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Student Loans
When trying to find out about Student Loans on the internet there is an overwhelming amount of information, a lot of it is completely wrong! Information about Student Loans that is discussed in the media is often poorly researched thus feeding into the amount of bad information on the internet. Here at Compare Student Loan Rates we offer 100% accurate information about the student loan you require so there's no need to look anywhere else!
Since the government has changed many of the fundemental rules about loans and borrowing, take a look at the facts.
Are Student Loans any Cheaper?
A new government bill reduced payments on student loans after graduation from 15% income to 10%. Loans can now be forgiven after 20 years (not 25 years pre-government bill). The changes have actually made it much simpler and more affordable in the paying back period.
Will Financial Aid Be Reduced?
Financial Aid helps many sectors, from grants to college grants, university grants and student loans. Since the global financial crisis there has been a huge drop in private grants but this drop had nothing to do with any government student loan changes. Student loans have always been the main method of student financial aid. Find out what you qualify for at your local Financial Aid Office.
The effect of Parents Income on Financial Aid
Some Financial Aid is based on needs and the financial status of the parents. However, most colleges review the whole scenario and not just the income levels of the parents. Thankfully, many scholarships are based on individual achievements and not just financial status. There are also Private grants which are founded on other criteria, not merely financial needs (some employers off financial aid to employees children as company policy). Before you do anything, call your college financial aid office, they will offer you the best advice for free.
Remember that every college has different programs and resources, the only way to find out the facts for sure is to go to your college's Financial Aid Office.
Find out if your Loan offers Forbearance
Many people worldwide were effected by the global financial crisis, including students. Trying to pay bills, let alone your student loans can be an extremely stressful and costly nightmare. If you have fallen behind on your repayments you should contact your lender to talk about a possible student loan deferment.
Get in touch with your lender to find out if you qualify for a deferment. If you are struggling financially you may qualify, be prepared to give proof of difficulties in repayment. If you are in the military you may be able to get military and demobilization deferment.
Student Loan Facts
Where does the money come from for student loans?
All federal student loans now come directly from the Direct Loan Program of the US Department of Education.
What is a subsidized loan and an unsubsidized loan?
Repayment of a Stafford Loan is deferred while the student is enrolled up until at least half time. For subsidized student loans there is no interest during the time payments are deferred. However, interest is still accrued on unsubsidized loans.
Student Loans for Parents
The government offers a federal student loan program for adults called the Parent plus Loan.
What Is the Current Interest Rate on Student Loans?
Rates change quite often. Student loans interest rates for loans disbursed between July 1, 2009 and June 30, 2011.>
Applying for a Student Loan
While individual educational institutions may offer their own financial aid programs, including student loans, all federally managed student loan programs are applied for by Completing an application form for Federal Student Aid or an FAFSA application. Make sure that you contact your college or institution to find out the exact terms.