Discuss a repayment plan with your lender. -- You have several ways to repay your loan by making monthly installment payments on your account
.
Standard Repayment – fixed monthly payments of at least $50 with up to 10 years to repay in full.
Graduated Repayment – monthly payments will begin low and increase gradually over time.
Extended Repayment – lowers monthly payments over a longer period of time and has a predictable payment schedule.
Income Contingent and Income-Sensitive Repayment – monthly payments are calculated as a percentage of your income
Monday, January 25, 2010
Thursday, January 21, 2010
Payment Relief
Get Payment Relief
If you have trouble making your student loan payments, contact your loan servicer immediately. You may qualify for some form of payment relief. And it's important to take action before you incur late fees or your credit is affected.
Types of relief
A deferment is a temporary suspension of loan payments for specific situations such as returning to school, unemployment, disability, or military service. You have a right to defer repayment for certain defined periods.
Forbearance is a temporary postponement or reduction of payments for a period of time, as you and the lender or holder of your loan may agree, because you are experiencing financial difficulty.
Graduated payment plans provide short-term relief through low, interest-only payments followed by standard principal and interest payments.
Income-sensitive or income-contingent payment plans offer payment relief with payments that are a specific percentage of your gross monthly income.
For more information on graduated, income-sensitive, or income-contingent payment plays,
Federal interest subsidies
These options will provide you with payment relief and help you maintain a good credit rating. If you qualify and apply for federal interest subsidies on your loan during deferments, you loan balance will not increase during the deferment period because the government will be making interest payments on your behalf. However, if you do not qualify for federal interest subsidies on your deferment, or if your loan is in forbearance, your loan balance will increase by the amount of unpaid accrued interest.Issues in obtaining relief
It is import to act quickly if you find your student loan payments hard to handle. If you default, or fail to make your loan payments as scheduled, you risk very serious consequences. Your school, the financial institution that made or owns your loans, your state education loan guarantor, and the federal government can all take action to recover the money you owe. They may notify national credit bureaus of your default, negatively affecting your credit record. You could find it difficult to borrow money to buy a car or a house, and you would be inellible for additional federal student aid if you decided to return to school. The financial institution that owns your loans may ask your employer to deduct loan payments from your paycheck (garnish your wages), and your state and federal income tax refunds could be withheld ( tax offset) and applied toward the amount you owe. Also, delayed payment and collection activities could increase the cost of your loan.
So, if you’re having trouble with loan payments, don’t wait! Contact your loan servicer immediately.
If you have trouble making your student loan payments, contact your loan servicer immediately. You may qualify for some form of payment relief. And it's important to take action before you incur late fees or your credit is affected.
Types of relief
A deferment is a temporary suspension of loan payments for specific situations such as returning to school, unemployment, disability, or military service. You have a right to defer repayment for certain defined periods.
Forbearance is a temporary postponement or reduction of payments for a period of time, as you and the lender or holder of your loan may agree, because you are experiencing financial difficulty.
Graduated payment plans provide short-term relief through low, interest-only payments followed by standard principal and interest payments.
Income-sensitive or income-contingent payment plans offer payment relief with payments that are a specific percentage of your gross monthly income.
For more information on graduated, income-sensitive, or income-contingent payment plays,
Federal interest subsidies
These options will provide you with payment relief and help you maintain a good credit rating. If you qualify and apply for federal interest subsidies on your loan during deferments, you loan balance will not increase during the deferment period because the government will be making interest payments on your behalf. However, if you do not qualify for federal interest subsidies on your deferment, or if your loan is in forbearance, your loan balance will increase by the amount of unpaid accrued interest.Issues in obtaining relief
It is import to act quickly if you find your student loan payments hard to handle. If you default, or fail to make your loan payments as scheduled, you risk very serious consequences. Your school, the financial institution that made or owns your loans, your state education loan guarantor, and the federal government can all take action to recover the money you owe. They may notify national credit bureaus of your default, negatively affecting your credit record. You could find it difficult to borrow money to buy a car or a house, and you would be inellible for additional federal student aid if you decided to return to school. The financial institution that owns your loans may ask your employer to deduct loan payments from your paycheck (garnish your wages), and your state and federal income tax refunds could be withheld ( tax offset) and applied toward the amount you owe. Also, delayed payment and collection activities could increase the cost of your loan.
So, if you’re having trouble with loan payments, don’t wait! Contact your loan servicer immediately.
Sunday, January 17, 2010
Rehabilitating Your Loan
Rehabilitate a Loan
Under the loan rehabilitation program you and your loan holder (or the Department of Education if you have a defaulted Direct Loan) agree on a reasonable and affordable payment plan for nine (9) payments over a ten month period (Perkins Loan requires nine (9) consecutive monthly payments). In most cases, you sign a rehabilitation agreement specifying payments and responsibilities. A loan is rehabilitated only after you have voluntarily made the agreed-upon payments on-time and the loan has been purchased by a lender. Outstanding collection costs may be added to the principal amount.
Loan rehabilitation offers the following:
The 9 voluntary on time payments you make while rehabilitating your loans will be subtracted from the maximum repayment term of your loan.
Rehabilitating your loan(s) removes the default status of previously defaulted loans at completion of the process. National credit bureaus are notified when the loan is no longer considered in a default status.
Title IV Program including any remaining eligibility for deferment or forbearance, from the date of the rehabilitation.
Repayment plans available to other borrowers with the same loan type may be available to you, depending on your qualifying status.
Please keep in mind:
The amount of your monthly payment after rehabilitation may be more than the amount you paid while you were rehabilitating your loans.
Any interest outstanding at the time your loan is rehabilitated will be added to your current outstanding principal balance, increasing the total amount you owe. Collection costs may also be added to your principal balance, increasing the total amount you owe.
Delinquencies reported before the loan(s) defaulted will not be removed from your credit report.
Make sure that you understand the differences in loan rehabilitation for the different loan programs. For questions on rehabilitation of Perkins loan, please contact your school directly to establish an agreement. Please keep in mind that schools often contract with companies to service Perkins Loans. In those instances, the servicing agreement will be made with the borrower by the company acting on behalf of the school. It takes 9 consecutive loan payments to rehabilitate a Perkins loan. For FFEL loans, at the completion of the schedule of rehabilitation payments, a participating lender must agree to purchase the defaulted loan and assume servicing of your loan. You must continue making payments during this time.
Under the loan rehabilitation program you and your loan holder (or the Department of Education if you have a defaulted Direct Loan) agree on a reasonable and affordable payment plan for nine (9) payments over a ten month period (Perkins Loan requires nine (9) consecutive monthly payments). In most cases, you sign a rehabilitation agreement specifying payments and responsibilities. A loan is rehabilitated only after you have voluntarily made the agreed-upon payments on-time and the loan has been purchased by a lender. Outstanding collection costs may be added to the principal amount.
Loan rehabilitation offers the following:
The 9 voluntary on time payments you make while rehabilitating your loans will be subtracted from the maximum repayment term of your loan.
Rehabilitating your loan(s) removes the default status of previously defaulted loans at completion of the process. National credit bureaus are notified when the loan is no longer considered in a default status.
Title IV Program including any remaining eligibility for deferment or forbearance, from the date of the rehabilitation.
Repayment plans available to other borrowers with the same loan type may be available to you, depending on your qualifying status.
Please keep in mind:
The amount of your monthly payment after rehabilitation may be more than the amount you paid while you were rehabilitating your loans.
Any interest outstanding at the time your loan is rehabilitated will be added to your current outstanding principal balance, increasing the total amount you owe. Collection costs may also be added to your principal balance, increasing the total amount you owe.
Delinquencies reported before the loan(s) defaulted will not be removed from your credit report.
Make sure that you understand the differences in loan rehabilitation for the different loan programs. For questions on rehabilitation of Perkins loan, please contact your school directly to establish an agreement. Please keep in mind that schools often contract with companies to service Perkins Loans. In those instances, the servicing agreement will be made with the borrower by the company acting on behalf of the school. It takes 9 consecutive loan payments to rehabilitate a Perkins loan. For FFEL loans, at the completion of the schedule of rehabilitation payments, a participating lender must agree to purchase the defaulted loan and assume servicing of your loan. You must continue making payments during this time.
Thursday, January 14, 2010
Ways to Prevent Loan Default
Top Ten Ways to Prevent Defaulting on a Student Loan
1. Understand your rights and responsibilities regarding your re.payment obligation as well as your repayment options.
2. Borrow for college expenses only. Borrow only the amount you need and only what you can reasonably expect to be able to repay.
3.Keep all records regarding your loan. Make copies of all letters, canceled checks, and any forms you sign.
4.Notify your lender or servicer when you have a change of address, phone number, or name, or if you change schools or your enrollment status.
5.Seek help as early as possible if you have any difficulty maintaining your student loan repayment arrangement.
6.If you have any questions, talk to your lender or student loan guarantor about the particular terms of your loan.
7.Keep credit card debt to a minimum or avoid credit card debt completely.
8.Create and maintain a budget that is within your monthly income.
9.Consider making nominal student loan payments while in school. This will reduce the amount you owe after graduation.
10.Make loan payments on time.
1. Understand your rights and responsibilities regarding your re.payment obligation as well as your repayment options.
2. Borrow for college expenses only. Borrow only the amount you need and only what you can reasonably expect to be able to repay.
3.Keep all records regarding your loan. Make copies of all letters, canceled checks, and any forms you sign.
4.Notify your lender or servicer when you have a change of address, phone number, or name, or if you change schools or your enrollment status.
5.Seek help as early as possible if you have any difficulty maintaining your student loan repayment arrangement.
6.If you have any questions, talk to your lender or student loan guarantor about the particular terms of your loan.
7.Keep credit card debt to a minimum or avoid credit card debt completely.
8.Create and maintain a budget that is within your monthly income.
9.Consider making nominal student loan payments while in school. This will reduce the amount you owe after graduation.
10.Make loan payments on time.
Sunday, November 15, 2009
Student Loan Consolidation
Consolidating your student loans may help you to manage loan repayment; here are the pros and cons: Why Consolidate?
The Advantages and Disadvantages
Consolidation brings benefits and costs. Consider the following before you decide whether consolidation is right for you.
Some Advantages of Consolidation
– Your loans will have a fixed interest rate based on the rates of the underlying loans (see chart at “Interest Rates”).
– You’ll have 1 convenient payment per month to 1 lender, instead of multiple payments to different lenders.
– Your new maximum repayment term is based on the total loan amount and may be from 10 to 30 years, depending on the repayment plan you choose.
– You may be eligible to benefit from Public Service Loan Forgiveness or additional subsidies available to some active duty military personnel.
Some Disadvantages of Consolidation
– Due to the fixed interest rate, you will not benefit if the variable interest rate goes down.
– You may repay your loans for a longer period of time.
– You may accrue and pay greater interest over the long term. This greater interest may increase the total balance of your loan, potentially by thousands of dollars (see charts at “Interest Rates”).
– If you are looking for a lower monthly payment, you may want to consider other repayment options before consolidation.
– Your weighted interest rate will be rounded up to the nearest ⅛ of a percent (0.125).
– You may lose some existing benefits on your loans, including Perkins loans, that you choose to consolidate.
The best way to understand how consolidation will change your loan is to look at the way interest accumulates and how it impacts your repayment.
Parent PLUS borrowers can also take advantage of federal loan consolidation. In addition to consolidating the PLUS loans you have taken for your children, you can also consolidate your own student loans with your Parent PLUS loans or Grad PLUS loans. However, you may not consolidate your loans with your child’s loans
The Advantages and Disadvantages
Consolidation brings benefits and costs. Consider the following before you decide whether consolidation is right for you.
Some Advantages of Consolidation
– Your loans will have a fixed interest rate based on the rates of the underlying loans (see chart at “Interest Rates”).
– You’ll have 1 convenient payment per month to 1 lender, instead of multiple payments to different lenders.
– Your new maximum repayment term is based on the total loan amount and may be from 10 to 30 years, depending on the repayment plan you choose.
– You may be eligible to benefit from Public Service Loan Forgiveness or additional subsidies available to some active duty military personnel.
Some Disadvantages of Consolidation
– Due to the fixed interest rate, you will not benefit if the variable interest rate goes down.
– You may repay your loans for a longer period of time.
– You may accrue and pay greater interest over the long term. This greater interest may increase the total balance of your loan, potentially by thousands of dollars (see charts at “Interest Rates”).
– If you are looking for a lower monthly payment, you may want to consider other repayment options before consolidation.
– Your weighted interest rate will be rounded up to the nearest ⅛ of a percent (0.125).
– You may lose some existing benefits on your loans, including Perkins loans, that you choose to consolidate.
The best way to understand how consolidation will change your loan is to look at the way interest accumulates and how it impacts your repayment.
Parent PLUS borrowers can also take advantage of federal loan consolidation. In addition to consolidating the PLUS loans you have taken for your children, you can also consolidate your own student loans with your Parent PLUS loans or Grad PLUS loans. However, you may not consolidate your loans with your child’s loans
Sunday, November 1, 2009
Some Companies Help Pay for College Tuition
Disney- The number 1 spot according to BusinessWeek for the “Best Place to Launch a Career”. Disney’s solid benefits and culture makes it great for any college graduate. Many college students have been hired in here to get promoted throughout the company with tuition assistance.
Ernst + Young – Ernst and Young is a big recruiter when it comes to college campuses and one of the main reasons this financial giant is so big is because of their benefits and atmosphere. At Ernst + Young, they care about your education and are willing to reimburse you for certifications, etc.
Google – Google not only offers a great search engine, they also have one of the best benefit programs in the world. Rated as one of the top 100 companies to work for by Fortune, Google will reimburse their employees up to $8,000 per year as long as you get a “B” or better.
Nike – Home of the world’s most popular shoes and top 100 place to work for and launch a career, Nike does more than just offer tuition assistance. They also offer great health care packages, scholarship potential for your families, adoption assistance, and so much more!
UPS - When you think of UPS, you think of delivery but believe it or not, UPS offers a very nice tuition assistance program for all employees. At UPS, you can potentially earn up to $20,000 with their program. The nice thing about this is that they also offer it to part-time employees.
Wawa – If you haven’t heard of Wawa, it’s probably because they don’t have one in your area. Wawa’s are located mainly on the east coast that are like your typical grocery store. Here, some of the benefits you’re going to receive is getting some of your tuition reimbursed.
College Full-Time – When you’re attending college, see what kind of jobs they have on campus. Most of the time, you’ll find that full-time jobs on campus will help pay for your schooling. Sometimes, you may even get your college paid for 100%. This varies school to school.
These are just a few of the companies that help to pay for college tuition, do your homework it could be well worth it.
Ernst + Young – Ernst and Young is a big recruiter when it comes to college campuses and one of the main reasons this financial giant is so big is because of their benefits and atmosphere. At Ernst + Young, they care about your education and are willing to reimburse you for certifications, etc.
Google – Google not only offers a great search engine, they also have one of the best benefit programs in the world. Rated as one of the top 100 companies to work for by Fortune, Google will reimburse their employees up to $8,000 per year as long as you get a “B” or better.
Nike – Home of the world’s most popular shoes and top 100 place to work for and launch a career, Nike does more than just offer tuition assistance. They also offer great health care packages, scholarship potential for your families, adoption assistance, and so much more!
UPS - When you think of UPS, you think of delivery but believe it or not, UPS offers a very nice tuition assistance program for all employees. At UPS, you can potentially earn up to $20,000 with their program. The nice thing about this is that they also offer it to part-time employees.
Wawa – If you haven’t heard of Wawa, it’s probably because they don’t have one in your area. Wawa’s are located mainly on the east coast that are like your typical grocery store. Here, some of the benefits you’re going to receive is getting some of your tuition reimbursed.
College Full-Time – When you’re attending college, see what kind of jobs they have on campus. Most of the time, you’ll find that full-time jobs on campus will help pay for your schooling. Sometimes, you may even get your college paid for 100%. This varies school to school.
These are just a few of the companies that help to pay for college tuition, do your homework it could be well worth it.
Friday, October 23, 2009
Alternatives to Student Loans
Federal Supplemental Educational Opportunity Grants (FSEOG) are for undergraduates with exceptional financial need. Pell Grant recipients with the lowest EFCs will be the first to get FSEOGs. Just like Pell Grants, FSEOGs don't have to be paid back.
How much can I get?
You can receive between $100 and $4,000 a year, depending on when you apply, your financial need, the funding at the school you're attending, and the policies of the financial aid office at your school.
If I am eligible, how will I get the FSEOG money?
If you're eligible, your school will credit your account, pay you directly (usually by check), or combine these methods. Your school must pay you at least once per term (semester, trimester, or quarter). Schools that do not use semesters, trimesters, or quarters must disburse funds at least twice per academic year.
Federal Work-Study TOPFederal Work-Study (FWS) provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient's course of study.
Will I be paid the same as I would in any other job?
You'll be paid by the hour if you're an undergraduate. No FWS student may be paid by commission or fee. Your school must pay you directly (unless you direct otherwise) and at least monthly. Wages for the program must equal at least the current federal minimum wage but might be higher, depending on the type of work you do and the skills required. The amount you earn can't exceed your total FWS award. When assigning work hours, your employer or financial aid administrator will consider your award amount, your class schedule, and your academic progress.
What kinds of jobs are there in Federal Work-Study?
If you work on campus, you'll usually work for your school. If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest.
Your school might have agreements with private for-profit employers for Federal Work-Study jobs. This type of job must be relevant to your course of study (to the maximum extent possible). If you attend a career school, there might be further restrictions on the jobs you can be assigned.
How much can I get?
You can receive between $100 and $4,000 a year, depending on when you apply, your financial need, the funding at the school you're attending, and the policies of the financial aid office at your school.
If I am eligible, how will I get the FSEOG money?
If you're eligible, your school will credit your account, pay you directly (usually by check), or combine these methods. Your school must pay you at least once per term (semester, trimester, or quarter). Schools that do not use semesters, trimesters, or quarters must disburse funds at least twice per academic year.
Federal Work-Study TOPFederal Work-Study (FWS) provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient's course of study.
Will I be paid the same as I would in any other job?
You'll be paid by the hour if you're an undergraduate. No FWS student may be paid by commission or fee. Your school must pay you directly (unless you direct otherwise) and at least monthly. Wages for the program must equal at least the current federal minimum wage but might be higher, depending on the type of work you do and the skills required. The amount you earn can't exceed your total FWS award. When assigning work hours, your employer or financial aid administrator will consider your award amount, your class schedule, and your academic progress.
What kinds of jobs are there in Federal Work-Study?
If you work on campus, you'll usually work for your school. If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest.
Your school might have agreements with private for-profit employers for Federal Work-Study jobs. This type of job must be relevant to your course of study (to the maximum extent possible). If you attend a career school, there might be further restrictions on the jobs you can be assigned.
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