Finding Lenders Who Will Refinance Student Loans

If you currently have student loans through a private lender and are looking to refinance, start with that lender to see if they can offer you better terms than what you currently have. Since you have already established a history with that lender they may be willing to work with you. You can also identify other lenders by doing an Internet search to find those private student loan companies that will work with you. When working with a private student loan company, there are a number of criteria that must first be met before any student loans can be refinanced. These include:

1. Already having privately funded student loans.

2. Have at least $5,000 in private student loan debt.

Information Needed for Loan Consolidation

The student loan consolidation process requires you to obtain much of the same information you would need when applying for any loan. Get student loan consolidation information from your lender before completing the application so you are prepared and can complete the process quickly. Typically you will need the following information:

1. Your social security information – this will allow your lender to check your credit history, if needed.

2. Employment information – this will include employer name and address; length of time employed; job title; and, salary information.

3. Your date of birth.

The Direct Loan Versus FFEL Loan Program

There are actually two types of federally funded Stafford Loans: the Direct Loan and the Federal Family Education Loan (FFEL). A Direct Stafford Loan can be obtained through participating colleges and universities but is borrowed directly from the U.S. Department of Education. The FFEL Stafford Loans are made through private lenders but are guaranteed by the government. If you receive an FFEL Stafford Loan, you or your child are only required to submit the FAFSA and will not undergo a credit check. Most schools participate in one of the two programs although you may find some that participate in both.

Managing College Debt

A note of caution for students as you make your way through the college experience: review carefully your financial aid award package each year. You will be surprised at how quickly your student loans can add up. If you have federally funded student loans, once you begin the repayment period you are liable for all of the debts that you accrued to make your college dream a reality. This would be a bad time to fail to meet your financial obligations. Repaying your student loans should be a priority to keep you from destroying your credit history. Failing to repay student loan debt can result in you having judgments placed against you and wage garnishment. Have your wages garnished to repay your student loan obligation, forces you to live on a lower monthly income because you don’t have a choice in the matter and neither does your employer.

Eligibility And Requirements For Private Student Loans

Private lenders prefer to have credit worthy applicants even for student loans. Many lenders will be more flexible in providing credit for college expenses, but this is not always the case. A student with no credit experience or a poor credit history may need a co-signer to help get the loan. You also may need to provide proof that you are enrolled in an accredited school on at least a half-time basis. Not all lenders will require this. In fact a benefit of getting a student loan through a private lender is that often the requirements regarding the number of credit hours you are taking and the type of program are not nearly as strict as what the federal government requires.

Getting A Student Loan Through A Private Lender

A number of banks offer private student loans for students or their parents who meet the banks credit criteria. These loans can be used to supplement your savings to cover the cost of college expenses or be used in conjunction with other federal student aid funds. Before going this route, it is a good idea to complete the Free Application for Federal Student Aid (FAFSA) to see if you first qualify for any federally sponsored funds. Private lenders often charge a higher rate of interest depending on the loan program and your credit score. In addition, repayment on these loan programs may begin immediately. You can look into some of the programs available for college expenses by obtaining more information on a Citibank student loan, Great Lake student loan, Key Bank student loan, or an AES student loan.

Information Needed To Complete The FAFSA

When completing your online application for student financial aid the first time, there are a number of items that you should have available, including:

1. A PIN number assigned by the Department of Education. This acts like your signature verification and allows you to complete the entire process completely online. If this is your first time completing the FAFSA and you don’t have one yet, you can apply for one at the same website and wait to complete your FAFSA until you receive the PIN.

2. Your social security number.

3. Your driver’s license number.

4. Information from your previous year federal tax return.

Determining College Expenses

Each individual college or university determines what the cost of an education at their institution will be for the average student. They take into account more than just tuition and fees but include other costs like books, housing costs, and food. There may also be other educational expenses associated with the overall costs that are also figured in. College expenses are typically different for those students who commute from off-campus housing or live in the residence halls. Additionally, the costs calculated for a graduate student will vary from those identified for undergraduate students. The financial aid package awarded to a student is determined based on the cost of attendance as determined by all of the information provided. Essentially, your financial aid award takes the cost of attendance minus your expected family contribution to determine your financial need.

Maximum Need-Based Student Loan Award Amounts

Students who qualify for federal student loans are sometimes surprised to learn that there is a maximum amount they may be able to receive. This amount is based on their year in school and the amount of student loan debt that have accumulated overall. For undergraduate students, the maximum subsidized Stafford student loan amounts are: $2,625 year one; $3,500 year two; and $5,500 for years three and four. Graduate students may qualify to receive up to $8,500 per year. The overall maximum for an undergraduate student is $23,000 while graduate students can accumulate up to $65,500 in subsidized Stafford Loans.

Entrance And Exit Counseling For Federal Financial Aid

The first time you receive federal financial aid at your college or university, you will be required to complete entrance counseling. In fact, funds will not be disbursed until this counseling is completed. Through this process, you will learn what is involved if you accept federal financial aid. Even though grants are “free money” that you are not required to repay, there are rules involved that you need know. For example, if you drop out of school midway through the term, you may be expected to repay the grant. If you are receiving student loans, expectations on repayment will be explained.