law. We can help find the best option that you qualify for.

FORGIVENESS PROGRAMS

We can find you the best forgiveness program for your situation and we can walk you through the process quite easily.

Fill out the following form to have one of our Student Debt Relief Experts call you with a FREE Step-by-Step Action Plan that will resolve your particular situation.

Student Loan Debt Consolidation

Student Loan Consolidation is available to help students reduce their federal education debts by combining all of their outstanding loans into a single loan.

WHO IS ELIGIBLE FOR A CONSOLIDATION?

Consolidation Loans are available to most borrowers of Federal education loans and come from one of two sources. Direct Consolidation Loans and Federal Consolidation Loans.

WHAT IS CONSOLIDATION

The Financial meaning of the term: Taking Multiple debt or credit lines and consolidating them into one new payoff plan. Frequently, this is a consolidation loan, provided to consolidate debts into one loan with one payment.

WHY CONSOLIDATE

Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages.

GREAT REASONS WHY TO CONSOLIDATE

One Lender and One Payment
Repayment Options
No Minimum or Maximum Loan Amounts
Reduced Monthly Payments
Strengthen Your Credit

Seeing that there is a mountain of student loan debt saddling recent and older graduates, there have been many programs made available to help those struggling with student loan debt.

We can help choose the best repayment option for your situation

Standard Repayment

With the standard plan, you’ll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you’ll have up to 30 years to repay your loans with a fixed interest rate. The standard plan is a good fit for you, if according to your budget the IBR, ICR and PAYE plans are higher in monthly payment, as the standard plan does not account for your finances.

Graduated Repayment

With this plan your payments start out low and increase every two years. The length of your repayment period will be up to 30 years. If you expect your income to increase steadily over time, this plan may be right for you. Your monthly payment will never be less than the amount of interest that accrues between payments.

Income Based Repayment Plan (IBR)

Under this plan the required monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. The maximum repayment period under this plan may exceed 25 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance of your loans.

Pay As You Earn (PAYE)

On December 2012 the DOE announced that borrowers with Federal Student Loans may now be able to take advantage of a new repayment plan that could lower their monthly federal student loan payments. The plan, known as Pay As You Earn, caps monthly payments for many recent graduates at an amount that is affordable based on their annual income. This new option follows through on President Obama’s promise to provide student graduates with relief on their student loan payments and help them responsibly manage their debt payments.

Income Contingent Repayment (ICR)

  • This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse’s income if you’re married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:
    1. the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or
    2. 20% of your monthly discretionary income.

If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized. The maximum repayment period is 25 years. If you haven’t fully repaid your loans after 25 years under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.


Federal Student Loans, VSAC, federal student loans.#Federal #student #loans


Federal Student Loans

Federal student loans may be offered as part of your school’s financial aid offer. These loans have many benefits—like low interest rates that remain fixed (unchanged) for the life of your loan. If you have financial need, the U.S. government may even pay the interest on your federal student loans while you’re enrolled in school.

Remember: You’ll still need to pay back these loans, with interest. So be sure to look carefully at the loan type and payment terms—and compare to other loans like VSAC’s Vermont Advantage Loans—before deciding whether to accept the offer. And remember—always borrow only the amount you need.

Also, be sure to keep track of the loans you’re taking out as you go along—especially if you choose to postpone payments. Make a list of the loan type, principal balance, and interest rate. This information will come in handy if you later want to consolidate your loans or explore your eligibility for income-driven repayment plans.

Learn more about these federal student loans:

FEDERAL PERKINS LOANS FOR STUDENTS

Federal Perkins Loans are low-interest student loans available to undergraduate, graduate, or professional degree students who:

  • Demonstrate exceptional financial need
  • Are enrolled in college or a career training program full- or part-time
  • Are enrolled in a school that offers Federal Perkins Loans
  • Meet other eligibility criteria

Your school will determine if you are eligible for a Federal Perkins Loan, based on the information reported in your Free Application for Federal Student Aid (FAFSA) and sometimes other factors. If you are eligible, the school will include a Perkins loan in your financial aid offer.

Tip: Accept a Perkins loan first—if it’s offered. Perkins loans offer benefits, including:

  • No loan fees
  • A low fixed interest rate
  • Government subsidy during school and for the first 9 months after you leave school, and during periods of deferment

FEDERAL DIRECT LOANS FOR STUDENTS

Federal Direct Loans are available for undergraduate, graduate, or professional degree students who are enrolled in college or a career training program at least half-time (at least 6-8 credits per semester).

There are 2 types of Federal Direct Loans: Subsidized and Unsubsidized.

Federal Direct Subsidized Student Loans

Federal Direct Unsubsidized Student Loans

You must demonstrate financial need to qualify.

You do not need to demonstrate financial need to qualify.

The U.S. Department of Education will pay the loan’s interest while you’re in school at least half time, for the first 6 months after you leave school, and during any periods of deferment.

You are responsible for paying the loan’s interest, as soon as the loan is disbursed.

4.45% fixed rate (July 1, 2017 – June 30, 2018) for undergraduate students

6.00% fixed rate (July 1, 2017 – June 30, 2018) for graduate or professional students

1.069% (Oct 1, 2016 – Sept 30, 2017)

1.066% (Oct 1, 2017 – Sept 30, 2018)

  • Payment suspension and government subsidy while enrolled in school and during 6-month post-enrollment grace period
  • Payment suspension and government subsidy also available during periods of deferment in addition to income-driven plans
  • Payment suspension while enrolled in school and during 6-month post-enrollment grace period
  • Payment suspension also available during periods of deferment in addition to income-driven plans

Your school will determine if you are eligible for a Federal Direct Subsidized or Unsubsidized Loan—or a mix of both—based on the information reported in your Free Application for Federal Student Aid (FAFSA) and sometimes other factors. If you are eligible, the school will include 1 or more Federal Direct Loans in your financial aid offer.

FEDERAL DIRECT PLUS LOANS FOR GRADUATE PROFESSIONAL STUDENTS OR PARENTS

Federal Direct PLUS loans are available to:

  • Graduate or professional students who:
    • Are enrolled at least half-time in an eligible school in a program leading to a graduate or professional degree or certificate
    • Do not have an adverse credit history
    • Meet the general eligibility requirements for federal student aid

Tip for graduate students: You may want to consider accepting a Graduate PLUS loan—if it’s offered—because of its flexibility. Grad loans have low fees, fixed interest rates, and flexible payment suspension options.

  • Parents who:
    • Are taking the loan out for an undergraduate student enrolled at least half-time in an eligible school
    • Do not have an adverse credit history
    • Meet the general eligibility requirements for federal student aid (both parent and student)

Tip for parents: A Parent PLUS loan offers some benefits—including flexible payment suspension options. Many education lenders offer loans with lower interest rates and fees than the federal government. Review your options and find what is best for your family situation.

Comparing the Direct PLUS Loan for Graduate Students vs the Direct PLUS Loan for Parents

Direct PLUS Loan for Graduate Students


Federal Student Loans, VSAC, federal loans.#Federal #loans


Federal Student Loans

Federal student loans may be offered as part of your school’s financial aid offer. These loans have many benefits—like low interest rates that remain fixed (unchanged) for the life of your loan. If you have financial need, the U.S. government may even pay the interest on your federal student loans while you’re enrolled in school.

Remember: You’ll still need to pay back these loans, with interest. So be sure to look carefully at the loan type and payment terms—and compare to other loans like VSAC’s Vermont Advantage Loans—before deciding whether to accept the offer. And remember—always borrow only the amount you need.

Also, be sure to keep track of the loans you’re taking out as you go along—especially if you choose to postpone payments. Make a list of the loan type, principal balance, and interest rate. This information will come in handy if you later want to consolidate your loans or explore your eligibility for income-driven repayment plans.

Learn more about these federal student loans:

FEDERAL PERKINS LOANS FOR STUDENTS

Federal Perkins Loans are low-interest student loans available to undergraduate, graduate, or professional degree students who:

  • Demonstrate exceptional financial need
  • Are enrolled in college or a career training program full- or part-time
  • Are enrolled in a school that offers Federal Perkins Loans
  • Meet other eligibility criteria

Your school will determine if you are eligible for a Federal Perkins Loan, based on the information reported in your Free Application for Federal Student Aid (FAFSA) and sometimes other factors. If you are eligible, the school will include a Perkins loan in your financial aid offer.

Tip: Accept a Perkins loan first—if it’s offered. Perkins loans offer benefits, including:

  • No loan fees
  • A low fixed interest rate
  • Government subsidy during school and for the first 9 months after you leave school, and during periods of deferment

FEDERAL DIRECT LOANS FOR STUDENTS

Federal Direct Loans are available for undergraduate, graduate, or professional degree students who are enrolled in college or a career training program at least half-time (at least 6-8 credits per semester).

There are 2 types of Federal Direct Loans: Subsidized and Unsubsidized.

Federal Direct Subsidized Student Loans

Federal Direct Unsubsidized Student Loans

You must demonstrate financial need to qualify.

You do not need to demonstrate financial need to qualify.

The U.S. Department of Education will pay the loan’s interest while you’re in school at least half time, for the first 6 months after you leave school, and during any periods of deferment.

You are responsible for paying the loan’s interest, as soon as the loan is disbursed.

4.45% fixed rate (July 1, 2017 – June 30, 2018) for undergraduate students

6.00% fixed rate (July 1, 2017 – June 30, 2018) for graduate or professional students

1.069% (Oct 1, 2016 – Sept 30, 2017)

1.066% (Oct 1, 2017 – Sept 30, 2018)

  • Payment suspension and government subsidy while enrolled in school and during 6-month post-enrollment grace period
  • Payment suspension and government subsidy also available during periods of deferment in addition to income-driven plans
  • Payment suspension while enrolled in school and during 6-month post-enrollment grace period
  • Payment suspension also available during periods of deferment in addition to income-driven plans

Your school will determine if you are eligible for a Federal Direct Subsidized or Unsubsidized Loan—or a mix of both—based on the information reported in your Free Application for Federal Student Aid (FAFSA) and sometimes other factors. If you are eligible, the school will include 1 or more Federal Direct Loans in your financial aid offer.

FEDERAL DIRECT PLUS LOANS FOR GRADUATE PROFESSIONAL STUDENTS OR PARENTS

Federal Direct PLUS loans are available to:

  • Graduate or professional students who:
    • Are enrolled at least half-time in an eligible school in a program leading to a graduate or professional degree or certificate
    • Do not have an adverse credit history
    • Meet the general eligibility requirements for federal student aid

Tip for graduate students: You may want to consider accepting a Graduate PLUS loan—if it’s offered—because of its flexibility. Grad loans have low fees, fixed interest rates, and flexible payment suspension options.

  • Parents who:
    • Are taking the loan out for an undergraduate student enrolled at least half-time in an eligible school
    • Do not have an adverse credit history
    • Meet the general eligibility requirements for federal student aid (both parent and student)

Tip for parents: A Parent PLUS loan offers some benefits—including flexible payment suspension options. Many education lenders offer loans with lower interest rates and fees than the federal government. Review your options and find what is best for your family situation.

Comparing the Direct PLUS Loan for Graduate Students vs the Direct PLUS Loan for Parents

Direct PLUS Loan for Graduate Students


FinAid, Loans, federal education loans.#Federal #education #loans


federal education loans

Federal education loans

Federal education loans

Federal education loansFederal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

An education loan is a form of financial aid that must be repaid, with interest. Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private student loans (also called alternative student loans). A fourth type of education loan, the consolidation loan, allows the borrower to lump all of their loans into one loan for simplified payment. A recent innovation is peer-to-peer education loans.

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Federal education loans

Grants, scholarships, work-study and other forms of gift aid just do not cover the full cost of a college education. Many students find that they must supplement their savings with government and private loans. The Federal education loan programs offer lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education. You can also deduct up to $2,500 in student loan interest even if you don’t itemize deductions on your income tax return.