I wanted to make sure this wouldn’t be an automatic default or cause any other problems, as long as I keep making my payments. Thank you!
With federal student loans, as long as you keep making your payments on time, there should be no problems. There is no requirement that you remain inside the country after graduation.
Just remember to keep your lender(s) updated any time you change your address. You wouldn’t want to default on the loan simply because they didn’t know where to send your bill. (I highly recommend automatic payment in cases such as yours.)
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The colleges we are applying to say we have to choose a lender. I'm down to Bank of America or Wells Fargo.
Stafford student loans are federal loans. You don't choose your lender, it's the federal government by definition.
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the prefered lenders are US bank, Banker's Trust, West Bank Trust, and Wells Fargo. From what I can tell they are all basically the same.
Actually - not all lenders are the same. The rate charged established by the government for the loans is actually the maximum rate…each lender is free to do what they want. Ours is taking off 1.5% just for signing up for automated statements and automatic debit of our payment. They also waived the federal default fee and origination fees (3% of the total balance) and will knock of an additional 1% after only 12 months of on time payments.
While two of your lender's sites are completely NOT helpful - it looks like both US Bank and Wells Fargo will waive your origination fee and pay the default fee. Additionally, Wells Fargo knocks off 1% from the top - .75% immediately and .25% for signing up for automatic payments. Lastly - if you pay all your payments on time, they'll pay your last six payments for you.
That's just a couple minutes research. Since you will want to try to keep your loans at the same place for your entire time in school - just easier - maybe taking a few extra minutes to contact all four institutions will yield even more favorable results.
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Did you know that basically everyone can get an unsubsidized federal Stafford loan? Most people are more familiar with the low-interest subsidized version that is need-based. Stafford loans have lower interest rates than many other options currently 6.8 percent and do not have to be repaid until a student is out of college, so it is a great way to pay for school, according to Phoenix-based NextStudent, a premier education funding company. For all federal Stafford loans, the government has set the cap on the loan at 8.25 percent, guaranteed by law.Â
Which One Is for You?
In a nutshell, the subsidized Stafford loan is need-based, while the unsubsidized is not. What this means is that with the unsubsidized loan students are responsible for the interest. If a student qualifies for the subsidized version, the government will pick up the tab on the interest while the student remains in school (and during the grace period as well). If a student chooses to defer a loan, the government will cover it for this period, too.
Unique Benefits Provide a Great Learning Experience
- Neither type of Stafford loan requires a credit check or collateral.
- Students can qualify for in-school deferment and are not required to make payments, for as long as a student is in school.
- The student (that’s you) is responsible for the loan, rather than the student’s parents.Â
- Student borrowers gain confidence as they begin the repayment process, while building their very own credit.
- Student borrowers work one-on-one with a personal Education Finance Advisor, offered exclusively from NextStudent.
- Repayment does not being until six months after graduation.Â
- When student borrowers choose Auto-Debit for their payment option they receive a discount of .25 percent.
- After 36 consecutive on-time payments, student borrowers can take an additional 1 percent off the government fixed rate. This discount is permanent; with other companies, you miss one payment, you lose it.
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Gain Peace of Mind with Easy Consolidation Repayment Options
After graduation students have a six-month grace period to start repayment. During that time, students may decide to consolidate. Good news: All Stafford student loans, whether government subsidized or not, qualify for NextStudent’s Federal Student Loan Consolidation Program. This means lower monthly payments and fewer headaches when managing the repayment process because there only will be one fixed-rate loan with a single payment due date.
There is no easier, low-cost way to get to college. Through NextStudent’s Stafford Student Loan Programs, student borrowers are offered the best way to get their loans and get to and through college.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about student loans at http://www.nextstudent.com.
Low interest loans available to undergraduate students at eligible schools (enrolled at least half-time). Subsidized and unsubsidized based on need Interest rate fixed at 6.8% for loans first disbursed on or after July 1, 2006 10 year repayment term Learn More FAQs Apply Now PLUS loans for parents
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I am a special ed teacher working in a school in poverty, but the programs I found only pay off Perkins loans. I simply don't make enough to pay off my loans and pay for any other living expenses! I obtained my first loan in the fall of 1997, graduated undergrad in May 2001, got graduate loans spring 2002-fall 2004 finishing grad school in December 2004.
If you are truly not making enough money you can continue to defer you loans due to financial hardship. Call them up or check out their website.
The loan processor for an 8% interest student loan I took out in graduate school sent me loan booklets and paperwork based on a 19.85% interest rate. http://www.fonerbooks.com/student.htm
http://www.best-student-loans.net