Types Of College Loans: Federal Student Loans For Career Are An Investment In Your Future

   Student Loans In the United States are designed to help make colleges more affordable for students and their parents. College Loans are a form of financial ad used to help Graduate or Undergraduate Students to access their education.

College Loans/Student Loans play a major role in higher Education In the United States. Every year approx 20 million Americans attend College for that 20 million close to 12 million or 60% borrow annually to help cover costs.

Student Loans are funds provided to a Student for Educational expenses and are considered self-help financial ads because you need to repay the money loaned to you.

Student Loans may be used for any college-related expenses which included Tuition, Room and Board, Study Books, Computers, and Transportation Expenses.

Student Education Loans come in several varieties in the United States but are basically split into Federal Student Loans and Private Student Loans.

The Federal Student Loans for which FAFSA is the Application are Subdivided into subsidized and Unsubsidized Loans. Federal student loans are subsidized at the undergraduate level only.

A Subsidized Loan is by far the best kind of Loan, but an Unsubsidized federal student loan is far better than a private student loan. Some states have their own loan programs, as do some colleges.

In almost all cases, these student loans have better conditions – sometimes much better – than the heavily advertised and expensive private student loans.

Federal Student Loans are the Investment in your Future you should not be afraid to take out Federal Student Loans and you need to be smart to take it.

There are lots of benefits and Advantage offered by the Federal Student Loans compared to other options you may consider when you pay for College:

Features, Benefits & Advantages of College Loans- 

  • The Interest Rates on Federal Student Loans are almost always lower than that on Private Student Loans—and much lower than that on a Credit Card!
  • You don’t need a Credit Check or a cosigner to get most Federal Student Loans.
  • You don’t need to begin Repaying your Federal Student Loans until after you leave college or drop below half-time.
  • If you demonstrate financial need, you can qualify to have the Government Pay your Interest while you are in school or College.
  • Federal Student Loans May Offer the Flexible Repayment Plans and options to postpone your Loan Payments if you’re having trouble making Payments.
  • If you’re working in Certain Jobs, you may be eligible to have a portion of your Federal Student Loans forgiven if you meet certain conditions.

Things You Know Before Taking Out Federal Student Loans-

Before Taking federal Loans you need to know that the Loan is a legal obligation that you will be responsible for Repaying with Interest.

You may not have to begin Repaying your Federal Student Loans right away, but you don’t have to wait to understand your responsibilities as a borrower. As a responsible borrower You need to:

  • Keep track of how much you’re borrowing. Think about how the number of your Loans’ll affect your future Finances, and how much you can afford to repay. Your Student Loan Payments should be only a small percentage of your salary after you graduate, so it’s important not to borrow more than you need for your school-related expenses.
  • Research starting salaries in your field. Ask your school for starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate.
  • You need to understand the terms of your loan and keep copies of your Loan Documents. When you sign your Promissory Note which You are agreeing to Repay the Loan According to the Terms of the Note even If you don’t complete your education, can’t get a job after you complete the Program, or you didn’t like the Education you received.
  • You are required to make payments on time even if you don’t receive a bill, Repayment Notice, or a reminder. You must pay the full amount required by your Repayment Plan, as Partial Payments do not Fulfill your Obligation to Repay your Student Loan on Time.
  • Keep in touch with your Loan Servicer. Notify your Student Loan Servicer when you’re Graduate, withdraw from school, drop below half-time status, Transfer to another school or change your Name, Address, or Social Security Number. You’re also able to contact your Servicer If you’re having trouble making your Scheduled Loan Payments. Your Servicer has several Options available to help you keep your Loan in good standing.

How to Apply For a Federal Student Loan (College Loans)-

Applying for Federal Student Loans looks like a daunting process but it’s actually Very Simple and can be done mostly Online.

To make it easier, we’ve Provided the Complete Step By Step Application Process For College Loan Below:

  • First, you’ll need to start It by completing a FAFSA Form (or Renewal FAFSA for Returning Students). This form is required for both Current and Prospective US College Students (Undergraduate/Graduate) to determine their Eligibility for Financial Aid. It can be completed online and submitted directly to the Department of Education for Review.
  • The Student receives the Financial Aid Award Letters anywhere from 3 days to 6 weeks after submitting their FAFSA. Each letter will outline all of the Relevant Information regarding the Financial Aid Package being offered.
  • Upon Receiving these Letters, The Student will contact their chosen School’s Financial Aid Office to Accept the Student Loan Package being Offered.
  • Once The Student Loan Package is accepted, The Student will simply Review and sign any necessary paperwork associated with the Loans, such as a Master Promissory Note.

Types of Student Loans (Education Loans)-

There are two major sources of Student Loans i.e Federal Student Loans And Private Student Loans. There were 21 Million Student Enrolled in the College in the Universities this year and 8 Million of them receive Federal Student Loans William D. Ford Federal Direct Loan Program which includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

College Loans come in many shapes and sizes and the regulations for them can be different for them. Federal Student Loans are made directly from the Department of Education to the Borrower.

These Loans Cover the full academic years and be distributed in two payments, One each semester. With the Federal Student Loans, The School determines the types of Student Loans and How much you can borrow.

The loans may only be used to cover tuition and direct cost of living expenses. All Payments must be made either directly to the School or the Department of Education.

There are limits on how much you can borrow based on whether the Loan is Subsidized or Unsubsidized and whether it’s for Undergraduate or Graduate Study.

1. William D. Ford Federal Direct Loan Program-

The William D. Ford Federal Direct Loan Program is the largest Federal Student Loan Program which is made up of four Different Types:

  1. Direct Subsidized Loans: These loans are designed for Undergraduate Students with Financial needs. The Student is not able to be liable for the Interest on the Loan while Attending School or in any deferment Periods. You can take out up to $5,500 each year to pay for the School. Unlike other loans, you’re not charged interest on the loans while you are studying in the School. All the Interest on the Loan is Paid by The Department of Education while you’re in school (at least half-time), during your grace period, and during any period of deferment.
  2. Direct Unsubsidized Loans: These Loans are able for Undergraduate, Graduate, and Professional Degree Students. The parent would be responsible for the Interest on the Loan from The First Month. The Lender is the Department of Education, to which all the Loan Payments would be made. The Direct PLUS Loan for Parents has a maximum Lending Size equal to the cost of Attending College Minus and other Financial Aid the Student has to be Received. You can take out a maximum of $20,500 Every Year to Pay for The College, School, and Interest accrues on your account while you’re Studying in the School.
  3. Direct PLUS Loans: These Loans are Able for both the Parents and the Students. The parent would be responsible for the interest on the loan from the first month. The lender is the Department of Education, to which all the Loan Payments would be made. The Direct PLUS Loan for the Parents has a maximum Lending Size equal to the cost of attending College minus and other Financial Aid the Student has to be received. The Lender for Direct PLUS Loans for Graduates is the Department of Education, to which all the Loans Payments would be made. The maximum Lending Size is the Cost of Attendance Minus any other Financial Aid the Student has received. You can use a Federal Direct PLUS Loan to cover the Total Cost of Attendance.
  4. Direct Consolidation Loan: If you have other forms of federal loans, you can consolidate them into one loan and one easy payment with a Direct Consolidation Loan. And, if your current federal loans are ineligible for PSLF, you can consolidate them with a Direct Consolidation Loan to qualify. The Direct Consolidation Loans are fixed-Interest Loans with Flexible Options, based on your Ability to Repay. There is no fee to Consolidate, though you can only do it once. It could lower your monthly payments, but also could extend the amount of time needed to pay off the loan.

2. Federal Perkins Loan –

Federal Perkins Loans are used for Undergraduate, Graduate, And Professional Degree Students with Financial needs. Perkins Loans have lower Interest Rates than other loans. Eligible Borrowers get Perkins Loans at 5% Interest.

These Loans are dependent according to your Financial needs and the availability of funds at your chosen university. The Perkins Loans were more desirable than Stafford Loans because they were subsidized (the government paid the interest while you were in school) and had a fixed interest rate of 5%.

Other advantages of the Perkins Loan included a longer Grace Period (nine months) before Repayment began and special loan forgiveness provisions.

Because of their favorable terms, Perkins Loans were reserved for students who show exceptional financial need. The loans were granted by a college and not all schools participated.

3. Stafford Loans-

These Loans are More common than the Perkins Loans and the money for these types of Loans comes directly from the Federal Government in the program called the Federal Direct Student Loan Program (FDSLP).

There are two types of Stafford Loans i.e. Subsidized and Unsubsidized. The type helps determine your Interest Rate and Maximum Loan Amount.

  1. Subsidized Stafford Loans:  If your loan is subsidized, you won’t be responsible for making any payments until after you graduate. Your interest rate typically should be 3.76% in a school year. The government pays your interest for you while you’re in school. Subsidized loans are reserved for students who can demonstrate financial hardship. Most go to students whose families’ annual income is less than $50,000.
  2. Unsubsidized Stafford Loans: If you have an Unsubsidized Loan, you’re Responsible for Paying off all the interest. And The interest rates were fixed at 3.76% while you’re in school, but Payments are typically deferred or postponed until after you graduate. All the Students are Eligible for these Types of Student loans. Your Annual Stafford Loan Limit for Unsubsidized Loans Ranges from $5,500 to $12,500, depending upon your School Year and whether you are claimed as a dependent on someone’s Tax Return. You’re Eligible for the Larger College Loan if you’re Financially Independent. If you’re Financially Dependent but your Parents are Ineligible for Parent PLUS loans, you’re Permitted the Same Maximum College Loans as if you were Independent.

4. Private Student Loans-

These Loans are also known as the Alternative College Educational Loans which are the option for both Students and Parents who still can’t meet Financial Obligations for Attending the College even with money Available through the Federal Loans.

Private Student Loans are the More Closely Resemble Personal Loans than Student Loans and Parent Loans. You’re Eligibility and Interest Rate depend on your Credit History.

Your Interest Rate for these Loans may be Fixed or Variable and is Typically Higher than with Federally Guaranteed Education Loans but Lower than with other debts like Credit Card debt. Private Student Loans are generally Two Types:

  1. School-Channel Loans:  These Loans offer borrowers Lower Interest rates but generally take longer to process. These Loans are certified by the Schools which means the School signs off on the borrowing amount, and the Funds are disbursed directly to the School. The Certification means only that the School Confirms the Loan Funds will be used for Educational Expenses only and agrees to hold them and disburse them as needed. Certification does not mean that the school approves of, recommends, or has even examined the terms (conditions) of the Loan.
  2. Direct-To-Consumer Private Loans: are not certified by the School and Schools don’t Interact with a direct-to-consumer Private Loan at all. The student simply Supplies Enrollment Verification to the lender, and the Loan proceeds are disbursed directly to the Student. While direct-to-consumer loans generally carry higher interest rates than school-channel loans, they do allow families to get access to funds very quickly in some cases, in a matter of days. Some argue that this convenience is offset by the risk of student over-borrowing and/or use of funds for inappropriate purposes since there is no third-party certification that the amount of the loan is appropriate for the education needs of the student in question, or that it will be used only for education.

5. Health Professions Student Loans (Medical Education Loans)-

Medical Education Loans are specialized Student Loans that Exist for Students who are Studying in specific areas of Medicine such as Nursing, Sports Medicine, or Veterinary Medicine. Each Loan has its own Requirements for Accepted Areas of Study and Financial Needs.

Despite your Financial Standing or Field of Study, you can find an Education Loan that suits your Needs. It can help you and your family to fund your Higher Education and reduce the Financial burden of School or College.

Education Loan Breakdown-

Check out the below Table for a breakdown of each Type of Student Loan and Its Current Interest Rate.

Loan Need-Based? Subsidized? Sponsor Borrower Interest Rate (Loans disbursed after July 1, 2017)
Direct Subsidized Loan Yes Yes Federal government Student – undergraduate 4.29% (fixed)
Direct Unsubsidized Loan No No Federal government Student – undergraduate 4.29% (fixed)
Direct Unsubsidized Loan No No Federal government Student – graduate/professional 5.84% (fixed)
Perkins Yes Yes Federal government Student 5% (fixed)
Direct PLUS Loan No No Federal government Parent (or graduate/professional student) 6.84% (fixed)
State and Private Loans No No Banks, colleges, foundations, state agencies Usually students with a creditworthy cosigner Usually higher than federal rates; variable

Difference Between The Public Student Loans And Private Student Loans-

  • The Interest Rates on Federal Education Loans are Fixed. The Interest Rates on The Private Student Loans can be variable or fixed and are usually higher.
  • Undergraduate borrowers who can demonstrate financial need could receive a federal subsidized loan, meaning the government pays the interest until you graduate. Private loans are never subsidized. You pay all the interest.
  • Federal loans offer flexible repayment options and loan forgiveness programs. Private loans have few repayment options and no loan forgiveness programs.
  • Federal loans don’t have to be repaid until you graduate or drop below half-time status as a student. Many private loans ask for repayment while you’re still in school.
Federal Student Loans Private Student Loans
You will not have to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time. Many private student loans require payments while you are still in school.

 

The interest rate is fixed and is often lower than private loans and much lower than some credit card interest rates. View the current interest rates on Federal student loans. Private student loans can have variable interest rates, some greater than 18%. A variable-rate may substantially increase the total amount you repay.
Undergraduate students with financial needs will likely qualify for a subsidized loan where the government pays the interest while you are in school on at least a half-time basis. Private student loans are not subsidized. No one pays the interest on your loan but you.

 

You don’t need to get a credit check for most federal student loans (except for PLUS loans). Federal student loans can help you establish a good credit record. Private student loans may require an established credit record. The cost of a private student loan will depend on your credit score and other factors.
You won’t need a cosigner to get a federal student loan in most cases. You may need a cosigner.

 

Interest may be tax-deductible. Interest may not be tax-deductible.
Loans can be consolidated into a Direct Consolidation Loan.  Learn about your consolidation options.

 

Private student loans cannot be consolidated into a Direct Consolidation Loan. 
If you are having trouble repaying your loan, you may be able to temporarily postpone or lower your payments. Private student loans may not offer forbearance or deferment options.
There are several repayment plans, including an option to tie your monthly payment to your income. You should check with your lender to find out about your repayment options.
There is no prepayment penalty fee. You need to make sure there are no prepayment penalty fees.
You may be eligible to have some portion of your loans forgiven if you work in public service. Learn about our loan forgiveness programs. It is unlikely that your lender will offer a loan forgiveness program.
Free help is available at 1-800-4-FED-AID and on our websites. The Consumer Financial Protection Bureau’s private student loan ombudsman may be able to assist you if you have concerns about your private student loan.

Top Federal Loan Servicers-

  • FedLoan Servicing (also known as PHEAA): This company was established to directly support the US Department of Education in the servicing of federal student loans.
  • Great Lakes: This is the Non-Profit Organization that is dedicated to helping College Students by working with both the US Department of Education and Private Lenders to make every step in the Borrowing and Repayment Process Easier.
  • Navient: One of the select groups of Companies chosen to Service Student and Parent Federal Loans by the US Department of Education. Their loan Servicing Department helps Customers through both Financial Literacy Tools and broad-based Servicing.
  • Nelnet: This Company works with the US Department of Education in assisting Borrowers through every Stage of their Loan’s Life Cycle: during School, during their Grace Period, and Throughout the Education Loan Repayment.

Federal Student Loans Benefits, Types, How To Apply & Complete Guide

  Student Loans in the US or Federal Student Loans are a form of Financial ads designed to help Students & Parents to get their higher education.

Federal Students Loans are different from Private Students Loans. Federal Students Loans are made by the department of education while the Private Students Loans are made by banks & Financial Institutions. federal Student Loans are likely to your best Student Loan Option.

They offer more generous borrowers protections then Private Student Loans do, such as the ability to switch to an income-driven plan if you can’t afford your monthly Payment or to defer payments if you lose your Job.

Federal Student Loans are made directly from the Department of Education to Borrower. Federal Student Loans cover full academic years and distributed in two payments, one each semester. With Federal Student Loans, School determines the type of the Student Loan and how much you can borrow.

These Loans may only be used to cover Tuition and direct costs of Living expenses. all the Payment must be made either directly to the School or the Department of Education.

Federal Student Loans Benefits, Types, How To Apply & Complete Guide

The Fee Application for Federal Student Aid or FAFSA is the Application for all the Federal Student Loans. The Federal Student Loan Programs are highly regulated by the Department of Education, United States.

Also, the Interest rates and many more important Terms and Conditions are also Set by the Department of Education USA, which is similar to both FFEL and Direct Loan Programs.

Direct Loans and Federal Family Education Loan (FFEL) are two Largest Govt Education Loan Programs. Knowing and Understanding the Interest rate of your Federal Student Loans is very Important Step in navigating the Path of Financial Success.

Eligibility for federal student loans is based on the results of your FAFSA. There are several benefits of federal student loans:

Federal Student Loans Benefits & Features-

  • Lower fixed interest rates
  • Income-sensitive repayment plans
  • Deferment periods
  • Forgiveness options
  • No credit checks required (and loans are NOT based on credit worthiness)

Federal Student Loans Types –

The Federal Student Loans are categories in several types:

Direct subsidized loans or subsidized Stafford loans –

These types of Federal Loans are earmarked for the Undergraduate borrowers with financial needs. Direct Subsidized Loans are not accrued Interest while you’re at School.

Direct Unsubsidized loans or Unsubsidized Stafford loans-

These loans are available to all eligible students (both graduates or Undergraduates Students) and are not based on financial need. You are responsible for all interest payments (or capitalization of interest) from the date the loan is disbursed.

Perkins loans –

These Type of Federal Student Loans are subsidized loans which are reserved for undergraduate and graduate borrowers with extreme financial need.

Unlike all other federal student loans, which have interest rates set by Congress each year, Perkins loans always charge 5% interest and don’t have any fees.

Grad PLUS loans –

These loans are available for graduate and professional students and don’t have borrowing limits. Unlike Stafford and Perkins loans, which don’t consider borrower credit, you need decent credit to qualify for a Grad PLUS loan.

The government wants to make sure your credit report is free of negative marks like bankruptcies, charge-offs or past-due debt, says Karen McCarthy, director of policy analysis at the National Association of Student Financial Aid Administrators.

Parent PLUS loans-

These loans are available for parents with dependent undergraduate students. Parents’ credit histories must be tarnish-free to qualify. They can borrow as much as they need to cover their student’s college costs.

Federal Student Loans Borrowing Limits-

Types of Federal Student Loans & Borrowing Limits
for Loans Disbursed Between July 1, 2017 and June 30, 2018
Stafford for Dependent Undergraduates Stafford for Independent Undergraduates Stafford for Graduates Parent PLUS Grad PLUS
Subsidized Interest
Rate (new loans)
4.65% 4.45% N/A N/A N/A
Unsubsidized Interest
Rate (new loans)
4.45% 4.45% 6.00% 7.00% 7.00%
Credit Check? No No No Yes Yes
Loan Limit 1st Year $5,5001, $3,5002 $9,5001, $3,5002 $20,5001, $8,5002 None None
Loan Limit 2nd Year $6,5001, $4,5002 $10,5001, $4,5002 $20,5001, $8,5002 None None
Loan Limit 3rd Year and Beyond $7,5001, $5,5002 $12,5001, $5,5002 $20,5001, $8,5002 None None
Demonstrate
Financial Need?
Yes – subsidized,
No – unsubsidized
Yes – subsidized,
No – unsubsidized
Yes – subsidized,
No – unsubsidized
No

How to Apply for Federal Student Loan Program-

Applying for federal student loans can seem like a daunting process, but it’s actually quite simple and can be done mostly online. To make it easier, we’ve outlined the step-by-step application process below:

  • Start by completing a FAFSA Form (or Renewal FAFSA for returning students). This form is required for both current and prospective US college students (both undergraduate and graduate) to determine their eligibility for financial aid. It can be completed online and submitted directly to the Department of Education for review.
  • The student will begin receiving financial aid award letters anywhere from 3 days to 6 weeks after submitting their FAFSA. Each letter will outline all of the relevant information regarding the financial aid package being offered.
  • Upon receiving these letters, the student will contact their chosen school’s financial aid office to accept the student loan package being offered.
  • Once the student loan package is accepted, the student will simply review and sign any necessary paperwork associated with the loans, such as a Master Promissory Note.

Federal Student Loans Vs Private Student Loans-

You have the option first to grab the Federal Student Loans, but Private Student Loans can be also a good option for some borrowers. Such as Student who has borrowed the maximum amount of Federal Student and Still looking for Student Loans.

Interest rates:

Federal student loans have the benefit of a fixed interest rate and usually, have lower rates than private student loans. Private student loans can be either fixed or variable rate.

Variable rate loans are often tied directly to the Prime or LIBOR rate and adjust accordingly. The interest rates for private student loans can vary widely depending on the lender, term length, whether the loan is fixed or variable rate, and the credit history and debt-to-income ratio of the borrower or cosigner. Current rates can vary from 2.5% up to 18%!

Federal Student Loans & Privates Student Loans Benefits

Applying for Private Student Loans:

Unlike most of Federal Student Loans, Private Student Loans require the full underwriting process. Lenders look for borrowers who have good credit and enough extra cash to make loan payments given other expenses.

that is a relatively low debt-to-income ratio. If you don’t meet those requirements, you may need a co-signer to qualify for a private student loan.

Banks, credit unions and a new crop of online lenders all offer private student loans. The biggest private student lenders are Citizens Bank, Discover, Navient, PNC Bank, Sallie Mae, and Wells Fargo Student Loans, according to the latest report. Startups including SoFi, CommonBond and College Ave also offer private student loans.

Federal Student Loan Servicers –

Great Lakes Student Loans: a non-profit company is dedicated to helping college students by working with both the US Department of Education and private lenders to make every step in the borrowing and repayment process easier. for more Info about Great lakes Student Loans Click here

Nelnet: One of the select group of companies chosen to service student and parent federal loans by the US Department of Education.

Their loan servicing department helps customers through both financial literacy tools and broad-based servicing. for more Info about Nelnet Student Loans Click here

FedLoan Servicing (also known as PHEAA): This company was established to directly support the US Department of Education in the servicing of federal student loans. 

Navient: One of the select group of companies chosen to service student and parent federal loans by the US Department of Education. Their loan servicing department helps customers through both financial literacy tools and broad-based servicing.

FAFSA Federal Student Aid – How To Apply, Application, Requirements, Deadlines & Other Guide

  FAFSA is known as Free Application for Federal Student Aid, is the free online Application for Financial ad Eligible for the College Students (Both Undergraduate & Postgraduate) in the United States of America (What is FAFSA?).

FAFSA is the Part of Department of Education In USA, is the largest provider of Student Financial Aid in the Nation and which provides more than $150 billion in student aid each year.

FAFSA is responsible for managing the Student Financial Assistance Programs which Includes grants, work-study, Federal Student Loans, and even State and School Financial Aid.

The Student Financial Aid is the funding that is available exclusively to the Students attending post secondary educational Institution in the United States.

This funding is to assist in covering the many costs incurred in the pursuit of the Post-Secondary Education. Financial aid is available from federal, state, educational institutions, and private agencies (foundations) and in order to apply for any Federal Financial Aid students must first complete the Free Application for Federal Student Aid (FAFSA).

FAFSA is used by aid providers to determine the amount of the student’s Expected Family Contribution (EFC), which is the amount that they expect the student’s family could contribute toward the Student’s College Education.

EFC varies from student to student since it is based on the specific Financial situation of the student and often of the student’s parents as well.

The FAFSA often cover various areas such as the student’s family situation, the student’s educational background, the student’s educational plans, and prospective colleges, the student’s finances, the student’s spouse’s finances, and the student’s parents’ finances.

Whether or not parent financial information is required depends on whether or not the student is determined to still be a dependent of one of their parents.

Once the FAFSA application is completed and filed, a federal processor will examine all the information provided and pass the examination results on to the financial aid offices of the preferred colleges listed on the FAFSA.

The FAFSA and CSS Profile both are different and CSS Profile is also required by some colleges. The CSS is a fee-based product of the College Board and usually used by colleges to distribute their own institutional funding rather than a federal or state. So Let’s Know some Advantages & benefits of FAFSA Federal Student Aid:

FAFSA Federal Student Aid - How To Apply, Application, Requirements, Deadlines & Other Guide

Features & Benefits of Federal Student Aid-

  • informing students and families about the availability of the federal student aid programs and the process for applying for and receiving aid from those programs;
  • developing the Free Application for Federal Student Aid (FAFSA®) form and processing approximately 20 million FAFSA submissions each year;
  • accurately disbursing, reconciling, and accounting for all federal student aid funds that are delivered to students each year through more than 6,000 colleges and career schools;
  • managing the outstanding federal student loan portfolio and securing repayment from federal student loan borrowers;
  • offering free assistance to students, parents, and borrowers throughout the entire financial aid process; and
  • providing oversight and monitoring of all program participants—schools, financial entities, and students—to ensure compliance with the laws, regulations, and policies governing the federal student aid programs.

Who Can Apply For FAFSA?

If a student can meet all of the following, they’ll be eligible for the most aid. The criteria are given as follows:

  • Maintain Satisfactory Academic Progress (SAP).
  • Is a U.S. citizen, a U.S. national, or an eligible non-citizen.
  • Has a valid Social Security number.
  • Has a high school diploma or GED.
  • Sign the certification statement stating that you’re: 1) not in default on a federal student loan and do not owe money on a federal student grant and 2) federal student aid will only be used for educational purposes (this means no trips to Cabo Wabo to see Sammy Hagar).
  • Has not been found guilty of the sale of illegal drugs while federal aid was being received. (Possession was dropped in 2010, but I still wouldn’t recommend getting pinched).
  • Has registered with the Selective Service System (for Conscription in the United States Armed Forces) between the ages of 18 and 25, if required to do so (females are excluded from this requirement).

Where And How To Apply For FAFSA (Federal Student Aid)?-

Once you’re ready to begin the FAFSA Financial Ad, keep these tips in mind:

  1. Begin your FAFSA process by creating an FSA ID at FAFSA Website (FAFSA.gov). It’s your personal code for submitting the FAFSA when you’re ready. Your FAFSA ID will give you access to FSA online systems and can serve as your legal signature.
  2. Submit your FAFSA Application as soon as possible. Federal student aid applications can be submitted starting October 1 at FAFSA.gov. Federal financial aid is awarded on a first-come, first served basis, so know your deadlines and apply as early as you can to maximize your financial aid.
  3. Think local. College and state financial aid deadlines vary by state. Check your state’s financial aid deadlines.
  4. Apply for FAFSA annually. You need to fill out the FAFSA each year that you are—or plan to be—a student. The FAFSA is used by schools to put together your financial aid package for one year of college.

How to File the Federal Student Aid: FAFSA Requirements-

In order to file your FAFSA Application you’ll first need to collect all the documents you’ll need to reference. Then complete your application by registering the FAFSA Form through the Website at FAFSA.gov.

Step 1: Collect All information Like-

  • Your driver’s license and Social Security number
  • Your parents’ Social Security numbers and birthdates
  • Your family’s latest federal income tax returns.
    For example, if you’re applying for financial aid for the academic year 2017-18, you’ll likely use your family’s 2015 tax return.
  • W-2 forms
  • Bank statements
  • Information on your family’s investments (real estate, money market funds, stocks, etc.2)

Step 2: Register Through The Website FAFSA.gov-

  • This is where you get your Federal Student Aid (FSA) ID and submit the FAFSA.
  • Don’t fall for scams. The only site you should use to fill out and file the FAFSA is FAFSA.gov.
  • There’s no charge for submitting the FAFSA.
  • The site also has the most up-to-date information on upcoming changes.

Step 3: Submit your Application At FAFSA-

  • The easiest and fastest way is to file the FAFSA online with your FSA ID, made up of your username and password. Your application will be processed within 3 – 5 days.
  • You can mail in a paper application, but the processing time will take about 7 – 10 days.

How is your FAFSA used to calculate your federal student aid eligibility-

When you fill out your FAFSA Application you have to provide the personal demographic information, as well as Financial Information which includes your family’s Federal Income Tax Returns, W-2 forms, Bank Statements, and information on your Family’s Investments.

This Financial Information is used to determine your Expected Family Contribution (EFC). Your EFC is an Index Number that colleges use to determine how much Free FAFSA Federal Financial Aid you’re eligible to Receive.

Your EFC is calculated according to a formula established by law and the information from your FAFSA. The government considers your Expected Family Contribution (EFC), your year in school, your enrollment status, and the cost of attendance (COA) at the school you’ll be attending to determine your financial aid package amount. The COA is typically tuition, books, supplies, transportation, room, and board.

What Happens After Your FAFSA Loans Submission-

After you submit your FAFSA, you’ll get your Student Aid Report (SAR) from the office of Federal Student Aid. Your SAR is a paper or electronic document that gives you basic information about the FAFSA data you submitted, including your answers to the questions on your FAFSA.

Your SAR won’t tell you how much financial aid you’ll get. If you provided an email address when you submitted your FAFSA, you can expect to receive your SAR within a few days of electronically filing or within two weeks of mailing.

After you receive your SAR, you’ll get financial aid award letters from the schools you have been accepted at. Award letters tell you how much aid you’re eligible for at that school.

FAFSA Application Corrections-

If you made a mistake on your submitted FAFSA, you can make corrections by logging in to your account on FAFSA.gov. Once you’re logged in, enter your FAFSA ID to change your information and submit new information. You can also update your mailing address, email address, and other contact information in your account if it has changed.

FAFSA Deadlines-

The FAFSA Deadlines can be changed depending on whether they are federal or State Applications, so it’s important to be able to decipher between them.

The FAFSA Deadlines can be varied by state and it’s easy to remember the federal Financial Ad application Deadlines because it will be the same for everyone (June 30, 2019).

The FAFSA becomes available on October 1 and has an 18-Month application Cycle. In addition to complying with the Federal deadline, Students must adhere to state Financial ad Deadlines as well as in order to qualify.

Looking for your state’s specific deadline? Don’t worry! We’ve got you covered with a complete list of financial aid deadlines, state-by-state, for the 2018 – 2019 academic year.

Even though the FAFSA has an 18-month application cycle, state deadlines occur a lot sooner. In order to be eligible for state aid, you must submit your FAFSA before the state’s deadline. Here are some points about FAFSA Deadlines are given:

  • The Federal Aid Deadline for the 2018 – 2019 academic year is June 30, 2019 – no matter what state you live in.
  • Online applications must be submitted by midnight Central Time, June 30, 2019.
  • FAFSA on the Web applications must be submitted before or by midnight, 12:00 a.m. Central Standard Time on June 30, 2019.

FAFSA Federal Student Aid Deadline Completion Chart

In some states, the following criteria apply relates to FAFSA Deadline:

  • Additional form may be required. Contact your financial aid administrator or your state agency.
  • Applicants encouraged to obtain proof of mailing.
  • For priority consideration, submit an application by date specified.
  • Deadline by midnight, Central Daylight Time.
  • Deadline by midnight, Central Standard Time.
  • The deadline may be by date received, date postmarked or date form was processed.

Frequently Asked Questions (FAQ) About FAFSA-

Question 1: My family’s income is too high to qualify for federal financial aid.
Answer 1: Student and family income isn’t the only factor that the government uses to decide if a student qualifies for federal financial aid. The only way to know for sure if you’ll qualify is to fill out the FAFSA.

Question 2: My family has money saved for college so we won’t get any federal financial aid.
Answer 2: Savings might not be a major factor when a school decides if a student qualifies for Federal Direct Unsubsidized Loans. There are allowances for savings and assets.

Question 3: My sibling wasn’t eligible for much federal financial aid last year, so I won’t be eligible when I enter college.
Answer 3: Actually, the number of family members in college might have a favorable impact on your financial aid eligibility.7

Question 4: I’m only attending college part-time, so I won’t be eligible for federal financial aid.
Answer 4: Financial aid is available for part-time students. Talk to the financial aid offices of the colleges you’re interested in attending about aid for part-time students.

Private Student Loans: Wells Fargo Student Loans Information & Guide

  When planning for the college Education at first you need to consider all avenues of all financial Aids. If you have already qualified for Federal or State Grant or College/University Scholarship then its good either you need to find out yourself with some measure of unmet need.

Yes !!! we are talking about Student Loans but everyone is still in confusion about best services & most competitive rates of Student Loans.

Wells Fargo Private Student Loans is the best option – Especially if you would prefer to borrow from a large, established bank instead of a smaller online Lender.

Wells Fargo offers Private Loans for Students & parents of College Bond Students. Wells Fargo also offers a one-stop shop for Student Loans. Parents & Students can choose from a number of Education Loans services & Products according to their needs.

Wells Fargo is one of the handful of big banks that offers unsecured personal Loans. You Can Borrow between $3000 to $100000 depending on your Income and worthiness.

Wells Fargo offers the online Application Process for that you can easily find out their Terms & rates you qualify for without visiting their Branch. Wells Fargo Repayment terms range from 12 to 60 months, giving you some control over the monthly Payments.

Wells Fargo Lends to Undergraduate and Graduate Students as well as to Parents helping their Child pay for College. Also, there are some Limits to How much you can Borrow in Wells Fargo Students Loans.

The Limit depends upon what type of College Degree you are pursuing and the Amount of Student Debit you have taken on from other Sources.

wells Fargo Student Loan by mygreatlakesx

Wells Fargo Provides both Federal & Private Student Loans, Offers the best Services for Students After the Great lakes Students Loan. Student loans break down into two groups: private loans and federal loans.

Federal student loans are those funded by the government, while private loans are available from a wide selection of banks, credit unions, and other lenders.

Generally, federal student loan interest rates are lower than private loans, so you should exhaust all federal resources before looking for private aid.

Federal student loans include direct subsidized loans, direct unsubsidized loans, federal Perkins loans and Direct PLUS loans (for graduate students and parents).

Some of the key benefits of Using Wells Fargo Students Loans include no application, origination or early repayment fees, a six-month grace period after leaving school and opportunities for interest rate discounts.

Wells Fargo Student Loans Services Review Benefits –

Wells Fargo is one of the largest banks in the United States. It backs a variety of federal student loans as well as offering private loans to students who need additional financial aid beyond the maximum federal allowance.

The Wells Fargo Student Loan Center provides some useful tools & services which help Borrowers compare Private Wells Fargo Students Loan & Federal Loans.

three areas of Landing provides Undergraduates, Graduates & the Consolidation Options for Parents & Students Borrowers. Students in 4 Year Undergraduates programs and some other Graduate School Programs can Borrow Up to $120,000 in Wells Fargo student loans throughout their lifetime — less if they’ve taken out student loans from another lender.

Graduate students in law and business programs can borrow up to $180,000, and medical students can borrow up to $250,000.

Pros and Cons:

 Pros

  • Competitive interest rates
  • Fixed or variable interest rate options
  • No origination, prepayment, or application fees
  • Interest rate discounts for autopay and Wells Fargo customers
  • Large, reputable bank that is available nationwide
  • Allows release of cosigner after 24 months
  • Easy online application
 Cons

  • Federal student loans are not eligible
  • Credit check with hard inquiry required to get rates
  • Less flexible with payment options if you fall behind

WELLS FARGO AT A GLANCE:

  • Fixed: 5.94% to 12.99% APR. Variable: 3.87% to 11.49% APR.
  • 15-year terms (12-year terms for community college loans); six-month grace periods for student borrowers.
  • Deferment and forbearance options for borrowers who go back to school or into the military.

Wells Fargo Student Loans Fee And Interest rates-

Wells Fargo Students Loans is best because of its lowest fee and Interest rates. Wells Fargo Student Loan Fee keeps the minimum fee for Students.

The Typical Loan Origination fee of Wells Fargo can be between 1 and 6 Percent of the Loan Amount. So on $10,000, Loan Wells Fargo would save you between $100 to $600. However, there is a $39 fee for Late payments and $39 fee for Returned Payments.

You can Avoid these fee by making your monthly Payments on time and be sure there is enough in your Bank to make the payment. Wells Fargo Personal Loans Interest Rates are range from 6.99% to 19.99% APR depends upon your Salary.

The APR is fixed So you don’t need to worry about it fluctuating over the time. Also, You can easily check your APR by .25% if you’ve to qualify Wells Fargo Checking Account and use it to make Automatic Payments on your Loan.

Wells Fargo Student Loan Refinancing-

Refinancing a Loan is when you get a Loan from a new lender and use it to Pay off your Old Lenders. For Example, if you have the Private Student Loan from the 3 separate companies, You would add up the total Amount which you own your all Loans.

Then you would get a new Loan for the full Amount. Your Old Loan will be Paid off in Full and you would own one month Payment to the new Lander.

Wells Fargo Student Loans Application –

You can apply for a Wells Fargo Student loan online, by phone at 1-888-667-5250, or visiting at the nearest Wells Fargo branch. If you want to choose to apply online then you must visit the Wells Fargo personal loans login page and click “Apply Now.”

Then, you’ll see the first page of the application. Here Below we are providing the Complete Step by Step Process for Wells Fargo Student Loan Application:

Wells Fargo Student Loans Login Process-

  • Visit the Wells Fargo “Consolidate or Refinance Private Student Loans” page. Click “Apply Now.”
  • Answer a few questions to get more information about Wells Fargo’s consolidation loans. Click “Find my loan.”
  • Review the basics of the loan product and click “Get Started.”
  • Provide your state of residence, name, social security number, and birthday and click “Continue.”
  • Provide your contact information.
  • Provide employment and employer information.
  • Provide information on your existing loans.
  • Share whether you will be applying on your own or with a cosigner.
  • Confirm that you can read the documents that will be provided (PDFs).
  • Agree to the disclosures and apply.

Wells Fargo Student Loans Automatic Payment-

Once you’ve left school and are receiving monthly billing statements, automatic payments can be a helpful way to ensure you never miss a payment.

With automatic payments, payments are automatically deducted from your bank account each month and you may receive a 0.25% interest rate discount. Whether or not you have a deposit account with Wells Fargo, Sign On to Wells Fargo Online to set up automatic payments.

Or, if you prefer, download, complete and submit the Automatic Payment Authorization Form.

Wells Fargo Student Loans Contact Information-

Address: Wells Fargo Education Financial Services
P.O. Box 10365
Des Moines, IA 50306-0365

Phone: 1-800-658-3567.

Fax: 1-800-456-0561

Frequently Ask Questions Related To Wells Fargo Student Loans-

#1. How do I start the private student loan process?

Start by entering your information to find out which private student loan meets your needs. You can also learn more about the process by reading Student Loans Step by Step.

#2. When should I apply for financial aid?

You should apply for financial aid as soon after October 1 as possible. The Free Application for Federal Student Aid (FAFSA) is your first step. It will determine your eligibility for federal loans and other aid. You can complete the FAFSA online at www.fafsa.ed.gov. For private student loans, you can apply whenever you like, but it’s a good idea to apply well in advance of when your tuition is due.

#3. Do I have to be a Wells Fargo customer to apply for a Wells Fargo private student loan?

No, you don’t have to be a Wells Fargo customer to apply for a Wells Fargo private student loan. However, as a customer, you may be eligible for special relationship discounts

#4. How much does college cost?

Estimate your college costs by visiting your school’s website and using their Net Price Calculator to help determine your total costs. This tool can help you understand what types of financing resources may be available and how certain choices, such as your living situation, can affect your costs.

#5. What types of scholarships are available for college students?

There are several types of scholarships that students may be eligible to receive, usually based on merit and need, including:

Merit-based – Many scholarships are based on aggregate academic performance, such as your unweighted grade point average (GPA).
Ethnic-related – Depending on your ethnic background, you may be eligible for a scholarship from your school of choice or the local community.
Volunteerism – Being active in your community may qualify you for a scholarship. Consider contacting 501(c)(3) not-for-profit organizations in your field.
Business-related – Check out local and national businesses to see what scholarships are being offered this year and if you qualify. Most scholarships are offered by educational institutions, corporations, private endowments, and 501(c)(3) nonprofits. Unlike financial aid, scholarships are like gifts, and usually, do not need to be repaid under most circumstances.

#6. How do I find information on scholarships and grants?

Research can help uncover scholarship and grant options you may qualify for based on your accomplishments, background, and interests. To make the most out of your scholarship search, consider:

Visit career services – Talking to high school guidance counselors, college admissions offices and resource centers, teachers, community members, and friends to help point you in the direction of scholarships or grants that you may qualify for based on eligibility requirements.
Search for scholarships online – Tuition Funding Sources is an online scholarship resource designed to help students gain access to over 7 million scholarships totaling more than $41 billion.
Visit your school’s website – Determine if your institution offers scholarships you may apply for, based on eligibility requirements.
Contact community groups – Institutions within your community, such as civic and/or religious organizations, banks, or other local organizations may provide additional information on local scholarships.
Contact federal agencies – Visit the U.S. Department of Education for information on federal government grants and to get a copy of a FAFSA form. You must fill out the FAFSA to qualify for federal aid. Many states and colleges use the FAFSA to award aid as well.

#7. How can I help my student pay for college?

Many parents or sponsors (someone who supports the student’s plans to attend school) want to be able to pay college expenses themselves rather than having the student take on all the responsibility. The Wells Fargo Student Loan for Parents can help. It allows you to pay for a student’s expenses, in part or in full, without having to tap into your own savings, investments, or retirement funds and may offer better benefits than other available types of credit.

It can also be used if the student is attending school less than half-time. Parents or sponsors can also cosign a Wells Fargo private student loan. By agreeing to share equal responsibility for repayment, a creditworthy cosigner may help a student qualify for a student loan. Anyone of legal age (18 years old, in most states), who is a citizen or national of the U.S. and meets general loan eligibility and credit requirements can cosign—a parent, guardian, spouse, relative, or even a friend.

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