Students can go to college through the federal student loans that can help them pay until they graduate. There are many different types of such loans. The Stafford student loans are just one of them. This article will attempt to discuss the basics of this type of loan in order to give information on how it helps the students of this country.

A Stafford Loan is a loan that is offered to students who are enrolled in accredited colleges, universities, and institutions. The Congress established this in 1965 in order to extend financial aid to students who are in need to supplement their resources. As part of the Federal Family Education Loan Program FFELP, the Stafford loans expanded to cover 90% of $50 billion plus funding.

Almost everyone is eligible to get this loan. Back when it was signed in Congress, the definition for the recipients was not very clear and so the program rapidly expanded. There are two types, the subsidized and the unsubsidized.

For the subsidized, the Federal government pays for the interest charges of the loan during the entire period when the student is in school until the grace period of six months after he graduates. There are certain qualifications for the subsidized loan and one of these is the family income. The government uses an Expected Family Contribution (EFC) number to determine if a subsidized loan will be granted or not.

Two out of three of this type of loan is granted to students who have parents with a total gross income of less than $50,000 annually. About 25 percent is extended to families with gross income of more than $50,000 but not more than $100,000. 10 percent is given to those with income that exceeds $100,000.

The other type of Stafford loan is the unsubsidized. The interest charges for this loan accumulate until the loan is paid off fully. The loan can be borrowed from a bank or a credit union, or directly from the Department of Education. Interest rates change year after year but these rates are still very low compared to private loans being offered in the market. For the academic year 2008 to 2009, the unsubsidized rate is 6.8% while the subsidized rate is 6%.

For a student to be granted with the Stafford loan, he must be enrolled at least in a half-time period. To apply, he must accomplish and submit the FAFSA (Free Application for Federal Student Aid) form. This loan is only given to US citizens or nationals, permanent residents, or eligible non-citizens. The student must also be enrolled in the accredited schools listed in the Federal Family Education Loan Program.

The family income and financial need will determine if the applicant will be given subsidized or unsubsidized loans. The loan is payable in 25 to 30 years depending on what kind of Stafford student loans have been granted. There are also a lot of repayment options that the applicant can choose from.

By: Brian J. Link

So, you have graduated from your college or university after spending a few years there. Of course, you’ll feel proud and you’re excited to be embarking on your new career. At the same time, you can’t help but feel overwhelmed by the debt you incurred during college or university. You’ve flipped through student loans documents over and over again. You started to worry whether you can really afford to pay all these on your new salary. If you’re in this situation, it may be time to start looking for student loan consolidation experts.

Now, you are probably trying to avoid this but before dismissing this option and afraid of sinking into more debt, you have to know that are not going to take on any new debt. Think of the advantages that you are going to get from these professionals. Do you know that a student loan consolidation expert can help you set up a plan to repay your debts in one monthly payment? In other words, one that is probably much lower than the payments you are expecting.

Seeking help from these student loan consolidation experts is easy and they can even explain this simple process via the telephone. What happen is, your student loan consolidation company will pay off the balances on your student loans. That means you can just dump all those numerous bills and make only one payment every month with ease. Student loan consolidation experts will definitely make paying back student loans less stressful and simpler.

Not only that you don’t have to deal with multiple loan bills monthly, student loan consolidation experts can also help if you feel you can’t afford the monthly payments on your student loans. Normally, student loans will have a ten or fifteen year payback time frame. However, if you consolidate your student loans, the repayment time frame can be stretched to thirty years. Therefore, the student loan consolidation experts can help you to lower your monthly payments by up to 54%. Well, how about that?

So in conclusion, whether you wish the ease of paying one monthly bill or you simply want to lower your interest rate and monthly payment, you owe it to yourself to talk to student loan consolidation experts. Remember, a phone conference is totally free, so you really have nothing to lose but everything to gain!

By: Ashley Wong

All of the related expenses for obtaining a higher education can catch a family off guard if financial preparations were not made in advance. Some students apply themselves early and make grades throughout high school that makes them eligible for a full scholarship, often to the college or university of their choice.

For students who do not have the benefit of a full scholarship, their parents will have to find alternative methods for paying for their college expenses over the next four years. Uncertified private student loans are one way that this is accomplished.

Certified versus Uncertified Private Student Loans

Before applying for any type of college loan, it is best to have a clear understanding of the type of loan you or your child will receive. In general, private student loans are necessary when the standard financial aid such as Pell grants and Stafford loans are not enough to cover education related expenses. These expenses may include tuition, books, computers, and dorm fees.

Both certified and uncertified loans can be used for these expenses. However, the primary difference between the two is that the certified loan requires that the institution where the student will attend verify the amount before funds are disbursed. The amount borrowed cannot exceed the total cost of attendance, minus other financial aid that the student receives.

Uncertified private student loans do not require certification from the institution regarding the amount borrowed. Schools generally will not certify loans that are in excess of the total cost of attendance.

Additionally, uncertified college loans are disbursed to the student or person borrowing the funds. As with any loan, it is best to borrow only the needed amount because all funds must be repaid after graduation.

Although uncertified loans have fewer restrictions, a student may need a cosigner before the loan is approved. The borrower’s credit score and creditworthiness determines whether or not this type of loan is granted.

Advantages of Uncertified Private Student Loans

There are a few advantages to getting an uncertified private student loan to help pay for college expenses. The procedures for applying are simplified. The terms of the loan is relaxed with competitive interest rates. The borrowing limits are higher for private student loans than they are for federally guaranteed student loans. As with federal loans, private loans may also be deferred while the student is enrolled in school.

By: Louis Z.