Guide to Financial Aid and Student Loans

Federal Stafford Loans for a 'dependent' college student are a need based federally guaranteed student loan. The interest is paid by the Department of Education while you’re still in school. This is known as a "Subsidized" Stafford loan. Repayment begins six months after you graduate or drop below half-time status.

Federal Stafford Loans for an 'independent' college student are a federally guaranteed student loan based on preference to borrower regardless of need. The student is responsible for interest which accrues while in school. This is referred to as an Un-Subsidized loan. Loan repayment begins six months after you graduate or drop below half-time status.

The term Need refers to an individual’s financial situation determined in the Student Aid Report (SAR), which you will get after filing the FAFSA.

Annual limits on Stafford Loans:

• Dependent Freshmem: $2,625

• Dependent Sophomore: $3,500

• Dependent Junior & Senior: $5,500

• Independent Freshman: $6,625

• Independent Sophomore: $7,500

• Independent Junior & Senior: $10,500

• Independent Graduate or Professional: $18,500

Federal Stafford Loans are sent to your school (not you) where you then sign it over to your school and it is applied toward your tuition and outstanding balances. Applying online is the quickest way to get through the stafford loan 'process.'

Visit: iStudentLoan Stafford Loans – They provide Federal Stafford Loan applications.

Private Student Loans

As the cost of college increases, most students and parents find themselves unable to covers all of the costs of today's Colleges, including living expenses. This is why Private Student Loans have become so popular ( current interest rates are as low and competitive.)

Private Student Loans, aka, Alternative Student Loans, cover tuition, supplies, room and board, computers, study abroad and even air travel. The lender sends the funds directly to you. Many lenders are now offering private student loans to fill the gap between their awarded student aid from the government (SAR) and the total costs of attending college. They are essentially student loans for living expenses and supplies, books, etc.

These trusted companies and guides offer private student loans with helpful customer service and low interest rates:

iStudentLoan.com – Private Student Loan programs featuring low interest rates, zero origination fees and an easy online or telephone application procedure. You can borrow up to $40,000 each school year.

Student Loans – directory of online private student loan companies. Compare private student loans, apply online.

Student Loans Blog - guide to financial aid and student loans also featuring a student loan forum.

Student Loan Consolidation.com : A free directory of top Federal and Private student consolidation loan companies allowing you to consolidate student loans online. This website is very helpful.

The Benefits Of Student Loan Consolidation

You can save money and lower your monthly payments if you consolidate your student loans. Consolidating student loans is a student loan repayment option which has become popular due to cost savings from today's lower federal consolidation student loan interest rates. Federal Consolidation Loans offer fixed rates for your entire repayment period.

Student Loan Consolidation highlights:

Lower monthly payments: Federal Consolidation loans will give you the ability to lower your monthly payment by 60%.

Post-school grace period: Interest rates on Stafford Loans are .5% lower for borrowers who are currently within their 6 month grace period. By consolidating your federal student loans during your grace period you can lock in to a lower fixed interest rate for the life of the loan.

Fixed Interest Rates: The interest rate on a Federal Student Consolidation loan is fixed for the entire life of the new loan. Consolidation of student loans is based on the average interest rates of the loans you are consolidating. The average federal student loan consolidation rate is 6%.

Saves time: Federal Student Consolidation loan will simplify your finances with a single monthly payment to one lender.

Extended Repayment: Some Federal Student Consolidation loans will allow you to extend your repayments up to thirty (30) years.

No penalties for pre-paying: You have the flexibility and option to pay off your Federal Student Consolidation loan in full or over time without penalties or fees.

Loans eligible for student loan consolidation include:

• Federal Direct Consolidation loans

• Federal Nursing Loans

• Federal Perkins Loans

• Federal PLUS and Federal Direct PLUS (parental) loans

• Federal Stafford Loans and Federal Direct Stafford student loans, unsubsidized and subsidized

• Private Student Loans

• Health Professions Student Loans (HPSL)

Student loan Consolidation Repayment Plans:

• A level repayment plan; where you have a fixed monthly payment for the duration of your plan. This type averages a minimum of $50 per month.

• A plan which is graduated; where your monthly payments are initially low but do increase over time. This plan is recommended if you expect to increase your income over the duration of your repayment period

• Income sensitive student loan repayment plan; Payments will be adjusted in accordance to the fluctuation of your total household income. If you currently are having problems paying your loans this might be the right plan for you.

• Extended repayment plan. In order to qualify you must have more then $20,000 education loan debt. You can take up to 30 years to pay off your new consolidation loan after consolidating.

You should select the right plan for your individual needs when applying for a federal or private student consolidation loan.

Top Student Loan Consolidation companies and helpful resources:

iStudentLoan : Providing low consolidation interest rates, helpful customer service representatives and secure online applications for federal and private student loan consolidation.

SchoolWork.org - Loan Consolidation : Student Loan Consolidation explained in easy words, including tips and listings of the best loan consolidation companies.