The Complete Solution for getting the College Loan
College is expensive, but with the right loans you don't have to pay more than you can afford. The government offers student loan programs to help cover the cost of tuition and living expenses while in school. These types of loans are available from federal agencies like Sallie Mae, as well as private lenders through a college's financial aid office. For most students, borrowing money for college is the best way to go.
In this post, we'll explore what types of loans are offered by federal agencies and offer some tips on how to apply for them. We'll also make a list of the best sites for applying online. Many loans have different eligibility requirements based on your income and credit history, so it's important to check those guidelines before you apply.
There are two kinds of federal student loan programs. The first kind is called Federal Stafford Loans (subtitled "Unsubsidized") . These loans are granted to undergraduate as well as graduate students, and the interest rate charged is the same regardless of whether you're in school or not. The second type of loan is called a Federal PLUS Loans (subtitled "Parent"). This type of loan is for parents and graduate students, and the interest rate is variable based on current market conditions.
Federal Stafford Loans have lower eligibility requirements than PLUS loans. If your credit history allows it, you are likely to qualify for a Federal Stafford Loan. The amount that you can borrow depends on a variety of factors such as whether you're an undergraduate or graduate student, how long you've been in school, your family financial situation, as well as the cost of attending the school that you'll be attending.
Another thing to consider is whether you plan to attend college full-time or part-time. As a full-time student, you're eligible to borrow more than if you attend school part-time. The maximum amount that you can borrow as a full-time undergraduate student is $5500 per year for up to 12 consecutive months.
If you're a graduate student, the rules are different. You're eligible to borrow more per year depending on your program length and enrollment level, and the interest rate is variable. For students attending school part-time or less than nine months, loans are available for up to $23,000 per year with interest rates ranging from 5.31% to 6.84%. For students attending full-time, the maximum amount that you can borrow is $6500 per year with a fixed interest rate of 6.84%.
Students who are enrolled in graduate programs and are attending school at least half-time can borrow up to $138,500 over the course of their program. The interest rate varies depending on your enrollment level: graduate students enrolled in school full-time have a fixed interest rate of 5.31%, and those attending part-time or less than half-time have an interest rate based on current market conditions.
When considering whether you should take out a Federal Stafford Loan, keep in mind that you will have to start paying them back as soon as your grace period has ended. If your Stafford loan is due before your grace period ends, you'll have to pay the interest that accrues on your loan during that time. If you want to defer payment on your federal student loan, there are very few options available.
Some people may find themselves in this position: they want to return to school for a second or third degree but can't afford the tuition and fees at their current school. They might need help paying off their loans, especially if they have multiple outstanding loans from other programs. That's where Federal student loans come in.
Federal student loans can be used to cover the cost of tuition and fees in addition to textbooks and other school necessities. With our federal student loan program, you will still continue to pay your tuition at your current school. All you need is a cosigner who can qualify for this program as well as a portion of the loan amount that you qualify for.
With Sallie Mae, we're committed to helping eliminate debt and getting students back on track. That's why we're offering students an opportunity to obtain a Federal Stafford Loan by having their parent cosign the loan. In this option, both the student and the parent will be required to make monthly payments to the lender. You can decide which type of loan program is right for you. Call us at 800-523-7905 to learn more.
Here's a list of other options that can reduce college costs...
Student Loan Consolidation
Students who are paying back federal loans should consider consolidation. This will help make paying back your loans more manageable by increasing your monthly payment amount and reducing the total amount that you're borrowing.
Student Loan Refinancing
Refinancing your student loans will help you save money on interest by extending your loan term and lowering your monthly payment amount. The interest rates you'll be charged for refinancing are more favorable than when you were new to the market. Refinancing is also a great way to make additional payments towards your loans. With Sallie Mae, you may qualify for a below-market government student loan refinance rate. The current borrower limit is $2 million, but it's likely that the limit will increase depending on future borrowing trends and market conditions.
You can compare rates from other lenders by searching our database of best student loan refinance rates.
Take a look at our refinance calculator and see how much you can save by refinancing your student loans. The calculator is free, and there are no obligations to refinance your loan.
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Frequently Asked Questions About Federal Student Loans & Borrowing for College
1.) What is the difference between a private and federal student loan? BACK TO TOP There are several differences between a private and federal student loan: Interest Rate: Federal loans are offered at fixed interest rates, while private loans have variable interest rates that will change over time (usually weekly).
Conclusion Points: Conclusion points are the additional factors that factor into your interest rates. This includes things such as the amount of time you've been in school or the types of degrees you have.
Interest Accrual Choices: Federal loans allow you to choose one of two different scenarios when it comes to paying off your loan. You can pay off your loans in a fair and timely manner, or you can choose to pay varying amounts each month depending on your financial situation.
Conversion to Direct Loans: If you have private student loans, there's a chance that they may be converted to Direct Loans at some point in the future, which will result in a reduction of your interest rate.