Sunday, November 19, 2006

Federal Student Loan-Tips for Parents

The United States government is bent on changing the state of the American education system by introducing programs geared towards providing quality education for all people especially those who cannot afford it. The favorable stand of the US government towards educating its population is evident with the message of Secretary Margaret Spellings confirming that the US government has allotted no less than sixty billion dollars for affordable student loans.
1. Education Loans:
The US Department of Education seems to be bent in helping Americans finish their College degrees even if they could not afford it upfront by providing for low interest student loans. Millions of college students have already benefited from the student loans granted by the US government last year.
The Department is also eyeing student loan grants to at least five hundred thousand college students who could not university education. Particularly targeted by the student loans program are those who plan to take up courses in foreign languages, science and math as these areas of studies are essential in Americas quest for economic and political superiority.
2. Loans for Students
College students can choose from a variety of government and private loans that are easily available for them even through the Internet. Of course, government loans are generally more favorable towards college students availing of the loan as they offer lower interest rated and better packages.
3. Federal Loan Deadlines
Most college students eyeing the Federal student loan should consider the deadlines set by the government in applying for the loan. The best thing to do is to apply for Federal loans during the first day of January every year. It is also advisable to get information from specific schools as they have different deadlines depending also on the State where they are located.
4. Forms, Forms Also, More Forms
College student eyeing a Federal loan should get hold of the necessary forms and fill them up properly. Also gather the necessary documents so you can easily present them when needed. It is better to make a checklist of the forms and documents needed so you are able to see that documents you already have and that ones you do not have.
5. Apply Early, Apply Often
Federal loan applicants should make sure they know their Social Security Number, identification cards like drivers license, income tax records, bank statements, or if you are not a US citizen, the alien registration number. Never commit the mistake of sending out the original documents as you may need them again in the future.Make sure that the application form for the federal loan is filled up properly. Check on the Federal loan application website to make sure the forms have been filled out properly and the necessary documents already Submitted.
6. Check Your Eligibility
But who are eligible to apply for Federal student aid? There are requirements that should be met or complied with by students wanting to avail of the Federal student loan but it is not necessary that the student applicant is a US citizen. It is enough that the student holds a valid alien registration card or is considered an eligible alien.Before complying with the other requirements of the Federal student loan application, make sure the person applying is a high school graduate with a valid diploma or holds a recognized certificate. Also make sure that you do not have outstanding federal student loans that are overdue and have remained unpaid. The primary consideration is the financial need of the student applicant and the family but those who may have a financial need but have been convicted for drugs need not apply.
7. Have Financial Information Ready
To make sure that the financial capacity of the family meets the requirement of the Federal loan application, check the family income on the web. This will however be only an estimate and the student applicant will receive the actual and official calculation of the family income once the signature requirements have been met.The financial support that will be provided by the Federal loan grant will depend on several factors including the family income contribution as well as the actual cost of enrollment and going to College. The respective schools will determine the exact amount or financial support the student will get based on these and other important factors.
Tips FOR PARENTS
The Federal PLUS Loan for Parents is an affordable, low-interest loan designed for parents of undergraduate students.
Cover the Total Cost of Education
The Parent PLUS Loan can be used to cover up to 100 percent of your child's total cost of education, minus other financial aid awarded to the student. This total amount can include tuition, books, food, housing, transportation, and more.

Though eligibility for this loan is not based on household income, assets or financial need, having your student fill out the Free Application for Federal Student Aid is encouraged and may be requested by your child's school.
By choosing us for your Parent PLUS Loan, you get:
  • Savings of up to 7.25% off your original loan amount with Triple Payback® rewards, only from Wachovia1
  • Credit counselors to assist with adverse credit issues during the application process
  • Fast access to funds, including pre-approval in minutes

  • No collateral requirements or income limitations

  • Ability to defer payments up to 4 years with our forbearance option

  • Flexible repayment options

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