President George W. Bush Speaks On The Brewing Student Loan Crisis

In his weekly radio address, President Bush spoke about the brewing
crisis in the student loan markets. WATCH VIDEO

In his address he mentioned the “Lender of Last Resort Program” for
student who cannot secure funding for college. He further mentioned
the need for the ability of the govenment to step in and buy the loans
when necesarry to provide liquidity to the system.

He also signaled to the Senate get something started, as the House of
has already passed the ”Insuring Continuing Accessing Student Loans
Act” and the Senate has yet to act on the issue.

The Presdent would need a bill on his desk, before June 1, 2008 to avoid
any major problems with loans for the September Semester.

Affordable Student Loans Need a Deferment Period

Going to college takes a bunch of money these days! Invariably, most students end up with an amount due after their graduation and this amount will be more than the original borrowed amount. This is due to the fact many student loan include a deferment period. After all, how affordable would a student loan be if the student had to come up with monthly payments while he was in college?

This article talks about the student loan deferments and how they affect the bottom line. Namely, how much the student will be liable for after his education.

What is a deferment period?

When student loans are made, the first payment will not be due until after graduation or until the student quits school. This means the student can spend 4 years in college, graduate, get a job and then start paying back the loan.

One aspect of this type of loan that cannot be overlooked is during the deferment period the loan is accumulating interest. This means a loan of $20,000 can become $30,000 by the time the student starts to pay it off. This is a dirty deal, but it comes under the heading, “there is no such thing as a free lunch.”

The difference between a straight loan and a deferred one

Let’s look at how this works. If a person takes out a regular loan for $20,000 at 7% for 7 years, or 84 payments, and he is going to start paying on the first month, his payment will be $301.85 each month.

If a person takes out a deferred student loan for $20,000 at 7% for 7 years, or 84 payments, but the first payment isn’t due for 4 years, the total amount owed will have become 2,6441.08 by the time the first payment is due and the monthly payment will be $399.07. So, this is another wrinkle the student has to contend with to get that ever-important sheepskin.

It is important to get an accurate idea what the payments will be after graduation, you have to use a student loan calculator that includes an entry for the deferment period or else you won’t be getting the actual amount owed or monthly payment due when the payback period begins.

Another example

Let’s take another example. The student gets a loan for $35,000, which has a 10-year payoff period. The payments start after a 4 years and the interest rate is 7%. Here’s the way the numbers look for this loan. When the payments come due the total loan will have ballooned to $46,271.89 and the payment will be $537.26.

Now let’s complicate things a little more. The student may have to take a separate loan for each of the years he is in school. The lender may allow different deferment periods for each loan. So, he may end up with $20,000 deferred for 4 years, $20,000 deferred for 3 years, $20,000 deferred for 2 years and well, you get the idea.

In short, when dealing with student loans, don’t forget the deferment aspect to it. It can make a huge difference in the final numbers.

Affordable Student Loans Need a Deferment Period

Going to college takes a bunch of money these days! Invariably, most students end up with an amount due after their graduation and this amount will be more than the original borrowed amount. This is due to the fact many student loan include a deferment period. After all, how affordable would a student loan be if the student had to come up with monthly payments while he was in college?

This article talks about the student loan deferments and how they affect the bottom line. Namely, how much the student will be liable for after his education.

What is a deferment period?

When student loans are made, the first payment will not be due until after graduation or until the student quits school. This means the student can spend 4 years in college, graduate, get a job and then start paying back the loan.

One aspect of this type of loan that cannot be overlooked is during the deferment period the loan is accumulating interest. This means a loan of $20,000 can become $30,000 by the time the student starts to pay it off. This is a dirty deal, but it comes under the heading, “there is no such thing as a free lunch.”

The difference between a straight loan and a deferred one

Let’s look at how this works. If a person takes out a regular loan for $20,000 at 7% for 7 years, or 84 payments, and he is going to start paying on the first month, his payment will be $301.85 each month.

If a person takes out a deferred student loan for $20,000 at 7% for 7 years, or 84 payments, but the first payment isn’t due for 4 years, the total amount owed will have become 2,6441.08 by the time the first payment is due and the monthly payment will be $399.07. So, this is another wrinkle the student has to contend with to get that ever-important sheepskin.

It is important to get an accurate idea what the payments will be after graduation, you have to use a student loan calculator that includes an entry for the deferment period or else you won’t be getting the actual amount owed or monthly payment due when the payback period begins.

Another example

Let’s take another example. The student gets a loan for $35,000, which has a 10-year payoff period. The payments start after a 4 years and the interest rate is 7%. Here’s the way the numbers look for this loan. When the payments come due the total loan will have ballooned to $46,271.89 and the payment will be $537.26.

Now let’s complicate things a little more. The student may have to take a separate loan for each of the years he is in school. The lender may allow different deferment periods for each loan. So, he may end up with $20,000 deferred for 4 years, $20,000 deferred for 3 years, $20,000 deferred for 2 years and well, you get the idea.

In short, when dealing with student loans, don’t forget the deferment aspect to it. It can make a huge difference in the final numbers.

Not too late for spring semester

Last month we launched our "Ask the Expert" tool — and since then, your questions have been steadily rolling in. At first I was surprised by the number of inquiries we received this way. I thought the Student LoanDown community would use the comments section to ask questions — but I guess you take that section literally and use it for actual comments, not questions!

Nonetheless, I'm glad you're finding "Ask the Expert" useful. It's certainly useful for us bloggers because we learn exactly what kind of information you'd like more of — and then we can share it with the rest of our community.

So here's a question we received from a concerned parent about financial aid timing (certainly appropriate as spring semester is just a few months away):

My daughter is a freshman. We did not take out any loans for the first, fall, semester, but would like to take out one for the spring semester. Is it possible to get a Stafford or Perkins loan for the spring semester, or have we missed this cycle and have to wait for the fall of 2008?

And here's my response:

No, you haven't missed the cycle. (Whew!) If you haven't already completed the FAFSA Click here to learn about third-party website links (Free Application for Federal Student Aid), that's your first step. The 2007 FAFSA covers the 2007-2008 academic year through June 30, 2008, and will determine your daughter's eligibility for financial aid.

I'd suggest that you check with the financial aid office at your daughter's school. Low-interest Federal Perkins Loans Click here to learn about third-party website links are based on financial need and are awarded on a first-come, first-served basis, so those may not be available. But low-interest Federal Stafford Loans have both need-based and non-need-based components (subsidized and unsubsidized loans), and as long as your daughter is attending an eligible school at least half-time, this should still be an option for her.

One last thing: As a parent, if you're interested in borrowing to help your daughter pay for school, check out the Federal PLUS Loan for parents. It's also not based on financial need but does require a minimal credit check.

Determining EFC and Cost of Attendance

What is Cost of Attendance?

Your college or university will generally publish on its Web site or in its financial aid office the college's cost of attendance. This is an estimate of how much money will be required to attend school for one year at that college, including all reasonable expenses. Most people, when budgeting for college, look at the tuition and assume that tuition is more or less the "price tag" for that school, when the reality is that tuition may be as little as 50% of the overall budget. Here are some sample costs of attendance from a survey done by TheStreet.com:

* Prestige school (Ivy League or near-Ivy League):
o Tuition, $31,644;
o Room/board, $9,873;
o Books & supplies, $1,419;
o Plus similar costs for personal expenses and transportation.
o Total cost: an estimated $44,592 per year.
* Private four year university/school:
o Tuition, $16,086;
o Room/board, $6,540;
o Books & supplies, $920;
o Plus costs for personal expenses and transportation.
o Total cost: an estimated $26,226 per year.
* State university/Public school:
o Tuition, $8,670;
o Room/board $7,176;
o Books/supplies $950;
o Plus expenses and transportation.
o Total cost: an estimated $18,452 per year.

Incidentally, the fact that state and public universities are broken out into a separate category is an indication of price range, not quality. Some public universities are as well regarded or even more prestigious than their private university counterparts.
How does Cost of Attendance influence financial aid?

A school's financial aid office generally determines the programs and amounts of aid an applicant receives. This involves determining the cost of attending the college, calculating a student's Expected Family Contribution (EFC), and then awarding aid to meet the difference between the two - the calculated financial need.
What is the EFC?

The Expected Family Contribution (EFC) is the amount a family can be expected to contribute toward a student’s college costs. Financial aid administrators determine an applicant’s need for federal student aid from the U.S. Department of Education and other non-federal sources of assistance by subtracting the EFC from the student’s cost of attendance (COA).

The EFC formula is used to determine the EFC and ultimately determine the need for assistance from the following types of federal student financial assistance: Federal Pell Grants, subsidized Stafford Loans (though the William D. Ford Federal Direct Loan [DL] Program or through the Federal Family Education Loan Program [FFEL]), and assistance from the “campus-based” programs—Federal Supplemental Educational Opportunity Grants (FSEOG), Federal Perkins Loans, and Federal Work-Study (FWS).

The methodology for determining the EFC is found in Part F of Title IV of the Higher Education Act of 1965, as amended (HEA).

Financial aid administrators use the information from the Free Application for Federal Student Aid (FAFSA), including the EFC, to develop a financial aid package. This package specifies the types and amounts of assistance, including non-federal aid, a student will receive to cover his or her education-related expenses up to COA. However, because funds are limited, the amount awarded to a student may fall short of the amount of aid for which the student is eligible
What is the source of data used in EFC calculations?

All data used to calculate a student’s EFC come from the information the student provides on the FAFSA. A student may submit a FAFSA (1) through the Internet by using FAFSA on the Web, (2) by filing an application electronically through a school, or (3) by mailing a paper FAFSA to the Central Processing System (CPS).

Students who applied for federal student aid in the previous award year may be eligible to reapply by filing a Renewal FAFSA over the Internet or by submitting a paper renewal application. Applying for federal aid is free. However, to be considered for non-federal aid (such as institutional aid), a student may have to fill out additional forms and pay a processing fee.

We encourage applicants to complete the appropriate electronic version of the FAFSA rather than a paper FAFSA because the electronic versions contain additional instructions and help features, have built-in edits that reduce applicant error, and allow the Department to send application results to students and schools quicker.
What happens if awarded aid falls short of Cost of Attendance?

Then it's student loan time - alternative student loans, to be specific. Alternative private student loans bridge the gap between awarded aid and Cost of Attendance. For example, let's look at the Prestige School's Cost of Attendance again and some financial aid. Let's say that you are awarded the maximum amount of federal aid for Pell Grants, Perkins Loans, and Stafford Loans as a freshman. That means:

* Perkins Loan - maximum of $4,000
* Stafford Loan - maximum of $6,625 ($2,625 subsidized)
* FSEOG - maximum of $4,000
* Pell Grant - maximum of $4,050

That puts your federal financial aid package at $18,675. Let's also assume that you receive $2,000 in scholarships and an additional $5,000 in state and institutional financial aid. That puts your aid package at $25,675, which will almost cover tuition. You'll still have about $2,955 in tuition to cover, plus the remaining expenses, which totals $20,680.

Where can you get $20,680? From an alternative private student loan like the Act Private Student Loan from the Student Loan Network. It can give you up to $40,000 per academic year, which will finish off the costs of attending more expensive schools.

Student Loan in Florida

Student Loan Consolidation authorizes you to merge all your existing student or parent loans into one new loan from a single lender, using this new loan lender to pay off the dues on the other loans received from financial institutions or from the federal government.

Federal Stafford Loans

Federal Stafford loans are loans which have fixed-rate and low interest. These loans are available to those undergraduate students who are studying in accredited schools. Stafford loans are also the most common source of college loan funding. These loans are of two types. First is the subsidized federal Stafford loan. It is only given on the basis of financial need which is determined by the FAFSA
Decrease your monthly student loan payments in half.
If you’re a student its time to consolidate your outstanding student loan. Student loan consolidation helps you lock in a lower interest rate and it also has many incentive features.

Student Loan Sir is a free portal for students who tries to consolidate their loans or resolve their credit problems. Student Loan Dir is not a lender. our objective it to give students loans with the lowest rates possible. How do we do it? We submit your request to several lenders at the time and allowing them to compete for the best possible rate.

Need FAFSA Completed Fast

This morning, I chatted with a young woman who needed to have her FAFSA completed ASAP. She was told by financial aid that she could qualify for Stafford loan but needs this once piece of the puzzle completed in order for her to obtain any sort of financial aid. She called me because she needed advice on how to get the FAFSA completed ASAP. I explained to her that I felt the most efficient way is to complete the FAFSA online at www.fafsaonline.com. I know it’s scary stuff filling out such a lengthy document completely online. But I promise everyone, the Internet is our friend! Do the FAFSA online! Reason why is because the Government needs the FAFSA filled out just right. When you file online, the system will catch a lot of mistakes and send you back to fix them.Your on your own if you fill it out online. If you do certain things incorrectly, you’ll receive a bunch of paperwork that basically means denied!

Also, keep in mind that you have to update this paperwork every year you are in school. When you do it online, all of your forms will be saved from year to year so it can be completed pretty easily.

Trust me folks do it online! Soon enough the paper form will be extinct.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

salliemae Federal Stafford loan

Federal Stafford loan

Federal Stafford loans first disbursed July 1, 2006 are fixed-rate, low interest loans available to undergraduate students attending accredited schools at least half time. Stafford loans are the most common source of college loan funds.

Eligibility

• You must have submitted a FAFSA.
• For subsidized Stafford loans, you must have financial need as determined by your school.
• You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
• You must be enrolled or plan to enroll at least half time.
• You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.
• You must not be in default on any education loan or owe a refund on an education grant.

Features

• Sallie Mae lenders offer borrower benefits on Stafford loans that can save you money in repayment.
• Flexible repayment options are available, including consolidation.
• No payments are required while you are in school at least half time.
• You can manage your account online 24/7 at www.ManageYourLoans.com.
• You get life-of-loan servicing from Sallie Mae.
• There is no prepayment penalty.
• No credit check is required.
• Six-month grace period when no payments are required immediately following your graduation or dropping to less-than-half-time status.

Loan terms

Loan limits

Dependent	Annual loan limit
Freshman	$3,500*
Sophomore	$4,500*
Junior or senior	$5,500

Independent	Annual loan limit
Freshman	$7,500*
Sophomore	$8,500*
Junior or senior	$10,500
Graduate or professional	$20,500*

Undergraduate dependent lifetime limit	$23,000
Undergraduate independent lifetime limit	$46,000
Graduate or professional lifetime limit**	$138,500

*For loans first disbursed on or after July 1, 2007. **Exceptions may apply to certain graduate students.

Interest rate

For Stafford loans first disbursed beginning July 1, 2006, the interest rate is fixed at 6.8%.

Fees

For loans first disbursed July 1, 2007–June 30, 2008: Up to 2.5% in fees that includes a 1.5% federal origination fee and a 1% federal default fee. There are lenders and guarantors that work with Sallie Mae that pay all or a portion of these fees.

Repayment

• Standard repayment: You make both principal and interest payments each month for up to a 10-year repayment term. This plan has the lowest total interest cost.
• Graduated repayment: You make reduced payments in the early years of repayment and increased payments thereafter, while still paying off the loans within the maximum 10-year period. With graduated repayment, you have a higher total loan cost than with Standard Repayment.
• Income-sensitive repayment: Payments are a percentage of your gross income. You must reapply every year for this plan and payments are adjusted annually to reflect changes in income. With income-sensitive repayment, you have a higher total loan cost than with standard repayment.
  
• Extended repayment: If you have high student loan debt, you may be eligible for up to a 25-year repayment term and the choice of standard or graduated payments to keep payments affordable. With extended repayment, you have a higher total loan cost than with standard repayment.
• Student loan consolidation: You combine your eligible loans into a new loan with a single monthly payment and a fixed interest rate. While student loan consolidation can substantially lower your monthly payments, it will generally result in a higher total loan cost.

Legal

You are responsible for all of the interest that accrues on your unsubsidized Stafford loan while you are in school, but you do not have to pay the interest during this time. Unpaid interest that is deferred until after graduation is capitalized (added to the loan principal) and you will therefore pay interest on a higher loan amount. The federal government pays the interest on subsidized Stafford loans while you are in school, during grace, and during authorized deferment.

Graduate Loans for Nursing School

Stafford Loan and Private Alternative Student Loans to fund your Degree in Nursing

Your financial aid award package will tell you what types of education loan programs you are eligible to accept. If you have remaining unmet need, you may need private "alternative" education loans to cover all your expenses. Your school's financial aid office can help you determine which programs are right for your unique situation.

Colleges handle financial aid in different ways. They can participate in different programs and have different processing deadlines. Each school adopts a federal loan program - either the Federal Family Education Loan Program (FFELP) or the Direct Loan Program. Both programs are governed by federal regulations that determine the loan programs, loan limits, and repayment options. In the FFELP, private lenders provide the loan funds and work with guarantors to back the loans. In the Direct Loan Program, the government provides the loan funds "directly" to the school.

Keep in mind that federal loans with the lowest interest rates and with the most options for deferring payment are awarded to those with the greatest need. Various loan types are available. You may not be eligible for all of the loan programs - your school's financial aid office determines your eligibility for both loan and non-loan programs.

There are a variety of low-interest loans and other aid programs available to graduate students through the FFELP and Direct Loan Program. Many are similar to the undergraduate yet with higher annual loan limit amounts. Others are unique to a graduate student's specific area of study. In addition, many lenders offer private loans to meet graduate need.

Graduate Loan Application for Nursing School
800-926-2716

Graduate Stafford Loan Apply Online

Using this Form

Thank you for applying for the Federal Stafford loan through Student Loan Network. Please complete the three sections below, including About You, School Selection and Loan Information, and then click “Next” to continue.

All fields with an asterisk (*) are required.

If you have any questions, please feel free to contact Student Loan Network at 1.877.328.1565 (press 2) or 617.328.1565 (press 2).

About You

* Name:	First M.I. Last
* SSN:	- - I'm a U.S. Citizen * Alien ID: Eligible Non-Citizen Help with Alien ID If you are a U.S. Citizen, enter your Social Security Number and check the box labeled "I'm a U.S. Citizen." If you are an Eligible Non-Citizen, enter your 8 or 9-digit Alien ID (i.e. 123456789) and check the box labeled "Eligible Non-Citizen." In addition, you must also provide a valid Social Security Number.
* Date of Birth:	JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 1968 1967 1966 1965 1964 1963 1962 1961 1960 1959 1958 1957 1956 1955 1954 1953 1952 1951 1950 1949 1948 1947 1946 1945 1944 1943 1942 1941 1940 1939 1938 1937 1936 1935 1934 1933 1932 1931 1930 1929 1928 1927 1926 1925 1924 1923 1922 1921 1920 1919 1918 1917 1916 1915 1914 1913 1912 1911 1910 1909 1908 1907 1906 1905 1904 1903 1902 1901 1900
* Address:	House # N S E W NE NW SE SW Direction Street Name Alley Avenue Boulevard Center Circle Court Drive Expressway Freeway Highway Hill Lane Loop Park Parkway Pike Place Plaza Point Road Route Square Street Terrace Trail Turnpike Walk Way Type Apt. # City Alaska Alabama Arkansas Arizona California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Iowa Idaho Illinois Indiana Kansas Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Mississippi Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico Nevada New York Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennesee Texas Utah Virginia Vermont Washington Wisconsin West Virginia Wyoming Foreign Country Armed Forces Atlantic Armed Forces Europe Armed Forces Pacific American Samoa Federated States of Micronesia Guam Marshall Islands Northern Mariana Islands Palau Puerto Rico Virgin Islands State Zip
* Phone Number:	( ) -
Driver's License:	Alaska Alabama Arkansas Arizona California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Iowa Idaho Illinois Indiana Kansas Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Mississippi Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico Nevada New York Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennesee Texas Utah Virginia Vermont Washington Wisconsin West Virginia Wyoming Foreign Country Armed Forces Atlantic Armed Forces Europe Armed Forces Pacific American Samoa Federated States of Micronesia Guam Marshall Islands Northern Mariana Islands Palau Puerto Rico Virgin Islands State Driver's Lic. Number
E-Mail Address:	Verify: Help with E-Mail If you have an E-Mail account, please enter it in the first field and then again in the “Verify” field to ensure we have the correct information.

School Selection

* State:

Alaska Alabama Arkansas Arizona California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Iowa Idaho Illinois Indiana Kansas Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Mississippi Montana North Carolina Nebraska New Hampshire New Jersey New Mexico Nevada New York Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennesee Texas Utah Virginia Vermont Washington Wisconsin West Virginia Wyoming Foreign Country Armed Forces Atlantic Armed Forces Europe Armed Forces Pacific American Samoa Federated States of Micronesia Guam Marshall Islands Northern Mariana Islands Palau Puerto Rico Virgin Islands

* School:

Help with School Selection If you can’t locate your school or don’t know which school your student will be attending, please contact Student Loan Network at 1.877.328.1565 (press 2) or 617.328.1565 (press 2).

Loan Information

Have you completed and submitted the Free Application for Federal Student Aid (FAFSA) or the renewal FAFSA? Yes: No: Help with FAFSA To apply for student financial aid from the federal government, you are required to submit the Free Application for Federal Student Aid (FAFSA). The government uses the FAFSA to determine if you're eligible for many Federal grants and loans. It asks you to provide information like your parents' income, assets, family size, and number of students in college and tax information. Be sure to submit the FASFA after January 1, to increase your chances of getting the aid you need. There are two ways to access and complete the FAFSA: You can complete your FAFSA online at http://www.fafsa.ed.gov You can also pick up your FAFSA application at most high schools, college financial aid offices, and public libraries. Have you received a Student Aid Report (SAR)? Yes: No: Help with Student Aid Report (SAR) About three to six weeks after submitting the FAFSA, you should receive a SAR by mail. Check it carefully for accuracy and return it to your FAO if they require you to do so. The schools that accept you will use this report to create financial award packages and mail them to you. Have you received your financial aid award letter from your school? Yes: No: Help with Award Letter Financial aid administrators at the college where you have been accepted will verify the information from your FAFSA, determine your aid eligibility and then send you a financial aid award letter. This letter will contain the estimated education expenses for a school year and your financial aid eligibility (the difference between the estimated expenses and your Expected Family Contribution). I want to pay unsubsidized interest while I am in school. Yes: No: Help with Interest Payments Check this box if you want to make interest payments while in school.

No:

from: webapps.edlending.com/onlineStafford/Controller

Help with Interest Payments

Check this box if you want to make interest payments while in school.

Please wait while we access our data.

Graduate Unsubsidized Stafford Student Loans

Am I eligible for this loan?

You must be enrolled at least half time in an eligible program of study.

*All students, regardless of need, are eligible for the unsubsidized Stafford Loan.

How much can I borrow with this loan program?

If you are a graduate student, you can borrow up to

• $18,500 each academic year less your subsidized Stafford loan

If you combine subsidized and unsubsidized loans, no more than $8,500 may be in subsidized loans. Check with your financial aid office to determine the amount you are eligible for.

As a graduate or professional student, you can have a total outstanding debt of $138,500 (with no more than $65,500 in subsidized loans). These loan totals also will include any Stafford loans received for undergraduate study.

How can I get this loan?

You first must complete the Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA. After the FAFSA is processed, your school will review the results and inform you about your loan eligibility. Next you must complete the Master Promissory Note (request the MPN), which is the promissory note for your loan.

What is the interest rate of this loan?

All loans disbursed after July 1, 2006 have fixed interest rates (based on 91-day T-bill rate + 1.7% during school with an additional .6% increase upon graduation) capped at 8.25% or less, depending on yearly adjustments. The rate is set based on the auction price of the 91-Day T-Bill at the last Monday auction of May of each calendar year, with rates taking effect on July 1 of that year. For 2006-2007, that rate is 6.8%.

You will not be charged any interest for a subsidized loan before you begin repayment and during the authorized period of deferment. The interest rate on your loan could change each year of repayment but, by law, it will never be more than 8.25 percent.

Are there any special fees I will pay?

You will be charged no (0%) guarantee fee and a 3% origination fee.

Many guarantors no longer charge a guarantee fee for education loans. If they do, this fee could be up to 1 percent of the loan amount. Additionally, there is an origination fee up to 3 percent of the loan amount which is used to insure the loan against default. Guarantee and origination fees are deducted from the loan proceeds before they are sent to the school.

When will I get my money?

In most cases, your loan will be disbursed in two installments and sent directly to the school as determined by your financial aid office. Your loan money will be used to pay your tuition and fees. If loan money remains your school will credit your student account or pay you directly.

Can I cancel the loan?

Yes. Your school must notify you in writing whenever it credits your account with your loan proceeds. This notification must be sent to you no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of your loan if you inform your school that you wish to do so within 14 days after the date that your school sends you this notice, or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period.

What are my repayment options?

The normal repayment for this loan is 10 years. You may be able to extend repayment by deferring or consolidating your loans. You may choose one of the following plans:

• The Standard Repayment Plan requires you to pay a fixed amount each month-- at least $50 or the interest that has accrued.
• The Graduated Repayment Plan sets your payments lower at first and then increases them over time. Each of your payments must equal the interest accrued on the loan between scheduled payments.
• The Income-Sensitive Repayment Plan bases your monthly payment on your yearly income and your loan amount. Payments may change as your income rises or falls.
• The Extended Repayment Plan is for borrowers with FFELP loans totaling more than $30,000. This plan offers a choice of fixed or graduated payments over a period of up to 25 years.

from:www.gradloans.com

Graduate Subsidized Stafford Student Loans

Am I eligible for this loan?

You must be enrolled at least half time in an eligible program of study.

How much can I borrow with this loan program?

If you are a graduate student, you can borrow up to

• $8,500 each academic year

The total aggregate debt you can have outstanding in subsidized Stafford loans is $65,000 (including subsidized Stafford loans received for undergraduate study). Check with your financial aid office for your eligibility.

How can I get this loan?

You first must complete the Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA. After the FAFSA is processed your school will review the results and inform you about your loan eligibility. Next you must complete the Master Promissory Note (request the MPN), which is the promissory note for your loan. Your school may require that you complete their form, again - check with your financial aid office.

What is the interest rate of this loan?

All loans disbursed after July 1, 2006 have fixed interest rates (based on 91-day T-bill rate + 1.7% during school with an additional .6% increase upon graduation) capped at 8.25% or less, depending on yearly adjustments. The rate is set based on the auction price of the 91-Day T-Bill at the last Monday auction of May of each calendar year, with rates taking effect on July 1 of that year. For 2006-2007, that rate is 6.8%.

You will not be charged any interest for a subsidized loan before you begin repayment and during the authorized period of deferment. The interest rate on your loan could change each year of repayment but, by law, it will never be more than 8.25 percent.

Are there any special fees I will pay?

You will be charged no (0%) guarantee fee and a 3% origination fee.

Many guarantors no longer charge a guarantee fee for education loans. If they do, this fee could be up to 1 percent of the loan amount. Additionally, there is an origination fee up to 3 percent of the loan amount which is used to insure the loan against default. Guarantee and origination fees are deducted from the loan proceeds before they are sent to the school.

When will I get my money?

In most cases, your loan will be disbursed in two installments and sent directly to the school as determined by your financial aid office. Your loan money will be used to pay your tuition and fees. If loan money remains your school will credit your student account or pay you directly.

Can I cancel the loan?

Yes. Your school must notify you in writing whenever it credits your account with your loan proceeds. This notification must be sent to you no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of your loan if you inform your school that you wish to do so within 14 days after the date that your school sends you this notice, or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period.

What are my repayment options?

The normal repayment for this loan is 10 years. You may be able to extend repayment by deferring or consolidating your loans. You may choose one of the following plans:

• The Standard Repayment Plan requires you to pay a fixed amount each month-- at least $50 or the interest that has accrued.
• The Graduated Repayment Plan sets your payments lower at first and then increases them over time. Each of your payments must equal the interest accrued on the loan between scheduled payments.
• The Income-Sensitive Repayment Plan bases your monthly payment on your yearly income and your loan amount. Payments may change as your income rises or falls.
• The Extended Repayment Plan is for borrowers with FFELP loans totaling more than $30,000. This plan offers a choice of fixed or graduated payments over a period of up to 25 years.

Graduate Stafford Student Loans

The federal loan for graduate students, or Graduate Stafford Loan, has two variations:

If the Stafford Loan is administered by the Federal Family Education Loan Program (FFELP), this means that the funds are provided by private lenders, such as banks, credit unions, and savings & loan associations. These loans are guaranteed against default by the federal government. If your school is a "Direct Lending School", your Stafford Loan is administered by the Federal Direct Student Loan Program (FDSLP). Funds for "direct loans" are provided by the US government directly to students through their schools.

All Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need.

With the unsubsidized Stafford loan, you can defer the payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and cost of the loan.

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All graduate students, regardless of need, are eligible to apply for the unsubsidized Stafford Loan.

Stafford loans for graduate students have higher loan limits than Stafford loans for undergraduate students. Many students combine subsidized loans with unsubsidized loans to borrow the maximum amount permitted each year.

Stafford Loans disbursed after July 1, 2006 have fixed interest rates (based on 91-day T-bill rate + 1.7% during school with an additional .6% increase upon graduation) capped at 8.25% or less, depending on yearly adjustments. All lenders offer the same rate for the Stafford Loan, although some give discounts for on-time and electronic payment of the loan after graduation.

If your borrowing needs are not met by the federal programs, or federal funds are not sufficient, lenders offer a variety of supplemental borrowing programs known as Private or Alternative Loans.

To apply for a Stafford Loan, you must submit the Free Application for Federal Student Aid (FAFSA Online). You can receive a subsidized loan and an unsubsidized loan for the same period.