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Propiedades en alquiler y venta en Capital Federal В·, alquiler en capital federal.

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Venta de Departamento 4 AMBIENTES c/dependencia en Barrio Norte, Capital Federal 4 ambient.

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Alquiler de Departamento MONOAMBIENTE en San Nicolás, Capital Federal. Monoambiente.

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Venta de Departamento 2 AMBIENTES en Floresta, Capital Federal. 2 ambientes al frente con .

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What Is a Federal Annuity?

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What Is a Federal Annuity?

In general, annuities provide a way to save for retirement. Investors looking for a safe means of insuring a steady stream of income in retirement often buy annuities. A federal annuity is a similar product – but not available to the general public.

Definition of Annuity

The term annuity refers to a long-term financial instrument designed for retirement savings. Many annuities have tax advantages. The contributions are often tax-free.

People invest in annuities mainly to save for retirement. Investors can buy annuities from a financial institution, usually an insurance company. The annuity allows the investor to contribute money and then receive a stream of payments at a later date. Annuity payments can be fixed or variable depending on the preference of the investor.

Federal Annuities

A federal annuity is a part of an employer-sponsored retirement plan. The structures differ slightly for employees in the CSRS (Civil Service Retirement System) or the FERS (Federal Employees Retirement System). In either case, federal employees contribute to their annuity while employed by the government, and the money is typically matched by the agency. The money accumulates over time and then is paid back to the employee after retirement each month for the rest of that employee s life.

How a Federal Annuity Works

When an employee retires from the federal government, he begins to receive annuity payments. This is very similar to receiving payments from a pension plan. The employee receives stable payments that are calculated based on years of service and average pay. Federal annuities are not available to the general public as investment vehicles.

CSRS

Federal employees who were first employed before 1987 typically fall under the CSRS. CSRS employees have a defined benefit plan. They contribute 7 percent to 8 percent of income to their annuity, and the employing agency matches that contribution. Employees can also make voluntary contributions of up to 10 percent of base pay. The CSRS is a very secure system, with a predictable annuity stream.

FERS

Employees hired later than 1987 fall under the FERS system. The FERS retirement program includes a Basic Benefit Plan, Social Security and a Thrift Savings Program. The FERS is more transferable if an employees leaves federal service, but is not as secure and predictable as the CSRS plan.

More Information

If you are a prospective federal employee, the website of the U.S. Office of Personnel Management (OPM) provides information about the benefits of being a federal employee.


Federal Workers Compensation Attorney Alan J

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New Clients Call: 216-991-6890

A NOTE TO INJURED WORKERS FROM ATTORNEY ALAN J. SHAPIRO, NATIONWIDE PRACTITIONER OF FEDERAL WORKERS’ COMPENSATION LAW

Are you a federal worker who has been hurt on the job, or contracted a work-related disease? Do you have questions about FECA (the Federal Workers Compensation Act), or the OWCP (Office of Workers Compensation Programs)? Do you have questions about your rights in regards to Federal Workers’ Compensation work injuries or diseases?

We represent our clients. We do not refer you to another firm. We are not a referral service. We do our own representation. Our fee schedule is beneficial to the injured worker pursuant to the guidelines established by the Department of Labor (DOL). We represent civilian workers injured overseas or on military bases (Defense Base Act cases), Non-Appropriated Funds Claims, and Longshore claims. We also represent workers exposed to nuclear radiation.

My Story: How I started practicing Federal Workers’ Compensation

Three weeks after I started practicing law in 1962, my father called me into his office to discuss a new case. Sitting in the client chair was a man wearing a blue uniform with the words “Post Office”. My father said: “AJ, I want you to represent this man.” I replied: “But Dad, I don’t know anything about Federal Workers’ Compensation.” He answered: “You already know more than most lawyers – at least you know it is a Federal Workers’ Compensation case.”

I have represented USPS workers from that day to the present. I now represent USPS workers in every state. Our firm provides legal representation throughout the United States for injured civilian employees of the Federal Government from all Federal Agencies including:

  • Post Office (USPS)
  • The United States Customs and Border Patrol (CBP)
  • The Veterans Administrations (VA)
  • Department of Homeland Security (DHS)
  • The Federal Bureau of Investigation (FBI)
  • Social Security Administration (SSA)
  • The Drug Enforcement Agency (DEA)
  • Internal Revenue Service (IRS)
  • The Transportation Security Administration (TSA)
  • Department of Justice (DOJ)
  • Department of the Interior (DOI, Park Service)
  • Department of Defense (DOD)

At any point in the process of seeking Federal Workers’ Compensation or appealing a worker’s compensation case, the advice of an attorney is helpful.

Let our family fight for your family.

Federal Workers’ Compensation Attorney

OWCP Lawyer Alan J. Shapiro is the second-generation member of his family to practice Workers’ Compensation law. His father, Maurice Shapiro, beganworking in this specialty in 1934; and Alan has carried on the tradition since his graduation from Case Western Reserve University School of Law in 1962.

Today, Alan practices Federal Workers’ Compensation Law and State of Ohio Workers’ Compensation Law with his sons, Geoffrey J. Shapiro and Daniel L. Shapiro. Alan J. Shapiro is a Certified Workers’ Compensation Specialist in the State of Ohio. Alan has more than 44 years of experience in obtaining justice for injured workers. Geoffrey J. Shapiro offers clients more than nineteen years of experience in a wide variety of litigation matters. Geoffrey is also a member of the California Bar. Daniel L. Shapiro has practiced with his father in the area of workers’ compensation administrative law since 1992.

Alan, Geoffrey and Daniel Shapiro offer their clients experience, integrity, and an old-fashioned work ethic augmented by up-to-date technology.

Practice Areas

  • Federal Workers’ Compensation Practice Nationwide
  • Office of Workers’ Compensation Programs (OWCP) claims
  • Federal Employee Compensation Act (FECA) claims
  • Longshore and Harbor Workers claims
  • Defense Base Act -Represent civilians working on military bases or for contractors overseas
  • Non-Appropriated Funds Claims
  • Ohio Personal Injury cases
  • OhioWorkers’ Compensation claim — in fact Alan Shapiro is a Board Certified Specialist in Workers’ Compensation claims

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

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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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More information on our products, services or feedback on our Web site | Phone: 209-383-5550 or 800-542-2345 | Fax: 209-383-2308 | Email Us



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



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


Student Loan Consolidation

Student loan consolidation is a good option if you are having trouble paying your loans. You can consolidate just one loan, or several loans. You can consolidate loans even if you re already in default. In fact, consolidation is one good way to get out of default. (To learn about other ways to get out of default on student loans, see Student Loans: Getting Out of Default.)

A consolidation loan allows you to combine your federal student loans into a single loan with one monthly payment. This may be a good option if any of the following are true:

  • You can t afford the monthly payments on your federal student loans under any of the options described in Student Loan Repayment Options, and don t qualify for a postponement or for loan cancellation.
  • You qualify for some of the payment plans described in Student Loan Repayment Options, but you are so deep in debt that you still can t afford your monthly payments.
  • You can afford your monthly payments and intend to pay off your loans under a standard plan, but you want to refinance at a lower interest rate.
  • You are in default on one or more of your student loans and want to get out of default.

Eligibility for Student Loan Consolidation

The vast majority of federal loans are eligible for consolidation, including subsidized and unsubsidized Stafford loans (GSLs), Direct loans, Supplemental Loans for Students (SLSs), Perkins loans, FISLs, and (except in an IBR Plan Consolidation Loan) PLUS Loans. (To find out what type of loan you have, see Types of Federal Student Loans.)

All borrowers with these loans are eligible to consolidate after they graduate, leave school, or drop below half-time enrollment. However, because consolidation loans have no grace period while you are in school or for the six months afterwards (unlike nonconsolidation loans, which usually do have a grace period during this time), getting a such a loan may not be a good idea if you are still in school or just graduated and don’t yet have a job.

Restrictions

Tthere are some restrictions to loan consolidation. Private student loans cannot be included in a federal consolidation loan. In addition, spouses cannot consolidate their loans into a single consolidation loan. And, borrowers who are in default must meet certain requirements before they can consolidate.

Pros and Cons of Consolidation

Consider both the advantages and disadvantages of consolidation before obtaining a consolidation loan.

Disadvantages to Consolidation

Potential disadvantages include the possibility that, if you have old loans, consolidation will cause your interest rate to go up. Moreover, consolidation will extend the repayment period, which means that you will pay more interest over the life of your loan. Consolidation will not completely clean up your credit report, either. If you were in default, your report will reflect that your previous loans were in default but are now paid in full through the new loan.

In addition, your right to assert a school-related claim against the lender of the consolidation loan is not clear. That right might be important, for example, if you got a loan to attend a for-profit school because it lied about the likelihood of you getting a job after graduation. If you think you have a claim against the school, it is better to consult an attorney experienced in bringing these kinds of cases before you consolidate your loan.

To find an experienced student loan lawyer, visit Nolo’s Lawyer Directory.

Advantages to Consolidation

Loan consolidation offers some potential advantages, too. If you are in default on any of your government loans, consolidation may offer the opportunity to get out of default and make affordable monthly payments. When interest rates are low, consolidation gives you the advantage of locking in a low rate on your student loans.

Direct Consolidation Loan Program

As with the Direct Loan Program, the federal government provides Direct Consolidation Loans.

Direct Consolidation Loans come with flexible repayment options, including a standard plan, a graduated plan, and an extended plan, and in most circumstances an Income Contingent Repayment Plan (ICRP) or an Income Based Repayment Plan (IBR). To learn about these, see Student Loan Repayment Options.

If you are in default, a Direct Consolidation Loan is a good way to get out of default and obtain a repayment plan that you can afford. In order to get out of default through a Direct Consolidation Loan, you must make three affordable monthly payments to the loan holder first (which can be as low as $5) or agree to an ICRP or IBR on the consolidated loan. Borrowers are also eligible for deferments in certain circumstances.

Each loan consolidated under the program keeps its interest subsidy benefit. This can be important if you return to school.

To qualify for a Direct Consolidation Loan, you must have at least one Direct loan or FFEL. So, if you have only a Perkins loan, for example, you don t qualify. If you have at least one FFEL, but no Direct loans, then you must certify you are unable to obtain a FFEL with an Income Sensitive Repayment Plan acceptable to you and are eligible for an Income Contingent Repayment Plan. As of 2010, there are no more FFEL Consolidation loans available, so the requirement that you cannot get one may be moot.

For more information on Direct Consolidation Loans and to get an application for loan consolidation, go to http://loanconsolidation.ed.gov/index.html.

Reconsolidation

The circumstances under which you can consolidate a loan or loans that have already been consolidated are limited. Here are some examples of when you can reconsolidate a student loan:

  • If you apply within 180 days after you get a consolidation loan, you can add another loan (either a new or existing loan) into that consolidation loan.
  • You can get a new consolidation loan to combine an existing consolidation loan and another student loan you got either before or after you got the original consolidation loan.
  • You can consolidate two existing consolidation loans.
  • FFEL Consolidation Loan borrowers may also convert a FFEL Consolidation Loan into a Direct Consolidation Loan, without having to add any additional loan, in order to obtain an Income Contingent or Income Based Repayment Plan, but only if the lender submitted the loan to the guaranty agency to help the borrower avoid default.

To learn about student loan repayment options, getting out of default, and more, see Nolo’s Student Loan Debt area.



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


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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.



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.



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How and When to Combine Federal Student Loans Private Loans

Got student loans? We ve got you covered with our Student Loan Smarts blog series. Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt. Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans. And while you re at it, check out SoFi s new Student Loan Debt Navigator tool to assess your student loan repayment options.

One of the biggest student loan myths out there is that borrowers can’t consolidate federal student loans and private student loans into one loan. It’s understandable why people think that, since this wasn’t an option for many years. But now that the choice is available, it’s important to understand whether federal and private loan consolidation is right for you – especially when there’s the potential for significant cost savings on the line.

Can I Consolidate Federal and Private Student Loans?

While it’s not possible to use the federal Direct loan consolidation program to combine your federal student loans with private loans, it is possible to combine private and federal student loans by refinancing them with a private lender. Through this process, you actually apply for a new loan (which is used to pay off your original loans) and you’re given a new—ideally lower—interest rate.

Why would you want to do this? In addition to the advantages of loan consolidation (like having one, simplified monthly payment), refinancing student loans at a lower interest rate can mean big benefits, like lowering monthly payments or reducing the time it takes to pay off your debt, and cutting down on the total interest you pay over time.

When to Consolidate Federal Student Loans Private Loans

Before you refinance federal student loans, there are a couple of things to think about. Here’s an easy decision tree to help you understand whether refinancing federal loans is right for you:

Should I Refinance My Federal Student Loans?

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Federal Student Loan Interest Rates, Revealed

Some people assume that federal loans always offer the best rates, but this just isn’t true.

Depending on loan type and disbursement date, your federal student loan rate could range from about 3% to 8%. With prevailing interest rates at historic lows, some private lenders offer rates that are significantly better than a high-rate federal loan. This is particularly true for grad school borrowers who use unsubsidized Direct loans and Graduate PLUS loans to finance their education.

So how important is interest rate, really? Let’s compare a 10-year term, $80,000 loan at 6.84% (the current fixed rate on Grad PLUS loans) and 5.68% (the average 10-year fixed interest rate for SoFi refinance borrowers in 2015).*

In this example, refinancing would mean both lower monthly payments and a total savings of more than $5,600.

Understanding Federal Student Loan Benefits

Some federal student loans offer benefits and protections that do not transfer to private lenders. This is often the reason that people cite when they say you shouldn’t combine federal and private loans. But before you dismiss the idea of refinancing, you should first take a look to see if any of these benefits apply to you.

For example, under the Public Service Loan Forgiveness Program (PSLFP), your Direct Loan balance may be eligible for forgiveness after 120 payments if you’ve worked in the public sector that entire time. Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in schools that serve low-income families full-time for five consecutive years. These are clearly great programs for people who choose careers in public service or education, but if that’s not you, they won’t do you any good.

There are also a number of federal loan repayment plans that can ease the burden for borrowers facing tough economic times. For example, the government’s Pay As You Earn (PAYE) and Income-Based Repayment (IBR) programs allow borrowers to make reduced monthly payments based on financial hardship. But if your income is over a certain threshold, you won’t benefit from these programs. And if you do qualify, but you’re at the high end of the spectrum, your slightly lowered payments may come at a disproportionate price in the form of accumulating interest.

It’s important to note that some private lenders offer their own benefits and protections. At SoFi, for example, if you lose your job, we’ll not only pause your payments, we’ll help you find a new one .

Federal Loan Refinance Recap

Combining federal student loans and private loans through the refinancing process won’t make sense for every borrower, but it provides great benefits for some. Now that you know it’s an option and you understand how it works, you can better assess whether it’s right for you.

* Click here to see student loan refinance examples that depict APR, monthly payment and total finance charges.

Editor’s Note: This is an updated version of a post we originally published in December 2013. We welcome new comments and questions below.

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Should I Consolidate My Student Loans?

College students can take out new loans each year they re in school, so by the time graduation comes, it s common to have half a dozen, or more, individual loans. Each of them may have different terms, including interest rates.

Consolidating those loans into a single new one can simplify your payments, especially if your loans are with different loan servicers, the companies that oversee your payments. It can also be a way to get into repayment plans you otherwise wouldn t be eligible for.

But that doesn t mean consolidation is always a smart move. Here are four things to consider before you make the leap.

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1. Consolidation won t save you money.

One of the myths of consolidation is that it makes your debt less expensive by lowering your interest rate. Historically, that may have been accurate, since consolidation was often used as a way to lock in a low interest rate on variable-rate loans, says financial aid expert Mark Kantrowitz. But that hasn t been the case for the past decade, since the government stopped issuing student loans with variable rates.

If you consolidate your loans now, your new rate will be based on a weighted average of all your loans interest rates. So, for a simplified example, if you have two loans, one for $10,000 at 4% interest and one for $5,000 at 6%, your consolidated loan will have a $15,000 balance and a 4.7% interest rate.

By combining your interest rates, you also lose the ability to employ a favorite tactic of financial planners for paying down debt: targeting the most expensive debt, the loan with the highest interest rate, first.

What s more, consolidation typically results in the borrower paying more in total interest because consolidated loans are generally stretched out over a longer period, says Jessica Ferastoaru, a student loan counselor with Take Charge America.

2. Consolidation usually gives you more repayment options, but it can limit them too.

Consolidation is often the first step borrowers must take to enroll in some of the government s more flexible repayment plans, including income-driven plans, many of which are restricted to borrowers with Direct Loans.

Borrowers who graduated before 2010, when the government shifted to Direct Loans, for example, need to consolidate their loans to access the latest income-driven plan, Revised Pay As You Earn. Parent PLUS borrowers most consolidate their loans into the federal Direct Loan program if they want to enroll in the only earnings-based plan available to them, income-contingent repayment.

Consolidation also opens up the door to extended repayment plans, in which your term can stretch up to 30 years depending on how much debt you have.



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DeVos abandons plan to award federal student loan servicing to a single company

The Department of Education plans to overhaul its system for federal student loan servicing for the third time in the last year, officials announced Tuesday.

It will scrap a plan Secretary Betsy DeVos unveiled in May to award servicing of all federal student loans to a single company. Instead, the department will award separate contracts for database housing, system processing and customer service functions to one or more companies possibly handling direct interactions with borrowers. The department plans to deliver, meanwhile, on creating a single web portal for borrowers to make payments on student loans regardless of their borrowers a change promised by the Obama administration last year and long sought by student advocates.

“Doing what’s best for students will always be our No. 1 priority,” DeVos said. “By starting afresh and pursuing a truly modern loan-servicing environment, we have a chance to turn what was a good plan into a great one.”

Current loan-servicing contracts are set to expire in 2019, but a department spokeswoman, Liz Hill, said officials fully expect to have the procurement completed and contracts awarded before then. That s possible, she said, because of work already put into the process.

It s not clear how many of the consumer protections included in two separate Obama administration memos last year such as requirements for specialized outreach to high-risk borrowers would be incorporated into the new procurement process.

The plans to have the new contracts awarded before current contracts expire met with immediate skepticism from some observers.

We don t know the details of the new plan, or whether it will retain the strong borrower protections included in the first version, but restarting the process midway will absolutely mean delaying any future improvements for borrowers who deserve a better experience now, said Clare McCann, the deputy director for federal higher education policy with New America s education policy program and a former Obama administration official.

The Office of Federal Student Aid contracts with multiple private companies, nonprofit servicers and state-based organizations to manage federal student loans. The four major servicers are Navient, Great Lakes Educational Loan Services Inc., Nelnet and the Pennsylvania Higher Education Assistance Agency.

DeVos has taken heat since May from members of Congress and representatives from the loan-servicing sector over the plan to pick a single servicer that would hire subcontractors to collect loan payments. Department officials at the time argued that the plan would make oversight of servicers by the government more efficient.

But the proposal found critics among both Republicans like Senator Roy Blunt of Missouri, who argued that the system would remove choice and competition, and Democrats like Massachusetts Senator Elizabeth Warren, who warned against creating a federal contractor too big to fail.

Blunt and Warren were part of a bipartisan group of senators who introduced legislation ahead of the department s announcement Tuesday to block the single-servicer plan. Their bill would instead require the participation of multiple loan servicers.

Wayne Johnson, the chief operating officer at the Office of Federal Student Aid since July, said the department s new procurement plan would allow for the introduction of the most up-to-date technology and practices from the private sector into the loan-servicing system.

“When FSA customers transition to the new processing and servicing environment in 2019, they will find a customer-support system that is as capable as any in the private sector, he said in a statement. The result will be a significantly better experience for students our customers and meaningful benefits for the American taxpayer.”

Representative Virginia Foxx, a North Carolina Republican and chairwoman of the House education and workforce committee, has been a frequent critic of the Office of Federal Student Aid. A spokesman for Foxx said the department made the right decision to cancel the single-servicer proposal.

“Mr. Johnson is well aware of Chairwoman Foxx’s concerns with the FSA’s mismanagement, and moving to a single servicer does not resolve these concerns or promote competition in the marketplace for borrowers and taxpayers when it comes to repaying student loans,” the spokesman said. “Chairwoman Foxx looks forward to working with Johnson, Secretary DeVos and her colleagues in Congress to find a legislative solution that that ensures high-quality service to borrowers.”

A task force from the National Association of Student Financial Aid Administrators about a year ago examined challenges for borrowers in the student loan servicing system.

One of the biggest challenges we identified is the fact that there were multiple servicers with multiple systems, said Justin Draeger, president and CEO of NASFAA.

NASFAA was not committed to a loan-servicing system involving either one or multiple servicers. Draeger said the group s highest priority is ensuring borrowers have the same experience paying student loans regardless of their servicer.

Inside Higher Ed is a free, daily online publication covering the fast-changing world of higher education. Read the original story here.

Left: U.S. Secretary of Education Betsy DeVos speaks at the Conservative Political Action Conference (CPAC) in National Harbor, Maryland, February 23, 2017. REUTERS/Joshua Roberts

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Andrew Kreighbaum is the federal policy reporter for Inside Higher Ed. Kreighbaum worked at The Investigative Reporting Workshop and received his master’s in data journalism at the University of Missouri. Before getting his master’s, Kreighbaum spent three years covering government and education at local papers in El Paso, McAllen and Laredo, Texas.



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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.

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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.

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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.


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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

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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.

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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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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 .

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

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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.

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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


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Federal education loans

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Federal education loans

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Federal education loans

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Federal education loans

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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.



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


Student Loan Consolidation

Student loan consolidation is a good option if you are having trouble paying your loans. You can consolidate just one loan, or several loans. You can consolidate loans even if you re already in default. In fact, consolidation is one good way to get out of default. (To learn about other ways to get out of default on student loans, see Student Loans: Getting Out of Default.)

A consolidation loan allows you to combine your federal student loans into a single loan with one monthly payment. This may be a good option if any of the following are true:

  • You can t afford the monthly payments on your federal student loans under any of the options described in Student Loan Repayment Options, and don t qualify for a postponement or for loan cancellation.
  • You qualify for some of the payment plans described in Student Loan Repayment Options, but you are so deep in debt that you still can t afford your monthly payments.
  • You can afford your monthly payments and intend to pay off your loans under a standard plan, but you want to refinance at a lower interest rate.
  • You are in default on one or more of your student loans and want to get out of default.

Eligibility for Student Loan Consolidation

The vast majority of federal loans are eligible for consolidation, including subsidized and unsubsidized Stafford loans (GSLs), Direct loans, Supplemental Loans for Students (SLSs), Perkins loans, FISLs, and (except in an IBR Plan Consolidation Loan) PLUS Loans. (To find out what type of loan you have, see Types of Federal Student Loans.)

All borrowers with these loans are eligible to consolidate after they graduate, leave school, or drop below half-time enrollment. However, because consolidation loans have no grace period while you are in school or for the six months afterwards (unlike nonconsolidation loans, which usually do have a grace period during this time), getting a such a loan may not be a good idea if you are still in school or just graduated and don’t yet have a job.

Restrictions

Tthere are some restrictions to loan consolidation. Private student loans cannot be included in a federal consolidation loan. In addition, spouses cannot consolidate their loans into a single consolidation loan. And, borrowers who are in default must meet certain requirements before they can consolidate.

Pros and Cons of Consolidation

Consider both the advantages and disadvantages of consolidation before obtaining a consolidation loan.

Disadvantages to Consolidation

Potential disadvantages include the possibility that, if you have old loans, consolidation will cause your interest rate to go up. Moreover, consolidation will extend the repayment period, which means that you will pay more interest over the life of your loan. Consolidation will not completely clean up your credit report, either. If you were in default, your report will reflect that your previous loans were in default but are now paid in full through the new loan.

In addition, your right to assert a school-related claim against the lender of the consolidation loan is not clear. That right might be important, for example, if you got a loan to attend a for-profit school because it lied about the likelihood of you getting a job after graduation. If you think you have a claim against the school, it is better to consult an attorney experienced in bringing these kinds of cases before you consolidate your loan.

To find an experienced student loan lawyer, visit Nolo’s Lawyer Directory.

Advantages to Consolidation

Loan consolidation offers some potential advantages, too. If you are in default on any of your government loans, consolidation may offer the opportunity to get out of default and make affordable monthly payments. When interest rates are low, consolidation gives you the advantage of locking in a low rate on your student loans.

Direct Consolidation Loan Program

As with the Direct Loan Program, the federal government provides Direct Consolidation Loans.

Direct Consolidation Loans come with flexible repayment options, including a standard plan, a graduated plan, and an extended plan, and in most circumstances an Income Contingent Repayment Plan (ICRP) or an Income Based Repayment Plan (IBR). To learn about these, see Student Loan Repayment Options.

If you are in default, a Direct Consolidation Loan is a good way to get out of default and obtain a repayment plan that you can afford. In order to get out of default through a Direct Consolidation Loan, you must make three affordable monthly payments to the loan holder first (which can be as low as $5) or agree to an ICRP or IBR on the consolidated loan. Borrowers are also eligible for deferments in certain circumstances.

Each loan consolidated under the program keeps its interest subsidy benefit. This can be important if you return to school.

To qualify for a Direct Consolidation Loan, you must have at least one Direct loan or FFEL. So, if you have only a Perkins loan, for example, you don t qualify. If you have at least one FFEL, but no Direct loans, then you must certify you are unable to obtain a FFEL with an Income Sensitive Repayment Plan acceptable to you and are eligible for an Income Contingent Repayment Plan. As of 2010, there are no more FFEL Consolidation loans available, so the requirement that you cannot get one may be moot.

For more information on Direct Consolidation Loans and to get an application for loan consolidation, go to http://loanconsolidation.ed.gov/index.html.

Reconsolidation

The circumstances under which you can consolidate a loan or loans that have already been consolidated are limited. Here are some examples of when you can reconsolidate a student loan:

  • If you apply within 180 days after you get a consolidation loan, you can add another loan (either a new or existing loan) into that consolidation loan.
  • You can get a new consolidation loan to combine an existing consolidation loan and another student loan you got either before or after you got the original consolidation loan.
  • You can consolidate two existing consolidation loans.
  • FFEL Consolidation Loan borrowers may also convert a FFEL Consolidation Loan into a Direct Consolidation Loan, without having to add any additional loan, in order to obtain an Income Contingent or Income Based Repayment Plan, but only if the lender submitted the loan to the guaranty agency to help the borrower avoid default.

To learn about student loan repayment options, getting out of default, and more, see Nolo’s Student Loan Debt area.



FinAid, Loans, Student Loans, student loans federal.#Student #loans #federal


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Student loans federal

Student loan options can be overwhelming at first glance. But when it comes to federal student loans, there are just a few options.

The first step in getting one of the federal student loans listed below is to fill out the Free Application for Federal Student Aid, or FAFSA. While the FAFSA does determine eligibility for need-based aid, it also acts as an application for student loan options, both for need-based and non-need-based loans. It supplies students who need financial aid with that help as well as provides financing options for those students that would like to borrow with low-interest federal loans but don’t necessarily qualify for need-based aid.

Subsidized Stafford Loan

The subsidized Stafford Loan is available to students who qualify for need as determined by the FAFSA. Students must be a U.S. citizen or eligible non-citizen as well as have a high school diploma or GED. Like most federal student loans, interest does not accrue while the student is in school. If students qualify for a subsidized Stafford Loan, it will be stated on their award letter notification along with the amount for which they can borrow.

The Perkins Loan is another federal loan option that is for needy students. Again, students must be a U.S. citizen or eligible non-citizen as well as hold a high school diploma or GED. Again, interest does not accrue with the Perkins Loan, and students will find out whether or not they qualify as well as for how much when they receive their award letters from colleges.

Unsubsidized Stafford Loan

Finally, the unsubsidized Stafford Loan is a little different from the other federal loans. For both the subsidized Stafford and Perkins Loans, students must qualify for need as determined by the FAFSA. However, the unsubsidized Stafford Loan is available to any student, regardless of need. Also, unlike the other federal loans, interest accrues while the student is attending school. Again, if students want to apply for the unsubsidized Stafford Loan, they must complete the FAFSA.

Students can also qualify for a federal student loan consolidation after graduating from college or graduate school.



Student Loan Assistance Federal Loan Consolidation – Student Loan Assistance #car #loan


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Federal Loan Consolidation

The Higher Education Act (HEA) provides for a loan consolidation program under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. Under these programs, a borrower’s loans are paid off and a new consolidation loan is created. These programs simplify loan repayment by combining several types of Federal education loans (that may have different terms and repayment schedules or may have been made by different lenders) into one new loan. The interest rate may be lower than on one or more of the underlying loans. In addition, the monthly payment amount on a consolidation loan is usually lower and the amount of time to repay may be extended beyond what was available in the separate loan programs. These features should result in more manageable debt and should make borrowers less prone to default.

Most federal student loans, including the following, are eligible for consolidation:

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Subsidized Federal Stafford Loans
  • Unsubsidized Federal Stafford Loans
  • Direct PLUS Loans
  • PLUS loans from the Federal Family Education Loan (FFEL) Program
  • Supplemental Loans for Students (SLS)
  • Federal Perkins Loans
  • Federal Nursing Loans
  • Health Education Assistance Loans
  • some existing consolidation loans

If you are in default . you must meet certain requirements before you can consolidate your loans.

PLUS loan  made to the parent of a dependent student  cannot be transferred to the student through consolidation. Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student’s education.

For a complete list of the federal student loans eligible for consolidation, contact Student Loan Assistance by calling 1-855-498-8168.



Federal Student Loan Repayment #loans #for #blacklisted


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Federal Loans

Basic Federal Student Loan Repayment Options

The available pre-default repayment plans are different depending on what type of student loan you have. (What Type of Loan Do I Have ?). These plans are not available if you are already in default.  The good news is that there are a number of flexible and affordable repayment plans for federal loan borrowers.  You should pay particular attention to the income-driven repayment plans .  These generally require you to pay more in the long run, but may be needed to help keep you current on your payments and out of default.

Most of these plans are available for both FFEL and Direct Loan borrowers.  The IBR plan is available in both the FFEL and Direct loan program while ICR is available only in the Direct Loan program.  The Pay as You Earn plan is only for Direct Loan borrowers.  Perkins has its own rules, as do private loans .  Another difference between FFEL and Direct Loans is that public service forgiveness is only available in the Direct Loan program.  Borrowers may consolidate with Direct Loans in order to participate in the public service forgiveness program.

PLUS loan borrowers have nearly all the repayment options that Direct and FFEL Stafford loan borrowers have, with one big exception.   The income-based plans described below (Pay as You Earn, ICR and IBR) are not generally available to parent PLUS borrowers. These plans are available to graduate PLUS borrowers.

Parent PLUS borrowers who also have other federal student loans and choose to consolidate with Direct will find that the PLUS loan taints the entire consolidation loan and will mean that they will not be eligible to repay the consolidation loan using IBR or Pay As You Earn.  If they wish to consolidate, parent PLUS borrowers may exclude the PLUS loans from the consolidation and pay them separately.  These borrowers should also be able to consolidate and choose ICR.

What Your Payment Covers

Lenders are allowed to credit any payment received first to accrued late charges or collection costs, then to any outstanding interest, and finally to outstanding principal. This is also true for schools collecting Perkins loans.

This means, for example, that, if the collection rate for a particular year is 24%, then 24% of each payment you make is applied to collection costs, the balance to interest, and then, if the payment is sufficient, to the reduction in the principal.

You may repay the entire loan or any part of a federal loan at any time without penalty. If you send in a payment amount that equals or exceeds the monthly payment amount, the lender must apply the prepayment to future installments by advancing the next payment due date, unless you request otherwise.

If you would like to prepay some of the principal on your loan, you must request in writing that the extra amount you send be applied to principal. Send the payment and request together, via certified mail, get a receipt, and keep copies for yourself.

Private lenders may charge you a penalty if you repay early. You should read your loan agreement carefully to look for rules related to prepayment.

How is Interest Calculated?

Interest on all federal loans is calculated on a simple daily basis. The following formula demonstrates how the sample interest is calculated between payments:Average daily balance between payments x interest rate x (Number of days between payments/365.25) = monthly interest.For example:Average daily balance $10,000 Interest rate x .08 Days between payments (30/365.25) x .08214 _____________________________________________Monthly Interest: $65.71



Federal Direct Loan Program #loans #for #military


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Federal Direct Loans

Important Notice for First-Time Borrowers

First-time loan borrowers through the Federal Direct Loan program must complete entrance counseling and sign a Master Promissory Note to receive your money. These processes are required only one time and help borrowers better understand the responsibilities of having student loans.

About Federal Direct Loans

The Federal Direct Loan is not a grant awarded by Capital University. It is a loan and will require repayment. To apply for a Federal Direct Loan, you must complete the Free Application for Federal Student Aid (FAFSA). Even though the unsubsidized Federal Direct Loan is available to all students regardless of financial need, you must still submit the FAFSA to be eligible. You can receive a subsidized loan and an unsubsidized loan for the same period. For more information, see the Student Loan Fact Sheet.

FEDERAL DIRECT SUBSIDIZED LOANS

  • Need-based
  • Fixed interest rate (set on July 1 of each year)
  • No payments required while you are in school
  • Six-month grace period
  • Must be enrolled in at least six credit hours
  • This is a loan available to students with demonstrated need.
  • The interest rate is fixed at 4.29%. Each year, the U.S. Department of Education adjusts the interest rate on new loans on July 1.
  • The federal government pays the interest on the loan while the student is enrolled at least half-time per term.
  • There is a 10 year repayment which begins 6 months after graduation or after the student is no longer enrolled at least half-time,
  • This type of loan is available to undergraduate students or those in our Education Licensure program.

FEDERAL DIRECT UNSUBSIDIZED LOANS

  • Non-need-based
  • Same interest rate as subsidized loan
  • Interest begins accruing at the time of each disbursement
  • Interest does not need to be paid while you are in school
  • Six-month grace period
  • Must be enrolled in at least six credit hours
  • This loan is not based on financial need, therefore, the federal government does not pay the interest while the student is in school.
  • The current interest rate is fixed at 4.29% for undergraduate students.
  • The current interest rate is fixed at 5.84% for graduate students.
  • The student has the option to pay the interest quarterly or let the interest accrue.
  • The unsubsidized Federal Direct loan may be used along with the subsidized Federal Direct loan to receive the maximum Federal Direct eligibility.
  • Independent students or students whose parents are ineligible to borrow under the Federal Direct Parent PLUS program may borrow additional unsubsidized Federal Direct loan funds during an academic year.
  • Repayment terms are the same as the Subsidized Federal Direct loan.

Your financial aid award letter will indicate the maximum loan amount available for the academic year. If you plan to attend in the summer term in addition to the fall and spring, the total loan amount would be divided between three terms. Please also note that any loans borrowed will be reported to the National Student Loan Data System (NSLDS), a secure federal website that houses all student aid information. This site may be accessed by authorized agencies, lenders and institutions.

150-Percent Loan Eligibility Limitation

First-time borrowers on or after July 1, 2013, there is a limit on the maximum period of time you can receive a Direct Subsidized Loan. This time limit does not apply to Direct Unsubsidized Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published program length. Since all Capital undergraduate programs are four years, new borrowers would be eligible to receive Direct Subsidized Loans for up to six years.

Disbursement of Loan Funds

Capital University disburses all loan funds to our undergraduate students approximately seven days prior to the start of each semester. Funds can only be disbursed once the student has completed the two required steps indicated below. If we are unable to disburse the loan seven days before the term begins, we will disburse the funds as soon as the student has completed the Master Promissory Note and Entrance Counseling.

Actions Required to Receive Your Loan Money

New Capital students or first-time new borrowers at Capital MUST complete a promissory note and entrance counseling.

What is the Federal Direct Loan Program?

Once your FAFSA has been filed and all requested documents are submitted, the Financial Aid Office will confirm that you meet these criteria and determine your eligibility. Your Financial Aid Award package will provide details on the amounts and types of loans you are eligible to borrow.



Federal Direct Loan Program #bad #credit #home #loans


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​Federal Direct Loan Program

The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans, Direct Unsubsidized Loans and PLUS loans. These loans are federal student loans for eligible students and/or parent to assist with the cost of higher education at a four-year college or university, community college, trade, career, or technical school.

Please note that information disclosed to students and or their parents regarding the HEA Loan is submitted to the National Student Loan Data System (NSLDS) and to the Department of Education. This information may be accessible by authorized agencies, vendors, lenders, and institutions.

  • Students must be enrolled in at least 6 units at the Coast Community College District.
  • Students must have met satisfactory academic requirements.
  • Students must be enrolled in an eligible program of study.
  • First-time borrowers may not receive subsidized loans for more than 150% of the length of program of study. For example, if you are enrolled in a 2-year associate degree program, the maximum period for which you can receive a Direct Subsidized Loan is 3 years (150% of 2 years = 3 years). If you are enrolled in a certificate program that is 32 weeks, the maximum period for which you can receive a Direct Subsidized Loan is 48 weeks (150% of 32 = 48 weeks).The Department of Education may stop paying your interest subsidy if you exceed that limit. Please check with your financial aid specialist at your campus for additional information.

Before any loan funds will be disbursed Students must accept, cancel, or change a loan either through the financial aid online portal or at the campus financial aid office once the loan request has been placed on your financial aid account.

Military Students

In acknowledgement of your service to our country, there are special benefits and repayment options for your student loans available from the U.S. Department of Education and the U.S. Department of Defense. For more information about Federal Student Aid for military students Click Here .

How to Apply

As with all federal student aid, you apply for Direct Loans by filling out the Free Application for Federal Student Aid (FAFSA). The information on your FAFSA is transmitted to the schools that you list on the application, and those schools use the information to assess your financial need for student aid.

Steps to apply for a loan after the FAFSA has been completed.

Contact your financial aid office; they will guide you in the completion of the required documents. A Loan Request Form is required by each campus for all loans. This document will be placed on your online financial aid file.

Once you have completed the Loan Request Form from your campus, go to www.studentloans.gov and complete the following

I. Required Counseling Sessions Students who are requesting loans must complete the entrance counseling sessions.

II. Once you have completed the Direct Loan entrance counseling sessions, you will need to complete the Master Promissory Note – Master Promissory Note

III. If this is your last semester, you will need to complete the exit counseling sessions prior to the second disbursement of your loan. Exit Counseling

Repayment begins six months after you graduate or cease to be at least a halftime student. You will generally have 10 years to pay back your loan. Your monthly payment will usually be more than $200, but never less than $50. It is the borrower’s responsibility to maintain contact with the United States Department of Education and to establish a repayment schedule. The borrower’s failure to inform the United States Department of Education of changes in enrollment status, anticipated graduation dates, current address, name, deferment eligibility, or college of attendance may result in default on the student loan.

Accepting a Loan

The Financial Aid Office will tell you the loan amounts that it is offering, check your online financial aid account with your campus for the amount of your loan. You should evaluate the loan offer carefully. In the case of loans, keep in mind that whatever amount you borrow must be paid back with interest. If your living expenses are not as high as the standard allowance projected by your school, you may not have to borrow as much as the amount offered. The Department of Education offers financial awareness counseling – Financial Awareness Counseling

You have the right to decline/cancel the loan or to request a lower loan amount. This is done through your online financial aid account.

PLUS Loans

This is a loan that parents may request to assist a student with his/her costs of attendance.

A credit check will be performed and used to determine the loan amount.

Credit check endorser alternative

When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible to receive a PLUS loan, you must not have an adverse credit history. If you are determined to have an adverse credit history, you may still receive a Direct PLUS Loan if you obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. If you are a parent borrowing on behalf of your dependent student, the endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history.

Loan Limitations

The amount of financial aid a student may receive cannot exceed the student’s cost of attendance (COA) and/or financial need. Your student budget is located on your online financial aid file; log in through MyOCC, MyGWC, or MyCCC. If your expenses are over and above the budget, please schedule an appointment to meet with a financial aid specialist at your campus.

Direct Stafford Loan Limits (Subsidized and Unsubsidized)



Federal Loan Modification Programs #simple #interest #loan #calculator


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12. Federal Loan Modification Programs

Submitted by Anonymous (not verified) on November 23, 2009

This chapter covers Federal Housing Administration (FHA) and Veterans Administration (VA) mortgage modification programs. The programs may or may not be restricted to FHA or VA loans. For other federal mortgage loan modification programs, in particular those offered through Fannie Mae and Freddie Mac, please see the following chapter of this guide.

Understanding Federal Loan Modification Programs

There are a variety of mortgage loan modification programs available at the federal level to assist homeowners who are looking to have their mortgages modified. Guidelines are outlined here, and borrowers looking to find more specific information should contact either any of the agencies listed here, or a mortgage professional.

HUD/FHA

The Federal Housing Administration (FHA) has two mortgage modification programs. They are FHA Secure, and Hope for Homeowners

FHA Secure

FHA Secure is a program for mortgage holders who have Adjustable Rate Mortgages that have reset to a higher rate, putting their mortgage payment out of reach for them. Borrowers may apply for the program while they are in default.

Borrowers who qualify can be refinanced into a fixed-rate mortgage with a payment they can afford. The borrower must demonstrate that they were able to make their mortgage payments prior to the rate adjustment, and defaulted only after the reset.

The FHA will charge an upfront premium at the time the loan is taken out, as they do with all borrowers (This premium is financeable). Then, based on the credit profile, they will also charge a monthly insurance premium.

Hope for Homeowners (FHA)

Hope for Homeowners is another FHA-based program. It offers incentives for lenders to reduce the principal on a mortgage where the value of a property has declined to less than the balanced owed, in return for refinancing into an FHA-insured mortgage. Congress modified the program in May 2009 to make it more attractive to lenders after only a handful of borrowers received assistance in the first seven months of the program. The requirements are:

  • The property on which the mortgage to be modified must be the primary residence of the borrower. That property must be the only property that the borrower owns, meaning they have no second home or investment properties.
  • The mortgage must have been taken out before January 1, 2008, and the borrower must have made at least six payments on that mortgage.
  • The borrower must be able to demonstrate that they are unable to pay the mortgage without some type of assistance.
  • The borrower, when they took out the mortgage, must have had a mortgage debt ratio of 31 percent or less. This means, for example, that if their gross monthly income was $5,000, the payment, including, taxes and insurance was no more than $1,550 ($5,000 x 31 percent).
  • Borrowers must certify that they have no fraud convictions in the last 10 years, and that the information that they provided on their original loan application, including income, was correct.

Partial Claim

This is specifically for FHA-insured loans, and is for borrowers who are at least four months delinquent on the property where they live. The lender advances part or all of the past-due payments and fees to the borrower in the form of a zero-interest subordinate mortgage. This “partial claim” is then added on to the end of the mortgage, or becomes due when the property is either sold or refinanced.

The borrower must be able to document the hardship that caused them to miss the payments. They must also be able to prove that they are now capable of making the full mortgage payment, and are unable to make up the missed payments and fees.

Veteran’s Administration (VA)

Veteran’s Administration loans are a bit different in terms of modification than either conventional loans (Fannie and Freddie) or FHA loans, as the VA has no broad loan modification program, as do the other three agencies.

This means that borrowers should call their specific lender and ask for a VA Loan Modification Package. This will describe what their particular lender is looking for, and what terms they are able to offer.

In some cases, if a modification cannot be worked out, the Veterans Administration will buy back the loan. Borrowers should check with their mortgage professional for details.

While VA borrowers are inquiring about a modification, they should also ask to see if they qualify for a VA Streamline Refinance, which may help to bypass the modification process. A streamline refinance can, unlike a loan modification, can be done by any lender offering VA loans.



Student Loans: Federal Loans #cash #now #loans


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Student Loans: Federal Loans

Before you think about borrowing for college via a private loan, you always want to exhaust your federal loan availability first. This is because federal loans normally have lower, fixed interest rates, no cosigner requirement and better repayment terms – especially if you hit a financial rut while trying to repay your loans. Additionally, the approval process isn’t based on an applicant’s credit rating ; good news for young borrowers with little or no credit history.

In this chapter of the student loan tutorial, you will learn about the various types of federal loans and how they work, how to apply for them, and the basics of loan repayment. (For background reading on the differences between private and federal loans, see College Loans: Private Vs. Federal .)

How Federal Loans Work

When you are borrowing via a federal loan, you are automatically approved as long as you meet a short list of requirements (listed at http://www.fafsa.gov/ ). None of the loan programs requires a credit check, and your – or your family’s – income is only important for grants (free money) and subsidized loans (where accrued interest is paid by the government while you are at least a half-time student eligible for financial aid and several other circumstances).

Your loan is disbursed through your university, and the university will write you a check or send you a direct deposit for the difference between your tuition and fees and your semester’s loan amount. Scholarships or payments you’ve already made toward your tuition and fees can increase your refund amount. The refund you receive can be used for housing, groceries, transportation and other living expenses.

However, you may have a balance due on your account instead of a refund. A national student loan borrowing limit per individual is set annually. If your tuition and fees for the year are higher than this limit, you will not receive payments unless you made a payment to your account before your student loan arrived. An example of this situation is if you are going to a private school where the tuition is especially high; in this case, your student loan limit may not completely cover tuition and fees, so you will need additional funding alternatives such as private loans.

If you receive grants, the federal grant amount reduces your federal loan limit amount; however, the money balances out because the grant deduction is exactly the same as the free money you received.

Your Best Financial Aid Friend. The FAFSA Application

The most critical action you can take in applying for financial aid for private and public universities is to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA can be filled out online at http://www.fafsa.ed.gov/. at public libraries, university financial aid offices and high school guidance counselors. No matter which college you decide to attend, this is the universal form you need to fill out. The form is basically an information sheet that gives your prospective colleges an idea of your financial situation. On the form, you’ll need to provide proof of your income, along with your parents’ income if they currently claim you as a dependent on their tax return. If you are married, you will have to provide proof of your spouse’s income.

Here’s the complete list of the documentation and information you will need while you are filling out your form:

  • Your Social Security number
  • Your driver’s license, if you have one
  • Your W-2 Forms. 1099s, pay stubs, or other documents that show how much you earned in the year prior to the school year for which you are applying. Records of untaxed income, such veterans’ benefits and Social Security disability payments, should also be by your side while you fill out your FAFSA.
  • Any federal tax return for the year prior to your return. If you are married and didn’t file jointly, have your spouse’s ready as well. (If the year hasn’t ended yet, it’s OK to estimate your total annual income.) If you are a dependent, you will also need your parents’ tax returns.
  • In addition to U.S. tax returns, tax returns are also accepted for Puerto Rico, Guam. American Samoa. the U.S. Virgin Islands, the Marshall Islands. the

Federal

States

of Micronesia and

Palau

.

  • For asset information, also have your investment and bank account statements ready, in addition to mortgage and business or farm ownership information. You don’t have to provide asset information if your adjusted gross income is $50,000 or less for parents of dependent students or for independent students.
  • Filling out the form doesn’t imply a commitment to attend any of the schools you select to receive your income and residency information. In addition to loans, the FAFSA is also used to determine grant eligibility. This amounts to free money if you are determined to have enough financial need.

    Types of Loans You Can Receive

    Perkins Loans

    Perkins loans are the absolute best loans you can get from the federal government – if you qualify. These loans are need-based and highly limited. The school gets a limited amount of money from the government and is in charge of distributing these loans based on income reported on the FAFSA form. Perkins loans come with a variety of loan forgiveness programs for taking certain public service jobs after graduation.

    Subsidized and Unsubsidized

    Stafford

    Loans

    While there are loans that parents can take out for their children, subsidized and unsubsidized

    Stafford

    loans are two ways for individuals to pay for their own education. A subsidized loan is where your interest is paid by the government until you graduate – as long as you maintain half-time status (take at least six credits per semester as an undergraduate or four credits as a graduate student). A slightly less attractive option are unsubsidized loans, which do accumulate interest while you are in school. However, with either loan, you don’t have to make payments until six months after you graduate, with the exception of consolidation, which will be discussed further in Chapter 8.

    Parent PLUS Loans

    Parents are eligible for unsubsidized, fixed-rate federal student loans to help pay for their children’s education. Parent PLUS loans are distributed through both private lenders and from the federal government’s direct lending program. Similar to loans granted to the student, eligibility is determined by the information received on the student’s FAFSA form. Parent PLUS loans differ in that there is a slightly higher loan origination fee, and interest rates are slightly higher than for loans that are offered directly to students. Parents are ineligible for reduced payments based on their annual income.

    Lenders – Less Is More

    If possible, it’s best to choose the same lender for all your loans because your monthly payments can be consolidated into one loan. Having one lender will also make it much easier to track your payments and avoid missed payments and late fees.

    Federal Loans – Simply Indispensable

    If you are considering borrowing for college, fill out a FAFSA. Because of the fixed interest rates and guaranteed repayment terms, a federal loan is your best option. However, keep in mind that student loans are like Halloween candy: if you go overboard, you’ll have a student-debt bellyache for years to come. Student Loans: Private Loans



    Default Rates Continue to Rise for Federal Student Loans #car #loan #rates


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    Default Rates Continue to Rise for Federal Student Loans

    The U.S. Department of Education today announced the official FY 2011 two-year and official FY 2010 three-year federal student loan cohort default rates (CDR). The national two-year cohort default rate rose from 9.1 percent for FY 2010 to 10 percent for FY 2011. The three-year cohort default rate rose from 13.4 percent for FY 2009 to 14.7 percent for FY 2010.

    The Department is replacing its CDR calculations from two-year to three-year calculations as required by the Higher Education Opportunity Act of 2008. Congress included this provision in the law because more borrowers default after the two-year monitoring period; thus, the three-year CDR better reflects the percentage of borrowers who ultimately default on their federal student loans.

    The FY 2010 three-year cohort default rate is the second that the Department has issued, following the release of last year’s FY 2009 three-year cohort default rate. Under the law, only three-year rates will be calculated starting next year. At that time, three 3-year rates will have been calculated (FY 2009 published in 2012, FY 2010 published in 2013, and FY 2011 published in 2014).

    “The growing number of students who have defaulted on their federal student loans is troubling,” U.S. Secretary of Education Arne Duncan said. “The Department will continue to work with institutions and borrowers to ensure that student debt is affordable. We remain committed to building a shared partnership with states, local governments, institutions, and students—as well as the business, labor, and philanthropic leaders—to improve college affordability for millions of students and families.”

    To ensure that students are aware of the flexible income-driven loan repayment options available through Federal Student Aid (FSA), this fall the Department will expand its outreach efforts to struggling borrowers to inform them about the different plans. The Department has also released new loan counseling tools to help students and families make more informed decisions about planning for college. Students and families can visit www.studentaid.gov for more information.

    Calculation and breakdown of the rates

    For-profit institutions continue to have the highest average two- and three-year cohort default rates at 13.6 percent and 21.8 percent, respectively. Public institutions followed at 9.6 percent for the two-year rate and 13 percent for the three-year rate. Private non-profit institutions had the lowest rates at 5.2 percent for the two-year rate and 8.2 percent for the three-year rate.

    The two-year CDR increased over last year’s two-year rates for both the public and for-profit sectors, rising from 8.3 percent to 9.6 percent for public institutions, and from 12.9 percent to 13.6 percent for for-profit institutions. CDRs held steady for private non-profit institutions at 5.2 percent. The three-year CDR increased over last year’s three-year rates for both the public and private non-profit sectors, rising from 11 percent to 13 percent for public institutions, and from 7.5 percent to 8.2 percent for private non-profit institutions. CDRs decreased for for-profit institutions, slipping from 22.7 percent to 21.8 percent.

    The two-year default rates announced today were calculated based on a cohort of borrowers whose first loan repayments were due in FY 2011 (between Oct. 1, 2010 and Sept. 30, 2011), and who defaulted before Sept. 30, 2012. More than 4.7 million borrowers from nearly 6,000 postsecondary institutions entered repayment during this window of time, and more than 475,000 defaulted on their loans, for an average of 10 percent.

    The three-year rates announced today were calculated based on the cohort of borrowers whose loans entered repayment during FY 2010 (between Oct. 1, 2009, and Sept. 30, 2010), and who defaulted before Sept. 30, 2012. More than 4 million borrowers from over 5,900 postsecondary institutions entered repayment during this window of time, and approximately 600,000 of them defaulted, for an average of 14.7 percent.

    Sanctions

    No sanctions will be applied to schools based on the three-year rates until the CDRs have been calculated for three fiscal years, which will be with the release of the FY 2012 rates next year. Until then, sanctions will continue to be based on the two-year CDR only.

    Certain schools are subject to sanctions for having two-year default rates of 25 percent or more for three consecutive years, or over 40 percent for one year. As a result, these schools will face the loss of eligibility in federal student aid programs unless they bring successful appeals. Please click here for more information about possible sanctions: http://www2.ed.gov/offices/OSFAP/defaultmanagement/cdr2yr.html

    The Department provides extensive assistance to schools to help minimize institutional cohort default rates. FSA provides a variety of training opportunities to the higher education community, including webinars and online training, participation in state, regional and national association training forums, and through face-to-face training events such as the FSA Training Conference for Financial Aid Professionals. In addition, any school with a three-year CDR of 30 percent or more must establish a default prevention task force and submit a default management plan to the Department. There were 221 schools that had three-year default rates over 30 percent.

    Borrowers who need assistance in repaying their federal student loans can visit www.studentaid.gov or can contact the holders of their loans to learn about repayment options. For help locating their loan holders, borrowers may access www.nslds.ed.gov or contact the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243).

    Information on the national student loan cohort default rate, as well as rates for individual schools, states, types of postsecondary institutions, and other sectors of the federal loan industry are available at www.fsadatacenter.ed.gov.



    Subsidized Federal Student Loans #bridge #loans


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    Pay No Interest on Your Student Loan

    Low Income College Funding

    Although most students receive some form of financial assistance during college, there is no cookie cutter solution for landing the best aid. Each student s needs are different, so financial aid is a custom-tailored pursuit; as unique as the diverse students who need it. There are, however, time-tested strategies that help students meet university expenses. First and foremost; every student requiring financial assistance for college requests financial aid from the U.S. Department of Education .

    Some of the most prolific student assistance opportunities originate from government-sponsored programs designed to advance higher education. Pell Grants provide college funding that does not require repayment, so the perennial federal program stands as an important resource for qualified low-income applicants. Federal Supplemental Education Opportunity Grants (FSEOG) furnish additional gift-aid to degree candidates who are severely challenged financially. State Governments provide additional financial resources that mirror federal efforts; providing need-based funding that sometimes includes service agreements that put graduates to work within the states that help them pay for college.

    When scholarships and grants leave educational budgets underfunded, cash-strapped students turn to college loans to bridge the affordability gap. Private student loans are available, but terms and conditions are sometimes prohibitive. Loans for college are best acquired through federally backed programs that provide low-interest fixed rate options for student borrowers. The William D. Ford Federal Direct Loan Program provides subsidized and unsubsidized loans for graduate students and undergraduates pursuing university degrees.

    File Your FAFSA First

    The first step toward landing any type of federal student assistance is to complete the required application. The Free Application for Federal Student Assistance (FAFSA) compiles data about you and your family that helps financial aid officials determine your college funding needs. Income, assets and the number of brothers and sisters attending college concurrently each impact financial aid evaluations. Once your Expected Family Contribution is determined, financial aid administrators at your university draw from available on-campus programs to cover your expenses.

    Most students ultimately underwrite college costs with blended packages of aid that include grants, scholarships and loans. The best alternatives for student borrowers include federally-backed Subsidized Loans, Unsubsidized Loans and PLUS Loans for parents and independent students.

    Popular Federal Loans Include Subsidized Options

    Until recently, Federal Stafford Loans were backed by the U.S. Government, but issued by private lenders. In other words, students would be qualified first by the Department of Education, and then they would enter into private loan agreements with banks, credit unions and other lenders. Today, Federal Direct Loans are issued by Uncle Sam, to cut out the middleman and save administration costs.

    Under the new program, qualified students borrow money for school that is subject to different regulations; depending on the timing and status of each loan.

    Subsidized Loans Issued based on financial need demonstrated by FAFSA applications. Qualified borrowers do not pay interest during certain periods over the life of the loan. The Federal Government subsidizes interest payments:

    • While the borrower is in school
    • During a six-month grace period after the borrower leaves school*
    • During any periods of repayment deferment

    Interest rates are fixed and low, currently holding at 3.4% for Subsidized Direct Loans.

    * Subsidized Loans issued after July 1st, 2012 do not qualify for government interest payments during the six-month grace period after a student leaves college. Interest that is not paid by borrowers during grace periods is capitalized, and must be repaid along with loan principal.

    Unsubsidized Loans Applicants are not required to exhibit significant financial disadvantage in order to qualify for these federally-backed loans. Interest is the responsibility of the borrower at all times during the course of the loan, including while the student attends college. Interest rates are currently below market rates for private loans; holding at 6.8% for unsubsidized borrowers.

    PLUS Loans are designed for parents who wish to borrow for a child s education. Independent students are also eligible for PLUS Loans under some circumstances. Interest rates are higher than other Direct Loan programs; 7.9%, but still provide competitive terms for borrowers.

    Flexible Repayment For Federal Direct Subsidized Loans

    Federal loans eventually come due, but several payment options allow students to address debt with flexible terms. Subsidized Loan program participants choose from these structured repayment plans:

    Standard Repayment Plan Borrowers pay less total interest by paying on standard schedules. Fixed monthly payments of at least $50 each are required, and loans are repaid within ten years.

    Graduated Repayment Plan Payments start on the lower side for graduates that are establishing careers, and then increase as repayment continues over the course of ten years. More interest is paid by borrowers who choose this plan, but adjustments to payment amounts usually every two years allow participants to stay current with repayment.

    Extended Repayment Plan Payments are made for as long as 25 years under this option. Total interest paid is based on the extended repayment timetable selected by each borrower, and loan repayment amounts may be fixed or graduated.

    Income-Based Repayment Plan This plan considers each participant s income level. Student loan payments are structured to represent no more than 15% of each borrower s discretionary income. Payment amounts change as incomes rise, allowing borrowers to extend payments over 25 years.

    Pay As You Earn Repayment Plan The newest alternative offered for loan repayment is aimed at student borrowers struggling with college debt. The accommodating option allows repayment that reflects no more than 10% of a borrower s discretionary income. Low monthly payments may be extended for 20 years, or until the obligation is satisfied.



    The Federal Loan Programs to Consolidate Your Debt #loan #forgiveness


    #federal student loan consolidation
    #

    Information on Federal Consolidation Choices

    How Direct Consolidation Loans Can Help

    The federal government is the nation s primary provider of both student loans and the consolidation loans used to combine existing student loans into one large loan. Since it lacks any profit motive, both original loans and consolidation loans from the government usually have lower interest rates and easier payment terms than loans found in the private market. Rather, its goal is to put as many students through school as affordably as possible, and that includes recommending consolidation loans when appropriate.

    Do You Need A Direct Consolidation Loan?

    The U. S. Department of Education (USDOE) provides clear, straightforward information on its consolidation loan features, suggesting that anyone considering consolidation first make a thorough review of existing federal loans. If you re not sure which bank services your loans, you can check an online database called the National Student Loan Data System and find all the information about your loans that s been forwarded to the USDOE by your school and whatever companies guarantee and service your loans.

    Your first step will be to determine the amount of all your monthly federal loan payments added together. Then multiply that by the number of months until your payoff date to find the total cost of your loans. Do not include private loans, because they cannot be included in federal consolidation.

    What Loans Can Be Included In A Direct Consolidation Loan?

    Here s a list of eligible loans:

    • Direct Subsidized and Unsubsidized Loans
    • Direct PLUS Loans
    • Perkins Loans
    • Federal Nursing Loans,

    and here are the older types of loans that are also included:

    • Stafford Loans, both Subsidized and Unsubsidized
    • Federal Family Education Loan (FFEL) Program PLUS Loans
    • Supplemental Loans for Students (in this case, the proper name of a specific type of federal loan), and
    • Health Education Assistance Loans.

    Even some existing consolidation loans can be consolidated again. Note: A student s consolidation cannot include a PLUS loan taken out by a parent to pay for that student s education.

    Your second step is to estimate what your monthly payment and total loan cost would be if you consolidated those loans, then compare it to the current amounts. The USDOE has set up an online calculator for this purpose. To confirm the results of your calculation, you can contact the USDOE directly to compare your numbers to the consolidation loan terms the Direct Loan Consolidation Center would offer you.

    Am I Eligible For A Direct Consolidation Loan?

    Determining your eligibility is step three, and there are four primary requirements for taking out a Direct Consolidation Loan:

    • You must have at least one existing loan through the Direct or FFEL programs.
    • One of your eligible loans must be in either grace or repayment status.
    • If you want to include a defaulted loan, you must make acceptable arrangements to repay it with the company currently servicing the loan. Alternately, you must agree to one of these two repayment plans for your Direct Consolidation Loan: Income-Contingent or Income-Based, about which you can find details here .
    • Rules for including an existing consolidation loan in a new consolidation are probably the most complex aspect of consolidation. Some FFEL Consolidation Loans may be reconsolidated on their own, but usually you must include a new Direct or FFEL loan in the group to be consolidated.

    Direct Consolidation Loan Costs

    There is no fee to apply, and no prepayment charge for a Direct Consolidation Loan. The loan will have a fixed interest rate, calculated in an interesting way: take the weighted average of the rates on your existing loans and round that number up to the nearest eighth of a percent. In this case, the weight is assigned to each existing loan s interest rate in the same proportion as the amount of the existing loan to your total existing debt.

    For example, if you have a $5,000 loan at 5% and a $15,000 loan at 6%, your total indebtedness is $20,000. The weight of the first loan s 5% is 25% compared to 75% for the second loan s 6%, and the weighted average of those two rates is 5.75%. The rate of the new Direct Consolidation Loan is capped at 8.25%.

    Repaying Your Direct Consolidation Loan

    Your loan servicer will tell you when to start repaying your Direct Consolidation Loan, and repayment must begin within sixty days. Possible lifespans for such a loan vary between ten and thirty years, depending on three factors: the amount of your other debts, the amount of your consolidation loan, and your repayment plan.

    There are three possible repayment plans for a Direct Consolidation Loan:

    • The Income-Based Repayment (IBR) plan applies to consolidation loans that do not include Direct or FFEL PLUS loans made to parents.
    • The Pay As You Earn plan, which started in December 2012, is offered for the same loans as the IBR plan, but usually brings a lower monthly payment amount.
    • The Income-Contingent plan can be used for any Direct Consolidation Loan.


    Applying for Federal Direct Loans #unemployment #loans


    #graduate school loans
    #

    Applying for Direct Loans

    Applying for aid

    As with all federal student aid, you apply for Direct Loans by filling out the Free Application for Federal Student Aid (FAFSA). Most students use FAFSA on the Web to complete their applications. The information on your FAFSA is transmitted to the schools that you list on the application, and those schools use the information to assess your financial need for student aid.

    The award package

    Direct Loans are generally awarded as part of a larger “award package ,” which may contain other types of aid as well, to help you meet the costs of going to college or career school.

    The Direct Loan Program offers the following types of loans:

    • Subsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.
    • Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.
    • PLUS: unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
    • Consolidation: Eligible federal student loans can be combined into one Direct Consolidation Loan.

    Student borrowers are not required to begin making payments until after they drop below half-time attendance. See When you graduate or leave school for more information.

    Your school will tell you how much you may borrow and the types of loans you are eligible to receive. The information below will give you an idea of how much you may be eligible to receive.

    Note: PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).

    Accepting a loan

    Your school will notify you of the loan amounts that it is offering, usually in an “award letter” that lists all of your proposed financial aid awards (your award package).

    You should evaluate the aid offer carefully. In the case of loans, keep in mind that whatever amount you borrow must be paid back with interest. If your living expenses are not as high as the standard allowance projected by your school, you may not have to borrow as much as the amount in the award letter.

    To get an idea of your monthly loan payments after you graduate, take a look at our repayment calculator .

    To get an idea of your college expenses, use our budget calculator .

    You have the right to decline the loan or to request a lower loan amount. In the award letter your school will tell you how to do this.

    Credit check & endorser alternative

    When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible to receive a PLUS Loan, you must not have an adverse credit history. If you are determined to have an adverse credit history, you may still receive a Direct PLUS Loan if you obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. If you are a parent borrowing on behalf of your dependent student, the endorser may not be the student on whose behalf you (the parent) obtain a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history.

    Loan limits

    The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. The following table shows the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans as well as the total or aggregate amount you may borrow:



    Applying for a William D. Ford Federal Direct Stafford Loan at Hunter College – Hunter College #unsecured #personal #loans


    #college loan
    #

    Applying for a William D. Ford Federal Direct Stafford Loan at Hunter College

    The Office of Financial Aid has implemented some new steps to expedite the processing of your Direct Loan. You must have the following on file in order to submit a Direct Loan Application:

    1. Valid FAFSA for 2015-2016 (cannot be pending)
    2. Completed Entrance Counseling (if required)
    3. Must be registered for at least 6 credits
    4. Completed Master Promissory Note (if required)
    5. Complete a Direct Stafford Loan

    Effective Fall 2016: GRADUATE Degree students will be pre-packaged for the Direct Stafford Loans on CUNYfirst. Students will be able to accept, decrease or decline their award.

    The William D. Ford Federal Direct Stafford Loan Program replaced the Federal Stafford Loan Program at CUNY in June 1995, becoming the major source of federal loan funds for students at CUNY. To be eligible for a Federal Direct Loan, a student must be:

    1. A U. S. citizen or eligible non-citizen
    2. Enrolled as a matriculated student for at least six (6) credits per semester
    3. Determined to be eligible for federal aid after completing the FAFSA

    Before students can receive Federal Direct Stafford Loan funds, students at Hunter College are required to complete the online Federal Direct Loan Entrance Counseling, as well as complete a Federal Direct Loan Master Promissory Note. To speed up the loan process, please use your Department of Education issued PIN as an electronic signature on the Master Promissory Note.

    Before beginning the loan application process, students should look at the following:

    The following steps outline the process of requesting a Federal Direct Loan and receiving loan funds at Hunter College.



    Advantage Federal Credit Union #where #can #i #get #a #loan #with #bad #credit


    #new car loans
    #

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    Apply Today for a Loan or Credit Card!

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    TSP Loans: What Federal Employees Should Consider #school #loan


    #tsp loan
    #

    TSP Loans: What Federal Employees Should Consider

    As the national economy continues to struggle to recover from one of the worst downturns in recent history, many individuals are turning to their retirement plans — for example, 401(k) plans and the Thrift Savings Plan (TSP) — for financial relief.

    They are borrowing from their retirement plans to pay their monthly mortgage, car loans and credit card bills.

    Before discussing the advantages and disadvantages of Thrift Savings Plan loans, it is important to review TSP loan rules:

    • Only employees who are in pay status are eligible for TSP loans. Only employee contributions and earnings – not agency contributions and earnings – can be borrowed.
  • Two types of loans are available – general purpose loans and loans in order to purchase a principal residence. Loans to purchase to purchase a rental property or a second/vacation home are not permitted.

  • The minimum loan amount is $1,000. To be eligible for a loan, a TSP account owner must have at least $1,000 of contributions and earnings on those contributions in his or her account.

  • The maximum loan amount is $50,000. But the maximum amount one can borrow also depends on the individual’s TSP contributions, any outstanding TSP loans that the individual may have, and any limits set by the Internal Revenue Service.

  • The interest paid for the life of a TSP loan is the Government Securities (G) fund rate at the time a TSP application is processed. The interest paid on the loan is deposited into the loan owner’s account along with repayments of loan principal. A one-time fee of $50 covering the cost of processing and servicing of the loan is deducted from the loan proceeds.

  • Loans must be repaid – usually through payroll deductions – over the payment period specified in the TSP loan agreement. To repay a loan more quickly, or to make up for missed payments, TSP owners can pay by personal check or by money order. There is no penalty for prepaying a TSP loan.

  • All loans must be repaid before the borrower retires or leaves federal service. If a TSP in not repaid, the TSP will declare a taxable distribution for the balance of the outstanding principal and interest.
  • For many employees, TSP loans sound like a logical way to get some needed cash to pay for unforeseen expenses or to help purchase a principal residence.

    What are some advantages of TSP loans?

    • Paying yourself interest. Paying a reasonable amount of interest to yourself instead of an extravagant amount to a finance or credit card company would seem to be a less expensive way for employees to borrow.
  • Easy loan application. The TSP loan application is easy and straightforward. No one is turned down for a loan provided there are sufficient employee contributions and earnings. No credit check is required. Other types of loans – for example, home equity loans, require a more complex application process, a credit check and more fees.

  • No credit repercussions. If a TSP loan borrower loses his or her job, retires or leaves federal service and is unable to pay off the loan balance, the unpaid balance will be classified as a distribution for which income taxes must be paid. But it will not show up on the borrower’s credit report as a “loan default.”
  • But there are some disadvantages to TSP loans, including:

    • Paying taxes twice. By taking on a TSP loan, the account owner is moving tax-deferred assets into the taxable realm. One must use after-taxed income to repay the loan. For example, if an individual is in a 25 percent tax bracket, the individual would have to earn $125 to repay every $100 in principal and interest. After retirement, when the individual withdraws the same money used to repay the loan, the individual will pay income tax again on the same money.
  • Sacrificing growth and losing ground .Perhaps the most powerful feature of a retirement plan like the TSP is the tax-deferred growth and compounding of earnings and contributions. Removing these assets from one’s TSP account via a loan can significantly affect the growth of one’s account. Some borrowers have to reduce or suspend their TSP contributions in order to repay the loan. The overall result could be a smaller TSP retirement “nest egg”, possibly forcing an individual to postpone retirement in order to continue contributing to the TSP to make up for any “nest egg” deficit.

  • Potential tax penalty. If one fails to pay off a TSP loan, then income taxes – federal and possibly state – will be due. An additional IRS early withdrawal penalty of 10 percent will be applied if the account owner is younger than age 59.5 at the time of the loan default.
  • Employees who are tempted to dip into their TSP accounts via a loan to meet current needs should ask themselves: “Is my current need important enough that I want to risk reducing my level income during retirement?” Perhaps it would make good sense for these employees to talk to a financial advisor or tax consultant before they borrow from their TSP accounts. A financial or tax professional should be able to evaluate the effects of a loan and to make suggestions for alternative ways to tapping into one’s TSP retirement assets.

    Posted: 08/25/2009

    About the Author

    Edward A. Zurndorfer is a Certified Financial Planner and Enrolled Agent in Silver Spring, Maryland. He is also a registered representative with Multi-Financial Securities Corporation (Branch A9X), member FINRA/SIPC, also located in Silver Spring, Maryland

    To read more articles by Ed Zurndorfer, go here



    Can I Consolidate Federal – Private Student Loans Together? #short #term #loans #bad #credit


    #consolidate student loans
    #

    Can I Consolidate Federal Private Student Loans Together?

    If you have student loans, chances are you’re dealing with multiple interest rates, multiple loan servicers and multiple monthly payments – a surefire recipe for multiple headaches. The idea of consolidating all your loans together sounds like a great way to simplify, but is that even possible when you have both private and federal loans? More importantly, is it advisable?

    The short answer to the first question is yes, it is possible. But in order to decide whether it makes sense for your situation, there are some considerations to take into account. Here’s what you need to know:

    The Term “Consolidation” Can Have Different Meanings

    Consolidating student loans simply means combining them together, but there’s a difference between consolidating through the government’s Direct Loan Consolidation Program and consolidating through a bank or alternative lender.

    When you consolidate student loans through the Direct Loan Consolidation Program:

    • Most (but not all) federal loans are eligible, and private loans are not allowed.
    • The resulting interest rate is a weighted average of the original loans’ interest rates, which means no money is saved.
    • You may be able to select a new, longer term, which can reduce your monthly payments ; however, a longer term can also end up costing you more money in total interest.

    When you consolidate student loans through a private lender:

    • In most cases, only private loans are eligible (although a handful of lenders accept both private and federal student loans).
    • You’re offered a new interest rate based on your current financial situation, including your credit score (which means those loans are being refinanced as well as being consolidated).
    • If you qualify for a lower interest rate, you may be able to reduce your monthly payments or shorten payment term, and you can save a significant amount of money on total interest.

    Okay, so we’ve established that certain lenders will allow you to consolidate your private and federal loans together. Now let’s talk about whether that option is right for you.

    Check Credit Before Paying Down Student Loans Get your free Credit Score & personalized Action Plan. See where you stand & learn ways to better manage your score before paying down your student loans. Free and updated every 30 days.

    When Refinancing Federal Loans Is a No-Brainer

    The interest rates on federal loans are all one-size-fits-all numbers determined by Congress, so everyone gets the same rate for the same type of loan regardless of their unique financial situations. This can be advantageous for some borrowers – for example, undergrads who have little-to-no credit history and income. But borrowers whose finances and credit improve after graduation may find they’re eligible for lower rates through a private lender. This is particularly the case for mature borrowers who take out higher-rate federal unsubsidized or PLUS loans for graduate, MBA or professional degree programs. (You can see how your credit standing affects your cost of debt over time using this calculator .)

    Unfortunately, many borrowers who would qualify to refinance don’t even realize the option exists for federal loans – mostly because it only became available in the past few years. But as awareness grows, so does the number of borrowers who take advantage of refinancing. In fact, the majority of SoFi’s $1 billion in funded loans is made up of refinanced federal student loan debt. (Full disclosure: I work for SoFi.)

    Before refinancing federal loans, it’s important to note that some of these loans have features that don’t transfer to private lenders through the refinancing process. There are three main examples:

    • Deferment/forbearance. Some (but not all) private lenders have a forbearance option in the case of unforeseen financial hardship, for example if you’re laid off from your job. The details of each lender’s offering will be different, so it’s good to learn what it is before refinancing.
    • Income- driven repayment. Many federal loans offer the option of an income-based repayment plan, such as Pay As You Earn (PAYE), which allows you to make reduced monthly payments based on your income level. Most borrowers who qualify to refinance with a private lender at a lower rate don’t typically benefit from this program because their income is too high, but if you’re unsure, you should do the math on your own loans before refinancing.
    • Potential loan forgiveness. The three most common forgiveness options are for borrowers who teach, work in the public sector or participate in one of the aforementioned income-driven plans. You’ll want to read up on these forgiveness options to see if you qualify before refinancing federal loans.

    Bottom line? If your priority is saving money, then refinancing both federal and private loans can be a great strategy. The benefits of consolidating – simplifying your life with one monthly bill and payment – are simply an added bonus.

    This article is intended to provide useful information about personal finance, but it is not intended to provide legal, investment or tax advice.

    More on Student Loans:

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    Dan Macklin is one of the founding members of SoFi. a marketplace lender that offers student loan refinancing, personal loans and mortgages. He is a thought leader whose perspectives on education debt and personal finance have been featured in a variety of media outlets including CNBC, ABC, Fox Business and Fast Company, as well as his personal favorite, Italian Vogue!

    Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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    http://www.Credit.com/ Gerri Detweiler



    Current Students: Federal Student and Parent Loans #bridging #loans


    #student loans federal
    #

    Current Students: Federal Student and Parent

    Loan money is money designated for the student’s educational expenses that must be paid back to the lender. (Loan Forgiveness Programs do exist. We recommend that all graduating seniors discuss their career plans with us prior to graduation)

    Federal (Direct) loans are loans in which the United States federal government is the lender. The federal government offers student and parent loans with set interest rates. Deferment, forbearance, and forgiveness options may apply. Please view the federal repayment information website for additional information.

    The federal government sets the interest rates on their loan programs each year. These are fixed rates for that loan for that year, but interest rates per year may change and the interest rate for each type of loan is different.

    All loans require the borrower to sign a promissory note with the lender stating that the borrower knows they must repay the money borrowed. The lender will not release the funds until the borrower has completed signed a promissory note and any required counseling.

    NSLDS (National Student Loan Data System) allows students to track their federal direct loans at any time at one website.  Students are encouraged to sign in and become familiar with the information the website offers.

    Federal loans fall into 3 categories (or types):

    The Office of Financial Aid at Schreiner University is committed to assisting students in obtaining the best financial aid award possible. However, it is the student’s responsibility to comply with all requirements necessary to complete the financial aid process. In addition, the Office of Financial Aid is not responsible for the student’s financial obligations to Schreiner University. Each student must verify their account balance and make arrangements for any amounts not covered by financial aid.



    Federal Loans – Students #defaulted #student #loans


    #federal loans
    #

    Federal Loans

    Federal student loans are government-backed, or guaranteed. They are low-cost, fixed-rate loans that may be subsidized (based on need) or unsubsidized (not based on need). Subsidized loans begin to accrue (accumulate) interest when repayment begins (six months after you leave school or your attendance drops below half-time), while unsubsidized loans begin to accrue interest as soon as the loan is fully disbursed. Award amounts are based on grade year classifications and vary each year.

    Students must be enrolled at least half-time to be eligible for a direct loan disbursement.

    Half-time status at UMUC is defined differently depending on your program:

    • Undergraduate (6 credits)
    • Graduate (6 credits)
    • MBA or Executive MBA (3 credits)
    • Doctorate (3 credits)
    • AMBA 600 is considered a half-time course

    Initial awards are based on the assumption that you will be enrolled half-time; awards may be adjusted if you enroll for more or less credits.

    Awards will be adjusted on the following schedule (to match your current enrollment):

    • Fall Semester: September and December
    • Winter Semester: March
    • Spring Semester: February and May
    • Summer Semester: June and August

    Note: please contact our office if you add classes after the review dates listed above to determine if you are eligible for additional financial aid funds.

    Types of Federal Loans

    Repaying Your Student Loan

    Repaying your student loan is not an obligation to be taken lightly. It could affect your future financial health. Understand your options and responsibilities.



    Federal Direct Loans (Federal Direct Subsidized or Unsubsidized Loan) #short #term #payday #loans


    #federal loans
    #

    University of Nevada, Reno

    Federal Direct Loans (Federal Direct Subsidized or Unsubsidized Loan)

    Click Here to Complete The Online FEDERAL DIRECT Loan Activation Form

    To initially borrow the Federal Direct Loan, you must have completed your FAFSA. After the loan has been offered, you must accept it your MyNEVADA account. The Federal Direct Loan activation form (LAF) is only for the following situations: parents applied for and were denied a PLUS loan, student recently changed class standing and wants a loan increase, student initially declined loans and now wants to accept them, or student is requesting one semester only loans . We also accept the LAF in person to Student Financial Aid and Scholarships, Fitzgerald Student Services Bldg. – 3 rd floor, via U.S. Mail to Mailstop 0076, Reno, NV 89557 or via fax (775) 784-1025. If you have any questions, please contact our office at (775) 784-4666 or toll-free at (877) 666-0014.

    Types of Loans

    Your Offer Letter will include a subsidized or unsubsidized Federal Direct Loan or a combination of both.

    • The Federal Direct Subsidized Loan is a federally-sponsored “need-based” loan. The federal government pays the interest while you are enrolled at least half time. Interest begins to accrue when you enter repayment. This loan is available to undergraduate students only.
    • The Federal Direct Unsubsidized Loan is a federally-sponsored loan which has no interest subsidy. The interest accrues from the date of disbursement. You may pay the interest while you are enrolled or defer the interest. Accrued interest will capitalize once when you enter repayment. Students are encouraged to make the interest payments while in school to help decrease the total costs of the loan.
    • Subsidized loans are not offered to graduate or professional/medical students.

    Fees, Interest and Repayment

    • Repayment begins six months from the date of graduation, withdrawal, or enrollment less than half time. There is no pre-payment penalty.
    • Current year origination fees and interest rates

    New Borrowers at The University of Nevada, Reno

    1. The William D Ford Federal Direct Loan program is the sole provider of Subsidized and Unsubsidized, Parent PLUS and Graduate PLUS loans.
    2. Go to the Direct Loan website for more information and to complete entrance counseling and the Master Promissory Note (MPN). You sign using your FAFSA PIN. New borrowers at the University of Nevada, Reno must sign the Master Promissory Note and complete Entrance Counseling before we will certify your loan(s) with the lender. If you don’t complete the online MPN, the lender will automatically mail you a pre-printed paper MPN, but this process is slower and may delay your funds.

    Previous Borrowers

    If you have previously borrowed a federal Federal Direct, Plus, or Graduate Plus loan through a private lender in the FFELP loan program (Wells, Fargo, Bank of America, Citibank etc.,) they no longer offer loans and you will need to sign a new Master Promissory Note (MPN) and Entrance Counseling with the Direct Loan program .



    Federal government; consumer credit, student loans; asset, Level – FRED – St. Louis Fed #secured #loans


    #government student loans
    #

    Federal government; consumer credit, student loans; asset, Level

    The source ID is FL313066220.Q

    This data appear in Table S.7.q of the ‘Integrated Macroeconomic Accounts for the United States.’

    Y-Axis Position: Left Right Bottom

    (a) Federal government; consumer credit, student loans; asset, Level, Millions of Dollars, Not Seasonally Adjusted (FGCCSAQ027S)

    Units:

    The source ID is FL313066220.Q

    This data appear in Table S.7.q of the ‘Integrated Macroeconomic Accounts for the United States.’

    Cautionary note on the use of the integrated macroeconomic accounts (IMA) – The estimates that are provided on this page are based on a unique set of accounting standards that are founded on the SNA. Accordingly, some of the estimates in in the IMA tables will differ from the official estimates that are published in the NIPAs and FFAs due to conceptual differences. There will also be some statistical differences between the estimates in these tables and those in the related accounts. For further information on the conceptual differences, see the paper at http://www.bea.gov/national/pdf/Integratedmac.pdf .



    Federal Direct Loans #loans #for #military


    #federal student loan rates
    #

    Federal Direct Loans

    Direct Stafford Loans, from the William D Ford Federal Direct Loan Program, are low-interest loans for eligible undergraduate and graduate students to help cover the cost of higher education. These federal loans are borrowed directly from the U.S. Department of Education at participating schools. These loans do not require a credit check. A small origination fee is withheld from the loan when it is disbursed to you.

    There are borrowing limits on the maximum amount you are eligible to borrow each academic year (annual loan limit) and in total (aggregate loan limit). A student may qualify to borrow both subsidized and unsubsidized loans based upon his/her demonstrated financial need and the maximum loan limit per grade level. The actual amount that you can borrow depends on your grade classification, whether you are a dependent or independent student, and other factors, and may be less than the maximum amounts shown in the loan limit chart.

    There are two types of Federal Stafford Loans: subsidized and unsubsidized.

    1. Direct Subsidized Loans provide a fixed interest rate and are available to undergraduate students who

    demonstrate financial need based on the results of the Free Application for Federal Student Aid (FAFSA). You are not charged interest on these loans while you are in school at least half-time and during deferment periods. The interest on a student’s subsidized loan begins during the student’s grace period. Graduate students are no longer eligible for Subsidized loans.

    A new borrower on or after July 1, 2013 must complete their degree within 150% of the published length of the borrower’s program to remain eligible for the interest subsidy benefits on all Direct Subsidized Loans. If a degree is not completed within the 150% timeframe, the borrower will lose all subsidy benefits and future eligibility for Direct Subsidized Loans.

    2. Direct Unsubsidized Loans provide a fixed interest rate of 4.29% for undergraduate loans (5.84% for graduate students) disbursed July 1, 2015 through June 30, 2016 and are available to students regardless of financial need (although the FAFSA still must be filed). Interest accrues on an unsubsidized loan from the time it is first disbursed to you. You can pay the interest while you are in school or allow it to accrue and be capitalized (added to the principal of the loan) upon repayment.

    Borrowing a Direct Loan: Master Promissory Note Entrance Counseling

    • If you are a first-time borrower of Direct Stafford Loans you will need to complete a Direct Loan Master Promissory Note (MPN) at www.studentloans.gov using your FSA ID. The MPN is a legal document in which you promise to repay your loan and any accrued interest and fees to the U.S. Department of Education. The MPN explains the terms and conditions of your loan and is used for loans that you receive over a period of multiple academic years.

    • New borrowers of Direct Stafford Loans also need to complete Entrance Counseling at www.studentloans.gov using the FSA ID. This process helps students to understand their rights and responsibilities as a Direct Loan borrower.

    • If you have borrowed Direct Loans at UNI in previous years you have already completed both of these requirements. However, new students who may have borrowed Direct Loans while attending another institution will still need to complete Entrance Counseling before receiving their loans at UNI.



    Federal Perkins Loan: Stanford University #loan #for #business


    #federal perkins loan
    #

    Federal Perkins Loan

    The student loan program with the best available terms is the federal Perkins loan. If your aid application shows that you have sufficient computed financial need, we may offer you a Perkins loan as part of your financial aid package. The pool of available Perkins loan funds is limited, so not all aid applicants can be offered Perkins loans.

    Please note: The Perkins Loan program is expiring at the end of September. Promissory notes must be completed by September 15, 2015 to ensure your access to this loan.

    Here are some of the attributes of federal Perkins loans at Stanford:

    • $5,500 maximum per academic year for undergraduate students.
    • $8,000 maximum per academic year for graduate students.
  • 5.0% fixed interest rate during repayment. No interest is charged while you are enrolled in college at least half-time or during the nine-month grace period after you leave school.
  • No credit check required. If you are not in default on a prior educational loan, do not owe a repayment of federal grant funds, and meet federal aid eligibility requirements, you will be approved to borrow the Perkins loan.
  • No payments required while in school. Repayment begins nine months after you graduate or drop below half-time enrollment and lasts up to ten years, with a minimum monthly payment of $50. You can apply for deferment of your repayment while enrolled in a graduate or professional program or if you become unemployed.
  • Updated on September 1, 2015 3:04 PM



    Federal Perkins Loans #what #is #a #loan


    #federal perkins loan
    #

    Federal Perkins Loans

    A Federal Perkins loan is a need-based loan made by the school to an undergraduate or graduate or professional student enrolled at least half time. A Perkins loan has a 5% fixed interest rate and no loan fee.

    Effective October 1, 2015, schools can no longer make Federal Perkins loans to new borrowers. If prior to October 1, 2015, a school made the first disbursement of a Perkins loan to a student for the 2015-2016 award year, the school may make any remaining disbursements of that loan after September 30, 2015. In addition, some current borrowers who received at least one Perkins disbursement on or before June 30, 2015, may continue to receive Perkins for up to an additional five years if they meet certain conditions. Contact your school for more information.

    How it works

    Each school participating in the Federal Perkins Loan Program has a very limited amount of funds with which to make Perkins Loans, so if a student’s school participates, it’s important for the student to submit his or her Free Application for Federal Student Aid (FAFSA) early to be considered for a Perkins loan.

    How to apply

    As with all federal student aid, a student applies for a Perkins loan by completing the FAFSA. A student awarded a Perkins loan will also be required to sign a Federal Perkins Loan Master Promissory Note.

    Loan amounts

    The chart below shows the maximum Perkins Loan funds a student can receive, which depends on whether the student is an undergraduate, graduate, or professional student. However, the amount a student is awarded may be less than the maximum.



    Federal Perkins Loans #school #loan #calculator


    #federal perkins loan
    #

    Federal Perkins Loans

    Revolving Loan Fund

    The Federal Perkins loan is a made from a revolving loan fund, which was originally established by matching capital contributions from the colleges and the federal government. Not every college participates in the Federal Perkins loan program.

    The loan fund is supposed to be replenished when current borrowers repay their loans. However, the available funds are depleted by borrowers qualifying for loan forgiveness and by borrowers who default on their loans. There have been no new federal capital contributions to the Federal Perkins loan program since 2009.

    Eligibility

    The Federal Perkins loan is a campus-based loan program, where the college s financial aid administrator decides which students receive the loans. The loans are supposed to be awarded to students who demonstrate exceptional financial need, but this term was never defined by Congress. As a result, decisions concerning which students receive the Federal Perkins loan are left to the discretion of the college s financial aid administrator.

    In practice, the distribution of the Federal Perkins loan is similar to the distribution of the subsidized Federal Stafford loan. In the 2011-12 academic year, 70% of Federal Perkins loan recipients had an adjusted gross income (AGI) under $50,000, compared to 71.7% of subsidized Federal Stafford loan recipients and 91.7% of Federal Pell Grant recipients. Nearly three quarters (73.6%) of Federal Perkins loans went to Federal Pell Grant recipients, with 29.2% going to students who received a full Federal Pell Grant. But, still, only 3.8% of Federal Pell Grant recipients received a Federal Perkins loan, compared with 1.0% of non-recipients. 11.4% of Federal Perkins loan borrowers had an expected family contribution (EFC) of $10,000 or more.

    Interest Rate and Fees

    The interest rate on the Federal Perkins loan is fixed at 5%. There are no fees.

    Loan Limits

    The Federal Perkins loan has an annual loan limit of $5,500 for undergraduate students and $8,000 for graduate students. Cumulative loan limits are $27,500 for undergraduate students and $60,000 for graduate and professional students. The cumulative limit for graduate and professional students includes any undergraduate Federal Perkins loan debt.

    Actual Federal Perkins loan amounts are usually much lower than the annual loan limits, due to limited funding. In the 2011-12 academic year, 2.2% of undergraduate students received an average of $1,824 in Federal Perkins loans and 1.9% of graduate and professional students received an average of $2,747 in Federal Perkins loans. The average cumulative Federal Perkins loan debt at graduation is $4,070 for undergraduate students and $4,072 for graduate and professional students.

    Repayment

    Repayment begins 9 months after the student graduates or drops below half-time enrollment. Interest remains subsidized during the 9-month grace period.

    The Federal Perkins loan is repaid over a 10-year repayment term with equal monthly payments. There is a $40 minimum monthly payment. The monthly payment for $4,000 in Federal Perkins Loans is about $42.

    Longer repayment terms may be obtained by consolidating the Federal Perkins loans into a Federal Direct Consolidation Loan. However, borrowers who consolidate the Federal Perkins loan will lose the remainder of the grace period, the subsidized interest benefit during deferment periods and the loan program s favorable forgiveness and cancellation options .

    Federal Perkins Loans are eligible for the student loan interest deduction.

    Proposed Changes in the Federal Perkins Loan Program

    There have been federal budget proposals to expand the Federal Perkins loan program from about $1 billion in loans a year to $8.5 billion. Funding for the expanded Federal Perkins loan program would come from the U.S. Department of Education s direct loan program. The new Federal Perkins loans would be unsubsidized, with interest rates, grace period and other terms similar to the unsubsidized Federal Stafford loan. Colleges would have loan funding allocations based on their success in enrolling and graduating Federal Pell Grant recipients and their success in restraining tuition increases. Colleges would still control who received Federal Perkins loans, subject to packaging rules that targeted the Federal Perkins loans at replacing private student loans. None of these proposals have been enacted.



    Federal Perkins Loan – St. John Fisher College #student #loans #federal


    #perkins loan
    #

    Federal Perkins Loan

    Federal Perkins Student Loans are a low interest loan for undergraduate students with exceptional financial need. The Financial Aid Office determines which students will qualify. St. John Fisher College serves as the lender. Education Computer Systems, Inc. (ECSI) services Fisher’s Perkins loans.

    **The Federal Perkins Loan has expired as of September 30, 2015. The College may not award Perkins Loans to new borrowers after September 30, 2015, except in the following circumstances:

    • If a school makes a Perkins Loan first disbursement to ANY eligible student for the 2015-16 award year prior to October 1, 2015, that school may make any remaining disbursements for the 2015-16 award year.
    • Schools may make additional Perkins Loans to already existing and qualifying Perkins borrowers for up to 5 years (through 2020) under a grandfathering provision:
      1. The school must have disbursed at least one Perkins Loan to the student by June 30, 2015;
      2. The student is enrolled at the same school where their last Perkins loan was disbursed;
      3. The student is enrolled in the same academic program as when they received their last Perkins disbursement (based upon the first 4 digits of the CIP code); and
      4. The Perkins Loan is awarded to an eligible student who has unmet need and has exhausted all of the Direct Subsidized Loan funding for which they are eligible.

    Perkins Loan Basics

    Application Form

    Students must file the Free Application for Federal Student Aid (FAFSA) to be eligible for federal loans.

    Requirements

    You must be an undergraduate student enrolled in at least 12 credit hours (full time) during a semester, accepted in a degree-seeking program at St. John Fisher College and maintaining satisfactory academic progress for financial aid eligibility. Borrowers must be U.S. citizens or eligible non-citizens. The Financial Aid Office determines which students will qualify.

    Award Amounts

    Funding available to lend to students is limited to a set amount of money provided by the federal government, a share contributed by the college and the repayment of Perkins Loan funds by prior borrowers. Average award is $1,200 per year. Funds are limited and subject to availability.

    Interest Rate Repayment

    The interest rate is 5%. Perkins Loan borrowers are eligible to defer the repayment of the loan principal, with no interest charged while enrolled for classes as at least a half-time student. It is a subsidized loan, with interest being paid by the federal government during the in-school and 9 month grace period. Repayment begins nine months after dropping below half-time enrollment. Repayment can take a maximum of ten years. Payments will be made to ECSI. Fisher’s Perkins Loan servicer. ECSI will contact you via email after part-time enrollment ceases regarding exit counseling and repayment.



    Federal Student Loan Debt Tops $800 Billion #secured #loans #for #bad #credit


    #government student loans
    #

    Federal Student Loan Debt Tops $800 Billion

    Statue of George Washington stands near the University of Texas Tower in Austin, Texas. (AP Photo)

    From November 2013 through November 2014, the aggregate balance in the federal direct student loan program–as reported by the Monthly Treasury Statement –rose from $687,149,000,000 to $806,561,000,000, a one-year jump of $119,412,000,000.

    The balance on all student loans, including those from private sources, exceeded a trillion dollars as of the end of the third quarter, according to the Federal Reserve Bank of New York.

    “Outstanding student loan balances reported on credit reports increased to $1.13 trillion (an increase of $8 billion) as of September 30, 2014, representing about $100 billion increase from one year ago,” the bank said in its latest report on household debt and credit .

    ype=”node” title=”Federal Student Loan Debt Increased by Average of More Than $100B Per Year

    Seven years ago, in November 2007, the aggregate balance in the federal direct student loan program was only $98,529,000,000. Since then, it has grown by $708,032,000,000.

    This is money that young Americans owe the federal Treasury–and that gives the federal government leverage over their lives.

    “Under the DL program, the federal government essentially serves as the banker — it provides the loans to students and their families using federal capital (i.e. funds from the U.S. Treasury), and it owns the loans,” explains the Congressional Research Service.

    In fact, the program is a government-funded redistribution of wealth to colleges and universities. The question is: Who will ultimately pay for that wealth transfer?

    In 2013, the National Center for Educational Statistics published a study of student aid in the 2011-2012 school year. It showed that 40.2 percent of students attending a postsecondary school had a federal student loan.

    The percentages were higher for full-time students and those who attended four-year colleges. Fifty-five percent of students attending college full-time had a federal loan, 58.1 percent of those attending a four-year doctorate-granting institution had a federal loan, and 61.4 percent of those attending a four-year non-doctorate granting institution had a federal loan.

    The average amount of a federal student loan during that school year was $6,500.

    In 2012, according to the National Association of College and University Business Officers, the University of Texas System had an endowment of $18,263,850,000 — the largest of any state university system. In 2013, that endowment grew 12 percent — or $2,184,463,000 — to hit $20,448,313,000.

    Yet, according to the College Board, an in-state student attending the University of Texas at Austin during this school year will pay $26,324 in total costs (including $9,798 in tuition; $11,456 in room and board; $760 for books; $2,280 in personal expenses; and $1,490 in transportation expenses).

    The “average indebtedness at graduation” of a University of Texas student is $25,300, says the College Board. This is “the typical amount of loan money a student who attended this college must pay back.” (The College Board does not specify how much of that indebtedness is owed to the federal government.)

    In 2012, according to NACUBO, Harvard had an endowment of $30,435,375,000 — the largest of any American university.

    In 2013, that endowment grew 6.2 percent — or $1,898,918,000 — to $32,334,293,000.

    Yet, according to the College Board, the cost of attending Harvard this year is $62,250 (including $43,938 in tuition, $14,669 in room and board, $1,000 for books and supplies and $2,643 in personal expenses). The “average indebtedness at graduation” of a Harvard student is $12,560.

    By doling out a net average of about $100 billion per year in student loans, the federal government allows even the nation’s wealthiest universities to charge students more than they and their families can pay without going into debt.

    That makes colleges richer and students poorer.

    The federal government already has programs in place to forgive or payoff the student loans of Americans who engage in government-approved activities, or who do not do well enough financially in their after-college years to pay off their own loans.

    “Loan forgiveness and loan repayment programs,” says the Congressional Research Service, “typically are intended to support one or more of the following goals: Provide a financial incentive to encourage individuals to enter public service. Provide a financial incentive to encourage individuals to enter a particular profession, occupation, or occupational specialty. Provide a financial incentive to encourage individuals to remain employed in a high-need profession or occupation — often in certain locations or at certain facilities. Provide debt relief to borrowers who, after repaying their student loans as a proportion of their income for an extended period of time, have not completely repaid their entire student loan debt.”

    “Currently, over 50 loan forgiveness and loan repayment programs are authorized, and at least 30 of which were operational as of October 1, 2013,” says CRS.

    When the government forgives or repays a student loan, it becomes a redistribution of wealth from taxpayers to a person who attended college.