Compare Private Student Loans

There are a lot of private student loans out there, so finding the best one for you can be a difficult and confusing experience. Taking out a student loan is a big decision, and like all big financial decisions, you must be well informed before applying.

A tool that could prove very helpful to you in your search for a good deal is our private loan comparison tool. It allows you to compare some of the most popular lenders and review what benefits their loans offer. Plus, if you find a good option, you can apply for a private loan right there, making it a much simpler process. While the comparison tool is a great help, you also have to know what to look for. To help with this, make of list of what loan benefits are most important to you, that way, you can more easily narrow down your choices.

Some things to consider include:

FeesInterest RatesRepayment OptionsDeferment optionsCosigner requirements and release options

If you’re worried about taking out private loans because of your credit score, then a good option is to apply with a cosigner. While not always required, apply with a cosigner can do two things. First, it can help to qualify you for a loan as most first-time students haven’t built up enough credit yet. Second, it can potentially lower your loan interest rate, giving you a better deal over the term of the loan.

Shopping for student loans can be confusing, but it doesn’t have to be. Comparing private student loans is easier than ever with this tool, so hopefully, everyone the loan they need!

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Perkins Loans 411

Perkins loans are great options for those students who are eligible. They have low interest rates and can be used for both undergraduate and graduate studies. But before you accept the loan, make sure you get all of the facts.

So, here’s what you can expect from a Perkins Loan. These loans are federally funded and only available to the students in highest need. They differ from other federal government loans in that they are dispersed through different lenders. While other federal loans are dispersed through the government, Perkins Loans are the only ones to come directly from your college.

For each year of school, students are allowed to take out up to $4,000 ($8,000 for graduate students). Typically, the loans are dispersed to you in two installments, one for each semester. The funds either get sent directly to you via check or applied directly to your school account.

Learn more about Perkins loans borrowing limits, interest rates and repayment at the StudentLoanNetwork.com.

Unfortunately, not all students will qualify for Perkins loans. So for these students, here are some other options.

One such option is searching for scholarships. While the the payout for scholarships is usually minimal when compared to the time spent applying, any little bit can help. Plus, unlike loans, scholarships never need to be repaid. To make it easy to keep track of scholarships and their deadlines, try keeping a spreadsheet so that you know which you’ve applied to and when to apply next. StudentScholarshipSearch.com is a great resource and makes it easy to help you find relevant scholarships; plus, there are new ones posted daily, because let’s face it, you’re busy enough being students.

If scholarships don’t pan out, then consider getting private student loans. While we typically tell students to exhaust all of their federal loan options first, getting a private loan can be a great option to cover the remainder of your expenses. Just like any other big financial decisions, it’s best to shop around before making your final choice, so make sure to compare your loan options as this can be incredibly beneficial.

So if your Perkins loans did not cover enough of your school expenses, then no worries, these other options can really help bridge the gap in your financial aid.

View the original article here

Perkins Loans 411

Perkins loans are great options for those students who are eligible. They have low interest rates and can be used for both undergraduate and graduate studies. But before you accept the loan, make sure you get all of the facts.

So, here’s what you can expect from a Perkins Loan. These loans are federally funded and only available to the students in highest need. They differ from other federal government loans in that they are dispersed through different lenders. While other federal loans are dispersed through the government, Perkins Loans are the only ones to come directly from your college.

For each year of school, students are allowed to take out up to $4,000 ($8,000 for graduate students). Typically, the loans are dispersed to you in two installments, one for each semester. The funds either get sent directly to you via check or applied directly to your school account.

Learn more about Perkins loans borrowing limits, interest rates and repayment at the StudentLoanNetwork.com.

Unfortunately, not all students will qualify for Perkins loans. So for these students, here are some other options.

One such option is searching for scholarships. While the the payout for scholarships is usually minimal when compared to the time spent applying, any little bit can help. Plus, unlike loans, scholarships never need to be repaid. To make it easy to keep track of scholarships and their deadlines, try keeping a spreadsheet so that you know which you’ve applied to and when to apply next. StudentScholarshipSearch.com is a great resource and makes it easy to help you find relevant scholarships; plus, there are new ones posted daily, because let’s face it, you’re busy enough being students.

If scholarships don’t pan out, then consider getting private student loans. While we typically tell students to exhaust all of their federal loan options first, getting a private loan can be a great option to cover the remainder of your expenses. Just like any other big financial decisions, it’s best to shop around before making your final choice, so make sure to compare your loan options as this can be incredibly beneficial.

So if your Perkins loans did not cover enough of your school expenses, then no worries, these other options can really help bridge the gap in your financial aid.

View the original article here

Auto Loans Spur Rise in January’s Consumer Borrowing

The Federal Reserve said Monday that total borrowing rose at an annual rate of $5 billion in January, or 2.5 percent, the fourth consecutive gain. Strong car sales drove the increase. The category that includes auto loans rose 6.9 percent.

Credit card debt fell 6.4 percent in January, the 28th decline in 29 months. Americans increased their use of plastic in December for the first time since the financial crisis. But they cut back in January, even though a Social Security tax cut is giving most households an additional $1,000 to $2,000 this year.

Combined, total consumer credit equaled $2.41 trillion, a slight 0.7 percent above a three-year low hit in September. Consumer borrowing is 6.6 percent below the high reached in July 2008.

Analysts predict that consumers will borrow more in the months ahead, responding to the strengthening economy, a brighter outlook for jobs and the tax cut. The government reported Friday that the unemployment rate fell to 8.9 percent in February, the first time it had been below 9 percent in nearly two years.

Households began borrowing less and saving more as they struggled to cope with the deep recession that began in 2007. People trimmed their spending, which accounts for 70 percent of total economic activity, when the jobless rate began to rise.

The rise in auto loans was the sixth consecutive month of increases, reflecting a rebound in auto sales.

Even if economists’ forecasts are accurate and borrowing increases this year, analysts are not predicting that consumers will increase debt the way they did during the housing boom.

During that time, households felt wealthier because of soaring home values. But when home prices fell, they cut back on borrowing. The trend accelerated after job losses mounted and many people struggled to get their debt under control.

View the original article here

Most popular student loans for college

Not everyone is aware of all the loan options available to pay for college. Here are just a few to consider:

1) Federal Stafford Loans – These are federally guaranteed student loans. You can apply for subsidized Stafford loans and the government will pay the interest for you while you are enrolled. This is a great option for students and the most popular loan program available.

2) Parent PLUS Loans – The Parent Loan for Undergraduate Students allows parents to borrow through the federal loan program to pay for their child’s education. The loan is in the parent’s name.

3) Private Student Loans – Private college loans are not sponsored by the government but offer an alternative sources of funds for those that may not qualify for federal aid or who need additional funds. Private school loans are often in the students name with the parent acting as a cosigner.

4) Perkins Loan – Perkins loans are another federal loan for low income students based on eligibility. These loan funds are limited so apply early.

5) Credit Cards – Believe it or not, approximately 30% of students/parents put a portion of the tuition bill on their credit card. While we don’t recommend this option, it is a reality. To find and compare the best student credit cards, visit www.StudentPlatinum.com.

Once you graduate, consider consolidating your student loans to lower your monthly payment. The downside is you will pay more interest over the life of the loan by extending your repayment period. For additional resources, visit: www.studentloans.com, www.collegeloansolutions.com and www.gradloans.com.

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How to Get Stafford Loans

While high school seniors are receiving their acceptance letters and financial aid award packages, they might be exploring the differences between the loans they are eligible for and wondering how to actually acquire these loans. Many students are lucky enough to qualify for Unsubsidized Stafford Loans, which have a lower interest rate than subsidized ones. There are also thousands of students who are only eligible for Subsidized Stafford Loans. If you are a student who is planning on taking out one of these two Stafford loans, there are some things you should know about the process…

(Read the whole article  Freshmen: How To Get Your Stafford Loans)

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Freshmen: How to Get Your Stafford Loans

While high school seniors are receiving their acceptance letters and financial aid award packages, they might be exploring the differences between the loans they are eligible for and wondering how to actually acquire these loans. Many students are lucky enough to qualify for Subsidized Stafford Loans, which have a lower interest rate than unsubsidized ones. There are also thousands of students who are only eligible for Subsidized Stafford Loans. If you are a student who is planning on taking out one of these two Stafford loans, there are some things you should know about the process…

In order to qualify for a Stafford Loan, students must first file their FAFSA. Once this happens, students will receive a financial aid award letter with the total amount they are eligible for. Just because a financial aid award letters lists Stafford loan options, this does not mean that you have actually accepted the award. This is merely the amount you are eligible for. To accept a Stafford loan, students should contact their financial aid office. Remember, just because you are eligible for a certain amount of money, this does not mean you need to use it all. If you only want a partial amount, you can send back the unwanted portion immediately or request a lesser amount from your financial aid office.

Stafford Loan funds are sent directly to your school’s financial aid office twice per year, once for the fall semester and once for the spring. The funds are applied directly to your account about midway through the semester- this ensures that students are still enrolled and have not dropped out of classes. Any money that exceeds tuition and fees costs will be returned to the student, or the student’s account will be credited accordingly. This extra money can be used at your disposal, for school-related items such as books, food, housing etc. Just remember that the loan must be paid back eventually, so if you don’t need it, don’t use it!

If you are one of those students who has not received enough funding through federal loans, consider taking out a private student loan. Private loans are a great way to fill the gap in your education costs. PrivateStudentLoans provides a lot of good information on how to get a private loan and even allows students to compare lender options.

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Supplemental Student Loans for College

Often times, federal loans just aren’t enough to pay for the full gamut of education expenses in college. In my personal experience, federal aid usually covered about 70% of my tuition/fees, but I had to seek alternative financing for the other 30%.
A supplemental student loan (also known as a private loan) can help in this department by covering up to your full cost of attendance. This can include costs such as off-campus housing rent, books, lab fees, a computer and of course, your tuition.
A supplemental loan is different from federal loans because it has a variable interest rate, usually based on the LIBOR index or Prime Interest Rate. The vast majority of loans fall between 2.8% – 10% APR*.
In addition, to be competitive with federal loans, many private lenders offer specialized incentives to make their products more enticing to borrowers. Some select examples of these would be co-signer release, graduation rewards and interest rate reductions.
We always recommend that you pursue federal options first, but if you still need more money for school, compare your private student loan options.
*This range is completely dependent on how each bank calculates its rates. Your milage may vary.
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Parent PLUS Loans are the Best Alternative

Posted in Parent PLUS Loans tagged parent plus loan at 10:08 am by plusloans
If your child is in school, or will be entering school, the problematic financial aid “gap” between total cost of attendance and awarded aid can sometimes grow to a frustrating size. From personal experience at a private college in downtown Boston, I averaged about $7,000 to $10,000 in unmet expenses per year that had to be solved through alternate means.
There are a variety of options to handle this extra cost, including private student loans and personal loans, but based on feedback from parents and the economy, the best choice is a Parent PLUS loan. Here are a few reasons why this type of loan is more popular with families putting children through college:
1) They have a fixed interest rate.
In a turbulent and recovering economy, variable rate loans can be a ticking time bomb. Having fixed interest means that over the entire life of the loan, you will have stable payments and no surprises.
2) The credit check is easier to pass.
This one probably is debatable, but there is a general consensus that the credit check for Parent PLUS loans seems to be more relaxed than the inquiry most private banks use for private student loans. There have been many reports of parents who were declined private student loans being offered Parent PLUS loans, with sub-prime credit scores (620+) and higher.
3) They have flexible repayment plans.
This is arguably the best reason to take out a Parent PLUS loan versus a private offering. Between Income Based Repayment and several other very flexible and generous pay plans, the federal loan is a much more attractive option for most parents and families.
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Auto Loans Spur Rise in January’s Consumer Borrowing

The Federal Reserve said Monday that total borrowing rose at an annual rate of $5 billion in January, or 2.5 percent, the fourth consecutive gain. Strong car sales drove the increase. The category that includes auto loans rose 6.9 percent.

Credit card debt fell 6.4 percent in January, the 28th decline in 29 months. Americans increased their use of plastic in December for the first time since the financial crisis. But they cut back in January, even though a Social Security tax cut is giving most households an additional $1,000 to $2,000 this year.

Combined, total consumer credit equaled $2.41 trillion, a slight 0.7 percent above a three-year low hit in September. Consumer borrowing is 6.6 percent below the high reached in July 2008.

Analysts predict that consumers will borrow more in the months ahead, responding to the strengthening economy, a brighter outlook for jobs and the tax cut. The government reported Friday that the unemployment rate fell to 8.9 percent in February, the first time it had been below 9 percent in nearly two years.

Households began borrowing less and saving more as they struggled to cope with the deep recession that began in 2007. People trimmed their spending, which accounts for 70 percent of total economic activity, when the jobless rate began to rise.

The rise in auto loans was the sixth consecutive month of increases, reflecting a rebound in auto sales.

Even if economists’ forecasts are accurate and borrowing increases this year, analysts are not predicting that consumers will increase debt the way they did during the housing boom.

During that time, households felt wealthier because of soaring home values. But when home prices fell, they cut back on borrowing. The trend accelerated after job losses mounted and many people struggled to get their debt under control.

View the original article here