Direct PLUS Loan for graduate/professional students

Nov 7th, 2011
by admin.
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Direct PLUS Loans are unsubsidized loans available to graduate/ professional students to help pay for educational expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. For the past 3 years, many young people who are unable to find jobs or find jobs that are in the fields of their study have decided to go back to school to get advanced degrees. Doing so could put them in a better or worse situation. Unless you’re certain of your choosing field of study has a high employment demand, it’s not guaranteed that you’d be better off than you’re now in 2 or 4 years.

In the past, most graduate students in liberal arts or science, technology programs received funding from the school. During the tight budget time, schools are cutting back or simply no longer have the funds to finance graduate students. Many entering students choose to get loans to pay for their advanced degrees. You must conduct enough research before you do that. If you still have undergraduate loans and the new loans that you’ll be acquiring could let you to many years of repayment even if you find a job right away.

Posted in: Student Direct Loans, Student Loans.
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What is Master Promissory Note (MPN)?

Oct 7th, 2011
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The student loans and processes have been getting more complicated.  Most of us don’t know what MPN. It stands for Master promissory Note. The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). There are two types of MPNs in the Direct Loan Program: one for student loans and one for parent PLUS loans.

If you are a student borrower under the Direct Loan Program attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you will only sign one MPN for student loans. It will be used for all of your Direct Subsidized Loans and Direct Unsubsidized Loans over multiple academic years. For example, if you enroll in college as a freshman and borrow under the Direct Loan Program for all years of study, you may be able to borrow under this one MPN for all years.

If you are a parent borrower under the Direct Loan Program whose child is attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you will only sign one MPN for parent PLUS loans. It will be used for all of your Direct PLUS Loans for that particular child over multiple academic years.

 

Source: U.S. Department of Education

Posted in: Student Direct Loans, Student Loans.
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Refinance Student Loan through Debt Consolidation

Sep 22nd, 2011
by KevinC.
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Increasing cost of education has forced most of our college students to depend on education loans. When scholarship stipend and Federal student loans fall short of their need, they tend towards private student loan to cope up with their class room and tuition fees. This way, along with their course years they mount up huge education debt that requires them to pay after graduation. But when they enter into professional life, loads of student debt piles upon their shoulder. In this circumstance, refinancing student loan through debt consolidation could ease this situation and lessen their burden.

However, it is important to note that Federal student loans and private student loans cannot be merged together through consolidation. They are usually structured with specific design and benefits. So trying to consolidate them into one would mar the purpose of the effort. One can consolidate private student loans and Federal student loans separately. Consulting an expert of a consolidation agency will help you understand the process better.

Student loan consolidation can bring your entire debts under one roof. In order to attain the most benefit of this process, you should enroll in a debt consolidation firm. After FTC institutes new regulation, no consolidation firm can charge you upfront fees. So by their help you can have your multiple debts consolidated into one. You will make a single payment to the consolidation firm. From that payment they will disburse the money to your lenders. Let’s check the benefits you get-

  •  Your overall interest rate will be reduced through consolidation.
  • Late fines will be forgiven.
  • You will be paying through a single payment gateway.
  • It will eliminate your hassle to track the records of your different debts.
  • Debt consolidation will chip away your monthly installment fees.

However, before you sign your name in any consolidation firm, it is your responsibility to check the reputation and service that company. With occasional news of scams, we have to be more cautious about where we are actually getting into. Sometimes it is heard that you pay your consolidation firm but they do not make timely payment to your original creditors. That is way, after reviewing their track record you should move forward.

Posted in: Student Loan Consolidation.
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Make sure you make your student loan payment on time

Jan 31st, 2011
by admin.
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Just like mortgage payments, student loan repayments need to be on time also. Your loan servicer will provide information about repayment and will notify you of the date loan repayment begins. In most cases, your loan payment will be monthly. It is very important that you make your loan payment on time every month. You should treat it as your mortgage payments even if you don’t have mortgage payment yet. If you don’t pay your mortgage payments, you could end up with bank foreclosures. If you don’t pay your student loan payments, you could end up in default, which has serious consequences.

Many new grads don’t realize that the student loan payments are as real as it gets. This might be the most serious financial commitment you’ve made so far. Stick to it and pay it.

Source: ed.gov

Posted in: Student Loan Default, Student Loan Repayment, Student Loans.
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There are some loans are ineligible for consolidation

Dec 31st, 2010
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Although most education loans are eligible for consolidation into a Direct Consolidation Loan. There are some private loans that are always ineligible for consolidation. So before you take out any student loans, consider your options and study all fine prints. It’s easy and tempting to get the loans before you enter the programs and thinking it’ll be easy to pay them off later on with good salary. or some of you might think that you’d worry about that later on.

It’s not the same any more. Students who graduate in bad economical times often find themselves looking for jobs and finding none or they’d have to take jobs that are low payed. Many recent graduates find themselves just in that situation. So before you sign any loan papers, talk to a professional. Here are some loans that will not be eligible for consolidation:

  • Loans made by a state or private lender and not guaranteed by the federal government
  • Primary Care Loans
  • Law Access Loans
  • Medical Assist Loans
  • PLATO Loans

Source: U.S. Department of Education

Posted in: Student Direct Loans, Student Loan Consolidation.
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Students: save money in your first year of university

Nov 15th, 2010
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You will have probably heard that your first year of university will be a financial struggle – with mounting debt, the costs of rent and food, it is essential that you do all you can to save yourself money.

There are many ways in which you could save money during your first year of university. Here, we will take a look at just a few:

Find discount vouchers

This is an excellent way for you to save money on your shopping – and sometimes even get things for free. Vouchers are often handed out in shops, round city/town centres but the best place to get vouchers is definitely on the web. There are various websites that offer vouchers and codes, all you need to do is download them!

Vouchers to look out for include:

  • Buy one get one free vouchers
  • Vouchers entitling you to money off certain products
  • Free trial vouchers, etc.

Vouchers codes can help you reduce the amount you spend on your shopping, which should help you lower the amount of debt you graduate with.

Be careful how much you spend on nights out!

Many students like a drink at university, and you may too – but it doesn’t have to cost you an arm and a leg. When I was at university, a few of my friends had actually got into debt paying for nights out over the term (using their overdrafts to fund their social life) – so that is definitely something to avoid!

A good way to save money on nights out is to find bars with promotional offers on. Some bars will offer free drinks to the first 100 people who go there, or even £1 specials on certain nights of the week. However, just because they cost less, you shouldn’t drink more – know your limits and always drink responsibly!

Finally, at the end of the night, a lot of students pay for taxis back to their houses/halls of residence – this can often cost in excess of $40, so why not share the taxi with a group of friends, if 4 of you got a taxi home, it would only cost $10 each. On the other hand, why not nominate a driver for the night? (someone who doesn’t drink for the night). That way, you won’t need to pay taxi fares and could save yourself hundreds of pounds throughout the course of your degree, meaning you will lower the overall amount of debt you are building up while at university.

This student debt guide on ThinkMoney.com’s website is really helpful if you are looking for more info and tips on managing your money at university.

Posted in: Student Loan Consolidation.
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Some federal education loans are eligible for consolidation into a Direct Consolidation Loan

Oct 31st, 2010
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If you have several student loans and are overwhelmed by the payment, you need to consider the option of consolidating. If you have a federal education loan, you can consolidate it into a Direct Consolidation Loan. The subsidized loans that can be consolidated are:

  • Subsidized Federal Stafford Loans
  • Direct Subsidized Loans
  • Subsidized Federal Consolidation Loans
  • Direct Subsidized Consolidation Loans
  • Federal Insured Student Loans (FISL)
  • Guaranteed Student Loans (GSL)

Source: Department of Education

Posted in: Student Loan Consolidation, Student Loan Repayment.
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There are some student loans you can’t consolidate

Sep 29th, 2010
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This is the perfect time to consolidate your student loans. The rates are low and you won’t see this kind of rates once the economy starts growing again. While most federal education loans are eligible for consolidation into a direct consolidation loan including subsidized loans and unsubsidized loans. There are a few exceptions that some students loans are always ineligible for consolidation.

While these loans may not be included in a Direct Consolidation Loan, they may be considered in the calculation of the maximum repayment period under the Graduated or Extended Repayment Plan. These include but are not limited to the following:

  • Loans made by a state or private lender and not guaranteed by the federal government
  • Primary Care Loans
  • Law Access Loans
  • Medical Assist Loans
  • PLATO Loans

So if you are still in school and are planning on taking out more loans or going to Medical or law school, study your options.

Source: U.S. Department of Education. www.ed.gov

Posted in: Student Loan Consolidation, Student Loan Repayment.
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Once you leave or graduate your school, you have 6 months grace period

Sep 9th, 2010
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Did you know that when you leave school which includes graduating, withdrawing, or dropping below half-time attendance, you have 6 months of grace period before you have to make student loan payments. This applies to direct subsidized and unsubsidized loans.

But be very careful with one scenario:

There’s no second grace period. If you have an in-school deferment on a Direct Subsidized or Unsubsidized Loan and you have used the 6-month period, there will be grace period. You will be required to make payments right away, whether you graduated, withdrew, or dropped below half time.

Source: Department of Education

Posted in: Borrower Grace Periods, Student Direct Loans, Student Loan Repayment.
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Student Direct Loans are better options for you

Aug 12th, 2010
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If you are thinking about taking out student loans, look into the option of Direct Loans. Unlike private student loans, the lender of student direct loans is the U.S. Department of Education instead of a bank or other financial institution. These loans usually have lower rates.You borrow directly from the federal government and only need to contact on Direct Loan Servicing Center.

There’s no need to call different servicing centers even if you receive the loan at different schools. You will have online access to your Direct Loan account. Here comes the best part of these loans which is that you can choose from several repayment plans and you can switch repayment plans if your needs change. For example, if you lose your job and need to modify your repayment amount.

Source: US Department of Education

Posted in: Student Direct Loans, Student Loans.
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