College student loans
Private college student loans are available to students who desire to complete their college education and are in need of financial aid. The interest rates are reasonable and the process for application is also simple. You will not incur fees for application and the also the other pocket costs. You will be funded with the required amount in just 5 days after approval. Everybody wants to be successful in life but most of the students cannot enjoy this advantage due to their economic status. The cost of education constantly keeps on increasing, so also a student is able to build a rewarding career only if he acquires quality education.
Through education you can financially secure your future but to acquire it you have to pay the fair price. The terms and conditions of the private college loans are liberal and the repayment terms are also very flexible. The service provided by the lenders is also excellent. If you are borrowing loan to meet your educational needs then you must buy subsidized loan and you must not pay the yearly interest during your college days. You must pay the principal amount as well as the interest only after leaving the college or completing your college degree.
The rate of interest is usually low i. e. Perkins rate is 5 % and Stafford interest rate is 6. 8%. Your credit history will not access here. Following are the points to be borne in mind before applying for the private loan.
1. The tenure of loan
2. Does the government pay the yearly interest
3. The interest rate and your ability to start repaying
4. Monthly repayment
5. After one year how much loan shall increase. If your loan is not based on your needs, it will be unsubsidized loans and you must make yearly interest payments unlike the subsidized loans.
These loans are termed as outside of need because they aid the families who cannot meet their expenses out of their savings and current income. They are used to meet other expenses like rent, hostel and for buying materials etc. The connect loan TM is a non-profit organization established to offer financial aid to undergraduates, graduate students and health professionals. The borrowing limits are generous and they can fund the entire cost of education. They can be also utilized to clear off your past expenses.
The interest rate will be reduced by 0. 25% if you have automatically debited your savings account by crediting your loan account regularly. If you wish to apply online, first log on to College Board Connect Loan and provide personal information about yourself like your social security number, contact information, name of the school attended by you, monthly rent expenditure incurred and repayment option. You will see a web page pop-up that informs you that your preliminary loan approval.
Then you are required to sign and fax the loan agreement and submit the necessary documents. Funds are disbursed to you within five days. Your eligibility for this loan will be based on your past credit-record and your current income status. Your credit, employment and residence record for the past two years should be satisfactory. You are required to produce income proof such as your salary slips if you are a jobholder. If you are self-employed you must disclose your financial statements that are attested by Chartered Accountants usually to show your current income status.
The most important requirement is that you must be the permanent U. S. resident and has resided in the U. S for the past two years. Even if you are an international student with an excellent credit history, your eligibility will be considered. There are some features of distinction between traditional or government education loans and private college loans. There are no much formalities to be complied by the applicant. Once you open up an account online, you can access it just anytime. Customer service is available on the website for 24 x 7 basis.
The same facility is not provided by the government agencies. As surveyed by the U. S. Census Bureau, the total tuition cost of a 4-year private college on the average amounts to $18,273 a year. As the cost of education is rising every year, the federal government is willing to extend the maximum amount to be provided as financial aid to the needy students. The student aid has increased by 11. 7% over the time of decade and in the year 2002, about $ 90 billion was provided as a financial aid to American needy students. Every year almost 75% of college students i. e over 8 million students seek for financial aid.
If you are a star or an athlete you will be qualified to receive more of financial support. You can apply for a College Board Stafford Loan if you are a first-year student in college. You must encounter a counselor before receiving the funds. If you are the U. S citizen or an eligible non-citizen then fill up the FAFSA (Free Application for Federal Student Aid). After completing the form your eligibility for receiving Subsidized Stafford Loan will be determined. For the first year you will receive financial support for about $2, 625 and for the second year you will be funded about $3,500. Next year you will receive $5,500 and during your final year $8500 will be provided to you. The interest rate is fixed at 6. 8 % and you can start repaying the amount six months after your graduation.
The maximum tenure for repayment is up to 10 years. Only under special circumstances your repayment period will be extended. The methods of repayments are several and you can choose your own method. The origination fee is paid by the College Board Education Loan Program on Stafford Loans. A federal default fee is paid for about 1% of the total amount of loan obtained. The eligibility criterion for the unsubsidized Stafford Loan is the same as compared to subsidized. The loan amount for the first three years is also equal, but for the fourth year the student will receive $18,500.
The interest rate is fixed 6. 8% as effective from July 1, 2006. The students have the option of repaying the amount right from their school days. They can also enter repayment process six months after their graduation and the interest accrued will be capitalized. Apply for any of the college loans to build your career.
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