Deferred Student Loans – All About Them

October 23, 2009 · Posted in College Loans · Comments Off 

One of the basic ideas of students is to go to college, earn while studying and save some money while studying. However, students still end up borrowing money for studies as they can’t earn and save as much as they had anticipated. Students generally opt for deferred student loans as the payments can be made later without having to worry about defaulting on the loans.

What are deferred student loans?

A loan on which you can postpone your payments to an agreed period of time is called deferred student loans. Students get these types of loans while studying in college. It is one of the best options for them as they don’t have to worry about paying off the loan amount while still studying.

However, it’s not always the case. While student loans can be deferred, many of them require payments while you are still studying. These payments usually pay off the interest of the student loan and the principle can be paid later. It obviously depends on what terms and conditions you’ve agreed upon before taking the student loan. Read more

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Why is FAFSA So Important to College Students Looking For Student Loans?

October 16, 2009 · Posted in College Loans · Comments Off 

FAFSA is Your Ticket to student loans?

FAFSA is your only entry into the world of federal student loans. You can also find yourself the recipient of a federal grant and work study programs to boot. Without a Student Aid Report (SAR), your chances of getting the best student loans are almost nil.

FAFSA, stands for Free Application for Federal Student Aid. The feds are your best place to get a college loan because they have the money to lend at a decent interest rate and the government will actually make your interest payment on some of the loans.

The application usually is completed online (spanish version as well) but we recommend downloading a copy and printing it out. It will take you time to research and find the answers to their questions.

First you need to create an account with FAFSA. This pin number will allow you to proceed with filling out the application. You will then continue to use that pin number as long as you are applying for federal student loans. Basically it is a virtual account system. Read more

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Types of Federal College Loans

October 2, 2009 · Posted in College Loans · Comments Off 

Federal college loans tend to confuse many potential college students. Most people do not really understand the different types of loans available to them, or how they work. They simply take the word of their school that they are being offered the loans for which they qualify.

First, understand that there are actually three different types of federal financial aid. Grants are money that are given by the government and do not require repayment. The Perkins Loan Program and the Federal Family Education Loan Program are loans that do require repayment. Some federal college loans are subsidized and others are not, but all of them allow you to wait until after college to start making payments. The most important thing to remember is that the federal government doesn’t actually loan money.

Subsidized federal college loans are loans that you do not pay interest on until you graduate college. The government pays the interest on these loans instead. Unsubsidized loans accrue interest while you’re attending school, even though no payment is necessary. Read more

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