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Repayment Of Student Loans

November 16, 2011

Repayment of Student Loans

Repayment Of Student Loans

Before we get into the details or repaying student loans, if you happen to land on this page searching for methods on paying off your debt fast, or just want to check out debt elimination methods after you are done reading the article, you can check out this link: Repayment Of Student Loans.

Repayment of student loans usually begins with most lenders, after the grace period that they grant you, which can be anywhere from 3 to 9 months after either the student graduates, or after dropping out. There are various student loan repayment methods that you can use, depending on several factors, and consist of:

  • Standard Repayment Plan – Repayment of student loans through the standard plan is for those who are looking to get out of debt fast, with the repayment timeframe usually being 10 to 12 years, where at the end you are completely out of debt with that particular lender.
  • Graduated Repayment Plan – This student loan repayment methods allows one to start out with low payment, payments which can be as low as 5 dollars a month, and as time goes by the payment gradually increases. Increases in repayment amounts happen ever year or two, which can be a great option for those who are searching for a job and need small payments but will be able to afford to pay larger payments later on in their career.
  • Extended Repayment – Repayment of student loan debt through the extended repayment plan allows one 25 years to pay off their loan, and can be combined with the graduated repayment plan, which is used for the sole purpose of lowering your monthly payment but coming with the price of staying in debt longer.
  • Income Based Repayment – Also known as “income sensitive repayment”, this method is where the individuals monthly payment is based of of how much their earn each month, the payment being around 10 to 15 percent of what their monthly earnings are. If in the event that the individual hasn’t paid the debt off completely after the 25 year term has concluded, then whatever is left on the total amount owed will be considered as taxible income.
  • Income Contigent Repayment – With this plan, if income is below a certain level, payments can actually be $0. The amount individuals pay through this repayment of student loans method is up to “20 percent of their discretional income”.

Repayment Of Student Loans Through Forgiveness

Repayment of student loans can also be done through the likes of student loan forgiveness. Student loan forgiveness can be found through different methods, but the most popular forms of forgiveness are found through:

  • Federal Student Loan Forgiveness – This is where one will work a public service job that at the end of 10 years, the rest of their loan debt will be forgiven. This requires the individual to repay 120 on time payments over the course of the 10 years in order to qualify. There are also designated programs for; teachers, lawyers, nurses and other professions with similar rules.
  • Community Service – Repayment of student loans through community service work forgiveness can be found through organizations like VISTA, Peace Corps and Americorps, where they offer either a lump sum after each year of service which is to be used to pay off student loan debt, or will pay off a percentage of your loan for each year of service, usually 15 to 30 percent each year.

Apply For Student Loans – Tips To Follow

November 2, 2011

Apply For Student Loans

Apply For Student Loans

If you going to apply for student loans anytime soon, you may be wondering where to start as well as the best way to go about this search, as this funding will be vital for obtaining a college degree. Considering this, we have some great tips for you to follow that will allow you get on the right track when it comes to applying for student loans.

Apply For Student Loans That Are Federal

There are two types of loans, federal and private, both of which serve their place on the quest for college money. Federal loans, those lended either directly or indirectly from the governement should always be applied for first as:

  • Interest percentages are much lower.
  • They have more flexible repayment plans, like the Income Based Repayment (IBR), which allows the borrower to have a monthly payment which equates to around 10 to 15 percent of their monthly income.

These federal student loans come in the form of three different types which are; Stafford Loans, Perkins Loans and PLUS loans, which some of them have the subsidized option, which is where your eligibility is based soley off financial need, as well as unsubsidized, which eligiblity is not based of financial need.

In order to apply for student loans that are federal, all applicants must fill out a Free Application for Federal Student Aid also known as a FAFSA, which will determine, through the Ecpected Family Contribution (EFC) section, how much money the student will be eligible for in the form of federal loans. Besides being able to find out how much money is going to be made available in the form of federal student loans through FAFSA, the applicant will also be able to find out information on other forms of financial aid like;

  • Federal grants, like the Pell Grant which offers students up to 5,550 dollars per year, which doesnt have to be paid back, among others.
  • Work study programs

Apply For Student Loans That Are Private

Private student loans should be your last resort when you set out to apply for student loans. These loans are made availabe through private lenders like banks and institutions among others, which are there to provide you with the ammount of money that federal loans as well as any other financial aid you are receiving, didn’t cover. In order to get the best private student loans, a couple tips that are good to follow are;

  • Either have good credit, or find a co-signer who does, which a co-signer can be anyone from a parent to a friend. To make your chances of eligiblity the best for private student loans, do your best to get a credit score that is higher than 700. This will avoid rejection of your application as well as come with lower interest rates and other fees.
  • Applying for student loans that are private come with two different types of interest, both LIBOR and PRIME. The best private student loans come with rates that are; LIBOR 2.0% and PRIME .50%.
  • Find loans that come with no “activation” or “origination” fees, both meaning the same, which is the fee for taking out a loan.

If you are looking for great providers for private student loans, we have 5 great ones that you can check out at: Apply For Student Loans

Private Student Loans Bad Credit

November 1, 2011

Private Student Loans Bad Credit

IF you are looking for information on private student loans bad credit, we have you covered! Every private student loan is fully credit based, but do not let this get you down and out as there are loopholes in the system! The fact alone can be discouraging right off the bat, but do not let it deter you from attaing your dream of graduating college, you can consider the following options to solve your problem.

Private Student Loans Bad Credit

Private Student Loans Bad Credit Options

First off, you can still get a private student loan with bad credit, but your loan will come with higher interest rates as well as higher origination fees, also known as activation fees that require you have to pay when you first take out the loan. These negative aspects will take place in the event that the loan is actually approved, which in many cases it is not. In order to fix this problem, it is imperative that you:

  • Seek out a cosigner that has a great credit score. Do make your chances of loan acceptance as best as possible, try to get a cosigner that has a credit score that is higher than 700 as scores higher than this show the best rate of success

Now this cosigner doesn’t need to be a parent or gaurdian, or even blood related, but must be willing to stick their neck out as far as monthly payments go being that they assume the responsiblity of paying and loan debt that the student is not able to pay, which if they cannot cover this then it will both affect their credit score as well as pose the possiblity of losing the loan. The great thing about this private studetn loans for bad credit tool is that there is an option to tranfer the loan to the students name later on down the line, usually being around 4 years after the conclusion of college, where the student can now build their own credit score.

Good Private Student Loans Bad Credit Lenders

Now that you know the main overview about the private student loans bad credit topic, you may want to know about good private lenders to use. The list below can give you a start into weighing your options about which lender you ultimately want to use. It also should be known that in order to get the greatest private student loans, there are three things, although these aspects are usually only attained by an applicant with a very high credit score. The rules that you should try to follow which are:

  • Loans that come with no fees.
  • Have a LIBOR (London Inter-Bank Offered Rate) or 2.0 percent or PRIME rate of .50 percent

Sallie Mae Education Trust – First option to consider for private student loans for bad credit is Sallie Mae Education Trust. This option provides its eligible applicants with benefits such as; rates as low as 2.5 percent, up to 30 years for repayment, a 6 month grace period before you have to start paying back debt as well as the benefit of 5000 dollars in coverage due to expenses paid on medical bills.

Citibank – This national bank provides another great resource when it comes to finding a solution for private student loans with bad credit. Benefits of private loans through Citibank include; no origination fees, variable rates that are as low as 2.96 percent, interest dicounts for auto debit, and no payments until school in completed.

Wachovia Education Loans – Offered at interest rates starting as low as 3.4 percent, offers up to 25,000 dollars in yearly borrowing limits, certain discounts for like auto debit among others, and you do not have to pay back the loan until you graduate.

FAFSA Student Loans

November 1, 2011

FAFSA Student Loans

FAFSA Student Loans

First off, to clear the air on any possible confusion, the term “FAFSA student loan” is actually a contradiction as the two pretty much go hand in hand, as you apply for student loans through FAFSA. Applying for FAFSA student loans can be done by filling out a Free Application for Federal Student Aid, which must be done each year in order to continue to get federal student aid. By applying for FAFSA student loans, you will not only find out if your qualify for student loans, but you will also be informed if you are eligible for any other federal financial aid like grants as well as information on work study programs where students can work part time jobs and have the government reimburse 75 percent of their earnings.

FAFSA Student Loans Options

As far as the choices go when it comes to FAFSA student loans, there are 3 federally funded loan programs that can enable applicants to afford college. These loans are set up to provide assistantce in paying for all college fees minus for attending college, minus any other financial aid the student is receiving. Below are the types of loans that you can recieve by filling out a FAFSA.

Direct Stafford Loans

These FAFSA student loans are disbursed in two forms, which are through the Federal Family Education Loan Program (FFELP) where loans are given out by different leners, as well as the Federal Direct Student Loan Program (FDSLP) which loans are given by the US government directly and are also known as “Direct Loans”.

  • Direct Subsidized Student Loans – These Stafford Loans are fully based off financial need, being that you need to prove your needs in order to qualify. The amount you qualify for will determine how much money per year you will recieve to use towards tuition costs.
  • Direct Unsubsidized Student Loans – These FAFSA student loans are not based off financial need, therefore are easier to qualify for compared to subsidized Stafford Loans.

Other Stafford Loans Details

  • Stafford Loans have a fixed interest rate at 6.8 percent meaning it will stay at the rate no matter what, or non variable.
  • They have a six month grace period where students start paying back loan debt 6 months after graduation.
  • From 10 to 25 years is offered for repayment.
  • No interest on loans for up to 5 years.

Federal Perkins Loans

  • This FAFSA student loan is notorious for providing very low interest, and is based of the applicants financial need.
  • Interest is paid by the government during the time students are in school, and do not have to repay it.
  • The students financial need is determined by the personal information filled out on the FAFSA form
  • Borrowing limits are; undergraduates – 8,000 each year, postgraduates – a cumulative total of 27,500 for all schooling, postgraduates- up to 60,000 cumulative the includes postgraduate loans.
  • Interest rates start as low as 5 percent.

PLUS Loans

These FAFSA student loans are designated for parents of students, who are looking to take on the financial responsibility or their childs loan total. These loans are also in the provided directly from the US government

Parent PLUS Loans -

  • Must be applied for by a person who is the biological parent or an adoptive parent, with the possibility of a step parent in which the student must be considered their dependent.
  • Students must be enrolled in a school schedule the is at least “half time”.
  • PLUS Loans have interest that is charged as soon as the applicant takes out the loan.
  • Interest rates are at a fixed 7.9 percent.

Loan Amount Through FAFSA Student Loans

For the most part, the ammount of money students receive towards their school out of these FAFSA student loans is determined by their EFC or Expected Family Contribution, which is a section that applicants will fill out during the time the fill out the FAFSA. The EFC is determined by the sum total of the following factors:

  • A designated percentage of the amount of net income.
  • A certain percentage of the applicants net assets, which the total percentage is formed after the subtraction of the “asset prtection allowance”.


Alternative Student Loans – Companies & Overview

October 13, 2011

Alternative Student Loans

alternative student loans

Alternative student loans, also referred to as private student loans, are there to cover the cost of college minus federal loans and/or any other financial aid they are receiving. They are can be used for all different types of students like undergraduates and graduates along with residency students and those studying for the bar and many more, and can be used for schooling and other school related tuitions like transportation, a computer, supplies, cost of living, To get you familiar with alternative student loans, here is a bullet point overview and following the overview is a list private student loan providers.

Alternative Student Loans Overview

  • Loans are generally based of your credit score or the score of your cosigner.
  • You must be enrolled in a half time class schedule as well as provide proof that you are either a resident of the US or qualifying non resident.
  • They have what is called “cosigner release” which is where you provide a cosigner with a worth credit score, and later on into your contract the loan is tranferred under the students name enabling them to build their own credit score.
  • Interest rates are generally higher than that of a federal student loan, so it is suggested that students apply for all the federal aid that they can before considering an alternative student loan.
  • Alternative student loans consolidation must be done seperately from federal student loans.
  • There are three major repayment options; full deferral, which is no payments on the loan or interest payments, immediate repayment, which is where you begin paying 30 to 60 days after you receive your loan, interest only, where you either pay our interest while you are in school or let it build up and pay it when you are finished with your education.
  • Unlike federal student loans, alternative student loans are not eligible for student loan foriveness (currently).
  • Private student loans tend to demand stricter repayment terms compared to federal loans.
  • Interest rates on alternative student loans are offered in LIBOR rates(London Inter-Bank Offered Rate).

Alternative Student Loans Providers

  • Salie Mae Education Trust – Available for undergraduate, graduate and professional students, offering a fairly flexible repayment term of 15 to 30 years, LIBOR interest rates of 2.5 – 10.05 percent, 6 month grace period until you have to start paying your monthly dues and rewards for on time payments. Salie Mae alternative student loans also come with the benefit of up to 5,000 dollars coverage due to the the potential lost to medical payments.
  • Wachovia Alternative Student Loans – Now part of West Fargo and offer interest rates that are variable and start as low as 3.40, rate discounts that go as high as 1 percent, you can borrow up to 25,000 per year and you do not have to pay while your are in school.

Getting The Best Alternative Student Loans

It is a good idea to shop around for alternative student loan providers and not jump on the first ad you see. To get the best provider, remeber to ask some of the following questions:

  • Are there any fees, like for forbearance, and what are they?
  • Is the interest rate fixed or variable? (Try for fixed at all costs)
  • Is the margin subject to change, and if so what is the determinating factor of the margin number.
  • Are there penalties for paying a loan off earlier than scheduled?
  • What is the interest rate cap if there is one?
  • Is there a rate offered that you can get a fixed interest rate?
  • Are the discounts offered permanent or do they change after a limited time?
  • If by chance it is variable, what index amount is it tied to, or what is the highest amount they can go up to.

Like it was said earlier, it is best to apply for federal student loans and grants before you entertain the option of alternative student loans. If you haven’t done so alread, you should fill out a FAFSA ,which stands for Free Application of Federal Student Aid, which will determine all the grants and student loans that you are eligible for, based on their EFC or Expect Family Contribute sheet that is given to you after you fill out the FAFSA.



PLUS Loans – All About Federal PLUS Loans

September 7, 2011

PLUS Loans

PLUS Loans

PLUS Loans are offed by the governemnt in the form of financial aid for students to be able to afford to study and attain a degree. There are two PLUS loans that are available to the public, those are Parent PLUS Loans as well as Graduate PLUS Loans that enables students all over the country to be able to afford tuition fees. Depending on where you are in school, you can use a PLUS loan to pay for schooling and be able to pay if back at the conclusion of your schooling. To get you familiar with with PLUS Loans, below will be all the major detailing on both of the options as well as how to apply for either of the PLUS Loans options.

Parent PLUS Loans

First off, Parent PLUS Loans. These loans are called what they are because the are designated for parents who want to pay for their college education, also known as dependant children in college.  Here are some of the terms and benefits of the parent loan:

  • You can borrow up to the cost of the education minus any other financial aid the child is receiving.
  • Fixed interst rates at 7.9 percent.
  • Half time enrollment is a must to receive a loan.
  • Loan repayment comes in three forms Standard (same amount each month), Extended (longer repayment which lowers monthly payments), Graduated (payments gradualy increase thorughout the repayment life).
  • The loans can be cancelled but a fee is required.
  • A 4 percent fee is charged each month of payment.
  • Student loan forgiveness is an option.
  • You must start paying the loan off from the first day of disbursement.

Parent PLUS Loans Eligibility Requirements

  • Either biological or adoptive parents, possibly a step parent.
  • The student must be younger than 24 years of age, have no dependants, not be a veteran, shouldn’t be married, cannot be a ward of the court and can’t be going for a professional or graduate degree.
  • Parents and Student must be a US citizen or a qualifying non resident.
  • Parents and students must have no current loan default or overpayment on any current loans

Graduate PLUS Loans

Graduate PLUS Loans are specifically for student whom are looking to go to school to get a graduate or professional degree. Here are some of the benefits and terms of Graduate PLUS Loans:

  • Interest rates are also at a 7.9 percent fixed interest rate.
  • Loan payments are often times considered to be tax deductable.
  • No cosigner is needed.
  • There is a 4 percent origination fee.
  • Loan payment starts at the conclusion of your schooling.
  • Repayment usually spans over 10 years but can be increased to up to 25 years.

Graduate PLUS Eligibility Requirements

  • You need to have a positive credit history or find a cosigner that does.
  • Repayment begins 60 days after you graduate, drop out or drop below a half time enrollement schedule.
  • You need to be going for a graduate degree or a professional degree.
  • US citizen or qualifying non resident.


If you are more interested in getting one of the PLUS Loans, the best thing to do now is to fill out a Direct PLUS Loan Application which is the personal information section that figures out how much money you can qualify for. You will also need to fill out what is called the Master Promissory Note which is the legal papers in which you state that you will repay the loan when it needs to be repaid, and will also state all of the terms and major information about the your Parent PLUS Loan.


Parent PLUS Loans – Major Overview

September 6, 2011

Parent PLUS Loans

Chances are pretty good that you have sometime heard about the Parent PLUS Loans when it comes to college tuition fees. Parent PLUS Loans were created for the sole reason for parents who choose to take out a loan for their dependant children. Whether you are reading this as the dependant relaying this information to your parents, or a parent looking for loan inforomation for your child, let us explain to you all you need to know about the Parent PLUS Loan. You will be introduce to the overall terms and benefits, eligbility requirements as well as how to get the loan.

Parent PLUS Loans

Parent PLUS Loans Benefits & Terms

  • You can borrow up to the cost of the childs education minus any other sources of financial aid that you are receiving (grants, scholarships, family contribution).
  • The students school will receive the money and will disperse it to the student.
  • The Parent PLUS Loans have a fixed interest rate of 7.9 percent.
  • Half time enrollement is required.
  • Every time a parent makes a payment, they pay a fee of 4 percent.
  • The repayment of the loan starts the day the loan is disbursed, and the first payment is to be paid within the first 60 days of your student either finishing school, dropping out, or dropping below the half time enrollemnt.
  • Parents can choose to repay their loans with the Parent PLUS Loans repayemnt options which are: Standard (Same loan payment everymonth), Extended (lower payments for a longer repayment life), Graduated (payments start low and increase every two years). These plans range from 10 to 25 years to pay off the debt.
  • Student loan forgiveness is offered.
  • If you choose to cancel the loan, you will need to pay a fee.

Parent PLUS Loans Eligibility Requirements

In order to take out Parent PLUS Loans, parents  must fit the following requirements:

  • Parents must be either the biological parents or adoptive parents of the dependant child, although it is possible to get a step parent to sign for your loans.
  • You must be either a US citizen or a, resident permenantly or eligble non resident, no loan default or overpayment on loans

As for the students requirements, here are the prerequisits that students must follow:

  • The student must enrolled in at least a half time enrollment schredule.
  • The student must fit the follwing requirements; 24 years old or younger, must have no dependants, are not married, as well as not being a veteran, a ward of the court and lastly not a student who is looking to attain a college or professional degree.
  • Student must be a citizen of the US, resident permenantly or eligible non resident. ALso no loan default as well as overpayment on student loans.

How Parents Get Parent PLUS Loans

If you are serious about getting a loan for you student through the Parent Plus Loan program, then the parent needs to fill out two things; a Direct PLUS Loan Application as well as a Mastery Promissory Note. The Direct PLUS Loans Application is where you will fill out personal information and will figure out how much money you can qualify for, and the Master Promissory Note is the legal papers in which the parent states that they will repay the debt as well as the major terms of the Parent PLUS Loan. It is important to remember that if you intend on using Direct PLUS Loans for multiple years, you will need submit a request for a loan each year.


Graduate PLUS Loans Major Overview

September 5, 2011

Graduate PLUS Loans

Graduate PLUS Loans are federal student loans given out by the Department of Education, and are set up specifically for graduate as well as professional students to obtain the money they needed afford their college degree. Also called the GradPLUS Loan, this loan allows a student to borrow up to the cost of their education as well as other aspects of your school life like supplies, room and board books and more, minus whatever else you are receiving in the form of financial aid.

Graduate PLUS Loans

The total amount of money you can get is decided by your specific school, and is determined off the information that you fill out on the Free Application for Federal Student Aid, whichi the FAFSA is a mandatory requirement if you want to recieve a Graduate PLUS Loans, as well as will possibly qualify you for receiving other aid like scholarships and grants.

Graduate PLUS Loans – Benefits & Terms

The Graduate PLUS Loans offer many benefits to their borrowers which are all applicable if the student attends school on at least a half time basis, some of which include:

  • A fixed interest reate at what is currently 7.9 percent.
  • A standard repayment period of 10 years, and a possible extended repayment program of up to 25 year repayment, making montly payments much more affordable.
  • Monthly loan payments are more often than not considered tax deducatable.
  • You do not have to have a cosigner to be accepted.
  • You do not have to pay loan payments until after school is finished if you are enrolled in at least a half time schedule.
  • There is a 4 percent activation/origination fee which is taken when the loan is dispersed.

Other Graduate PLUS Loans Details

  • You funds go directly to the school you are attending. All of your expenses will be paid first, then if there is anything left from the loan, you will receieve a check.
  • You must not have a negative credit history to obtain Graduate PLUS Loans. If you do, you will need to provide a cosigner who has a positive credit history.
  • Loans are unsubsidized meaining that they do not require you to show your financial need in order to recieve a Graduate PLUS Loan.
  • Payment is to start 60 days after the conclusion of your schooling, or 45 days after student stops attending school on a half time basis.

Do You Have A Good Credit Score?

If by chance you have a good credit score or can find a cosigner that has one, the best option would be to apply for different graduate loans first before you try for Grad PLUS Loans. This is stated as the interest rate is higher than most if not all federal loan programs. But overall, federal loans should be your first choice when it comes to money for grad school as they have lower interest rates, more lenient terms when it comes to reayment as well as consolidation and bankruptcy options. If after your apply for Graduate PLUS Loans or federal loans in general, and still aren’t receiving enough mony, then use private loans as a last resort.

Forbearance Of Student Loans

September 4, 2011

Forbearance Of Student Loans

forbearance of student loans

Forbearance of student loans of essentially when a lender refrainins from enforcing the montly payments on your student loans. Forbearance of student loans can be an excellent option for if you are in a tough position financially as it is usually offered for up to 12 months, although there are other things that forbearance applies to. Forbearance of student loans not only can get you out of paying loan payments each month, it can also take away any delinquincy if you have it on your loan account.

If you qualify for forbearance, you do not have to pay a fee, but your interest will continue to build up on your loan, which you can pay each month, or pay later.  There are 6 different types of forbearance that can be used, discussed right below.

Forbearance Of Student Loans Requests

You can request 3 different types of forbearance for student loans, which are:

  1. A specific time in which you make no payments at all, which is usually a up to 12 months but sometimes it can be extended by 3 years.
  2. Extending your repayment period is another method of forbearance. This method will help save you money by allow you to pay your loans off from what is usually a 10 year period to anywhere between 12 to 30 years.
  3. The last student loan forbearance method is that you can request to make smaller payments for an certain time frame.

The Different Forbearance Of Student Loans Methods

You are able to receive forbearance for student loans if you fit certain requirements. The requirements are:

  1. If you are willing to pay your student loans but due to personal problems you are unable to do so. This method is for people who are making an effort and not skipping out.
  2. Serving in spefic internships as well as residencies like in the medical or dental feild.
  3. If you are in the military, you are also qualify for forbearance for student loans, as well as the possibility to receive forbearance if you have been in the military already as well as planning to enroll in the near future.
  4. If you are volunteering your time with a community service program. This program must be enlisted under the National Community Service Trust Act.
  5. If you are teaching as well as participating in a forgiveness program designated for teachers.
  6. You an also receive forbearance for student loans in the event that you are paying loan payments that equal 20 percent or more of your income.

Forbearance Of Student Loans Conclusion

This is a parital list of different forbearance for student loans options, which are more of the widely used methods. If the above doesn’t apply to what you though might grant you forbearance, the best thing to do would be to contact your lender as they can provide more information related to your specific information.

Student loan forbearance also should be requested in the event that you are not eligible for student loan deferment, as deferment should be your first choice. Deferment is similiar to forbearance for student loans arance in which you are able to postpone your payments for a certain amount of time for various reasons.


Unsubsidized Student Loans

September 3, 2011

Unsubsidized Student Loans

Unsubsidized Student Loans

Unsubsidized student loans are basically the opposite of subsidized loans in which you pay interest on your loan right out of the gate, as well as you do not have to prove that your at the utmost financially needy state as you do with subsidized loans. With the interest, one can either pay interest payments while in school or pay on them after school is over, but it is suggested that you pay while in school because it will accumlate on your loan total and make you pay more in the long run if you don’t. Unsubsidized loans are offered through 3 different loan programs being:

  1. The Federal Stafford Student Loan – 2012 and beyond, the interest rate will drop from 6.8 percent to 3.4 percent.
  2. The Perkins Student Loan – Loan interest rates are as low as 5 percent.
  3. PLUS Loans both for students as well as parents of dependant students
  4. For private lenders, unsubsidized student loans are all that they provide

How to Apply For Unsubsidized Student Loans

If you are looking to obtain an unsubsidized loan to help with schooling, there are a one thing in which you must do when it comes to applying. This one thing is filling out a Free Application of Federal Student Aid also known as a FAFSA. This application not only will figure out which loans you are eligible for as well as let you know if you qualify for any other government financial aid like grants and scholarships, which unlike loans, they never have to be paid back. This is imperative that you fill out a FAFSA and can provide much value to you in many forms of financial aid.

Repaying Unsubsidized Student Loans

Unsubsidized student loans repayment comes in 4 different methods that you can choose from depending on what your financial situation is as well as how fast you want to pay off your loans. Here are the 4 methods in which you can repay your unsubsidized student loans.

  1. Standard Repayment – This option allows one 10 years to pay their debt off with payments being the same each month.
  2. Extended Repayment – This method of repayment allows one 12 to up to 25 years to pay off their debt and you can start with very low payments with this option.
  3. Graduated Repayment – This payment method lets you start with a low monthly payment and it increases after a certain amount of time, usually being every 2 years.
  4. Income Sensitive – This option is fairly new and your montly payment is based off of how much you earn, which is usually 15 percent of your monthly income.

This is a main overview of what you will ecounter with unsubsidized student loans. Although unsubsidized student loans are offered with both federal and private agencies, it is a good idea to apply for federal unsubsidized loans first as they offer lower interest as well as are in general more lenient. If you are still looking to apply for an unsusidized loan for school than do it as soon as possible because funds are given on a first come first serve basis.