Student Loan Primer - Student Loan Blog by studentlsc.com

Graduate debt free

Students, looking to find a way to graduate debt free?  There are many grants available out there, here is a list of a few federal government options for you to begin researching: 

Remember, grants unlike loans, do not have to be paid back!

• Pell Grants
• Academic Competetiveness Grants
• National Smart Grant
• Federal Supplementary Educational Opportunity Grant
• Institutional Grants

Stay tuned, I’ll explain each of these in detail over the next coming weeks! 

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Does a college education pay?

Even with the rising costs of education, the answer is Absolutely Yes!  The average income for a full time year round worker with four-year college degree was well over $55,000 compared to the worker with a highschool degree who earned on average under $30k per year.  According to the college board, college grads can expect to earn about 73% more than the typical highschool graduate.  Advanced degrees can earn nearly 2-3 times as much!  WOW!  Hit the books, it’s time to start planning for your future!   

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Saving money through student loan consolidation - even after borrower benefits have disappeared!

Here are some tips on making federal student loan consolidation the most beneficial for you:

• Consolidate within your 6 month grace period (which may be coming up if you just graduated in the Spring)
• Extend your term to the maximum length of time allowed.  This type of loan does not work like a mortgage loan, shorter terms do not offer better interest rates.  Plus, there are no early payment penalties so if you choose to pay it off sooner you absolutely can.
• Include all loans, even if you have previously consolidated.  This will help reduce your weighted average interest rate, making your consolidation rate as low as possible.
• If you cannot afford to make payments right now, you can contact your servicers before or after your consolidation and request a deferment or a forbearance.  Whatever you do, don’t let your loans go into default!  It will haunt you and your credit a long time.
• Have all of your loan information ready when you apply.  You can find this information by calling 800.4FEDAID or by clicking onto http://www.nslds.ed.gov/nslds_SA/

If you are interested in learning more about how to save money through consolidation, please feel free to contact us directly at studentlsc@gmail.com or visit us at www.studentlsc.com

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Know your money

Now that we have covered the basics on how to obtain the most amount of financial aid, it’s time to bridge the gap to cover the rest of the tuition.  If you aren’t able to rely on family contribution, it’s good to look into taking out private student loans. 

 I know, I know, Lately there has been a lot of negative press surrounding private student loan lenders on preferred lender lists with the university you may plan on attending.  Don’t worry, a preferred lender list is just a list of suggestions of companies for you to choose from.  Make sure that you are looking into multiple companies to ensure that you are getting the right loan for you.  Here are some good pointers for you to look out for:

• Make sure your new loan does not carry a pre payment penalty (a penalty that the lender charges if you pay your loan off early).
• Only borrow what you need for school expenses.  It’s hard to turn down money, but remember this is a loan and you will have to pay every bit of it back plus interest.
• Know if you are taking out an adjustable or a fixed rate loan.  There are advantages to each, but make sure you are reading the loan terms.
• Ask your lender if you are eligible for special borrower benefits such as a deferment, grace periods, or rate reduction incentives. 
• Private student loans are a great way to help you afford the costs of college, just make sure you are educated on how you go about obtaining the financing. 

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