No
Credit Checks
since the funds are guaranteed
by the federal government,
your credit report is not
used in qualifying you for
the loan: see
qualification parameters
·
Low
Interest
federal student loans are fixed rate loans
that remain fixed for the entire term of the loan; current rates are
lower than most other financing options: view
interest rates
·
Flexible
Repayment Plans
student loan payments do
not have to be repaid until
180 days after you leave
or graduate from school.
The federal government offers
flexible repayment plans
that can fit your budget. You
can even consolidate your
federal loans into one,
low repayment plan
Stafford Student
Loans
Special Benefits
Through Our Partner
·
Low
Amount Limits
the biggest disadvantage
of stafford loans is the
limited loan amounts only $3,500 for first-year
students. Very small amounts considering
the cost of education: see
loan limits
·
Requires
Federal Filings
you must file the FAFSA
form with the federal government
in order to apply for stafford
loans. The FAFSA filing
is used by colleges to determine
your financial aid award: see
FAFSA file
·
Multiple
Borrowings
you have to file and apply
for a loan each academic
year.
·
Limited
Use of Funds
your stafford loan is processed
by your college to pay tuition,
books, and housing. You
cannot use your loan to pay other education-related
expenses.
Pros
Cons
·
Pays
the Entire Cost
parents can borrow up to
the total cost of education
minus any financial aid
received by the student: see
product information
·
Now Available for Graduates and Professionals
graduates and professional students can borrow on their own behalf up to
the total cost of education
minus any financial aid
received: see
product information
·
Low
Interest
federal PLUS loans are fixed rate loans
that remain fixed for the entire term of the loan; current PLUS loan
rates are about the same as most
other financing options: view
interest rates
·
Flexible
Repayment Plans
The federal government offers
flexible repayment plans
that can fit your budget
for parents: loan payments begin 60 days after disbursements have been made to the school.
for graduates: payments are deferred until after graduation.
PLUS Loans
for parents
for
graduate students
for
professional students
Special Benefits
Through Our Partner
·
Loan
Must be Repaid by the Borrower
the loan is underwritten
for the parent or graduate; the parent or graduate
is responsible for repaying
the loan
·
Requires
Federal Filings
you must file the FAFSA
form with the federal government
in order to apply for PLUS
loans: see
FAFSA file
·
Credit
Check Required
in order to qualify for
the loan, you must pass
a credit check as set by
the federal government
·
Multiple
Borrowings
you have to file and apply
for a loan each academic
year.
·
Graduates Must Use Stafford Loans First
graduates and professional students must first apply for the annual loan maximum eligibility under the Federal Stafford Loan Program before applying for a Graduate/Professional PLUS loan.
This will give you many different loans that you will need to manage: use our loan tracking sheet to manage both stafford, PLUS and other loans.
Pros
Cons
·
Fills
the Gap
since the cost of college can
be higher than most financial
aid awards, private student loans
are used to fill the gap between
cost of education and financial
aid received
·
Quick
Processing
unlike federal loans that are processed
through the college, the processing
and distribution of funds is through
the student thus speeding up process
time: see
product information
·
Availability
of Funds
private student loans can be used
for most education-related expenses
such as personal computers and
other related supplies
·
No
Federal Filing
you do not have to file forms
with the federal government in
order to apply for private student
loans. Private student loans are
perfect for students who need
additional funds to close a gap
or pay for additional study
Private Student
Loans
·
Credit
Check Required
you must have a credit history
and verifiable income in order
to qualify for this loan; since
many students do not meet these
qualifying parameters, a co-applicant
may be required on the application
·
Rates May Be Higher
depending on your credit strength, private student loans generally have a higher
interest rate than federal student
loans. Rates are variable and can change monthly either up or down: see
product terms and rates
·
Multiple
Borrowings
you have to file and apply for
a loan each academic year.
Pros
Cons
·
Total
Independence
you do not need to file federal
forms or work through the college
processing systems; you simply use your home
equity credit line to pay all related
college expenses (up to your assigned
credit limit): view
product information
·
Low
Interest Rate
depending on your LTV position,
your interest rate can be as low
as the PRIME rate or lower: see
home equity rates
·
Flexible
Repayment Plans
you can use your equity line to
draw upon funds as needed while
the student is attending school.
By depositing your income into the equity line account, you can repay the borrowed funds at minimal cost: see illustration
·
One-Time
Application
you only apply once for your
home equity line; you can draw
upon available funds anytime you
need money regardless of student's time
in school
·
Use
Funds for Anything
you can use your home equity for
any expense; you are not restricted
on use of funds
Home
Equity
Credit Lines
·
Credit
Check Required
you must have a credit history
and verifiable income in order
to qualify for this loan. You
must also have enough equity value
in your home to secure your loan: calculate your LTV value
·
Home
Is Your Security
your home equity is secured by
the equity value of your home;
you could potentially lose your
home if you default on your
loan payments
·
Rate
May Be Higher
depending on your LTV position
and amount borrowed, your interest
rate may be slightly higher
than PLUS loan rates:
Funds
May Be Limited
the amount you can borrow depends
on your LTV value of your home;
if your equity value if low, you
may not have enough borrowing
funds to pay for college expenses: calculate
your LTV value