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Making your college better place for study, various loan lending company always spread their hand to help the student. In the market, there are available different types of loans in order to soothe the ease of education in college:
Federal College Loans:
One of the most low-cost loans available in the market for college students is Federal college Loan.
Affiliation:
It is Government of U.S. funded loan via its Federal Student Aid or shortly FSA program of Department of Education.
Types:
There are three types of loan prevalent in the market through FSA.
1. Federal Perkins Loans
2. Federal FFEL Stafford loans
3. Direct Stafford Loans
Place of application
You can apply for this loan online at www.FAFSA.ed.gov. The FSA center will provide you one application form known as Free Application for Federal Student Aid or shortly FAFSA, and provide you excellent service for your satisfaction.
Processing of application
It can take a week or even a month. But online form is processed faster than the posted form.
Form Security
In order to check the status of the application on a regular basis, you will have a secret PIN code, which will ensure that only you are keeping record of your application not anyone else.
Loan repayment
Federal loan has the facility for the student to begin the repayment with the grace period of six to ninth months.
Interest rate
Though the interest rate may fall or rise depending on the market condition on a yearly basis, but it is decided now that it should not go beyond 8.25%.
While interest rate of Stafford loan is fixed at 6.8% for the academic year 2006-2007, but the Federal Perkins Loan was 5% as on 2004.
College Loans Corporation
It's a national student loan company. It offers Federal Family Programs Loans.
a.Stafford
b.Plus
c.Consolidation
Student's benefit
This loan is offered to 50 states and District of Columbia. Almost tens of thousands students are getting benefited by this loan to get admission to more than 1500 colleges and universities.
Collaboration of CLC
Upon collaboration with Beta Gamma Sigma (BGS), student gets additional benefit by CLC loan.
Cash back benefit
Students get the benefit of cash back up to $2,000. If borrowers pay on time for the consecutive nine months, they can get the benefit of cash rebate up to $2,000.
Interest rate
Reduction in interest rate is up to 0.25% for enrolling in automatic payment method.
Other benefits
It includes the following benefits also:
a.There are no repayment or credit check penalties
b.Student can lock in a low federal Rate
c.Student can lower the monthly payments by up to 45%
Contact Information
You can log on to www.collegeloan.com for further details.
ACS College Loans Corporation
In 2002, College Loan Corporation selected ACS or Affiliated Computer Services as a principal loan service partner.
Function of ACS
Now, ACS provides the solution for outsourcing, administering and servicing of those loans provided by CLC.
Fame of ACS
ACS has approximately 9 million customers, and with higher education loans amounting over one billion dollars
Benefit of borrower
They can easily check the status of the balance loan amount and repayment online.
Contact Information
You can log on to www.acs-inc.com/education for further details.
Bank of America loan
Different types of Loans are available from Bank of America for different levels of students.
1. Bank of America Private Loan
Eligibility
Undergraduate
Graduate
MBA student
Dental or medical school student
Law student
Loan Amount
Minimum amount is only $1000
Undergraduates are eligible for borrowing the entire course amount excepting the financial aid
Maximum cumulative loan amount without a co-borrower :
$150,000 for MBA
$225,000 for Dental
$13,000 for Law
$12,000 for other graduate
Repayment
a. Duration of repayment can be extended up to 20 years.
b. Monthly payment must be minimum $50, irrespective of any loan amount.
Bar Study Loan
This loan includes all the expenses of the lodging, exam fees and review fees while law school student prepare for the bar exam.
Eligibility
a. final year student or recently graduated from any law school
b. nine moths prior to graduation or not more than 3 months after graduation
c. already have loan from Bank of America
2. PLUS Loan
Parents of undergraduate students get the benefit of this loan in order to pay for school costs.
Eligibility-
Parents of following kind can get the loan:
a. Creditworthy
b. Adoptive
c. Spouse of remarried
Students have to spend at least for half time in the eligible institution.
Amount
Maximum amount is equal to cost of attendance decided by the school. It excludes any other financial aid, if any.
3. Graduate PLUS Loan
This is a low-cost loan for those students who want it to be backed by government.
Eligibility
Credit worthy Graduate
Professional student
Enrolled at least half time in a degree program
Carrying valid security number
U.S. citizen
Eligible permanent resident
Amount
It is same as PLUS loan.
4. Bank of America TERI Loan
The Education Resource Institute, Inc. loans are for the creditworthy and credit ready undergraduate, graduate and professional students enrolled at least half time at the eligible school.
Eligibility
a.Creditworthy: those borrowers whose credit history, employment history and current income meet the required criteria.
b.Credit ready: those borrowers who have no credit history at all.
Amount
a.Undergraduate: $1,000 to full amount of education excluding other financial aid if receiving then
b.Credit ready graduate: annually up to $20,000 without any income or employment requirement
c.Graduate: annually up to lesser of $45,000 or the cost of attendance excluding financial aid if receiving then
d.Continuing education: minimum amount $1000
e.Health professional: annually up to lesser of $45,000 or the cost of attendance
5. Federal Consolidation Loan
It is loan for those students who want to consolidate multiple federal student loans. Students must have federal student loans with Bank of America or multiple student loans with other lenders. This loan has to be in repayment status or grace period.
Eligible loans-
It includes:
a. Stafford loans
b. Perkins loans
c. Federal loans
d. Health professional student loan
e. William D. Ford Federal direct loan
f. Loans for disadvantaged students
g. PLUS loans when consolidated with other PLUS loans
h. Consolidation loans
Benefits
a. Easy repayment facility
b. Low fixed interest rate
c. Reduction in loan payment by 50% in extending the repayment term
d. No prepayment penalties
6. Campus EdgeŽ Loan
Those undergraduate students who want to supplement federal loan or other financial aid can avail this loan
Loan amount-
Undergraduate can borrow:
Minimum $2,500 annually
Maximum up to $50,000 annually
Maximum up to $ 220,000 for the lifetime
Benefits
Apply online without deadlines
Easy approval of conditional application within a minute
Postpone repayment until graduation
7. Education Maximizer Loan
This loan is for supplementing your federal loans in order to recover college cost.
Eligibility
Undergraduate
Graduate
Continuing education
Benefit
Loan amount up to $40,000 annually
Also used for housing, trip, books etc.
Postpone payment while studying at college
College Access Loan
It is a loan for Texas student who are not able to pay their cost of attendance. It also covers part of the student's Expected Family Contribution or shortly EFC, for this case student need not to show the financial status.
Eligibility
resident of Texas
attending expected academic progress fixed by the institution
enrolled at least half time in an Approved Education Certificatory Program or undergraduate, graduate or high degree course
one cosigner with good credit standing and meeting the following criteria
a. must be of 21 years of age
b. steady and regular source of income
c. U.S resident or resident of U.S. territory
d. not a borrower or spouse of a borrower
e. receive better credit evaluation
Amount annually
a.Loan amount can reach up to cost of attendance excluding the financial aid
b.If both the borrower and cosigner have good credit standing then deduction of 3% origination fee during proceeding of the loan will take place
c.If both the borrower and cosigner or any of them doesn't have good credit standing then deduction of 5% origination fee during proceeding of the loan will take place
Interest rate for 2007-2008
a.Fixed rate is 5.25%
b.Variable rate is 6.92%
Repayment
a.Grace period for six-months before beginning repayment
b.Minimum repayment monthly amount of $50 up to ten year repayment period for balances under $30,000 and up to 20 year for balances under $30,000 or more
Benefits
a.Guarantee fees or insurance premium not required
b.Loan not sold to any other lender
c.Interest never capitalized
Alternative Loan or Private Loan
This loan is for assisting the student of undergraduates, graduates, and professional students, even nowadays cover the Expected Family Contribution (EFC) also.
Requirements
a.Employment history of at least two years
b.Satisfactory credit history for at least last 21 months
c.Reside at the present address for at least 12 months
d.Valid income proof
e.Resident of U.S. for last two years
Amount
a.Minimum of $1,500 limit
b.Maximum limit $130,000
Repayment
a.Six month of deferral after passing the school or graduation
b.Minimum repayment amount $25 month
c.No prepayment penalty
Chase College Loan
It has various types of loan for different levels
1. Chase Select Certified Education Loan
Amount
It is up to cost of attendance for per academic year
Repayment
Defer six months after graduation
Defer nine months for medical professions loan
Interest rate
It may be Tax deductible
2. Chase Grad PLUS plan
It is for supplementing the Stanford loans. It can help you eliminating the gap between you have for school and the extra cost for pursuing graduation.
Benefits
No income or collateral required
Defer repayment up to 60 months, while student is in school
No pre-payment penalty
Perhaps interest rate tax deductible
3. Chase Medical Education Program
It includes financing for medical students which includes Medical Grad PLUS loan, Stafford loan, residency loan and private education loan.
Benefits
Reduction of interest after repayment which is permanent
No such disbursement or repayment fess
Easy interest rate
4. Chase Education OneŽ Private Student loan
Amount
It goes up to $40,000 per year.
Benefits
0.50% interest rate reduction available
Repayment after graduation
Financial aid forms not required.
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