Monthly Archives: September 2015

Understanding Low Interest College Loans

Low interest college loans are federally assisted loans available to college students to pay for tuition in the USA.

There are a few options when it comes to college loans. Banks and other lenders in the private sector are one option. But for some students these aren’t always the best loan option due to their credit status or a low income level.

Even though students may qualify for commercial loans, they often look at obtaining a college loan provided by the federal government since they come at a lower cost.. The other advantage these types of loans bring is that students may choose not to pay the interest bill while they are in college; they can elect to defer the interest cost until they graduate. If that option is selected, the interest cost is capitalized and added to the outstanding loan balance.

College loans are available as either a Stafford loan or a Perkins loan. Stafford loans are the most common. Perkins loans are only available to students confronted with significant economic hardship. Students must be either a U.S. citizen or permanently reside in the USA. Some students that are not U.S. citizens may also be approved.

Stafford loans are designed to assist students that have some income but cannot present a satisfactory credit history. A student’s credit history is not generally a barrier to these loans, except if the student has defaulted on a past loan. Other requirements include the student’s class load be greater than fifty percent of the academic week and that grades remain satisfactory.

Stafford loans are classified as subsidized or unsubsidized, with the interest rate on subsidized loans being lower. For the 2009-10 academic year – July 1, 2009 to June 30, 2010 – the interest rate applicable on a Stafford loan is 5.6 percent subsidized and 6.8 percent unsubsidized. All graduate loans, subsidized or unsubsidized, carry a 6.8 percent interest rate. Some students may be eligible for lower rates.

A Perkins loan is granted only to students facing significant economic hardship. The cost of these loans is lower than Stafford loans. For the 2009-10 academic year, the loans carry a 5.0 percent interest rate.

A Perkins loan is granted by a college, not a government agency. In other words, the lender is the school. The US Department of Education provides funding directly to some, not all, colleges for distribution as a Perkins loan. Colleges that receive federal funds for Perkins loans generally augment those funds with college funds. The college has sole discretion in deciding students that will be allocated a Perkins loan. The loan monies are first deployed to cover tuition costs. The college pays the balance to recipients on a progressive basis through the year.

Students apply for a federal college loan by submitting a Free Application for Federal Student Aid (FAFSA). In addition to being the application for federal financial aid, the FAFSA is also used to apply for aid from other sources, such as a student’s state or school. According to the official Federal Student Aid website, online applications must be submitted by midnight central daylight time, June 30, 2010.

Federal Student Aid cautions students to pay close attention to deadlines! It considers a deadline to have been met if the FAFSA is submitted successfully by that time. Federal Student Aid warns however that other institutions involved in student financial aid process, such as state authorities and schools, may not consider a deadline as having been met until documents are received, not merely submitted

Once the FAFSA application is processed, Federal Student Aid distributes a Student Aid Report (SAR) detailing its assessment of the student. Following the SAR, students are mailed an award letter outlining the types and amounts of aid they are eligible to receive.

In addition to federally funded loans, students may also be eligible for commercially-based, private sector student loans. These are useful as top-up loans to supplement monies from federal college loans, grants, scholarships and work study. Private loans can be used to pay for non-tuition, as well as tuition, costs. Private student loans are not needs-based. A credit worthy student is eligible to borrow up to the total cost of the proposed education program. Students applying for a private loan are encouraged by the lender to apply with a co-signer – usually a parent – since this will improve the likelihood of approval and also lower shave a little off the interest rate.

Various loan calculators are available online to assist students calculate the repayment amount under various college loan size, term and interest rate scenarios. One example is the calculator provided by SallieMae on their website http://www.collegeanswer.com/financing/lt_financial_planning/ltfp_monthrep.jsp.

For many individuals, a college education promotes career success and personal fulfillment. Low interest college loans are, for many students, critical in allowing them to make the opportunity of a college education a reality.

FHA Home Loans Florida, FHA Mortgage Florida

 

FHA Home Loans Florida at www.FHAmortgagePrograms.com
 FHA Launches Short REFI Opportunity for Underwater Homeowners: HUD announced on 08/06/10 details on the adjustment to its refinance program that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Read the press release…

From the Desk of the FHA Commissioner: Stay up to date with the latest news from the Desk of the FHA Commissioner.

HUD HUD Housing Counseling Program Notice of Funding Availability (NOFA)- Fiscal Year 2010: HUD announced on 07/27/10 that $79 million is available for a broad range of housing counseling programs to help families find & preserve housing. Read more…

HUD Announces FHA “First Look” Sales Method for Eligible NSP Purchasers:HUD announced on 7/12/10 a new initiative that gives governments & nonprofits participating in the NSP program preference to acquire HudHomes.

 

FHA NSP First Look Federal Register Notice, July 2010

 

HUD First Look Press Release, July 12, 2010

 

NSP Homepage

 

NSP Resource Exchange

 

 

FHA Home Loans Florida at www.FHAmortgagePrograms.com

 

Announcing the HopeLoan Port: The HOPE NOW Alliance recently announced the launch of a new web portal, HOPE LoanPortâ„¢, that HUD believes has the potential to significantly improve the execution of HAMP and non-HAMP modifications.

FHA Announces Policy Changes to Address Risk & Strengthen Finances: Commissioner David Stevens has announced changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission. Read the press release & the Federal Register Notice.

FHA Publishes Guidance on Condominium Processing: Read the latest update from FHA Commissioner David Stevens. Also see FHA Mortgagee Letters 2009-46A & 2009-46B which provides updated guidance on condominium processing & project approval. Also visit FHA’s condominium home page.

Making Home Affordable (MHA): Find out how MHA can help homeowners facing foreclosure find help with their mortgage. Visit: www.makinghomeaffordable.gov

 

Unsecured Loans for Students

One of the most important investments one can make is that of education. Unsecured loans for students are available everywhere and to everyone. When planning for education, most people think they will try to borrow as much money they can from the government via Stafford Loans. What most people don’t realize is that there are many other loans available for much less.

Most unsecured loans for students give pardon for bad credit history. Education is seen as something that is very important, and because of this, many institutions are willing to overlook previous credit troubles if the student can prove him/herself worthy of the loan. However, most of the unsecured loans for students plans there are, require that the student fix up his/her bad credit (if they have it). The rules surrounding this agreement are typically very stringent and cannot be adjusted. Therefore, unsecured loans for students should only be used if government funds have already been exhausted or the loans from the government are not sufficient in covering student expenses.

Unsecured loans for students can be used as an initial source of money for college. Or, can be used after government loans are maxed out; many students choose very pricey schools not realizing that they might run out before they get their degree. Then, they are stuck to find another loan or borrow from family. Parents should always consult with their children on who is going to pay for school and how much. Students of families that can assist in payment for college are fortunate. There are students out there that have to fend for themselves and pay for their entire education.

The three types of unsecured loans for students are:

Unsecured cash advance loan: This is basically a loan on your loan. Your creditors will sell your debt to this company and the company will give you a cash advance. However, now your debt is with the new company. This is least effective of the unsecured loans for students that are available.

Unsecured student loan consolidation: This is where one company settles your debt with your various lenders and then holds the debt with you. All banks are consolidated and the new company is where you send your monthly payments to. This arrangement makes unsecured loans for students very easy to manage.

Unsecured student loan: This is one of the unsecured loans for students to pay for their schooling. A student can obtain this loan in place of government loans or in conjunction with these loans. Although, it is recommended to use as many government loans as possible because the interest rate is typically lower.

Unsecured loans for students should be taken out with responsibility. Many times, students use refunds from the school frivolously. Then, when they get to the end of their studies, they cannot finish because they have no money left. It is always wise to council your children on the value of money and the importance of saving. If you don’t, they might be calling you to borrow money!