In School Loan Consolidation
As of recent, a program known as EdFed began to offer in school loan consolidation. This great program allows students who are currently in school and would like to consolidate their loans at low current interest rates for the extent of their loans. For any student currently enrolled in an undergraduate or graduate program for at least half-time and who has federal student loans amounting to more than $10,000, this program offers the possibility to consolidate now instead of only after graduating.
Now, if higher interest rates take into effect in near future before you graduate, you would no longer have to worry about missing out on an opportunity to lock in the current low interest rates. Why pay hundreds of dollars extra in unnecessary interest payments? If you consolidate now for a lower interest rate and rates drop lower, you might have the chance to re-consolidate again at a later date. However, if rates go higher, you might well have missed the opportunity altogether.
The best news of all is that when an in-school consolidation is completed by a student, they will not need to pay a dime on those loans until after graduation. In in-school deferment is granted to borrowers on the condition that they attend school at least half-time. They will only enter repayment after graduation.
Moreover, EdFed offers incentives to students who complete an in school consolidation with them and follows through on their payments. By choosing to make auto debit payments, EdFed will give you a .25% interest rate reduction. If 36 payments are made on time they offer an additional 1% interest rate reduction from fixed interest rates that are already low. This means that the amazingly low interest rate of 3.5% is what you will end up with.
There is no way to know whether this is an opportunity that will last. There are no credit checks required an application process is quick and easy, so act now.
School Loans Consolidation
Consolidating school or student loans is a process by which one can combine several loans into a single larger loan from one lender and in doing so significantly reduce the monthly payments and in some cases even the interest rate.
Say for example that your accumulated debt in school loans amounts to $40,000 and you are currently paying around $450 a month, consolidating those loans could potentially bring that amount down to $275 a month. This is not to say that this will be the case for every person, however, doesn't the possibility save $175 a month make it at least worth a try? Saving even half of that amount should make any young graduate freshly out of college and tossed into a tough job market happy enough.
There are even options available to consolidate most federal loans. These include options for FISL, Perkins, NSL, FFELP (Stafford, PLUS and SLS), HEAL, Guaranteed Student Loans, Health Professional Student Loans and Direct Loans.
Let's learn more about the federal school loans consolidation:
What do you need to know about interest rates? Find the average of the loans being consolidated to reach the interest rate on a conservation loan, round this number up to the nearest eighth of a percent or 8.25% maximum. Don't be fooled into thinking that this will alter the underlying cost of the loan, this the remains the same but the new structure may allow for a lower monthly payment.
What are the costs involved to consolidate? There might be a Sox slight increase in your interest rate, but the sites that there shouldn't be any costs involved. Take note that under no circumstances should you be required to pay an upfront fee to consolidate any federal education loans.
Which loans can be consolidated? You can consolidate any federal education. You can consolidate two previously consolidated loans, a new loan into a previously consolidate loan, but not a consolidate loan by itself. Also note that you can only consolidate a consolidation loan one time.
Can loans be consolidated with any lender? Graduates as well as parents can consolidate their loans with any lender; this can be done even to loans with a single vendor. Things to keep in mind when approaching a lender, however, include asking whether they require a minimum balance on the loans, cut-off lines are typically around $7,500, but may be as low as $5000.
Also good to know: Resist the temptation to extend the life of your loan, this will only increase the total interest paid over the lifetime of the loan. A good idea, seeing as you can change the repayment schedule of your loan once a year, is to start with a standard 10-year repayment plan and change that later on as circumstances change.
The Pell Grant Application is Worth Your Consideration
Labels: financial aid program, pell grant application, pellgrant applicationIf you intend to complete a Pell Grant application you need to be aware that this is a need-based federal financial aid program. They are available for students entering, or enrolled in, college and university. They are available for as much as $3,000. The great thing is the fact they do not need to be repaid.
Although it is sometimes difficult to receive the grant, it is worth the try. You need to first determine if you are eligible before completing the Pell Grant application. If you meet the criteria and you are enrolled in higher education, not yet receiving your Bachelor's degree then you need to continue.
You need to know that the Pell Grant application deadline is in the spring of the year for which you are seeking the grant. The money is offered on a first-come basis. So, even if you meet every criteria, if you do not apply before the deadline date you will not be considered for that year.
When you begin to work on the Pell Grant application you will need a number of financial documents. These will include your tax returns (along with the W2's) from the previous year. If you are the dependent of your parents then their documents will need to be given. You will also need a copy of your driver's license and your recent bank statements. You can pick up the application from the financial aid office where you attend, or plan to attend school, or from your counselor's office.
Once you have your Pell Grant application you will need to review and understand the Student Aid Report, also known as the SAR. The SAR will explain the details and let you know if you are eligible for the grant or not. If you are then you can also determine the amount of grant money you might receive. You can easily follow the directions in the SAR to successfully complete the application.
Pell Grants for education are a Federal grant program that is designed to provide financial assistance to low income students, and certain post-baccalaureate students. They are need based, and financial need must be documented to qualify for one of these educational grants. Pell Grants can be used at over 5,400 participating institutions of higher learning. These are direct grants, and do not need to be repaid.
Students will receive Federal Pell Grant funds directly at least once a term for schools that use a semester, trimester, or quarter. Those schools without term definitions pay the student twice a year. These educational grants help low income students obtain access to postsecondary education. The amounts awarded depend on the costs, the student’s family contributions, and whether the student will attend school full or part time, and the amount of the year the student attends the school. Only one Pell Grant can be received at a time, from only one school.
Financial need to qualify for Pell Grants is determined by using a standard formula established by the U.S. Department of Education. Determining factors include the student’s income, family income, household size, and number of students in that family who attend postsecondary institutions. There are different rates for single students, and students who are independent, with or without dependents. Federal Pell Grants are awarded to students who have not received a bachelor’s degree, or who are enrolled in degrees leading to teacher certification or licensing.