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Ask Me About Student Loans! Forums member Effexxor has graciously helped me maintain this thread, and is happy to take questions via PM. That makes two resources for you! Please don't hesitate to contact either one of us with your questions via PM! *This is long. Very long. You’ve been warned. **I won’t say which servicing agency I work for. It’s not Sallie Mae, and that’s all that matters. I am trying to not be biased toward or against any servicer...except Sallie Mae...so please don't ask me who I think is the best. Obviously, I think my own company is the best...and that's a bit biased. **Now featuring help for Canadian goons! Canada student loan info is at the bottom of this OP. Neato Links!!! These are useful links that have come up during this thread. Please browse them and read the last few pages of the thread for your answer before posting your question! I am not bothered if you don't want to read 60+ pages. A wonderful online database of general information about student loans (the difference between this site and my thread is that you can ask and receive an answer from me!): http://www.finaid.org/ A website to help you find the right private lender for you: http://www.simpletuition.com (Important note - this site does not list ALL private lenders and their benefits, but it's a drat fine starting point.) If you are not sure if your school is a Title 4 school, search for it here: http://www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet International Accredited Schools: http://www.ed.gov/about/offices/list/ous/international/usnei/international/edlite-index.html If you are looking for scholarships/grants: http://www.fastweb.com The National Student Loan Database (The Dept of Ed, basically) - register an account here and behold the glory!!! The NSLDS is a wonderful, magical website which will tell you every single federal and Perkins loan you've ever had. The drawback is that it's updated (in terms of amounts and status) about every 2-3 months. So it won't be the most up-to-date when it comes to your loan status. The best way to find out is to contact your servicer and ask. http://nslds.ed.gov The Department of Education's Website (All FAFSA-related questions go HERE): http://www.ed.gov The FAFSA Online (Now available in Spanish!): http://www.fafsa.ed.gov Forgiveness Programs Available for Loans: http://www.finaid.org/loans/forgiveness.phtml (There are also state-specific programs available. Contact the state's Dept. of Education to see if there's anything for you.) If you have questions about consolidation, please refer to the bottom of this post. I work for a servicing agent which services for several federal education loan lenders. We are required to have extensive training and knowledge on the student loan process and general information, and knowing how many college students are out there, I’ve decided to start this thread. I figure it will help both ways: you guys get to have some more detailed knowledge about this program, and I get to keep my information honed - as well as learn new things! I will try to answer questions posed once a week in one post. Sorry, but I do have a job and attend school myself! There are other folks who regularly answer and help out in this thread as well, so don't be shy! Also, please PM me if you want a faster response. It doesn't bother me and you'll get your answer more quickly. This thread is intended to translate student loan processes, lingo, and rules into normal human being language, instead of Federal Guidelines. Ask here for all your Stafford, PLUS, and GradPlus loan questions and needs - from the servicer’s perspective. If it’s school-related, or something the Financial Aid Office of your school needs to answer, you must ask them. I can’t help ya, and neither can any other lender. All FAFSA-related questions should be directed to the Department of Ed’s website and their phone number, or, once again, your Financial Aid Office. I have worked in depth with FAFSAs for the past couple of years, so I can help with those questions now too! FAFSA is still the best person to ask but I'm pretty familiar with the whole process now. So what is this thread for? I can answer general student loan questions for you. I can answer consolidation need-to-knows for you. If you pose a question that I don’t know the answer to, I will not steer you wrong: I will either find the answer for you, or try to provide some other source for you. That being said, I’m going to outline some general information for you guys. If you don’t see your question already answered in this FAQ, feel no shame in posting. You wouldn’t believe the questions I hear on a daily basis. Stafford Loans There are two kinds: Subsidized and Unsubsidized. What this means to you, the normal human being, is: Subsidized loans do not accrue interest during any deferment or your grace period. Unsubsidized loans always accrue interest, from the 1st day they’re disbursed to the day you pay them off. There are no exceptions here, this is a federal rule. As of July 1st, 2012, graduate and professional students will no longer be able to get subsidized loans. At all. Ever. This was part of the first debt deal that was signed in 2011, and no one knew about it until the deal was signed. Awesome! If this pisses you off, please contact your Congressman and let them know. Stafford loans are in the student’s name only. Federal privacy laws don’t allow Mommy or Daddy to call in for info on these unless you’ve signed a nifty little release form with their names on it. Stop making them call for you, please. The interest rate for new federal loans after July 1st, 2012 is 6.8% on subsidized loans, 6.8% on unsubsidized loans. Servicers did not decide this; Uncle Sam did. If you would like to yell about it, call him. Most servicers can give you the number! The variable interest rate on older FFELP and Direct loans changes every single July 1st. Every one. This has been true for freakin’ ever, and isn’t bound the change anytime soon. What did recently change is that it’s now a fixed rate - your 6.8% is permanent, but older loans will have different rates. Get it? Consolidation For federal loans, Direct is the only company at the moment - that's the federal government, specifically. Go here and good luck! http://www.loanconsolidation.ed.gov/ Aggregate Limits Aggregate limit is a fancy way of saying “this is the total you can get, period.” This amount varies by grade level and graduate vs. undergraduate status. Medical students get the special exception of being able to have more debt in their name. I pity you guys. This is a list of the current aggregate limits. You cannot take out more Stafford loans, per year, than the amounts listed. The school determines the amount you will be given; there is no guarantee that you will receive the full amount listed. You may be *eligible,* but you still might not receive it. The servicer can do nothing, absolutely nothing, to change this. NOTE: Medical students have different limits. You'll have to contact your Financial Aid Office for those numbers. Year One: Subsidized - 3500.00 Unsubsidized - 6000.00 Total Eligibility: 9500.00 Year Two Sub - 4500.00 Unsub - 6000.00 Total: 10500.00 Year Three-Five Sub - 5500.00 Unsub - 7000.00 Total: 12500.00 Graduate & Professional Sub - 8500.00 (No longer available after July 1st, 2012!!!) Unsub - 12000.00 Total: 20500.00 Total Aggregate Limits for: Undergraduate Dependant Student - $31,000.00 (maximum of 23000 in subsidized) Undergraduate Independent Student: - $57,500.00 (maximum of 23000 in subsidized) Graduate/Professional Student: $138,500.00 (maximum of $65,500 in subsidized) When can I file my FAFSA as an independent (not have to include parent's income info), and therefore become eligible for more money? You are an independent student if: FAFSA answers this question here: http://www.fafsa.ed.gov/help/fftoc03k.htm To summarize! - you're 24 years old by the end of the school (aka award) year - you are married - you have legal dependents - you are an orphan or ward of the court - you are a veteran of the US armed forces - you are a graduate or professional student New qualifying criteria which you might not know about : - you are an emancipated minor - you have been or are in danger of homelessness as determined by your high school or shelter - you were in legal guardianship of someone What if my parents refuse to give me their tax info or aren't going to help me? The FAFSA now allows you to opt out of entering your parent's information. This will default the application to filing for unsubsidized loans only, instead of sub and unsub. Everything else is still determined the same. PLUS loans These are in your parent’s name. They are not cosigning for you, they are taking out a loan using their credit and only in their name. This does involve a credit check, which will show on your parent’s credit score. This loan can never be changed into your name. Make sure your parents understand this, please. Due to new federal policy, while you the student are attending classes at least half-time or more your parents are automatically eligible for a PLUS in-school deferment!!!. This works roughly the same way as your own in-school deferment. If you can provide the lender with a verification of enrollment showing your status, they can slap a deferment on your parent's account and pause the payments for you. The PLUS loan has also gained a grace period. Details of this are still being worked out, but it would mirror the Stafford 6-month grace period. The interest rate is currently 7.9%, fixed. If you’re shopping around for incentives with lenders, get an incentive on the interest rate itself, not principal rebates. Principal rebates save you less in the long run (unless the parent is going to payoff the loan within the next couple of years, I suppose). The PLUS loan can be used for personal expenses, but it is still sent to the school first. The school maintains controls over the amount disbursed. If they won't certify your 100,000 request, Direct can't send it. Your parent can have a co-borrower for a PLUS loan if they are not eligible based on their personal credit. The PLUS loan cannot be consolidated with the student's Stafford loans. GradPlus For graduate students only. This loan is based on credit, but the student takes it out in their own name, and it’s a much more lenient credit check because it’s for students, not parents. The interest rate is the same as the PLUS. Like the Staffords, this loan is deferred while the student is in school. NO PAYMENTS IN SCHOOL. But remember to keep yourself at least half time or more, or payments ahoy! The GradPlus loan can be used for personal expenses, but it is still sent to the school first. The school maintains controls over the amount disbursed. If they won't certify your 100,000 request, we can't send it. You can have a co-borrower for a GradPlus loan if you are not eligible based on your personal credit. The GradPlus loan can be consolidated with Stafford loans. If you have a co-borrower, and you consolidate the GradPlus, the loan is considered paid in full through the consolidation and the co-borrower is no longer tied to the account nor has access to your information. When are my loans deferred (no payments due)? You must be at least half time or more at a Title 4 school - that is, any school that is capable of participating in the federal loan program. It doesn’t have to actually participate, it just has to be eligible to. Several online colleges are also eligible. If you are not sure if your school is a Title 4 school, there's a handy search link up above for you to use! Even if your grace period has expired or you have a consolidation, you still are deferred while at least half time or more!!! Your status is determined by the school, not the servicer. If the school says you’re part time, or less than half time, you can’t have the in-school deferment on your account. I’m sorry! What is a grace period? A 6-month period without payments after dropping less than half time (graduation, taking a semester off) which only Stafford loans feature. If you enter your grace period, it is exactly 6 months long. If you are back in school at least half time or more even one day before the grace expires, it is returned to your account and you are placed back into the deferment. GradPlus and PLUS loans do NOT have a grace period, but servicers may put one on their if there are Staffords around. If you consolidate, you no longer have a grace period. Note - you don’t lose your deferment, just your grace period. But remember, these are federal loans. There always may be a deferment or forbearance available. What the hell is a deferment/forbearance? This is a fancy way of saying “pausing your payments.” The difference is that during a deferment, your subsidized loans do not accrue interest, whereas during a forbearance, everything does. Unpaid interest becomes part of your principal balance at the end of a deferment or forbearance. You’re not required to pay it while on either one, but it’s highly recommended that you do. PLUS and GradPlus loans are considered unsubsidized, and therefore always have interest accruing. There are several different kinds of deferments and forbearances. For the sake of length, I won’t go through them here unless a demand rises/people constantly ask. General Info If you are in school, and you still have your grace period, you cannot consolidate until you’re in grace or repayment. Your school determines the total amount of loans you’re eligible for, the amounts Direct will send, and the dates Direct can send it. If you have questions/issues with any of this, you must contact the school. If the amount you received from your school is not enough to cover tuition and living expenses, ask them if they have an appeals process. Otherwise, ask Mom and Dad if they would be willing to go the PLUS route. If both of those are bust, you're stuck with an alternative loan, or...well...the street corner, I guess. Repayment Please thank forums member Effexxor for the following information: quote:
As mentioned above, I will continue editing and adding to this thread as needed. I’m hoping it’ll become a resource for the many college kids/parents around here. You may also PM or IM me through AOL if you have a particularly embarrassing question; I won’t laugh. Private Loan Consolidation According to regulars in this very thread Wells Fargo is still offering private loan consolidation. If anyone knows of any other company please let me know and I'll include it here. Huge huge thank you to Kasiodiscorock for the following post/information: quote:I skimmed through the thread looking for info by searching the word "Canada" and found tidbits of information, but not a lot. I guess I can fill in and talk about how the Ontario government loans (aka OSAP) work, because I've got my own loans to pay back and have tried to get as much info about it as possible. I do not work for OSAP or the government in any way, I just like to know exactly what I'm getting into beforehand, and have helped a few friends figure out how this all works as well. Here is additional information from our fellow Canadian goon. Please contact him if you have any questions about Canadian student loan assistance! KasioDiscoRock posted:So I just found out that some of my OSAP information in the OP is out of date. Wiggy Marie fucked around with this message at 22:15 on Jul 12, 2013 |
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Dec 29, 2006 05:43
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Once you've graduated, find and become employed by one of the many hospitals in the states that will make payments on your loans for you. Also, during your inevitable internship, there's a forbearance available just for you. Freakin' use it, and make payments toward your interest if you can.
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Dec 29, 2006 05:54
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dAPER posted:I have 100K in private student loans that I need to consolidate, some through AES and some through Wells Fargo. The loan people there think I'm not worth their time, as real people seem to be a myth on their telephones. I am employed full time by a school as a teacher and I also have a side retail gig and possibly private voice lessons as well. 1. AES? Oh God. I'm so sorry. I feel your pain, I really do. 2. I really hope you don't mean credit-based alternative loans. You can't consolidate those, period. You'll have to shop around with banks/etc. to see if someone would do it for you, but no federal loan lender could. 3. Are you teaching at a Title 1 school? If so, you may be eligible for the Teacher Loan Forgiveness program after 5 years. Also, this would require the loans to be federal loans. If they're private loans, as in credit-based, I'm sorry bub, but I got nuthin'. All you can do in that case is call the servicing agent and beg, plead and whimper for a forbearance or deferment, and that's a very iffy prospect. If they're federal loans, do you know off the top of your head if you've used any of your def/forb time?
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Dec 29, 2006 06:05
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I know it's horribly frustrating. AES transfers people all over the place. But unfortunately, I'm not employed with either one, so I can't say what programs they might offer for private loans. We have none, and we're not given any information on them. If you'd like to, you can give me the information on the offers you've found, and I'd be happy to research them more for you, maybe find a human being. It's more of a consulting thing that I'd intended, but I enjoy the research.
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Dec 29, 2006 06:15
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Kibbles posted:I'm 37, and plan to be a nursing student (don't officially become one until junior year). You're considered an independant student at 24, and don't need to provide your parent's income information any longer. If you're doing the app online and it's not letting you bypass that option, call the Dept of Ed to find out why not, because if it's a type of federal loan (and not credit-based requiring a cosigner) they shouldn't require your parent's info. Do you have the exact name of the loan that came up? And the school you're applying for/state the school's in would help out, too. It's possible that it's state- or school-specific, which will require further digging by me.
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Dec 29, 2006 06:19
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mrbucket posted:Are there any consolidation options for private loans? I know Sallie Mae just started offering something, but it was only for if you graduated. What if you didnt? Not with a lot of federal lenders, but yes, they're out there. Just google "private loans consolidation" and it'll pull up several options. We don't do it, so I don't personally know any methods available/how it works. But if the demand becomes large enough, I'll do some searching for general info and add it to my OP.
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Dec 29, 2006 06:27
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Rekinom posted:Are there any tax breaks associated with paying back student loans? If so, do they require that you itemize? Yes. The interest that you pay on during the year is claimable on your taxes. You don't need to itemize. The lender will automatically send this info to you after December 31st; you should also be able to call in and get the total. This also applies to PLUS and GradPlus loans. And even if you're not in repayment, if you have an unsubsidized loan you're paying interest on, you can claim that interest. http://www.irs.gov/taxtopics/tc456.html For federal lingo on the topic. Epic Proportions, your situation is a hard one. It's possible, but you're most likely going to have to take out some alternative loans along with the federal loans. You do have the benefit of being old enough to file as an independant on the FAFSA and possibly get the full amounts, but let's be honest - student loans rarely cover all of your expenses. Totals haven't been modified since the 60s, yey government! I would start hard-core researching grants and loans. Go to http://www.fastweb.com if you haven't already, register an account, and start applying for scholarships you might be eligible for. Every little bit helps, right? Then start researching alternative loans offered through the school. They should be able to provide you with a list of loans. Call all of them, research them into the ground. If you give me the name of your school, I might be able to pull up some info on your behalf. We have representatives set up for different schools, so they might have some inside info that could help you. Never be afraid to call a lender and ask them questions. If they're not willing to answer your questions, they aren't a lender worthy of you. Kibbles, I will check that out and get back to ya on it. It seems fishy that parental info is required no matter what, but hey, schools can be weird. Tehfox0r, you should call your servicing agent and ask for either an Economic Hardship Deferment or a Temporary Hardship Forbearance. You might not be eligible for the deferment, but make them do the math for you. If not, the THF can be done over the phone with most lenders. Just mind that interest. If you're eligible for the deferment, I can help you with the form. Qlat, the GradPlus loan would probably help you out. Also, try to find a company that will help pay for your degree. A lot of companies require it to be business-oriented, but some don't (like mine). Until you're closer to actually starting working at it, though, it's hard to say. Policies change, and the annual aggregate limits are FINALLY about to change...next year! But not the total agg limit. Yes that's right, you can have more debt per year, but will need to stop going to school earlier because you've already reached your limit! Yey government!
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Dec 29, 2006 14:25
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Long post ahoy! Groda, if you are abroad, not at a US-affiliated university, then you have to go to the financial aid office of your school and ask what sort of local program they might have. Most likely you’ll be stuck with an alternative loan; US loans can only be lent to US citizen students on the mainland or abroad who are attending a Dept of Ed certified school (sorry foreign exchange kids!). Punch McRockGroin, the best options are generall the ones that offer interest rate reductions. Here’s why I say so: Interest accrues daily on these loans, therefore an interest rate reduction will save you much more than any principal rebate ever could. But here’s a breakdown of what each offer is telling you. BOA/SLMA - You can use a forbearance to pause the payments for up to 4 years. Remember that accruing interest!!! Once you are in repayment, we will pay down your principal. After 1 year of repayment, you get a 1% principal reduction. After two years, you get another 1%. After three years, you get another 1%. So here’s a cool little chart! I’m assuming they mean rebates off the original balance here. Principal: 1000 Principal after 1 year of on-time payments: 990 After 2 years: 980 After 3 years: 970 You can have .25% off your interest rate while in repayment with automatic debit. This would leave the interest at 8.25%. Citibank - You can use a forbearance to pause the payments for up to 4 years. Remember that accruing interest!!! Once you are in repayment, we will take down your principal by 50% (are you sure about that number? drat!) 1000 = 500 If you use autodebit, your interest rate will be 8%. We will pay the final 6 payments on your loan. I would call Citibank to double-check on that principal rebate number, but hey, if it’s real... Local Credit Union - You must sell your soul to Sallie Mae. I’m not biased, really. I just freakin’ hate Sallie Mae. Ok, maybe I lied about the biased part. Edamerica - You can use a forbearance to pause the payments for up to 4 years. Remember that accruing interest!!! Your interest rate will be immediately reduced by 1%, which leaves you at 7.5% from the disbursement of your loans (remember, they accrue interest from the very first day). Once you are in repayment, we will reduce this by an additional .25% for using autodebit. Keep your payments on time the entire life of the loan, and you will stay at 7.25%. (Don’t believe that 14 day grace period, trust me. It’s gotta be on time or nothing.) We will never sell your loans. This may not seem that important, but it’s actually pretty neat. It means you’ll always be dealing with the same people, same company, and will never have your principal balance change because your loan has changed hands. This situation happens a LOT with Wachovia. Don’t use Wachovia. You can chat with us online and email us too. Yey aren’t we cool?! I’d think that Sallie Mae had something like this too, being that they’re huge. National Education - After 2 years, you will get a 1% interest rate reduction. After another 2 years, you’ll get a 1% reduction. These payments must be on-time every time. So after 2 years, your interest rate will be 7.5%, and then after 4 years, it will be 6.5%. If you use autodebit, you get .25% reduced. So eventually, you could have as low as 6.25%, but it does NOT start at the rate. I don’t like ACS. Once again, I’m biased. Don’t touch Wachovia; they sells loans all over the place. For fairness and comparison, I’ll break down Suntrust. SunTrust - You can use a forbearance to pause the payments for up to 4 years. Remember that accruing interest!!! After you make your first payment, we’ll take 2% of your original principal balance off your total. So: 1000 = 980. .25% interest rate reduction for autodebit, so you’ll have 8.25%. After 2 years, you get a 1% *original* principal reduction. After another two years, you get another 1% original principal reduction. This means that if your balance was originally 1000, and you’ve paid it down to 950, you get 1% of the original 1000 off of the 950. So: 1000 - paid down to 950 = 940. If after another two years it’s paid down to 850, it’ll be 840 after the rebate. Get it? Their last two incentives are offered for every PLUS and GradPlus loan in existence. Ignore that. And the final decision comes down to: call each and every servicer. These are the people your parents, and probably you, will have to deal with. Make sure they treat you well, are polite, and preferably are American. I can tell you now that SLMA already lost that battle. I hope this helps!!! If you have any other questions or need further clarification... GenoCanSing, you are going to consolidate with North Texas Higher Education Authority. Don’t question it, just do it. This goes for anyone else looking to consolidate their loans. Why? Because they freakin’ rock, they’re friendly, and they have gigantic principal rebates. I don’t work for them, but I wish I did. This is a company who cares about the people they have in their system. How much do they care, Wig? Well, last year they had a surplus in earnings. So what did they do? Did they buy themselves a new pool, give their employees bonuses, renovate their building? No. They went through their system and forgave loans from the bottom up. That’s right, they forgave people’s loans. The only “penalty” was that you had to claim it as income. But when you’ve just lost 2500 bucks plus interest, I’d say it was a fair trade. They rock and I love them. Orinth, that goes for you too. What I’m telling people to do now is wait until late May or June, when the buzz will start about the new rates. If the rates are going down on your variable loans (any loans NOT taken out after July 1st this year), consolidate after July 1st. If they’re going up, try to slap your loans on a deferment and consolidate at the deferment rate, or just consolidate before July 1st to keep the lower rate. You could always wait a couple more years to see if the rates go back down again, too. This is a gamble, so you have to ask yourself if it’s worth the lower rate, and more importantly, if you can afford the payments in the meantime. RainBrain, do you have old loans with higher rates, OR are they within the past 4 years or so? If so, it sounds like the loans with higher rates are alternative loans. Google private loan consolidation and find yourself a buyer. Get away from SLMA, get away as soon as you can. Also, a law was just released that kinda says you can consolidate wherever the hell you want, even if you’ve already consolidated. See my above NTHEA paragraph. Call them and see if they can help you at all. They might not be able to, but it’s worth a shot, to get away from SLMA. Juneau, setup your online account with SLMA right now and make sure you’re not delinquent on any payments. Or call them and ask what the hell the payment information is. Make sure they have your correct contact info. If you are a grad student studying at least half time or more, you’re probably back on a in-school deferment. Remember, this is on your account whenever you’re ½ time or more, regardless of your level. I’m hoping this is the situation. Pay as much as you can toward your interest. If you can pay more than the interest, do that. You’ll start hitting that principal balance, and that can only benefit you in the end. I’m going to do some extremely rough calculations here, so bear with me: Assuming you have around 13000 in unsubsidized, at the deferred interest rate of 6.54%, your interest is accruing at approximately 70.00 per every 30 days. Try to pay down the interest you have accrued now, and then try to make a payment of around 70 bucks every month to keep the interest covered. Don’t get upset if you see that your payments start hitting some principal; that means you’ve caught up to your own interest. Once you’ve graduated and are in repayment (assuming you’re not already in repayment, man I hope not), you know who to consolidate with. If you don’t reread this post!!! WHEW! Sorry for the delay in responses guys; as always, if you have questions or need further clarification, don’t be shy! This is GREAT for keeping me in practice.
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Dec 30, 2006 03:40
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Great to hear, Juneau! They got that date from the school. The school probably updates to the National Student Clearinghouse, which is where lenders get enrollment info from. Monitor that account closely. And Punch, Citibank is talking about the *other* deferments and forbearances available on student loans. These are standard, and will come with any lender, because this is a federal program. What differs are the incentives and the specific forbearance based on you, the student's, enrollment. Citibank doesn't have that, it seems. When you call them, ask to be sure. The interest rate reduction with Edamerica is immediate upon disbursement. Remember to keep it on time; I can tell you right now that they won't reinstate it on the account unless it's their error. And to finally get back to you, Kibbles, I emailed the financial aid office for further information. Based on the reply they gave, I can honestly say I'm sorry you have to deal with them. Student workers ahoy! Here's the email I got back: Email as posted:From: Manning, Cory S [If you would like the email, I can give it to you, but I just used their regular email listed on the website] Grammar massacre aside, from this email, the only conclusion I can draw is that this is an alternative loan based on the FAFSA form. That makes no sense because alternative loans aren't based on the FAFSA. Ever. They're based on credit. So in conclusion, I can give you what I *think* this loan is, you can take from that what you will: I think it's a type of Perkins loan offered through the school (the big clue here is the school as the lender - this is a giant Perkins feature). No mention of whether that's a fixed interest rate of 5% (another Perkins feature), and I honestly don't want to email this person again. Because it's a Perkins, the school does have the right to demand certain info, so for this loan, unfortunately, parent info is required. I hope this helps at least a little. I tried for ya. C'mon, surely there's more questions!!! Wiggy Marie fucked around with this message at 11:04 on Dec 30, 2006 |
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Dec 30, 2006 10:57
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Maybe. Honestly, I'd email the Dept of Ed or give them a call to check. Since it's consolidated, they might be able to make an exception. Worth a shot, for sure!
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Dec 30, 2006 19:34
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Stabbity, it depends on your credit history. These loans aren’t entirely based on credit like an alternative, but if there’s something really bad on there, Uncle Sam gets antsy. That being said, I’ve spoken with people who had lovely credit and still got loans. Your school is the key. If they say they’ll find you eligible, you’re pretty much good to go. Lewisje, I love your “avatar.” It makes me chuckle with glee. And seriously, thanks for helping!!! As for people trying to not pay, you’d be, quite frankly, amazed at the methods people use to try not to pay their loans. The sad part is that most of the people I get who’ve defaulted had every single deferment and forbearance available - if they’d called 270 or so days earlier, we could’ve helped them and prevented credit massacre. The default rates are high depending on the area. Ours aren’t bad at all, if you look at the number of people we have in our system, but it’s still depressing when you get those calls and have to tell someone that this isn’t leaving the credit report for a while. On my own derail, stop asking if we can remove your credit reporting once you’ve been reported. No, we can’t. Legally, if you were delinquent at the time and we reported you, we can’t touch the reporting. Start calling the credit bureaus to dispute it and stop giving us supe calls because you can’t pay 50.00 a month with 3500 monthly gross!!! I’ve had several people ask if they could use these loans to buy a new car/payoff credit debt/etc. I mean, they can sure try to. The lender sends ALL funds to the school, and then the school sends PART to the borrower. If they want to use their portion to buy hookers, I guess we can’t stop them. But they still owe it. And some schools have gotten smart - they put the funds in the student’s school-specific debit account, or something similar, so that they can’t touch it without a school-related expense. Groda, what school are you attending? Mexi, no government lender can consolidate federal loans with anything but other federal loans. Private loans, boo. But there may be an independent company that could do it. Google private loan consolidation and see if anything promising shows up. Mind that interest rate. Artie Ar Ar, file your FAFSA, or ask the school if they can use the same info for this summer. Yes, you can have federal loans for summer school. Try it and see what you get; if you’re not eligible, or you don’t get enough, first try appealing if you can, and then go the alternative loan route. Lewisje is correct for subsidized funds, but you can also get up to 5000 in unsubsidized. Your total eligibility for 3rd year is 10500. Good luck!!! 10-8, they used to. June of this year a great law was passed, and they opened their doors for everyone. I made my brother (who had all Sallie Mae loans) consolidate with them instead. Rock! Income sensitive is limited to 5 years to prevent abuse. Plus you’re basically paying interest only, and that sucks for the borrower too. Your principal balance would stay almost exactly the same. There are also two other programs: graduated repayment (interest only for 2 year, then it increases, then after another 2 years increases again, etc.), and extended repayment, which depending on your principal you can get for up to 25 years. Those are unconsolidated loan options; once you’ve consolidated, there’s a different program available. The only unpaid balance that is forgiven is when you’ve died or become permanently disabled. Federal loans are not forgiven due to bankruptcy, extreme debt, or length of having them. I’ve had people who filed for bankruptcy back in ‘75, not realizing that Uncle Sam still had their loans. Once you have these loans, assuming you are gonna be healthy and fit, you’re keepin’ them until they are paid. That being said, NTHEA forgives the final 599.00 balance on your account. It may not sound like much, but as my brother says, it’s free money. Sorry for the delay, guys! I have some sort of cold going on (not consistently sick, just consistently annoying). Hope this info helps! Wiggy Marie fucked around with this message at 16:50 on Dec 31, 2006 |
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Dec 31, 2006 16:47
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10-8 posted:From http://studentaid.ed.gov/students/publications/student_guide/2004_2005/english/types-stafford.htm: The Income Contingent plan is an entirely different plan from the Income Sensitive plan, and is *only* offered by Direct Loans. From what I've heard, it's a nifty plan, but no other lender does it, 'cause Direct is basically Uncle Sam and can do whatever they want. Direct loans are considered different from other federal loans (I don't know why, the amounts and interest rates are the same), and you'll even see them separated on applications (anywhere an application says Federal Direct loans, it's Direct they're talking about). Hope that clarifies... I've seriously considered it, Lewis, but I've hesitated due to privacy. I mean we jabber about it at work non-stop, and it's not like I'd give names, but still... I might just start one, though. Give the GBSers something to mock. I'll try and check into it, Groda, but no guarantees...I'm totally in the dark when it comes to foreign schools, so don't take anything I say to heart. I hate to give unsure info...
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Dec 31, 2006 20:33
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Merou posted:For some reason I've gone 3 college years never having heard about this "aggregate limit" business. I tried searching my schools website for the limit but it doesn't seem to have an exact figure, it just says that there is one. If we consider that my FAFSA is in general always having an EFC of roughly 0 (it was 0 this year) and that grants pay my tuition and books, what is my aggregate limit likely to be? There are 2 reasons you might not've heard of the agg limit: 1. You've never reached it. 2. As a medical student, you might have a higher agg limit, and therefore have still never reached it. Agg limits are federally set, and vary by school year and level. They're about to change in 2007 (thank God), but you can find the current info on any lender site, or at the Dept of Ed's site. It's one of those painfully easy websites: http://www.ed.gov Whew! Too much to type! I hate that you've had to take out so much in alt loans. When you file your fafsa, if you get very little in federal loans, ask the school if you can appeal their decision. The only way, during your clinical, that you could take out staffords is if they will stay show you as enrolled at least half time or more. GOOD LUCK! (*not* sarcastic) Blackjack: Yes, consolidate with NTHEA if at all possible. That's a blanket recommendation, and it definitely applies to you, too. If you're in grace, they could start the process for you. If your loans still show on the in-school deferment, you might need to get the school to send updated notification to have them placed in grace - and then you can consolidate. The NSLDS which Lewis mentioned is a wonderful, magical website which will tell you every single federal and perkins loan you've ever had. The drawback is that it's updated (in terms of amounts and status) about every 2-3 months. So it won't be the most up-to-date when it comes to your loan status. The best way to find out is to contact your lender and ask.
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Dec 31, 2006 23:10
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Once you've consolidated, the interest rate is fixed, regardless. Right now it's a gamble to either consolidate now with the current rates, or wait and see how they will change July 1st this year. There's no way to tell for sure what the government will do, and if they decide to cut the current rate, it'll only affect future loans, not previous or current loans. It's up to you whether you find the risk of waiting to see worth it. I think either way is fine. It's still gonna be a lower fixed rate than any credit card could offer, after all. Blackjack, the same goes for you. If you think it's worth the wait to see, then wait away. It all depends on what your rate is now, and what it might become July 1st. It's pretty darn strange for any loans NOT to appear on your report. You might wanna call a bureau to check and see why those loans aren't there. They really should be.
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Jan 1, 2007 19:54
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[photon], to further Lewis's advice, you can only take out a Gradplus if you're a grad student. If you're entering law school as a non-graduate student, sorry bebe. I'll add the agg limits to my OP tonight or tomorrow, as there seem to be enough questions about them to justify that. In the meantime, you can find them at any lender site, of the Dept of Ed's site. Splok, the GradPlus loan is recent enough that a lot of the policies and information is still being hashed out. It is based on credit, though not as much credit as the Plus loan. We haven't been given much more specific info than that; what I can tell you is that if you don't qualify by yourself, you can have a co-borrower. This can be anyone. If you consolidate the GradPlus loan in the future, the loan is considered paid in full through the consolidation, and the co-borrower is no longer tied to it. It's a pretty sweet deal; nothing like an alternative loan. Relayer, as IdeoPhanthus said, generally speaking, yes, if you haven't filled out a FAFSA. But it's worth it to contact your financial aid office and see if maybe they can help you. Chances are no, but hey, doesn't hurt to ask. If the school will certify a loan, a lender can send it. Remember, the lender doesn't determine eligibility, amount, or dates - the school does. Keep in mind that there are also schools who have an absolute deadline. Hopefully yours isn't one of those. Drawkcab, what you're talking about is a grant or scholarship. There's no such thing as a federal loan without interest. Go to http://www.fastweb.com and apply for anything you can. Also, go to a local mosque and see if maybe they can help you find additional funding. Who knows, maybe they have access to a loan that nobody else does. Most likely, though, you're gonna have to go the scholarship/grant routes. Captain Kevbo, you're doing just what you should be. To give you some hope, assuming you'll be a grad student, you can file as an independant, which will make you eligible for more funds. There's also the GradPlus loan; I know the interest rate is kinda high, but look for some good incentives, and keep in mind that as a federal loan, it's gonna be much nicer in repayment than any other loan could be. Mr Creosote, if a Title 4 school can certify that you're enrolled at least half time or more, you can take out federal loans. Otherwise, you can't qualify, but you might be able to get some private loans.
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Jan 2, 2007 17:09
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To the people offering advice in my absence: Oh my God how I hate you! Offering timely advice while I'm away for hours at a time, so that people who check back will have an answer? How could you poo poo up my thread?! Seriously, thanks for the assistance. Because of my hours, I can't check the thread during the daytime, which leaves a lot of unanswered questions in the meantime. Anyone who has researched or knows what they're talking about is more than welcome to contribute advice. Personal experience a plus!!! The only reason I'd be annoyed is if someone gave incorrect info, which hasn't happened so far. Keep it up, keep it up! Splok: As 10-8 said, yes, you are correct in assuming so. Yes, the school does still have the ability to lower the amount requested to the amount they think you need. It is always best to contact the school and ask exactly how much you can take out. To cheer you up, though, I’ve seen schools lower the amount exactly twice, and I’ve been working with this agent for a year now. It’s rare, but it CAN happen. Better safe than short on funds. Drawcab, as 10-8 said, your only option remains subsidized loans. I still stand by my earlier advice though; a mosque might have some info for you, and fastweb.com is a great resource. Ideophanthus, the rate only just became fixed after July 1st this year. Previously, it varied every year on July 1st. Some older loans have insane interest rates, if it makes you feel any better (12% ahoy!). This policy can change every year, if the government so chooses. Your MPN has the variable info on it; in fact, it still has that info. Yey for the Dept of Ed being on the ball! We’re kinda hoping this means they didn’t really mean that it’s fixed, but the Dept can do whatever it wants with some things. If your mom took out those Plus loans in the past 4 years or so, the rate changed. I don’t have the numbers in front of me, but they have changed every year. It was 6.1% '05='06, and it’s 7.94% this year (only for loans taken out before 07/01/06). The interest rate is federally regulated, so what you can do is consolidate with someone who offers incentives on top of the rate. You know who I’m gonna recommend, so don’t make me repeat myself  .It’s better to wait for closer to July 1st and see how the rates will change; if they’re rising, you can consolidate to keep the lower rate you have, or wait and see if the rates go down in the future. If they’re falling, wait until after the 1st. Sensitive Scam Artist, you rock my socks. I haven’t had a chance to do any research, and I take full blame for the delay. Sorry Groda!!! Groda, maybe this site will help ya while I get my act together: http://www.ed.gov/about/offices/list/ous/international/usnei/international/edlite-index.html Carbon sixty, check this out: http://www.sfsu.edu/~finaid/Alternative.html Also, go to fastweb.com and enter your major. You might be surprised by what turns up. Just lemme know if you want me to break them down for you like I did for the Plus loan offers earlier. All I have to say right now is: compare the Sallie Mae loan to the Educaid loan, then laugh until you cry and don’t even bother with the Sallie Mae loan. Spiderjelly, your situation is one of the ones that makes me mad about the entire system. Yes, you may be able to file an appeal with the school for additional aid. Yes, they can deny this additional aid. If you can’t take it out through staffords, your next bet is the GradPlus. Barring this, you’re in alt loan territory. KIBBLES, if you’re still around, I got some additional info for ya: The HPSL is a federal loan program through the Dept. of Health & Human Services. Parent income DOES have to be included, regardless of the student's age. The loan is administered through the University, so the borrower will actually pay back the university once the loan goes into repayment. It is a need-based loan, so the borrower needs to fill out the FAFSA as soon as possible. The interest rate on the HPSL loan is fixed at 5% (just like Perkins). It is similar to a Perkins, but it is a separate loan program. There is no guar/origination fee, and the other federal regulations still apply. I hope this helps you!!! I am adding aggregate limit general info to my OP tonight, and might go through and perk up some other info. Keep an eye on the OP! And as always, if anyone would like to contribute, feel free! Wiggy Marie fucked around with this message at 16:33 on Jan 3, 2007 |
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Jan 3, 2007 04:33
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I'm pretty sure I answered that in the OP. If the writing is unclear, I'll be glad to clarify, but read the OP first and see. Also, just so people know and I know it's gonna be coming up in the next few months, I'm more than happy to answer consolidation questions. My knowledge of alternative loans is pretty weak - I can tell you the general info, but it's always gonna be best to contact the company the loan is through and ask them your questions. Wiggy Marie fucked around with this message at 04:34 on Jan 5, 2007 |
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Jan 4, 2007 03:47
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Teknicolor, first of all, congrats on such small debt in your name so far. That's only good for your health. If you hadn't already received the total stafford loans you're eligible for, with the PLUS denial you may be able to take out more. Have you contacted the finaid office about that yet? See what they say, or let me know if you've already hit your aggregate limit, and we shall see. Rustejuxx, have you tried to appeal at the financial aid office yet? Beyond that, if you're not a grad student and your parents won't take out a PLUS, you're stuck with alternative loans. In terms of your FAFSA questions, direct those to the Dept. of Ed. We don't handle the FAFSA in any way, shape, or form, and I refuse to give you guesses rather than answers. Grimfailz, once the money is in your hands, you can do whatever you want with it. Just remember that you have to pay it back, regardless of what you use it for. But yes, if you have enough for a new computer, then by all means get it! Pay off those debts!
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Jan 7, 2007 21:59
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So how'd it go? Curious eyes are dying to know!
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Jan 9, 2007 04:42
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a_passerby posted:What would you suggest for an incoming undergrad freshman whose EFC falls $20,000+ below what is realistically affordable? At the risk of sounding like a retard, I can honestly say I have no idea how to interpret your question. Your EFC falls 20000+ below what is affordable? Meaning your parents can't contribute approximated 20000+? Or the EFC which was reflected on the Financial Aid Awards package is 20000+ higher than what they will contribute? Help a tired confused female here.
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Jan 10, 2007 06:29
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Teknicolor, at least you got *something* Good to know I'm not giving people bad information, too. I hope that works out for ya. Plissken, processing depends on how you file and the school. If you file a paper app, it can take 4-6; if you file it online (http://www.fafsa.ed.gov), it can take 2-4. You'll need to see if the finaid office can grant you an extension, or if they'd be able to help you out at all. If you give me the school, I'd be happy to seek out the private loans available for ya. Douchebag Smiles, go here: https://www.nthea.com/easyloansavings/Default.aspx Type in your information and see what comes up. Right now they're the best consolidation company I'm aware of. Other companies are about to get really competitive, but for my money I wouldn't go to anyone but these people (they're also really friendly on the phone, the best people I've ever conferenced with). I'm considering adding this info to the OP so that anyone looking to consolidate will already know what I recommend. I'm hesitant to do so, though. What do you guys think? 10-8, the only thing I can recommend is to contact the NSLDS and see if you can have your information removed from their site. All lenders have access to this system, which is where they're finding your information at. (800) 999-8219 Carnage, unless you qualify as an independant under one of the reasons I listed in the OP, you still have to put your parent's info on your FAFSA (it sucks and I hate it, trust me). Uncle Sam doesn't care if your parents aren't helping support you. Then you can appeal the decision to high heaven, depending on what they offer you. And then, of course, it's on to fastweb.com, and then private loans.  RSPsych0, your wife can file as an independant because she is married. That qualifies her as an independant.
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Jan 10, 2007 17:21
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Rosehip, if you did not reach your aggregate limit pursuing the first degree, you can still take out loans for the 2nd degree. Try filing the FAFSA and see how far it can take you. 10-8, sorry to hear that. I doubt that a lawsuit would do much good, though. Companies have a separate legal division for a reason. A better idea might be to call the Dept of Ed and bitch them out, and have all your friends do that, too. A large enough voice might make them care. Maybe. Avidal, you ain't kiddin'. I cannot stress this enough. Nothing, absolutely nothing, can ruin you like having delinquent student loans on your credit. That's right, just delinquent loans. You can imagine what having a defaulted loan does. I hope you work it all out, Avi. Rushi, if the unpaid money hasn't reported to your credit as severely delinquent or gone into collections, you should be fine. Kase Im Licht, by federal policy if a student no longer qualifies for federal aid, the aid must be refunded to the lender. When you drop part-time, you won't be getting those funds unless the school makes a mistake. Which does happen. And then the school realizes what's happened, and holds you accountable for the funds they sent you by mistake in the first place. So suddenly you have to pay the school a lot of money. Yes, they can and will do that, and no, it's not illegal (don't get me started about schools). You'll need to rework your budget without the aid itself included. A_passerby, would your parents consider a PLUS loan under any circumstances? I know nobody likes to take loans out in their name, but if you end up using an alt loan, they'd probably still be attached to it, and a federal loan is better than an alt loan by about a million strides. Also, what school? I know Drexel's finaid awards often look like TOTAL: RAPE!, but they (generally) offer scholarships and such out the wazoo to try and make up for it. Give me the school, and I'll see what I can find for ya. If you're paying that much for education, I'm gonna assume it's freakin' worth it. Barnes, once the lender has the MPN, if the school's already sent the school certification, they can continue with the loan. If you sent the MPN last week or so, it's not a bad idea to call the lender, make sure they received it, and ask them the status of your loans. Mail is unreliable this time of year; tons of people never even got stuff that we've sent.
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Jan 11, 2007 17:29
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Jjw, I'm not gonna lie, 1.75% is a good reduction to have. I cannot stress enough how much interest rate reductions end up saving you. It just about breaks even with my preferred company's incentives (with the interest rate reduction doing better) until you hit the final 599.00. To help ya out, I'll break it down: Before you enter these calculations, please keep in mind that my figures do not in any way include the higher payment to principal that will be happening due to interest rate reductions with either company. I'd go blind trying to be exact about this!!! Let's say your interest rate will fix at 6.8% (arbitrary number) with 30000.00. Your payments are 120.00 a month, with exactly half going to principal and half to interest. With the Educational Loan Company, this means that you start out accruing at 5.59 dollars a day (2040/year). Assuming you then get the .5% reduction for automatic debit, you will be accruing 5.17 dollars a day (1890/year). After 2 years of consecutive, on-time payments (NEVER believe a grace period for payments!!!), you get the additional 1.25% reduction. You've now paid your loan down to roughly 28560. This means that your interest rate is 5.05 (which hey, is nice), and that you're now paying 3.95/day (1442/year). This continues until the loan is paid in full. Here's what your next few years will look like: Year 3: Principal 27840, interest 3.85/day (1405/year). Year 4: Principal 26760, interest 3.70/day (1351/year). Year 5: Principal 26020, interest 3.60/day (1315/year). Now NTHEA (my preferred company, I've linked to them in this thread): So you start with 30000, at 6.8%, same figures apply. Then you get autodebit, which puts you down to 6.55. This equals 5.38/day (1965/year). After 1 year, 595.00 is knocked off of your principal because you're a good boy and get every payment in by the due date (autodebit guarantees this for incentives, kids. Make sure you always have the money in your account!!!!!). This means that your principal is now roughly 28685. Your interest now accrues at 5.14/day (1878/year). After another year of on-time payments, your principal is knocked down another 595.00. Now you have 27370. Your interest is now accruing at 4.91/day (1792/year). After another year of on-time payments, you get 595.00 onto your principal and a 1% interest rate reduction. Your principal is now roughly 27370, and your interest rate is 5.55. Your interest is now accruing at 4.16/day (1519/year). As you continue to pay down your principal, your interest will continue to lower, also. So let's take you through the next few years, so you can see it even out: 4th year: 26650, interest accruing at 4.05/day (1479/year). 5th year: 25930, interest accruing at 3.94/day (1439/year). 6th year: 25210, interest accruing at 3.83/day (1399/year). Once you pay the loan below 599.99, NTHEA forgives the final balance. Consider that just a neat little gift. I'd say that this is a tough, tough call. The interest rate incentive that they offer will save you more money as the years pass, but NTHEA forgives the final 599.99. Someone far better at math can feel free to figure out if this actually does even out in the end, or if the incentive wins hands-down. In your position, I'd be crunching numbers like crazy. The only other thing I can say is that I love NTHEA because I know what kind of company they are, and I know the people are sweet to deal with. I'm not familiar with ELC at all, and can't say that they're rude or nice, because I've never had to deal with them. I suggest you call them to hear what kind of tone they have with you. You'll end up calling in for something, sooner or later. I would also wait until closer to July 1st, because consolidation companies are going to start getting crazy competitive, and you never know what sort of stellar deals will pop up around that time. Remember kids, interest rate reductions before anything else!!! AngryDouchebag, your situation looks like a pretty big roadblock. If you've already tried appealing, PLUS loans are out of the question, and your credit isn't good enough for an alt loan, I can honestly say I can't think of a thing to help ya out. Scholarships/grants or nothin', kiddo. I'm sorry
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Jan 12, 2007 05:29
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Cruel World, no! No no no! Bad Cruel World, bad! You can only consolidate once, and ONLY reconsolidate if you have additional debt to add to the original consolidation. So unless you're planning on taking out a new loan every year, there's no way for you to change the company you've consolidated with. This is why you have to be *very* careful about who you go with. VERY careful. Peniscure, yes. File the FAFSA, see what happens. You can use your portion to pay for personal expenses, but a lot of times the FAFSA loans aren't enough to cover all of those expenses. Hence, alternative loans.
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Jan 14, 2007 20:06
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It doesn't matter if they claim you or not. If you don't qualify as an independant, you must file as a dependant, and then appeal the decision if you receive too litte. You are able to file as an independant because you're a grad student. Whoopee! This means that you may leave your parents off of your FAFSA. If you have really detailed questions about the form itself, you'll have to direct them to the Dept of Ed, 'cause we (the lender) don't touch that form with a 10-foot pole. It's all processed through the school and the Dept.
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Jan 15, 2007 02:03
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Read through the thread, and see if I've already answered your question. Not because I'm annoyed or anything, but because I'd hate to repeat myself if I've already addressed someone in a similar situation.
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Jan 15, 2007 06:51
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It would be better for her to go to the meeting, then come back with any questions she might have. Sometimes meeting with an aid counselor leads to more question than you had before. Those are the questions that I love the most. Tell her that if she has to take out loans, they might as well be federal loans, since repayment for a federal loan will be far kinder than any alternative loan could ever hope to be. Also tell her that trying to budget for as little in loans as possible is very wise.
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Jan 16, 2007 05:39
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PhanTuhC, no. The Ginger Ninja, first off, I'm sorry to hear about your parents. Have you contacted any local banks to see if one of them would have anything for you? Have you spoken with the financial aid office at all about your situation, and asked them if there is anything at all they can offer you? Have you tried fastweb.com? I know that your GPA might be lower, but it's worth a shot, especially considering your circumstances. Let me know if any of those areas comes up with something. Let me know if you want me to try and check out the alternative loans offered. Unfortunately, they're all based on credit...I know that it might be rough, but if you have to have a co-signer, that person can be *anyone*. Friend or family member. Maybe you'll have a friend who you can swear your soul to to take the loan out with? There's not a single alt loan that comes to mind that won't use credit, but hopefully someone at the finaid office or a local bank might have something, anything. Lemme know. Haggins, I know that the check used to be something they only sent to people with underlying NTHEA loans. You'll need to call them to ask if they've now started offering that across the board, and how much the check will be should they send it. If they send it to you, it will be a physical check that you'll receive within a week or so after the consolidation completes and loads into their system. It is your money to do with as you please. Perfection Mekanik, there is no prepay penalty on student loans. Pay them off as fast as you can, it only benefits you in the end (you'll pay less interest over the life of the loans, plus you'll pay the loan itself for a shorter time). The only benefit I can think of for leaving it as-is is the tax write-off you'll get every year for the interest you've paid. But is that really worth it? No, I don't think so, but the ultimate decision is up to you. I always tell people to pay it off as early as possible. It only benefits you in the end. Besides, the sooner you pay it off, the less Sallie Mae will get! That's a double bonus as far as I'm concerned. Esther Gum, fear not, for although you may lose your grace period, there are deferments and forbearances available to you. The Economic Hardship Deferment will probably be your best bet. When you're within 1 month of the grace period expiring, give your lender a call, let them know your situation, and tell them that you'd like to hear your options. If they're worth anything, they should go over forbearances and deferments with you. DO NOT LET THEM APPLY A VERBAL FORBEARANCE BEFORE THEY'VE CHECKED YOUR ELIGIBILITY FOR THE DEFERMENT!!! That will hurt you later on, trust you me! You will need to reapply for the deferment/forbearance each year, and there is an absolute limit of 3 years on each kind (except the in-school deferment, of course). I'd be happy to help you out when you're closer to your deadline; don't hesitate to PM me, through my account here or through instant messaging. If you'd like my email, just ask and ye shall receive. That goes for anyone else. I can't promise that I'll have your answer for you, but I will sure try! As always, and questions/concerns/confusion, do not hesitate to ask! Also, by common sense and popular request, I'll be adding some consolidation information to the OP. Yey!
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Jan 23, 2007 06:54
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Took shorter than I thought. I'm lazy and just copy/pasted the information from this thread. Consolidation general information officially added. I'm also adding some handy dandy links to the OP...tomorrow, because I am tired. Sorry for the double post!
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Jan 23, 2007 07:06
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Americorps has a forbearance/forgiveness program setup for when you've graduated and are employed with them. Very cool. There's also other public programs available (Peace Corps, for instance): http://www.finaid.org/loans/forgiveness.phtml The Sallie Mae loan you mentioned is at the current federal rate. Although I hate SLMA, they're just doing their job in that case. Also, I'm curious about what sort of situation your family could put you into which would force you into a position between taking out federal debt in your name which you will have to pay back, or disowning your family...but I have a normal, nice family, I suppose...
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Jan 27, 2007 22:10
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Double post again! Sorry, just wanted to make sure people see this. I have updated the OP to include links that have come up in this thread. Yey for links! If you would like me to add a link, just let me know what it is and I shall do so.
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Jan 27, 2007 22:44
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Bump, to make sure there are no current questions. My OP is much too detailed to not be appreciated. Apologies to the mods if this is unforgivable.
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Feb 4, 2007 07:15
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Raskolnikov2089, I work in the federal education-related loans industry, not private loans. I love love love my company and my job, but my alternative loan personal knowledge is very basic. We are in the process of developing an alternative loan segment, and talk has happened for creating an alternative loan call center to specialize in that area. Feel free to contact me by PM, or I'll give you my email, and I'll give you more detailed info on my company. What I'll say now is that we're in Knoxville, TN. Forrest, if you fill out the FAFSA, get your financial aid awards letter, and then file an appeal, that is the only process for a Stafford loan (the FAFSA *is* the application). As a grad student, even if the school doesn't offer you federal loans, you could still go for a gradplus loan. What you do with the funds once they're disbursed is up to you and a finance counselor's advice, which I cannot provide, because I'd hate to steer ya wrong. Keep in mind that all of these funds are sent to the school first, and then a PORTION is forwarded to you, the student, which means the lender will have something to pay on until they receive payment in full of the loans.
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Feb 7, 2007 03:30
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One final bump, to make sure this thread is as dead as it could be.
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Feb 15, 2007 17:03
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If you take out a federal loan, and are knowledgable and careful with it, you won't be raped. Of all loans, federal student loans are the nicest out there. Have you spoken with the financial aid office at all about your situation? Every school is different, and in the end, that office is who will decide if you even get a loan.
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Feb 23, 2007 04:45
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Lewisje, welcome back! I've missed you like the desert misses the rain! Honest I have. Also I'm not sure this will be goldmined ever, but in a beautiful world I'd actually like to keep the thread alive as long as possible. There are always questions, after all. (Gonna kick you out and?) LetTheSunShineIn, exactly what Raskol said. Private loans are like little bundles of unpredictable joy; some of them have deferments, some of them don't, some of them have conditional deferments, etc. etc. I couldn't even begin to say what to do with your particular one. The federal loans, however, I'm great at! When you contact your lender, ask them to send you an In School Deferment Request Form. This is a form you'll take to the registrar's office to have the in-school deferment applied. Theoretically the lender can check the National Student Clearinghouse for registration information, but a lot of schools are slow about updating that system, so it's better to just go for the form and kill two birds with one stone, so to speak. Sepist, good luck with that. I hope you brought some lube
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Mar 7, 2007 23:29
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Meinreverse, I'm unclear about your question. As Lewis mentioned, there's an annual and a total aggregate limit. If you haven't reached your annual limit, you'll need to hit up the financial aid office for additional funding, and then move to grants, scholarships, a job, and if needed, an alternative loan. For you and for everyone else reading or keeping up with this thread, this might help clear up a lot of these questions: the only non credit-based loans you will ever find, as a student, are the federal loans. Everything else is credit based. There's no mystical magical loan that will materialize out of nowhere to help satisfy your remaining costs. There's a reason so many college students are in so much debt with alt loans, and are tired beyond normal working one to even three jobs while attending school. If you can't get a scholarship or loan, the answer will always be the same: get an alternative loan if you can and MUST, or get a job. It sucks and I hate it, but that is the truth.  Thoguh, it's never a bad idea to pay off your loans when you can. Why? Well because it's paid off, obviously, but mostly because you won't have to pay all that interest over the life of the loan, plus you'll show that you've paid off a loan on your credit report, which when it comes to federal loans is very good. Plus your college will appreciate it, as they're the ones handling the Perkins loan. Congrats on that opportunity, by the way! You sound like a smart investor; keep that quality around.
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Mar 11, 2007 07:12
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sych0, there shouldn't be a problem starting payments now, and yes, it will make that 60000 figure lower. Educational alternative loans (that I've dealt with) have simple interest, just like Staffords. We deal in Teris where I work, and I've never seen one with a prepayment penalty. As far as I'm aware, no educational loan, be it federal or alternative, has a prepayment penalty. And a lot of these companies don't want you to know that, as you'll pay less interest, which is less in the bank for them. Buahaha. Chouzan, are you already maxed out on Staffords for the year? If not, a PLUS loan denial will actually get you additional Stafford funding. If yes...your co-signer for an alternative loan doesn't HAVE to be a parent, they can be *anyone* who is credit-worthy. What school are you at? I can try to find some alt loan information for ya.
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Mar 13, 2007 03:55
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Jasen, until you've actually consolidated and have no additional debt to add, you can consolidate your loans. That being said, I would highly suggest waiting until closer to July 1st and hearing what the rates will change to. God willing they'll be dropping, and you'll be able to fix at a lower rate then. Right now you'd fix at somewhere around 7.25%. Yikes!!! Chouzan, if she still qualifies for a PLUS, your mom can take out a new one to cover additional expenses. It will be separate from the previous loan, but she can always consolidate later if needed.
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Mar 14, 2007 04:56
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Idiot Worm, if a borrower of federal loans is permanently disabled and can prove as much with documentation from the doctor (this would have to be done by family members if the borrower is unconcious, and yes I've spoken to a Dad with his son in a coma before ), then the loans are forgiven. If a person dies, the lender only needs a notarized copy of the original death certificate, and once again the loans are forgiven. They don't pass into anyone else's name, they're simply written off. These forgiveness programs apply for PLUS loans too. So if the parent OR student the loan was intended for is permanently disabled (which was that Dad's case) or dies, PLUS loans are forgiven as well. Also, if a student is Active Duty (army, military, etc.), their student loans or the PLUS loans intended for the student have both a forbearance and deferment available to use. Direw0lf, the only thing I can suggest is for you to google "private loan consolidation" and see what comes up. If you decide to consolidate, try your damndest to find a company that will fix your interest rate. Otherwise, you'll still be raped.
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Mar 15, 2007 16:28
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