Loans Graduate School

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.

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