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What is a grace period A grace period is the time
during which borrowers do not need to begin repaying their loan. In
the case of a Stafford Loan, the grace period typically encompasses
the six months after the student finishes school or drops below
half-time enrollment. Repayment can begin during the grace period
if the borrower chooses to do so. On subsidized loans those
payments will be applied directly to the principal of the loan,
allowing full repayment of the loan sooner than expected. The
Perkins Loan has a nine-month grace period.
Why is the Stafford Loan amount so low for incoming
freshmen Federal regulations limit the amount students may
borrow according to their educational level. These amounts are
determined every five years in a process called reauthorization.
Borrower loan limits increased to $3, 500 from $2, 625 for new
loans effective on July 1, 2007. You may want to contact your U.S.
Senator or congressional representative to express a need for
higher limits. However, the government is aware of the need to keep
borrowing to a practical minimum.
Why will freshmen be allowed to borrow only $3, 500 when
seniors are allowed to borrow over $5, 000; college costs are the
same. It doesn't seem fair, and I don't understand the
rationale.
The rationale is that the federal government wants to limit the
amount of debt a student is able to accrue. Once students are
seniors, it is more likely that they will graduate and find jobs in
their field, which will allow them to pay the loan back. Freshmen
may decide that school is not for them and withdraw. If that
happens and they have been allowed to borrow a large sum of money
they may not be able to find a job that will allow them to pay it
back.
My child has received a subsidized Stafford Loan for $3,
500. What is the next best option to fill the gap from the EFC to
cost of attendance After the Stafford has been taken, the
next option would either be a PLUS loan for the parents, or, if you
want the borrowing to be in the student's name, you can consider
alternative loans, which are available through private lenders.
Your financial aid office can give you more information on these
options.
Financial Aid Q A: The Basics
Repayment Benefits of College Perkins
Loans
Smart Borrowing Tips for College Students
Financial Aid Q A: Special Situations - Peterson'sExplore some unique situations and see how they impact a
student's ability to secure financial aid.financial aid; college financial aid; college aid; federal aid;
federal college aid; federal aid for college; fafsa; fafsa tips;
fafsa advice; college financial planning; scholarships; need-based
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Financial Aid Q A: Special Situations I live on a
small family farm. Our gross income is about $90, 000. However,
after all the bills are paid we are left with a very small amount.
How does this affect my financial aid applications I will be paying
for everything myself. Your FAFSA information will be
carefully reviewed and it must include financial information from
both you and your parents. When you are looking into your final
college choices, be certain that your school's financial aid
officer has a complete understanding of your family's total
financial situation. You will very likely need to consider the
Stafford Loan and other self-help options to help defray college
costs.
Note: You do not have to include the value of a
family farm that you (your spouse and/or your parents) live on.
lso, a small business with not more than 100 full-time or
full-time-equivalent employees (or any part of such a small
business) that is owned and controlled by the family is excluded
from assets on the FAFSA.
What can a family do if a job loss occurs Aid
eligibility is based on the previous year's income. So the family's
2007 income would be reported to determine eligibility for the
2008-09 academic year. In that way, the family's income can be
verified with a tax return. But the previous year's income may not
accurately reflect the current financial aid situation,
particularly if a parent lost a job or retired. In these instances,
the projected income for the coming year can be used instead.
Families should discuss the situation directly with the financial
aid office and be prepared to provide appropriate documentation.
I was recently laid off and am now on public assistance.
Are there any programs for a student in my position Yes,
depending on when you plan to attend school. If you have already
filed the 2008-09 FAFSA application and your income status has
changed, notify the financial aid office at the school you plan to
attend and it can assist you in making the changes necessary to be
considered for additional financial aid due to changed financial
status.
With recently bankrupted parents and little current income,
what is the route I should take in securing a financial plan for
college that involves minimal or no out-of-pocket expenses
Based on your current financial situation, you will probably be
eligible for maximum financial aid. Your parents ay not be eligible
for the parent PLUS loan, which should add an additional $4, 000 to
your basic $3, 500 Stafford Loan limit (effective July 1, 2007).
You also need to look for private scholarships, but please keep in
mind that unfortunate financial circumstances do not necessarily
mean you will get enough financial aid to pay for your entire
education. You should shop around and see what school is most
affordable. Try both private and public colleges. Good luck!
I have filled out the FAFSA, but my parents' tax preparer
told my parents that we shouldn't expect any financial help. I need
help paying for college, and I'm afraid of taking out a loan. What
can I do
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Repayment Benefits of a College Perkins Loan Owing money on
a loan can be a burden, but if you took out a Perkins loan, you
may be able to pay it off without a dime coming out of your own
pocket! Some employers may pay off your loan (or at least part
of it) and depending on what you do for a living, you may be
able to have your debt orgiven altogether. Not everyone
who takes out a Perkins loan is eligible for this benefit, but
it might be an option for you. Make sure to check out whether
or not you can benefit from this great opportunity! card chase credit customer
The Department of Defense
If you enlist in the Armed Forces, you may be able to
negotiate a repayment agreement as part of your enlistment
contract. In exchange for your service in specialty areas of
the U.S. military, the Department of Defense may repay some or
all of your Perkins Loan for you. If you have questions or aren
sure if you qualify, contact your local recruiting office for
more details. /p . card chase credit service
The Department of Health and Human Services
If you e moved on to a career in nursing after graduation,
you may be eligible for repayment of your Perkins Loan through
the Department of Health and Human Services Nursing Education
Loan Repayment Program. This is sometimes offered as a hiring
incentive for nurses willing to work in eligible facilities,
many of which are located in areas experiencing nursing
shortages. Further information on this repayment program can be
found at
www.bhpr.hrsa.gov/nursing/loanrepay.htm.
/p . citi credit monitoring service
Death or disability
Your loan can be forgiven if you pass away or suffer from a
permanent disability. If you e become disabled, contact the
U.S. Department of Education at a
href= http://www.fsahelp.ed.gov/
target= _blank www.fsahelp.ed.gov to find out
more about how to pursue this or contact your loan holder.
/p Community service careers Up to 100
percent f your Perkins loan may be forgiven if you choose to
pursue a career in a community service or protection field. Any
of the following career paths may make you eligible: /p credit plus service union
Working as a full-time teacher in a designated
elementary or secondary school serving students from
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Working as a full-time teacher of math, science, foreign
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Working as a full-time employee of a public or
non-profit child- or family-services agency providing
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Working as a full-time staff member in the education
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Volunteering
If you volunteer for the Peace Corps, up to 70 percent f
your Perkins Loan may be forgiven. If you serve with AmeriCorps
or Volunteers in Service to America (VISTA), you can receive a
monetary award to help pay off your loan. The
Military If you e posted in an area of hostilities
or imminent danger, up to 50 percent f your Perkins Loan may be
forgiven. Furthermore, if you e been deployed or mobilized,
you e not required to make any payments on your student
loans during your absence. (It a federal law that your Perkins
loan lender must postpone your loan payments if you are on
active military duty.) This applies if you e in the
National Guard or Ready Reserves as well. /p . card credit payment service
Even if your Perkins loan is a small one compared to your
total loan obligations, it worth looking into. Individual loans
often have minimum monthly payments of at least $50 even when
they are small loans. If you e concerned about how those
payments will add up, getting rid of just one may help ease the
pain of paying off your student debt. card credit merchant
Calculate your EFC
Search for scholarships
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Join our free expert chat
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The Military as a Source of Financial
Aid
Smart Borrowing Tips for College
Students
Paying Back Your College Loans
Smart Borrowing Tips for College Students -
Peterson s
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Smart Borrowing Tips for College Students For most college
students, borrowing money to pay the school bills is a fact of
life. Student loans are considered a justifiable means to an
end, but can also be a major contributor to excessive student
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The most costly mistake you can make is not considering all
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Don just apply for financial aid through your school and
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More than likely, your financial aid packages include
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A bachelors degree is a traditional way people think of college. It is a four year degree, usually requiring at least 120 credits to graduate. The core classes usually involve the basics, such as English, Math, Science, varying by college. Students will be asked to declare a major, usually within the first two years of college. 45 credits of their bachelors degree. The education is meant to give students a broad background to continue onto graduate studies or to work.