1. What is a Stafford Student Loan?
The Stafford student loan is the most popular type of student loans provided by the federal government. Both undergraduate and graduate students are eligible for the Stafford loans. The government guarantees the Stafford loans against the default and may pay your interest rates while you at school or during the deferment period – then your federal student loan is subsidized. With unsubsidized student loans all the interests are paid by the student but the payment may be deferred till after the graduation. Stafford student loans are provided in the name of the student.

2. Who is eligible for the Stafford Student loans?

A student who applies for a federal Stafford Student loan must meet the following requirements:
• Be a US citizen or national, a US permanent resident or non-citizen
• Be currently enrolled at a school, college or university or be a half-time student
• Once enrolled, the student must pass all the examinations stated at the curricular with satisfactory results
• Have a valid Social Security Number
• Have a high school diploma or an equivalent of a high school diploma. Otherwise to be eligible the student must: (a) be beyond the age of high school attendance, fixed in your state; (b) pass the test approved by the Department of Education to certify his/her ability to perform at the level needed.
• Male students must have a registration with the Selective Service
• Not have outstanding debts or exceeded limit for federal student loans, do not owe money for federal student grants
• Provide the information stating that you will use the funds borrowed for the educational needs only
• Not to be in prison while the funds are disbursed
• Not perform a medical internship required for certain degrees (medicine, osteopathy, optometry). Students enrolled in other types of internship are eligible for Stafford loans.

1.3. How can I benefit from taking a loan with you?
One of our benefits is absence of origination fees for those who apply for Stafford loans for the current academic year.

1.4. Refinancing the loan
You must start refinancing your federal Stafford loan six months after you graduate or leave school. As a rule, you have about 10 years to refinance your federal student loan not taking into considerations deferment and forbearance periods. In case your total Federal Family Education Loan (FFEL) debt exceeds $30,000 you can extend your repayment period up to 25 years. But there are restrictions about the time when the loan must have been disbursed. Please, contact us to estimate your chances on getting an extension.

1.5. What should I do while applying for a loan?
Once you have money to refinance he loan, you should contact your school financing office in order to get information about the loans available and find out what you can qualify for. The school financing office will also provide you with the information about the student loan application deadlines therefore the sooner you start processing the application the more chancing you have to find the best solutions.

The following steps are performed to process the student loan application:
1. The first thing you should do is to fill out and submit a FAFSA, provided by the Federal Government’s Department of Education. Once you submit the FAFSA you automatically apply for several federal student loans you are eligible for.
2. After the submission you will receive a Student Aid Report (SAR) with Estimated Family Contribution (EFC) included.
3. Your school financial office will provide you with a financial package that may consist of scholarships, grants, Stafford loans or any financial aid programs you qualify for.

If the Stafford Loan is included into the financial package you get it’s time to submit a Stafford Loan Master Promissory Note (MPN).

1.6. How is the student loan interest rate calculated?
The interest rate for your student loan depends on the type of your loan and the time when the student loan was disbursed. The interest rate specified for your particular student loan is valid during the time you are in school, grace, in case you got a deferment and when you pay the student loan back.
Variable federal Stafford loan rates have a cap fixed at 8.25% and are usually higher when you actually refinance the loan than when you are in school or during deferment periods.

1.7. How does refinancing of the student loan work? What are the terms of repayment?
As a rule you must start refinancing within 6 months after you graduate or drop out from school. The minimum amount paid per year is $600 that is $50 per month. You can refinance your loan completely including the interest in one payment. The average refinancing of a student loan takes as long as 10 years not including deferment and forbearance periods.

1.8. Can my refinancing be deferred if I have the unsubsidized Stafford student loan?
Yes, both subsidized and unsubsidized Stafford student loans may be refinanced after the deferment period. However if you start refinancing only after you graduate the interest payments are added to your loan balance and therefore the cost of your loan increases.

1.9. Who chooses the payment due date? Can I change it?
The payment due date is fixed when you apply for a student loan and may not be changed afterwards. You can make payments on whatever day before the due date but not after it.

1.10. Can I make monthly payments that exceed the minimum amount?
Once you have funds to repay your student loan more quickly, you are encouraged to do it as the sooner you refinance your student loan, the less interest amount you are to pay over the life of the student loan.

1.11. Do you charge any penalties for earlier refinancing?
No. We encourage the borrowers to refinance student loans as early as the funds are available to lower down the total amount you pay in interest.

1.12. Are student loan guaranteed?
The federal government guarantees all the federal government student loans including Stafford loans to minimize the risk the lender carries with you thereby your student loans are guaranteed against default. The lender will not suffer losses in case of death of the borrower, disability or bankruptcy and that’s why you are offered more benefits with your federal student loans.

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2.1. What is a PLUS Loan?
The PLUS loan is a federal student loan that is given in the name of the parent of the dependent student currently enrolled at an eligible accredited school, college or university. PLUS loans are very easy to qualify and even those refused other types of federal student loans can get federal PLUS loans. PLUS loans may be given for every your dependent student enrolled at a school, university or college.
PLUS loans are guaranteed by the government but funded by private lenders. As lenders carry a minimum risk with you due to the guarantee against default provided by the federal government PLUS loans offer you a number of benefits. PLUS student loans are administered by the School financial aid office to provide more convenience.

2.2. What is the limit I can borrow with a PLUS loan?
PLUS loans allow you to borrow up to the total cost of your dependent student education.

2.3. What can I include into the educational expenses?
The PLUS loan is designed to cover all the educational expenses you carry unless you get financial aid from other sources. Educational expenses include:

• All the tuition and fees
• Payments for the board and accommodation
• The cost of books, supplies and transportation required by education needs
• Rental or purchase of equipment or other materials essential for educational process
• The expenses aroused in connection with disability or physical impairment
• Study-abroad programs, accredit by your dependent student’s school, college or university, on condition that the program is a part of the course and is necessary to get credits
• Cooperative education or work-study programs
• Origination and guarantee fees

2.4. What requirements should I meet to be eligible for a PLUS loan?
Do you include additional application fees?
No application fees are paid to be eligible for a PLUS loan.
The eligibility requirements are the lowest possible and are regulated by the federal government. You should have a positive credit history to prove your creditworthiness. In case you have an adverse credit history the lender may declare your inability to repay the student loan. Still you may find a cosigner with a good credit score to get a PLUS loan.
You may be ineligible for a PLUS loan in regard to your adverse credit history in case:

• You have a default and have been unable to pay any debt during 90 or more days
• You had a debt cancelled as a result of your bankruptcy during the period of 5 years
• before you apply for a PLUS loan
• You have one of the following marks on your credit history:
• A default determination
• A foreclosure
• A tax lines
• A wage garnishment
• A repossession

However, all the cases above are not taken into consideration if they happened more than 5 years before your submit the application for the student loan
The fees you may be charged with include:

• A three-percent origination fee
• A one-percent default fee

The first one is charged by the Federal Department of Education and the second one is charged by guaranty agencies.

2.5. What requirements should I meet to be eligible for a PLUS loan?
Before applying for a PLUS loan, please read through the list below to estimate your chances to qualify for one:

• Your dependent student must be meet the eligibility requirements %u2013 be currently enrolled in an accredited school, college or university.
• The funds disbursed to you under the PLUS loan must be used to cover solely the educational cost
• You must be a US citizen or national, a US permanent resident or eligible non-citizen
• Must have a valid Social Security Number
• Must not have defaulted federal student loans
• You are considered to have a dependent student in case you are a parent (including the cases when the child is adopted), legal guardian appointed by the court or a step-parent whose income is included into the family assets estimations.
• Do not have property that is to be repossessed in a result of a default loan or any other legal garnishment
• Must not have taken other federal student loans in the amount that exceeds the maximum annual amount stated by the federal government
• Must fulfill other requirements fixed by local government or regulations
• You must provide the correct and fair information while applying for a PLUS loan otherwise you will be denied a student loan
• Must meet the regulations of a Statement of Educational Purpose
• Must comply the guarantor’s requirements
• Must not have borrowed a student loan by a fraud or providing unfair and untruthful information while processing the application or knowingly exceeded the applicable aggregate annual student loan limit

2.6. How is my loan interest rate calculated?
The interest rate of PLUS loans are regulated by the federal government and depend on the time when your student loan is to be disbursed or was disbursed. The current interest rate for federal PLUS student loans are above 8%. For precise updated information please contact your school financial aid office or once you have proved eligibility for a student loan your prospective lender. 2.7. What about the repayment?
The repayment period starts on the date when the last part of the loan was disbursed. The length of time during which you can pay your student loan back depends on the amount borrowed and the interest accrues. The first payment must be made within 60 days after the last disbursement. The average repayment period is about 10 years. The repayments may be made as preplanned or the entire amount of the loan including the interest may be repaid at any time without penalty.

2.8. How long can I refinance my PLUS loan?
The average refinancing period is about 10 years (not including deferment and forbearance periods). You can lengthen your refinancing period and have lower monthly payments however please make sure you understand that the more time it takes you to refinance the more money you pay with interest. You are not charges any penalties if you want to refinance the entire amount borrowed including the interest before the repayment due date.

2.9. How the payment due date may be changed?
The payment due date is established after the application is submitted. Once fixed, the refinancing due date may not be changed but you are not charged any penalties for refinancing your student loan before the due date.

2.10. Can the amounts I pay monthly exceed the fixed monthly payments?
You can pay as much as you can afford unless the sum is lower than the minimum monthly payment. The sooner your repay the student loan, the lower amount in interest you will pay.

2.11. Do you charge penalties for early repayments?
No. PLUS loans may be refinanced before the due date once you can afford early refinancing.

2.12. Can the repayment be deferred till after my dependent student’s graduation?
Yes. You can start refinancing after your dependent student graduates. The deferment is applicable for up to 48 months when the student is at school. But you should reapply every year in case you want to defer your repayment for more than 12 months.

2.13. Are PLUS loans guaranteed?
Yes. All the federal student loans are guaranteed by the government against a default. PLUS student loans are funded by private lenders and guaranteed by the federal government. Once your lender is not to suffer from a default, he will offer you more benefits with your student loan. The lender will not experience any loss in case of the borrower’s death, disability, bankruptcy, or default. In case the borrower’s default is claimed the US Department of education will reimburse the lender the amount borrowed.

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3.1. What is a GRAD PLUS Loan?
Basically, GRAD PLUS loans offer all the features of PLUS loans issued in the name of a parent but are given in case the student is enrolled in a graduation or professional program. With GRAD PLUS loans you can finance the entire amount of educational costs and defer the repayment of your loan till after the graduation. Eligibility requirements for GRAD PLUS loans are lower than standard requirement you need to meet to qualify for other student loans. GRAD PLUS loans are funded by private lenders but are guaranteed by the federal government therefore you can enjoy the benefits of a guaranteed student loan. GRAD PLUS loans are committed to finance a graduate school or professional education.

3.2. What requirements should I meet to be eligible for a PLUS loan? Do you include additional application fees?
No application fees are paid to be eligible for a PLUS loan. The eligibility requirements are the lowest possible and are regulated by the federal government. You should have a positive credit history to prove your creditworthiness. In case you have an adverse credit history the lender may declare your inability to repay the student loan. Still you may find a cosigner with a good credit score to get a PLUS loan. You may be ineligible for a PLUS loan in regard to your adverse credit history in case:

• You have a default and have been unable to pay any debt during 90 or more days
• You had a debt cancelled as a result of your bankruptcy during the period of 5 years before you apply for a PLUS loan
• You have one of the following marks on your credit history:
• A default determination
• A foreclosure
• A tax lines
• A wage garnishment
• A repossession

However, all the cases above are not taken into consideration if they happened more than 5 years before your submit the application for the student loan The fees you may be charged with include:

• A three-percent origination fee
• A one-percent default fee

The first one is charged by the Federal Department of Education and the second one is charged by guaranty agencies.

3.3. What requirements should I meet to be eligible for a GRAD PLUS loan?
Please, familiarize yourself with the list of eligibility requirements:

• The student must fill out the Free Application for Federal Student Aid (FAFSA)
• Must be currently enrolled or be accepted for enrollment in an accredited school or program
• Must be enrolled full-time or half-time
• Must use the funds provided by the loan solely for the educational purposes
• Have a high school diploma or an equivalent of a high school diploma. Otherwise to be eligible the student must: (a) be beyond the age of high school attendance, fixed in your state; (b) pass the test approved by the Department of Education to certify his/her ability to perform at the level needed.
• Male students must have a registration with the Selective Service
• Once enrolled, the student must pass all the examinations stated at the curricular with satisfactory results
• Have a valid Social Security Number
• Not have outstanding debts or exceeded limit for federal student loans, do not owe money for federal student grants
• You must be a US citizen or national, a US permanent resident or eligible non-citizen
• Do not have property that is to be repossessed in a result of a default loan or any other legal garnishment
• Must not have taken other federal student loans in the amount that exceeds the maximum annual amount stated by the federal government
• Must fulfill other requirements fixed by local government or regulations
You must provide the correct and fair information while applying for a PLUS loan otherwise you will be denied a student loan
• Must meet the regulations of a Statement of Educational Purpose
• Must comply the guarantor’s requirements
• Must not have borrowed a student loan by a fraud or providing unfair and untruthful information while processing the application or knowingly exceeded the applicable aggregate annual student loan limit
• Not to be in prison while the funds are disbursed

3.4. How is my loan interest rate calculated?
The interest rate of PLUS loans are regulated by the federal government and depend on the time when your student loan is to be disbursed or was disbursed. The current interest rate for federal PLUS student loans are above 8%. For precise updated information please contact your school financial aid office or once you have proved eligibility for a student loan your prospective lender.

3.5. What about the repayment?
The repayment period starts on the date when the last part of the loan was disbursed. The length of time during which you can pay your student loan back depends on the amount borrowed and the interest accrues. The first payment must be made within 60 days after the last disbursement. The average repayment period is about 10 years. The repayments may be made as preplanned or the entire amount of the loan including the interest may be repaid at any time without penalty.

3.6. How long can I refinance my PLUS loan?
The average refinancing period is about 10 years (not including deferment and forbearance periods). You can lengthen your refinancing period and have lower monthly payments however please make sure you understand that the more time it takes you to refinance the more money you pay with interest. You are not charges any penalties if you want to refinance the entire amount borrowed including the interest before the repayment due date.

3.7. How the payment due date may be changed?
The payment due date is established after the application is submitted. Once fixed, the refinancing due date may not be changed but you are not charged any penalties for refinancing your student loan before the due date.

3.8. Can the amounts I pay monthly exceed the fixed monthly payments?
You can pay as much as you can afford unless the sum is lower than the minimum monthly payment. The sooner your repay the student loan, the lower amount in interest you will pay.

3.9. Do you charge penalties for early repayments?
No. PLUS loans may be refinanced before the due date once you can afford early refinancing.

3.10. Can the repayment be deferred till after my dependent student’s graduation?
Yes. You can start refinancing after your dependent student graduates. The deferment is applicable for up to 48 months when the student is at school. But you should reapply every year in case you want to defer your repayment for more than 12 months.

3.11. Are PLUS loans guaranteed?
Yes. All the federal student loans are guaranteed by the government against a default. PLUS student loans are funded by private lenders and guaranteed by the federal government. Once your lender is not to suffer from a default, he will offer you more benefits with your student loan. The lender will not experience any loss in case of the borrower’s death, disability, bankruptcy, or default. In case the borrower’s default is claimed the US Department of education will reimburse the lender the amount borrowed.

Read more...