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College Financing Lender list includes the Federal Government, State Education Agencies, Banks and financial institutions.

The Federal Government through the U.S. Department of Education is the main Lender of subsidized and unsubsidized student loans. The Department gives loans to need-based students who demonstrate financial need after they have exhausted Federal Grants, scholarships and work-study aid. PLUS Loans for parents and PLUS Loans for graduates and professional students are also available.

U.S. Department of Education  

Stafford Loans which are subsidized by the government are need-based student loans given by the U.S. Department of Education at a low-interest fixed rate of 3.4%. Stafford Loans which are unsubsidized are not need-based and are given at a fixed rate of 6.8%. 

The loans are guaranteed by the government. The students start paying the loans 6 months after graduating. The government pays interest on subsidized loans when the student is in school and also during the 6 month grace period and the students start paying the loan after they finish schooling. The students whose parents have not applied for loans to pay part of their fees can apply for additional Stafford Loans.  

The U.S. Department gives Federal Perkins Loans to poor students. These are need-based and subsidized loans with a fixed interest rate of 5%. The repayment period is 10 years. The interest does not accrue until the student graduates and after a 9-month grace period.
PLUS Loans for parents are charged 7.9% fixed rate.

Direct PLUS Loans for Graduates and Professional students are also charged 7.9% fixed rate.

State Education Agencies

State Education Agencies give loans which are not based on financial need of the student. The loans are not subsidized and may be given to students attending colleges and universities in that state and at times other states. 

College Financing Private Lender

A Private Lender can give loans based on the credit-worthiness of the borrowers with good credit history. Students can ask their parents to be co-signers of loans from-:

- Wells Fargo
- Sallie Mae
- U.S. Bank
- Citibank
- Citizens Bank
- Charter One
- SunTrust 
- Union Federal
- Discover
- Academic Finance Corporation AFC
- Academic Financial Solutions LLC
- Nellie Mae

The students can check the Lender details from the Financial Aid office in their university or college, or browse the internet.
 
Since not all lenders pay loans to all the schools, the Financial Aid office will provide a Lender List applicable in that school. They will provide the potential student with the borrower benefits of each Lender which include the different APRs and repayment terms. The Office will save the student time taken filling many different application forms. Some like the non-profits may offer the best deals, lower APRs and no origination fees. The student is advised to check and compare the Lender with others because choosing wisely, they can make significant savings. When they pay using automatic electronic payments or when the loan repayments are deducted from the salary they are offered discounts.

Last modified onTuesday, 02 April 2013 16:07
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