FAP505: Preferred lender list battles, writing scholarship, 529 plans, Rayko KRB
Student Financial Aid News+ From BankNet360: New York Attorney General Andrew Cuomo is threatening to sue Arizona State University over a profit-sharing deal with a San Francisco-based student lender.+ ASU’s agreement with Education Finance Partners allows the firm to use the school’s logo on promotional materials and also calls for school financial aid officials to suggest the Education Finance Partners to prospective student borrowers.+ Cuomo’s terms include a ban on schools from receiving anything of value from lenders. They also include rules on developing preferred lenders lists and a provision that would bar lenders’ from identifying themselves as university employees and working out of school financial aid offices.+ The threat comes just days after some New England schools accepted settlements over similar disputes. ASU said it is working to settle.+ From Inside Higher Ed: On Wednesday, the other shoe dropped in a growing investigation of colleges’ ties to the lenders they recommend to their students — and many experts on the loan programs were stunned by the developments.+ Administrators at Columbia University, the University of Texas at Austin and the University of Southern California were reported to have owned stock in a lender that they placed on their “preferred” list for students. Andrew M. Cuomo, New York State’s attorney general, sent a subpoena to Columbia Wednesday and letters to the other institutions, seeking details. The colleges involved are not disputing the stock ownership, which was reported in public filings.+ “We are seeing more and more suspicious practices and dealings between university officers and loan companies come to light,” said a spokesman for Cuomo. “This creates even more questions about the integrity of the student loan industry and the process by which colleges steer students to loans.”+ In contrast, the arrangements that came to light Wednesday involved university administrators personally holding stock in a loan company and apparently doing well with their stock sales.+ The National Association of Student Financial Aid Administrators, which has been critical of the Cuomo investigation, accusing the attorney general of hurting the reputations of aid officers, issued a statement Wednesday night saying that the group “believes it would be inappropriate for a school to place a lender on a preferred lender list in exchange for shares of stock.”+ However, the statement went on to say the following: “We would also note that if the financial aid administrator purchased the stock with their own funds, their ownership of the shares may not be evidence of improper conduct, but would certainly present the appearance of a conflict of interest. NASFAA advises its members to perform their functions with the interests of students as their foremost priority and believes that any activity that conflicts with that priority represents a questionable practice.”+ What does this all mean for you as a student?+ Fundamentally, it comes down to understanding choice in student loans - that despite what anyone tells you, you do have choice in all your student loan options+ Research as much as you can - check out Student Loan Network offerings for Stafford federal student loans, federal parent PLUS loans, and private student loans, 100% payola-free.
Scholarship Update+ Point of irritation - found a decent looking scholarship until $15 fee+ Don’t pay for scholarships+ Antioch College Writers Workshop Scholarships+ Deadline May 1, 2007+ Variety of awards, including for single mothers+ Details at our free college scholarship search site
Mail Bag+ Jason writes in: I am just a few years out of school and in the work force. Can I start a 529 plan for myself, knowing that I may wish to drop work and go back to school full-time eventually?+ Two types of 529 - prepaid tuition, which locks in today’s tuition rates+ College savings plans - tax exempt investments+ Yes, a student can take out a 529 in their own name+ Financial aid speaking, a non-custodial 529 is assessed at 20% for the student, same as any other investment asset+ Tax benefits are better than most benefits, including no federal, state, or local taxes for the most part and the ability to roll over other savings, like savings bonds, into 529s with no tax penalty+ No tax hit when a plan’s funds are redeemed for qualified education expenses, namely tuition, room, and board+ Great overview of 529s at FinAid.org+ Disclaimer: I’m not a certified financial planner or CPA
Podsafe Music+ Rayko/KRB, Charp+ From our friends at Binary Star Records+ Music via the Podsafe Music Network+ Stop by our MySpace page!
Reminders+ Private student loans available at any time - visit AlternativeStudentLoan.com+ Stafford federal student loans at StaffordLoan.com+ Student loan consolidation at StudentLoanConsolidator.com+ FAFSA form tutorials and free help at FAFSAonline.com+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.+ The Financial Aid Podcast is a publication of the Student Loan Network.
2007年4月5日星期四
Student Loan Consolidation Rates and Hints
The Federal government created the student loan consolidation program to help students and their parents afford higher education, so that our youth is better educated and can achieve higher earning power. Like many government programs, however, some of the rules and procedures may be a bit complicated. That’s why it is advisable to have a student loan consolidation provider
Student Loan Consolidation: Eligibility
You are eligible if you meet all the following requirements:
You have graduated, left school, or are currently attending school either full-time or less than half time, and your loans are in repayment, deferment/forbearance or in grace.
You can certify that you do not have a Federal Consolidation Loan application pending with another lender.
You have at least $10,000 in eligible student loans you wish to consolidate.
You must have a minimum balance to apply for a student loan consolidation option through some providers and agents. For example, you may be required to have an outstanding balance of $10,000 in eligible student loans to consolidate them under some programs.
You can consolidate the following student loans with most providers:
SLS (Supplementary Loans for Students)
Federal Perkins
Federal Nursing Student Loans (NSL)
Federal Health Education Assistance Loan (HEAL)
Federal Health Professional Student Loans (HPSL)
Health Professions Student Loans (HPSL)
Federal and Federal Direct Stafford (subsidized and unsubsidized)
Federal and Federal Direct PLUS
Loans for Disadvantaged Students (LDS)
Federal Insured Students Loans (FISL)
Federal Consolidation Loans
Federal Direct Consolidation Loans
You may consolidate defaulted loans as long as you make three consecutive monthly payments to your guarantor prior to applying for loan consolidation. If you have several student loans, but also have bad credit, you can usually still consolidate your student loans. In general, there are no credit checks and no co-signers required for student loan consolidation. Most companies work solely with the student loans you own, and nothing else.
I you have already consolidated your student loans, the Department of Education has ruled that you cannot reconsolidate. There is a lawsuit filed requesting a temporary injunction against the DOE’s ruling, to enable more borrowers to reconsolidate, but no judgement has yet been issued. You can also re-consolidate your student loans, if you either received a new eligible student loan since the consolidation or have left an eligible loan out of the original consolidation.
Lowest Student Loan Payments
Making your required number of scheduled payments within the first 15 days of the due date each month on your new consolidation loan, may helpyou automatically reduce your student loan interest rate with some companies, by one full percentage point and leave it there as long as you continue to make on-time payments. Also, you can pay electronically (direct debit payments from your checking or savings account) and you can reduce your interest rate by an additional percentage point, as long as you continue to make your payments electronically. When you qualify for both benefits, you can reduce your interest rate and save hundreds, even thousands of dollars on your total loan costs.
You have graduated, left school, or are currently attending school either full-time or less than half time, and your loans are in repayment, deferment/forbearance or in grace.
You can certify that you do not have a Federal Consolidation Loan application pending with another lender.
You have at least $10,000 in eligible student loans you wish to consolidate.
You must have a minimum balance to apply for a student loan consolidation option through some providers and agents. For example, you may be required to have an outstanding balance of $10,000 in eligible student loans to consolidate them under some programs.
You can consolidate the following student loans with most providers:
SLS (Supplementary Loans for Students)
Federal Perkins
Federal Nursing Student Loans (NSL)
Federal Health Education Assistance Loan (HEAL)
Federal Health Professional Student Loans (HPSL)
Health Professions Student Loans (HPSL)
Federal and Federal Direct Stafford (subsidized and unsubsidized)
Federal and Federal Direct PLUS
Loans for Disadvantaged Students (LDS)
Federal Insured Students Loans (FISL)
Federal Consolidation Loans
Federal Direct Consolidation Loans
You may consolidate defaulted loans as long as you make three consecutive monthly payments to your guarantor prior to applying for loan consolidation. If you have several student loans, but also have bad credit, you can usually still consolidate your student loans. In general, there are no credit checks and no co-signers required for student loan consolidation. Most companies work solely with the student loans you own, and nothing else.
I you have already consolidated your student loans, the Department of Education has ruled that you cannot reconsolidate. There is a lawsuit filed requesting a temporary injunction against the DOE’s ruling, to enable more borrowers to reconsolidate, but no judgement has yet been issued. You can also re-consolidate your student loans, if you either received a new eligible student loan since the consolidation or have left an eligible loan out of the original consolidation.
Lowest Student Loan Payments
Making your required number of scheduled payments within the first 15 days of the due date each month on your new consolidation loan, may helpyou automatically reduce your student loan interest rate with some companies, by one full percentage point and leave it there as long as you continue to make on-time payments. Also, you can pay electronically (direct debit payments from your checking or savings account) and you can reduce your interest rate by an additional percentage point, as long as you continue to make your payments electronically. When you qualify for both benefits, you can reduce your interest rate and save hundreds, even thousands of dollars on your total loan costs.
Student Loan Consolidation GIMMICKS
If you are thinking about getting a student loan consolidation there are things to watch out for, and often you have to read the fine print to find them. Here are some marketing gimmicks some consolidators will use to get you to do a consolidation loan: • "Apply by this deadline!"Well, the fact is THERE AREN’T APPLICATION DEADLINES in student loan consolidation. Just keep in mind that interest rates may change every July 1st, so it’s a good idea to check if rates are going to change that year and determine if you should apply before the loan interest rates change. • "Apply online and get great interest rate benefits!"Some loan consolidators may require you to apply for a loan online in order to receive interest rate discounts. Plus, if they send you an application confirmation via email, and if your email address is deemed undeliverable twice in 48 hours, then you may not get the discounts! • "Get an 0.25% interest rate reduction by doing business electronically."That’s great but you might LOSE that 0.25% reduction if you simply change your email address and they get a bounce back when they try to send your notice or statement. Be sure you understand your obligation to the consolidator in order to keep your reduction. • "Avoid late fees...pay with auto-debit."With auto-debit, watch your bank account balance! When the lender tries to auto debit your bank account and there are insufficient funds you may get a late fee from both the consolidator and your bank. Be sure to read the fine print to get specific details on their auto-debit program. • "No fees to apply for our consolidation loan!"Not charging fees is a requirement with federal loans. No one charges a fee for a federal consolidation loan. • "Important information about YOUR student loan interest rates!"Some loan consolidators attempt to mislead you into thinking that you’re being contacted by the lender of your education loans and that there are changes to your loans. Their hope is that you will contact them so that they can offer you their loan instead. Check out these lenders carefully before applying for a loan. • Mailings that use seals or logos to imitate the government, a college or university.Some loan consolidators do this to entice you to open their mailings. Be sure to really check out their logo and fine print to ensure you know who you are dealing with before applying for a loan. • "Get Deferment or Forbearance Insurance."Be on the lookout when some loan consolidators may play-up their services. If a loan consolidator offers you Deferment or Forbearance Insurance, they are basically "offering" you deferment or forbearance, which is a standard feature of consolidation loans and is offered by all lenders. Be sure to compare apples-to-apples and understand the actual benefits that your may receive with a loan product. Remember: If it sounds too good to be true it probably is… read the fine print, ask questions and get it in writing!
Student Loan Consolidation and Student Loan Debt
March 14th, 2007 by AdministratorSally recently got into some heavy student loan debt because she borrowed a lot of money in order to go for university studies. I suggested that she consult a reliable student loan consolidation company because consolidating loans is the best way to ensure that you don’t get heavier into debt. She agreed and immediately contacted several student loan consolidation companies to look for a federal student loan consolidation package that worked for her.The student loan consolidation company she called told her that there were several advantages to federal student loan consolidation, one of them being that you will get a locked in interest rate that is rather low and that one can lower your monthly payment by extending your repayment term. I think this is what Sally definitely needs
consolidation
ADVANTAGES TO GOVERNMENT STUDENT LOAN CONSOLIDATIONBy consolidating your loans, you will likely have a lower monthly payment. The federal interest rate is likely to be lower than the combined interest of your original loans. When you consolidate, you also have the opportunity to pay the loans back over an extended period of time, which will result in lower monthly payments.Borrowers can choose from four different payment plans, including an extended payment plan that can extend up to 30 years, depending on the amount that is owed.If you consolidate your loans, you only have to make one convenient monthly payment.There's no fee for consolidating your government student loans.There's no credit check when you consolidate your government student loans.There's no penalty for paying the loan off early.The loan application process is much simpler than it is for other kinds of loans.DISADVANTAGES TO GOVERNMENT STUDENT LOAN CONSOLIDATIONIf you take an extended payment plan, you will you pay more interest in the long run. If your loan is large, this could cost you thousands of dollars and have a negative impact on your financial future.It's possible that the consolidated student loan rate will be higher than the interest rates on your other loans. If this is the case, consolidation is not to your advantage.If you consolidate your loans during the six month grace period after graduation, you lose the remainder of the grace period.If you've already paid off a large chunk of your student loans, consolidation may not be worth the money or effort.Borrowers with a Perkins loan forfeit the special benefits that come with this kind of loan if they consolidate.If the consolidated loan is deferred when the borrower is in graduate or professional school, interest will continue to accumulate on the consolidated loan. This is not the case with deferred student loans that are not consolidated
Federal Student Loan Consolidation
Federal Student Loan Consolidation
Should you consolidate your U.S. government student loans? Here are some advantages and disadvantages to government student loan consolidation.If you're a U.S. college student who is approaching graduation day or a recent college graduate, no doubt you've been contacted by student loan consolidation services about government student loan consolidation. As you wade through all this student loan consolidation information, it can be hard to get a straight answer to a simple question: is federal loan consolidation right for you?First of, what is student loan consolidation? This simply means that if you took out more than one federal student loan during your time as a college student, you can combine all of these loans into one.If you also owe private student loans that weren't part of your financial aid package, you can consolidate these as well. However, lenders recommend that you don't consolidate federal student loans and private student loans together. If you do this, the new consolidated loan will count as a private loan, and you will lose all the benefits that come with your federal student loans, such as student loan deferment if you go to graduate school.So what are the advantages and disadvantages of consolidating your federal student loans? This questions depends partly on how much you owe, how much you've already paid, and other personal financial variables. In a nutshell, here's the pros and cons:
Should you consolidate your U.S. government student loans? Here are some advantages and disadvantages to government student loan consolidation.If you're a U.S. college student who is approaching graduation day or a recent college graduate, no doubt you've been contacted by student loan consolidation services about government student loan consolidation. As you wade through all this student loan consolidation information, it can be hard to get a straight answer to a simple question: is federal loan consolidation right for you?First of, what is student loan consolidation? This simply means that if you took out more than one federal student loan during your time as a college student, you can combine all of these loans into one.If you also owe private student loans that weren't part of your financial aid package, you can consolidate these as well. However, lenders recommend that you don't consolidate federal student loans and private student loans together. If you do this, the new consolidated loan will count as a private loan, and you will lose all the benefits that come with your federal student loans, such as student loan deferment if you go to graduate school.So what are the advantages and disadvantages of consolidating your federal student loans? This questions depends partly on how much you owe, how much you've already paid, and other personal financial variables. In a nutshell, here's the pros and cons:
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