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What Students And Parents Must Know About Student Loans
By John WIlliams, Fri Dec 9th
word count: 634 character width: 60 resource box: 4 lines + weblink ========================================================== "WhatStudents and Parents MUST Know about Student Loans" - by John Williams
© DigiLectual Inc. 2004 http://studentloans.college--loans.com/========================================================== A student loan helps you get through college. Then you come outinto a high-paying career. It's a great investment in your (oryour sons/daughters) future. Student loans generally give you a good deal. You getbelow-market interest rates, and you get a $2500 federal taxcredit on interest paid over any period of time (previouslyfirst 60 months only) It doesn't matter if the student, or parent takes out the loan;tax deduction remains the same. * Did you know the federal government has a $50 billion studentloan program ? Not surprisingly, the federal government provides the largestpercentage of student loans. Other student loans may come directfrom colleges, private lenders or state governments. One of the key advantages to a federal guaranteed loan isexactly that - it's guaranteed. That means you don't needcollateral. It also means the terms are kinder than a typicallender might offer. Of course, your educational program has tobe approved by the government. Types of student loans * Federal Stafford Loan - for undergraduate or graduate students A popular and cost-effective
source of a student loan. Staffordloans provide low-interest, government guaranteed funds. Stafford Loans come in two types, subsidized or unsubsidized.Whether or not you're eligible for subsidized depends onhousehold income. The school ought to advise on this. For subsidized, the government covers the interest right up tostart of repayment i.e. they pay interest incurred during thecourse, in deferment and during the grace period beforerepayment begins. If you qualify for subsidized, it's a greatdeal For unsubsidized, the student must pay all interest incurred atall times, though they don't start repaying until after graceperiod. * Federal PLUS Loan - for parents of undergraduates Parent Loan for Undergraduate Students (PLUS) allows parents totake a loan on their Childs behalf. They can contribute to theirChilds future, and get a great low- interest loan withcontinuing future tax relief. PLUS actually allows parents to borrow the total cost of theirchild's education, minus any grants or other financial aidawarded. All tuition fees, meals, books, transport etc. can beincluded in the loan. This really is a great deal, and has no income or assetrequirements. Even poor credit history may be overcome.Repayment is flexible, and can include zero payments for up to 4years. Only one drawback to the Federal Stafford and Federal Plus loan- your school must be approved to participate in these programs.If your school isn't approved, then you've got some otheroptions... * Banks Many banks offer unsubsidized Stafford loans. You still get themoney, which you must have to attend college, but repaymentoptions are more limited. Some deals offer you an interest ratereduction if you make payments on time. * State Loans Most states offer guaranteed student loans. Apply direct toBanks, who'll administer the State program. It's usually a moreexpensive way to borrow than Stafford. * College Board Extra Credit Loan Administered by your college. Can be expensive, and best usedonly in an emergency e.g. your aid is withdrawn. * Other Loan Sources A number of other sources may be worth trying if you get aproblem with your first choice lenders. Academic ManagementServices affiliates with approx. 2000 schools. AMS pay yourtuition fees if you repay them in less than a year. CollegeResource Center also has loans available. If your parent served in the military, then a military loanshould be investigated. College can be the experience of a lifetime. A child startscollege as a high school kid, and emerges a full grown adultwith high-earning potential… But he or she needs money to survive and thrive in college. Thisarticle looked at the main sources of student loan funding, andthose sources should be ideal for most students and theirparents. =========================================================== Theright Student Loan makes all the difference to a successfulcollege career. Discover important information on choosing theright student loan, and guaranteeing your future success. Click==> http://www.college--loans.com/ ** Attn Ezine editors / Site Owners ** Feel free to reprint thisarticle in its entirety in your ezine or on your site so long asyou leave all links in place, do not modify the content andinclude my resource box as listed above. If you do use the article please send me a note tojohn@college--loans.com so I can take a look. Thanks.
About the author:The right Student Loan makes all the difference to a successfulcollege career. Discover important information on choosing theright student loan, and guaranteeing your future success. Click==> http://www.college--loans.com/
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