Student Loan Assistance
Many students find that the cost of their college education is overwhelming. There are often unexpected expenses, and they may need money to pay for living expenses while they are in school. That is where student loan assistance can come in. This program works with the federal government to help student borrowers who qualify find the money they need to pay for school. Loan assistance is actually a program administered by the Department of Education. It is part of the Higher Education Act.
The Department of Education offers student loan assistance to undergraduate students attending colleges of higher education. There is also financial assistance for students going to graduate schools. In addition, there is general student aid available that can be used by any student going to school. If you need to apply for student loan assistance, you will want to talk to your financial aid administrator. They will help you understand all of the requirements that must be met in order to receive student loan assistance.
How do student loans work? There are many aspects to student loan repayment, but the most important aspect is how the loan is repaid. This is what determines whether or not the program is right for you. There are many student loan programs available, but the Department of Education has determined the four federal student loan programs to be the best options for students: the Direct Loan, the Perkins Loan, the Federal Plus Loan, and the FFEL Plus Loan.
What do these federal student loans have in common? They are all guaranteed loans. When a student obtains federal student loan assistance, he or she is getting a guarantee that the money will be repaid. However, that does not mean the student has to repay the loan. The student loan servicer will work directly with the borrower to establish a repayment plan.
How are student loan debts paid back? A payment plan can include an installment loan payment plan or a subsidized loan payment plan. Some private student loan assistance plans allow borrowers to make their payments directly from their bank account, while others require borrowers to enroll in subsidized and unsubsidized student loan programs. With an unsubsidized loan, the borrower pays interest at a fixed rate for the first six months following the graduation of the borrower and may not accrue any interest during that six-month period.
If a borrower has an unsubsidized loan, the Department of Education has established a payment plan for borrowers to follow. Instead of paying interest, the student must make regular monthly payments towards his or her loan. Generally, the payment schedule is based on a percentage of the loan amount, which varies from subsidized student loan assistance to unsubsidized student loan assistance. For example, a borrower who receives subsidized assistance would have to make his or her loan payment on a monthly basis for six months.
The federal government requires all student borrowers to enroll in an approved financial aid program, in order to receive federal student loan assistance. Subsidized student loan programs include subsidized Stafford Loans, subsidized and unsubsidized Perkins loans, and Stafford loans, and provide student borrowers with specific student loan repayment terms. In order to apply for subsidized Stafford Loan assistance, a student must: Be a full-time student at an eligible college or university. Have made good progress throughout his or her academic career, and Have achieved a minimum GPA on all coursework taken. The repayment term of a subsidized Stafford Loan is typically six to twelve months, though this amount could vary depending on a student’s eligibility, financial needs, and current income.
Another type of student loan assistance available to students enrolled in graduate and professional school is Need-based student loan debt consolidation. Under this type of student loan program, the U.S. Department of Education takes over the payments for a student’s previous student loans, if he or she is unable to repay the debt due to financial difficulties. This student loan debt consolidation is only available to students who are registered under the Federal Family Education Loan Program (FFELP). Students who do not qualify for need-based student loan assistance are not eligible for need-based student loan debt consolidation. For more detailed information, and to apply for student loan debt consolidation, a student may contact the Direct Loan Servicing Center at Cornell College.