Lower Interest Student Loans

What is a student loan?

A student loan is a type of debt that students take out after graduating college. While some people may view this as money they don’t have to pay back, it’s not true. Students who take out loans are taking responsibility for paying those debts off over time.

How do you know if you qualify for federal student loans?

To access Federal student loans, you need to have been enrolled at least half-time (at least 12 credit hours) and earned a bachelor’s degree from an eligible school. Loan eligibility is determined based upon credit history and income, among other factors.

Which types of federal student loans are offered?

There are several different types of student loan programs available to undergraduate and graduate students. The two primary ones are the Stafford Loan and the PLUS Loan.

The Stafford Loan is designed for undergraduate students. You can borrow up to $23,500 per academic year and it doesn’t accrue interest while you’re in school. After graduation, your remaining balance can be discharged after 10 years of payments, provided you’ve repaid any accrued interest. However, the original amount borrowed cannot be forgiven.

The PLUS Loan is designed for students pursuing higher education, including graduate school. You can borrow up $31,000 total per academic year, and it does accrue interest while you attend school. If you complete your program before ten years, you’ll be able to discharge the remainder of the balance. On top of that, the maximum amount you can borrow is increased to $57,500 per academic year.

Are private student loans ever a good idea?

Private student loans are often touted as a way for graduates to access additional funds without having to worry about repayment terms. That being said, private loans tend to carry larger interest rates than federal loans. Additionally, private lenders generally require co-signers, making borrowing more difficult for borrowers who don’t already have a strong credit record.

If you plan to take out a private loan, make sure you research the lender and understand their policies. You should also consider whether or not the cost of borrowing exceeds the value of what you’re receiving in return.

Lower Interest Student Loans

A couple of weeks ago I was talking to a friend who had just started looking at real estate investing. He told me he didn’t understand how people could afford a down payment on a multi-million dollar home. He said “if I worked my ass off for 10 years and saved $80k, couldn’t I buy a 5% condo?” My response was simple…“You don’t need $80k. You only need what you can save right now.”

So here we go…

I am going to provide some tips on how to get out of debt faster. If you follow these steps, you should be able to pay off your student loans within 4 – 6 months. This is not quick money, but it will give you cash flow back into your pocket quickly.

These steps should take about 1 month.

Step 1: Stop using credit cards! The first thing you have to do is stop charging everything on your card. Once you start getting bills, you may find yourself using them again. Just keep track of every charge you make (including ATM transactions), and cancel those charges before they become due. The point of this step is to get rid of any unnecessary spending.

Step 2: Reduce your monthly payments. Now that you no longer have to pay interest on your balance, look around for ways to lower the amount you owe each month. For example, switch to an online banking system where you can access your account online 24/7. Use automatic billpay set up between your bank and your utility provider so you won’t forget to pay your electricity, gas, water, etc. Be sure to check with your loan company to determine if they allow you to change the date of your minimum payment.

Step 3: Cut your expenses. After you reduce your monthly payments, begin looking for ways to cut your spending. Start by cutting the cable TV. There are many free streaming sites out there, and you can probably stream movies without paying anything. Netflix is always a good option. Another great idea would be to cut your phone bill. Look for a plan that offers unlimited data plans and unlimited talk time. Get a smartphone only plan and use WiFi calling whenever possible.

Step 4: Save Money! Don’t worry, saving isn’t hard either. Here are some ideas:

Start a food budget and stick to it. If you want pizza once per week, then order one pizza instead of buying two individually.

If you like to drink coffee in the morning, try bringing your own mug and filling it up at home. If you enjoy Starbucks, bring your own cup and fill up at home.

Try ordering takeout or eating fast food once per week instead of dining out every night.

Don’t spend money on things you don’t really need. If you aren’t using something, sell it. Sell clothes at a consignment shop or eBay. Sell books at Amazon.com.

Get rid of your car. Take public transit or walk whenever possible, and park your car in a garage or underground parking area.

Go shopping online or in person at thrift stores and yard sales.

Lower Interest Student Loans

Interest Rate Reduction

The first step in consolidating student loans is to determine whether interest rates have been lowered. If they’ve not been reduced then this could mean that consolidation may not be a cost effective option.

Reduce Payments

If the interest rate has been reduced, it should be the right time to consolidate. However, if payments have already begun then you should contact your lender to ask about ways to lower the amount of money being paid over the course of the loan.

Consolidate All Your Debt

Once you’ve taken care of interest rates, you should look at your different types of debt. There are many options available to you now including refinancing or making extra payments towards your debt.

Consider Repayment Options

There are lots of repayment options out there for people who want to reduce their monthly payments. In addition to standard payment plans, some companies will allow you to pay off your entire balance early, skip certain payments, or make minimum payments. You should consider these options carefully before committing to them.

Use Free Government Programs

Many government agencies offer assistance with student loans. A few examples include the Department of Education, the Veteran’s Administration, and the IRS. These programs often give students grants, low-interest rates, or help with managing their payments.

Lower Interest Student Loans

Federal Education Loan (FEL)

Federal student loans are federal loans originated under  IV of the Higher Education Act of 1965, as amended, pursuant to the Federal Family Education Loan (FFEL). Students who have incurred these loans may borrow money from private lenders at interest rates higher than those applicable to FFEL loans. Private loan programs vary widely in terms of eligibility requirements and repayment options.

Direct Subsidized Student Loan (DSL)

The federal government makes subsidized loans directly available to students without regard to their financial need. After a student completes a period of enrollment, a subsidized loan becomes due. In order to prevent students from incurring unmanageable debt loads, subsidized loans are generally only eligible for repayment for three years after they enter repayment. After that time, borrowers must begin repaying unsubsidized loans.

Direct Unsubsidized Student Loan (DUSL)

Direct un-subsidized loans are direct loans to students that do not require repayment until the borrower graduates or ceases school attendance. These types of loans are often used by parents who wish to help pay for college expenses. This type of loan is issued to students regardless of their financial status. Unlike subsidized loans, DUSL’s cannot be repaid while attending school. Once a student leaves college, the lender retains the right to seek reimbursement for any unpaid amount. However, the original lender may choose to defer collection activities if the student fails to repay the loan entirely.

Parent PLUS Loan

A parent lending program provides additional assistance to parents who take out a PLUS loan for their children. If a student qualifies for a PLUS loan, his or her parents may be able to obtain a PLUS loan for themselves. Parents’ PLUS loans are subject to certain restrictions outlined by the Department of Education.

Perkins Loan/Perkins Grants

These two loan programs were created following passage of the William E. Simon Bill (Pub L 89-329), which was signed into law by President Lyndon B. Johnson on September 8, 1966. A Perkins grant is awarded to colleges based on the number of qualified applicants received. Perkins funds are then distributed among the selected schools according to the number of grants each applicant receives. An individual applying for a Perkins grant must complete a Free Application for Federal Student Aid (FAFSA) prior to being considered for the award. Perkins funds disbursement begins about five months after receipt of the application.

Stafford Loan

Stafford loans are administered by the U.S. Department of Education and offer low interest rates. A student must meet income limits established by the government before he or she is eligible to receive a Stafford loan. Students may use these loans to attend both public and non-profit institutions.

Guaranteed Student Loan (GSL)

Guaranteed Student Loans are offered by banks or lenders to individuals enrolled in postsecondary education. These loans guarantee that the creditor will make payments to the Department of Education on behalf of the borrower. All guaranteed student loans are fixed rate loans; however, interest does accrue. Repayment periods range from four to ten years depending on whether the loan is subsidized or unsubsidized. At least six months before the end of the loan term, the lender sends notifications regarding future loan payments.

►HEY, we’ve got more valuable information here: ►CLICK HERE LOANS FOR STUDENTS◄

►Cloud of related items ▼

►Loans For Students◄

 

bloque1x