GRADUATE
LOANS: THE ROAD TO YOUR AMBITIONS
YOUR
CAREER IN YOUR HANDS:
The
Graduate loans
are ways to embrace your career ambitions - It
is an advance of funds to a student for the purpose
of financing a college or vocational education.
It helps you fill in your career path in a grid
by solving your financial challenges ahead - This
article highlights the road to be taken to your
challenging career with the help of loan grants.
Education
loans are the wheel of fortune for those pursuing
their higher education. Now days you are posed
in a situation to bear your own tuition fee and
several other expenses associated with your study.
A plus in money aspects is always a sign of progression
in your Achievement. It is this progression that
makes your educational career better.
Let
me present the various approaches in availing
loans for your education, provide pointers, and
above all, inform. And then No longer will the
college course booklet be an authentic document
regarding the fees to be paid.
SOURCE
OF FINANCIAL AIDS:
FROM
THE GOVERNMENT:
To
cover your educational expenses, you can avail
loans extended by the Government. This falls under
two catergories: Stafford graduate loans and Perkins
graduate loans.
1.
Stafford graduate loans : This is the
federal loan for students.
Who
administers stafford loans: Depending
on the school you attend, stafford loans may be
administered by:
BY
Federal Family Education Loan Program (FFELP):
The loan lenders here are the private lenders,
such as banks, financial institutions and credit
& loan associations.
By
Federal Direct Student Loan Program (FDSLP):Here
funds are supported by the US government directly
to students through their schools. (your school
needs to be listed as "Direct Lending School")
Category
of Stafford loans Based onthe interest payable:
–
a.
subsidized loans, where in the Government will
pay your interest but you are required to necessiate
the financial support for your studies.
b.
unsubsidized loans: Here, you have to pay the
interest calculated therein , vaires based on
T-bill rate, when in shcool with a 6% increase
upon Graduate loans.
BORROWING
LIMIT:
First
year Student : $6,625 (Out of this $2,625
may be in subsidized loans).
Completed
first year of study : $7,500 (of this
$3,500 may be in subsidized loans).
Completed
two years of study : $10,500 (only $5,500
may be in subsidized loans).
HOW
TO APPLY FOR A STAFFORD LOAN:
Submit
your financial aid application online through
for Federal Student Aid
STAFFORD
LOAN REPAYMENT : Repayment startes six
months after you graduate
2.
PERKINS GRADUATE LOANS: This is applicaable
only to students who are in financially need.
This loan can be availed from your school at a
low interest of 5%. It is a subsidized loan, with
the interest being paid by the federal government
Borrowing
Limit : borrowing limit varies as per
your financial position. About $6000 per year
is the usual grant.
REPAYMENT
OF PERKINS LOANS:
You
should start repaying the loan nine months after
you graduate. The repayment can be started with
minimym payback instalment of $40 per loan.
HOW
TO APPLY FOR PERKINS LOAN:
Once
you are known with the eligibility norms and ready
for application , you can go online and apply
through Free Application for Federal Student Aid
(FAFSA) . Also apporach your school for your institutional
application.
DOCUMENTS
REUQIRED FOR FEDERAL LOAN APPLICATION :
For
an instance, if you are filing 2006 FAFSA, you
will need documentation from 2005 (tax related
papers).
Social
Security Number
Driver's
license
W-2
Forms and other records showing money earned
Your's
and your spouse's (if you are married) Federal
Income Tax Return
If
you are a dependent student produce your parents'
Federal Income Tax Return
Records
of any financial help received from the Government
or any other funding welfare associations
Bank
statements
Investment
documents (Mortgage information, bond, stock etc,)
If
not a US citizen , produce alien registration
card
GRADUATE
PRIVATE or ALTERNATIVE Loans:
These
Graduate loans
are lended by private lenders. This loan can be
used for any education related expenses, including
transportation, computers, books etc., and is
based entirely on your credit . These loans are
approved at a faster pace and you are not required
to go through the FAFSA financial aid . However,
approval makes a credit check and is granted asper
your ability to repay.
DOCUMENT
REQUIRED FOR AVIALING A PRIVATE LOAN:
Birth
certificate or passport showing Proof of U.S.
Citizenship / valid permanent-resident card /
An international student
Document
supporting your enrollment in a valid institution;
ANNUAL
BORROWABLE AMOUNT: Minimu$1,500 to the
Maximum of the lesser of $50,000
LIST
OF PRIVATE LENDERS FOR YOUR KNOWLEDGE :
Bank
of America , Loan to Learn, Citibank , Comerica
Bank , HELP , NorthStar Total Higher Education
(T.H.E.), Educated Borrower (GCO-ELF), Education
Finance Partners, National Education Preferred
Alternative Loan Program, National Education Preferred
Alternative Loan Program, , Sallie Mae, SunTrust
, TERI (The Education REsource Institute)
ALTERNATE
LOAN REPAYMENT OPTIONS : It is most necessary
to plan your effective repayment strategy, so
that you dont face any hurdles in your future.
there are many options towards repayment. Before
the start of repayment, the loan lender provides
you with a repayment schedule, which will be of
help in palnning your repayment ahead.
The
Alternate loan Repayment Rates may range from
:
LIBOR
+ 4.30% (Immediate Interest and Principal Repayment)
to LIBOR + 4.50% (Both Deferred Interest and Principal
Repayment)
(LIBOR
:- London Interbank Offered Rate. Website of Federal
Reserve's Statistical Release helps you with the
current LIBOR rates . (http://www.federalreserve.gov/releases/H15/)
WHEN
TO START YOUR LOAN REPAYMENT:
Loan
repayments begins after the grace period. The
grace period begins when you graduate and It ends
when your first loan payment is due. The length
of the grace period normally lasts between six
and nine months.
HERE
IS THE HELP TO CALCULATE YOUR REPAYMENT:
Loan
repayment calculator (http://www.accessgroup.org/calculators/index.htm)
- This provides you with calculators and ledger
to find out the cost of loan availed and repayment
You
can also apply the "The Rule of 125".
The
Rule of 125 in loan repayment means that it will
cost you approximately $125/month for every $10,000
you owe, assuming the interest rate is 8.25%,
the repayment term is ten years, and you are making
equal monthly payments.
WHAT
IF YOU FAIL TO REPAY:
Failing
to repay can have serious effects on your credit
rating. More specifically, you can be considered
in default (Consequences of default : http://www.accessgroup.org/students/Repayment/default.htm)
Avail,
Utilize the various available loans for your graduation
and pay back your loan for successful reach of
your Ambitions, thereby coming out in flying colours.
Related
Articles
Loans with Low
APR
Loans Secured
|
