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How Does Student Loans Debt Settlement Work?

What is Debt Settlement?

Debt settlement or debt negotiation is type of service which is intended to help relief from unsecured loans debt or credit card debt by reducing the total amount of unsecured debt. Usually, outstanding debt can be reduced 40-60% of the original balance. Debt settlement is an alternative to bankruptcy.  When you find out that you are unable to meet your financial obligations and you are persistently falling behind your monthly payments, it is time to try to negotiate a debt settlement. In a debt settlement negotiation agreement, lenders agree to accept a payment that is less than total balance of the debt but it’s considered payment in total. The total amount includes all the fees and interest. The debt than will be erased. This can be done via one lump sum payment or interest-free monthly payments. You can contact creditors yourself or you can hire professional negotiators to do a debt settlement work on your behalf. To decide if the debt settlement is the best option for you, you should consider your budget and obligations and deliberate your ability to access money before you decide what monthly payments you can afford to make.

Student Loan Debt Negotiation

Student loan debt settlement is a balance negotiation on your defaulted student loan debt. If your student loan is in default it means that you have missed to make your loan payments for period of time; default usually comes after 270 days of failure to repay your federal student loans. Settlement agreement will become formal after the US Department of Education and the collection agencies accept it.

How to Pay?

To negotiate your defaulted student loan debts settlement, you must be able to make a lump sum payment to bay back most of the loan balance. The Department of Education will entail you to bay back the full sum of the settlement amount within a fiscal year. Such a compromise settlement offer will typically require you to pay the settlement amount in total within 90 days of the date the settlement offer was made. Rarely, the Department of Education allows borrower to pay back the part of the settlement amount through monthly payments, but these payments will generally be paid within one fiscal year.

The Debt Settlement Amount

Department of Education will probably accept a reduced payment for the complete satisfaction of your outstanding student loan balance. The intention of the settlement is to offer students that have defaulted loans a solution to satisfy their outstanding student loan balance.  If you are not able to satisfy the loan balance completely, the collection agency or the Department of Education should be willing to offer this student loan settlement. It is unlikely that the Department of Education is going to offer student loan debts settlement that is less than the current recovery rate. The recovery rate is the percentage of disbursements on defaulted student loans that are recovered and includes interest and penalties in addition to the payments to the principal balance.

Types of Settlement

In some cases, the US Department of Education allows private collection agencies to make student loan debt settlements without previous Department’s approval. To get allowed your debt settlement you must agree to one of the three typical types of settlement:

  • The first settlement type satisfies only the principal and accrued owing interest.
  • Second settlement type satisfies the principal amount plus 50% of the accrued but unpaid interest.
  • The third type of settlement satisfies 90% of the current principal and interest balance.

If you offer less than these usual compromises, the collection agency will need to get approval for debt settlement from the Department of Education.

Debt Settlement Pros and Cons

The positive side of student loan debt settlement may include some of the following:

  • You will pay back amount that is the same as the original student loan amount you have borrowed;
  • You’ll be free of the stress that accompanies this uncomfortable financial situation;
  • You will be able to receive additional Federal financial aid for students;
  • Administrative wage garnishment will end and your tax return and other benefits wouldn’t longer be seized.

However, student loan debt settlement has some downsides and here are some of them:

  • You should go for the debt settlement only if you already have a poor credit history. If not, your credit score will be damaged for a period of time;
  • Another negative aspect of student loan debt settlement is that while you are paying the settlement company, most of them won’t inform you how much exactly of your monthly payments is going to your debts and how much is actually being deduced as their fee.

Ensure that you get all the terms of student loan debt agreement in writing and make sure that you understand what you are signing and what the company is willing to do to settle your loan debt.

How to Qualify for Student Loan Debt Settlement?

  • Debt negotiation is available on FFEL loans, Direct student loans, Federal Perkins loans and Pell grants of any balance.
  • You must satisfy the payment within the approved time frame, which is 90 days from settlement approval 9 (in exceptional cases this time frame can be extended).
  • Student loan debt settlements should be paid by a certified method of payment such as money orders, credit cards or cashier’s check.
  • Make sure to write a good debt settlement letter – this will help you negotiate your debts.

Debt Consolidation Student Loans

If you have a several student loan debts you may opt to consolidate your debts which means that you can take out a loan to repay other debts. This allows you to consolidate the money you owe into only one payment.

Debt Settlement in Canada

In Canada, it is possibly to negotiate lump sum settlements on unsecured consumer debt such as credit cards, personal loans, lines of credit, and utilities (telephone bills, cable, Internet, and cell phone).

Debt settlement might be right option for you if you meet the following conditions:

  • If you are solvent;
  • If you have income or the other way to access to money;
  • If you have more than $10,000 in unsecured debt.

In case you are insolvent, which means that you cannot pay your bills when they are due, only available options are a consumer proposal and personal bankruptcy. However, if you have provincial student loan debt you might be able to negotiate a settlement on it. You can negotiate with the original student loan lender such as Canada Student Loans to pay a cash lump sum that is identical to a large portion of your defaulted loan balance.

Provincial governments in Canada have their own programs to help borrowers make their provincial student loans repayment more convenient, such as revision of repayment terms, interest relief, debt reduction in repayment and the Repayment Assistance Program (RAP) offered by Canadian government.

Other available options you should consider if you have difficulty paying back your student loans are different flexible student loan repayment options and a student loan forgiveness program offered by the federal government planned to help a selected group of college graduates to pay back their student loans.

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Can You Get Student Loans Without a Cosigner?

The majority of students today use some sort of financial aid to pay for their higher education. There is a large number of private student loans available for college students and they are suitable option of financial aid in some cases. They can have unlimited loan amount and can cover up to the total cost of your education. But, private student loans are credit-based and since most of the students don’t have established credit history at the moment of application, this type of student loans requires you to have a cosigner on your application. Private student loan without cosigner is almost impossible to get if you don’t have credit history or have a bad one. No private lender will approve you in case you have bad credit or no credit history and this is why you’ll need a cosigner when you apply for private student loan. You can apply for private student loan with no cosigner only in case you are working and have a good credit score. Applying with a creditworthy cosigner will significantly increase your chances of being approved and can speed up the applying process and private loan approval. It will also help you be eligible for the lowest interest rates offered because the most of private loan lenders will calculate your loan rate according to your credit situation (in this case the credit situation of your cosigner).

Note: You should be cautious when you are offered private student loan without cosigner, since there are many no-cosigner lenders who offer no credit check loan but actually offer some type of personal loan or even a payday loan. Given to their terms and interest rates, these types of loans are not appropriate for students and you should stay away from them if possible.

Federal Student Loans

Although some may argue that the application process for private loans is more simply and there is no limit on the loan amount you can get, the first option that should be considered when applying for financial assistance is aid provided by federal government. There is a wide variety of federal financial aid options for students available and they are based on other factors than credit history and can be obtained with no cosigner. You can get federal student loan or some other type of federal student financial aid like scholarships or grants regardless of you have bad credit or even have no credit history at all. Some other eligibility requirements must be satisfied, though, if you plan to apply for student loans funded by U.S. federal government’s Department of Education.

Financial Need – How to Demonstrate It?

Most federal student loans are based on the borrowers’ financial need. To find out can you claim financial need, you should subtract the amount of Expected Family Contribution (EFC) from Cost of Attendance (COA).

Expected Family Contribution or EFC is based on family income: the lower your family’s income is, the lower will be your EFC and the higher your financial need will be. EFC is used as an indicator of your family’s ability to finance your education-related expenses. Other factors that have effect on EFC are the following: number of family members; size of your household; whether you are still dependent child or not; the number of family members attending post-secondary institutions. Your EFC will be calculated after you fill out the FAFSA and will be reported to you via your SAR (Student Aid Report). Once you have become eligible for federal financial aid, you will be able to acquire student loans without cosigner.

Stafford and Perkins Student Loans

There are two federal student loan options offered to students who can demonstrate the appropriate level of financial need. These two include Perkins Loan and Subsidized Stafford Loan. The other type of Stafford Loan, Unsubsidized Stafford Loan is not based on financial need and you can obtain it regardless of your financial need.

Stafford Loans are available at most schools in the U.S.A. that participate in the federal financial aid program, while Perkins Loan is only available at selected schools in the country. Perkins Loan is strongly based on financial need and only you can apply for this type of federal loan if you can demonstrate the highest level of financial need.

The Subsidized and unsubsidized Stafford Loans are offered directly by the Department of Education, and no longer from private lenders as a part of the FFEL Program (as from introduction of Student Aid and Fiscal Responsibility Act of 2010). The subsidized type of Stafford Loan will not accrue interest while you are in school, while the unsubsidized version will. Both versions of Stafford Loan have fixed interest rate.

If you apply for private student loans, your credit score is going to be used by the loan lenders to determine do you qualify for private student loan. Nearly all of private loan lenders offer loans based on borrower income and credit score and if those conditions are not met, it is very difficult to find a private loan lender that will approve the loan application. However, if you meet the requirements for federal financial aid offered by the U.S. government, you can obtain student loans regardless of your credit history and with no cosigner needed. These are the loans that you should take advantage of before you look into applying for private student loans. By submitting the FAFSA by the deadline (Jun 30th for upcoming school year) you can make yourself eligible for federal loans with no difficulty.

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The Most Popular Student Loan Options Today

The Best Student Loans Overview

Due to a wide variety of student loans available, higher education is accessible to a large number of people today. No matter if you are just at the beginning of your post-secondary education or you are returning to college to upgrade your degree, you can choose one of numerous options of financial aid offered to college students. Maybe you are a parent who is looking for financial assistance in paying for child’s education; there are some affordable loan options that you can opt for too. The loans for students and parents are available from the U.S. federal government, Department of Education as well as from a large number of private student loan lenders. The application process for student loans is very simple and easy and it can be completed online. It takes only a few steps and the first and most important is to complete the online FAFSA application (FAFSA stands for Free Application for Federal Student Aid). In addition to easy application procedure, you also have the opportunity to compare different student loan alternatives and their rates online, to make your payments when you start paying off your loans and to have approach to your account at any time.

There is a great deal of information on best student loans available today and it is important to carefully read all about existing loans so that you can choose the best financial aid option for you. Here are some of the most wanted federal and private student loan options available for paying for higher education today.

Federal Student Loans

Given the fact that student loans provided by the U.G. federal government are not based on your credit score, which means that they do not require you to have a cosigner, a job or any kind of regular income to qualify, they are very popular among students. In addition, many of federal student loans are based on student’s financial need, they offer six months grace period after student lefts school and they have different flexible repayment alternatives and low fixed interest rates. Different from private student loans, federal loans have limited loan amounts.

Eligibility Requirements

To qualify for this type of federal financial aid, you must be enrolled at least half-time at post-secondary educational institution that participates in Federal Family Education Loan Program, you must be a U.S. citizen or permanent resident and must proof financial need.

Types of Federal Student Loans

Federal student loans include: Subsidized Stafford Loans, Unsubsidized Stafford Loans, Perkins Loans and Direct PLUS Loans. There is also the Student Loans Consolidation option available.

Subsidized Stafford Loans

Subsidized Loans which are offered to students in economic need, and their interest is subsidized while you are in school which means that they come without charge of interest during the time you are enrolled in school and during grace period and authorized deferment periods.

Unsubsidized Stafford Loans

Unsubsidized Loans are not based on your financial need. You can opt for alternative of paying the interest while you are still in college or university as well as during grace period and deferment period or you can decide to agree for the interest to be added to the main amount of your loan. Keep in mind that with this option the total loan amount you have to pay back will be higher.

Direct PLUS Loans

Direct PLUS loans are available for parents of dependant students under 24 years of age who are either the U.S. citizens or permanent residents. In addition, parent needs to be the biological or adoptive parent of the student and the student must attend an educational institution participating in the Direct Loan Program at least on half-time basis.

Student Loans Consolidation

In case you find it hard at some point to pay back your different student loans, you can apply for student loans consolidation option that allows you to take one loan instead of several others (to consolidate multiple loans into one) and make one monthly payment instead of  numerous payments.

Application Procedure

After you collect other required documentation you have to fill out the FAFSA which is the universal application for all types of federal financial aid for college students.

Private Student Loans

The main characteristics of private student loans are that they are based on the borrower’s credit score, they are provided by different private lenders like banks or organizations and you can apply direct via lender’s application, they have various interest rates and limited repayment benefits and they have unlimited loan amounts available. Private student loans are a suitable option in case you have exhausted other loan options or if you do not qualify for federal loans. To be eligible for private student loans you have to be enrolled in school that participates in FFELP at least at half-time basis and you must be a U.S. citizen or permanent resident.

Some of the most popular private student loans include Sallie Mae, Wells Fargo and AES student loans.

Sallie Mae

Sallie Mae or SLM Corporation is one of the largest student loan lenders in the U.S.A. with different loans alternatives offered to undergraduate, graduate and professional students. The most popular Sallie Mae loan options include Smart Option Student Loan (for undergraduate and graduate students), Career Training Smart Option Student Loan (for undergraduate students), residency and Relocation Loans and Bar Study Loan (for graduate students).

Wells Fargo

Besides loans Wells Fargo Company offers investment, banking, mortgage, insurance and other consumer financial options. The main benefit of borrowing from Wells Fargo is that interest rates on your loan will be reduced if you make regular payments and there are no charges applied for application, origination and loan repayment.

AES Student Loans

AES provides management services for both federal and private loans, such as Federal Stafford Loans, Parent Plus and Graduate Plus loans.

Other types of financial aid available today include scholarships and grants for college students.

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Student Loans in Default Consequences and Tips to Get Out

With the rising cost of college tuition along with lowering job prospects, it isn’t surprising that more and more people have difficulty paying off their student loans. There has been a marked increase in student loans in default since 2008 and the figures of defaulted student loans have risen for more than $80,000 from last year.

Delinquency and default

Failure in making your loan payments when they are due leads into delinquency. A delinquency period starts on the first day after you miss to make your loan payment. During the first 15 days you will receive at least one collection letter or written notice from your loan lender. After your student loans have been in delinquency for nine months (270 days), your loan holder will declare your loans in default (for the largest portion of private student loans this period is three months). In case you have trouble in making payments, it is strongly advised to contact your lenders as soon as possible, as they may have some special “default aversion” programs to help you during delinquency or you can negotiate with them to postpone your payments to help you find the solution for the problem. The most important thing is to contact your loan holder as soon as you receive their notice. Avoiding doing this can lead into deeper financial troubles and some of the student loans in default consequences are the following:

  • Damaged credit record
  • Cancellation of Federal Student Financial Aid eligibility
  • Restriction of Federal benefits like Social Security retirement benefits and Social Security disability benefits, but not Supplemental Security Income
  • Garnishments of your wages (up to 15% of your income)
  • Cancellation of certain repayment benefits
  • Extra fees and interest that are added to the original loan amount
  • Possibility of going to court
  • Cutting off of Tax Return
  • Loss of professional license.

Federal Student Loans in Default

Federal student loans offered by the US Department of Education such as Stafford Loans, Perkins Loans or PLUS Loans provide up to nine months grace period after graduation which is intended to help you find job or some other source of financing to begin repaying your student loans. In addition, federal student loans offer various repayment plans that are designated to meet different needs of the borrowers as well as student loan consolidation option. However, there is a large number of Federal student loans in default. After you have defaulted on your Federal student loan, the government goes for your wages garnishment without the court order and can independently take up to 15% of your paycheck because Federal student loans are not discharged in bankruptcy proceedings (except in limited circumstances).

Federal student Loans – Getting Out of Default

There are a few things that you can do to get yourself out of default. You have the option to:

  • consolidate your loans
  • rehabilitate your loans or
  • renew your loan eligibility.

Federal Student Loans Consolidation

Student loans consolidation option allows you to replace several loans like Stafford Loans, Perkins Loans or PLUS Loans with just one and to repay all loans with this one at lower interest rates and for extended period of time. Once you consolidate your loans your loan will be out of default. In addition, you will be able to get income sensitive repayment plans, you will no longer get collection calls, you will be eligible for deferments and forbearance, and you will be eligible for new loans.

Student Loans Rehabilitation

Rehabilitation can call off negative consequences of student loans in default. This program involves several steps. First, an officer from default Collections will arrange a monthly repayment plan for you and you will have to agree with the monthly payment sum required to participate in rehabilitation program. You have to make at least nine on-time loan repayments to qualify. After completing of rehabilitation agreement, the underwriter transfers the loan to the loan servicer and your loan is considered to be out default. Furthermore, you will be able to apply for deferment and forbearance as long as these haven’t been exhausted during the period your loan was in default.

Renewing Student Loans Eligibility

You can apply for new loans even though you are in default, but you have to work up your default status before that. First thing you should to is to call your loan lender and make a repayment agreement. After that you must keep up with payments and after six consecutive monthly payments you will reestablish your eligibility and be able to receive new student loans and grants.

Note: You must apply for any of these options to happen.

Private Student Loans in Default

With private student loans you do not have the advantage of a nine months period in case you miss payments on your private student loan. You should bear into mind that if you are a private student loan borrower, your loan will usually go into default as soon as you miss the payment, although some private loan lenders offer three months period before declaring your loan defaulted. This default period will be outlined in your loan contract. Therefore, you should carefully review your private student loan contract to learn what are your rights and obligations related to the loan. For the wage garnishment in case of private student loans, the lender must get a court order and the rules governing this sort of garnishment vary from state to state.

Private Student Loans – Getting Out of Default

There are fewer options for getting out of default for private loan borrowers like Sallie Mae or Wells Fargo than for people who have default on their federal loans. One of available alternatives is forbearance, which means that the borrower only has to make interest payments for a period of time approved by the lender. Although this may provide some temporary relief, it actually increases the sum you have to pay back, since the principal remains the same and the interest continues to accrue.

Being into default does not have necessarily negatively to affect your finances, career or life. All you have to is not to panic but to take the first steps in the direction toward solution of your problem. Contact your loan servicer and ask for assistance. Loan forbearance, consolidation or rehabilitation program may help you to get out of default.

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Information on Nelnet Student Loans

Nelnet student loans are one of the numerous U.S. private student loans. Nelnet works together with the Department of Education, helping college students to pay to their tuition and other education-related expenses and to achieve their educational goals. Nelnet has favorable and simple terms and application conditions and are among the most popular private student loans because of their low interest rates.

Nelnet Student Loan Servicer

You can borrow your student loan directly from the Nelnet, but they also provide customer service for other lender’s loans, including student loans issued by the Department of Education. Nelnet provides customer service on your account if: you borrowed money directly from them, if Nelnet services your Direct Federal student loan borrowed from the Department of Education, your lender selected Nelnet to service your loan, sold out your loan to the Department and selected Nelnet to service the loan or in case your lender sold your loan to Nelnet and Nelnet is now the owner and servicer of the loan.

Nelnet Student Loans Eligibility Requirements

To qualify for Nelnet student loans, you must meet the following eligibility requirements:

  • You must be enrolled in an eligible school at least on half-time basis;
  • You have to apply with the creditworthy cosigner;
  • You as a borrower, as well as the cosigner must be at least 18 years old;
  • You must be a U.S. citizen;
  • You should not have any of your student loans into default and no bankruptcies for the previous 7 years.

Nelnet Student Loans Benefits

The main advantages of this private student loan option are favorable borrowing terms and conditions. Furthermore, applying with a co-borrower may increase your chances of getting the loan and help you to save some money. In addition, Nelnet offers the loan consolidation program which allows you to replace multiple student loans with just one and to make one singly payment a month which will decrease your monthly repayments.

How to Apply

To qualify for Nelnet Student loans you will have apply by to filling out the FAFSA (Free Application for Federal Student Aid) application. You will need to file in a new FAFSA after January 1 each year you go to school.

Nelnet Student Loan Stages

During your student loan’s life, from the time you take it out to the time you pay it back, there are generally three stages: in school period, grace period and loan repayment period. Borrowers of the Federal Stafford Loans typically go through these three stages. Borrowers of other student loan options such as parent PLUS loans or GradPLUS loans for graduate and professional students have somewhat different experiences.

However, your school will work directly with Nelnet to make sure your lender knows which stage you are in. Your servicer will be in touch with you and communicate based on your needs at that time. To help you understand the student loan life process, there is an overview of the stages of the student loan life cycle below.

Federal Stafford Loan Stages

In School Period

No payments are required during your period in school, as long as you are enrolled att least half time, which could take two to four years.

Grace Period

After leaving school, you’ll be provided six months grace period. This period is intended to help you get ready to make your student loan repayment, by finding a job or fit the loan payment in your budget in other way.

Repayment Period

Repayment period can take one to twenty years. In general, Stafford and PLUS loans must be paid off within 10 years from the start of loan repayment. Nevertheless, a grace period, periods of postponing your payments due to deferment or forbearance, and  time  when the payments weren’t due (while you were in school)  will not count toward the 10-year repayment term. You may extend the repayment term if you meet the requirements for the Extended Repayment plan, Income-Based Repayment plan, or Income Contingent Repayment plan. On a consolidation loan, the repayment period may extend up to 30 years depending on the initial balance of the loan.

Federal GradPLUS Loans

Federal GradPLUS loans are loans for graduate and professional students. There are no payments required while you are enrolled in school at least half time, but you can make early payments if you like, there is no early payment penalty. Also, you’ll enjoy six months deferment period after you graduate or drop below half-time student status (for GradPLUS loans loan postponement is called a six-month deferment, not grace period). You’ll receive your monthly student loan billing statement about three weeks before your payment is due. When you start making payments, your Nelnet student loan is considered to be in repayment.

Federal PLUS Loans for Parents

Federal PLUS student loans are designated to parents of dependent students to help them with their child’s education costs. PLUS loans are typically disbursed in groups of funds directly to the school, usually in two installments, half during a fall semester and the other half during spring semester.

At the earliest, your first PLUS loan payment would be due 60 days after the school receives the last set of funds. Although Federal PLUS Loans don’t have a grace period, you can postpone payments while you or your student is in school—but note that the loan will continue to accrue interest. Nelnet servicer is going to send your monthly student loan billing statement about three weeks before your loan payment is due. When you start making payments, your loan is considered to be in repayment.

Nelnet Student Loans Forgiveness Options

Teacher Loan Forgiveness Program

Nelnet student loans offer loan cancellation option for teachers for Federal Stafford loan borrowers with the intention to support growth of the teaching profession. You can qualify for this loan forgiveness opportunity if you teach full-time for at least five consecutive academic years in so called low-income schools that serve low-income families. You may qualify for up to $17,000 of student loan with this loan cancellation option.

Public Service Loan Forgiveness (PSLF)

If you work in public service, you may be eligible for cancellation of your remaining federal student loan balance after making qualified 120 payments made under the Income-Based Repayment Plan, Income-Contingent Repayment Plan, or the Standard Repayment Plan. Eligible loans for this forgiveness option include Direct Stafford Loans (subsidized and unsubsidized), Direct PLUS Loans (for parents and graduate or professional students), and Direct Consolidation Loans.

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Guide to CitiBank Student Loans – What You Should Know

CitiBank private student loans are one of the best student loan alternatives available for college students and their parents. CitiBank student loans include CitiAssist ® Loans which are provided to undergraduate and graduate students and cover all college costs. There is also CitiBank student loan for law students and Health Professions Loan available.

CitiBank Student Loans Benefits

CitiBank private student loans are very popular among students and their parents because of their favorable borrowing conditions, such as the following:

  • Low interest rates with interest rate reduction of 2% for on-time online payments,
  • No application fees or early payment penalties apply,
  • No repayment while student is in school,
  • Citibank student loans can be utilized at almost any accredited college in the U.S.A.,
  • There is a deferment option available.

CitiBank Loans for Undergraduate Students

CitiAssist ® Loans are the best choice if you need assistance paying for your educational costs which are not covered by other types of student financial aid like federal student loans or college scholarships and grants. CitiAssist ® provides a competitive interest rate, flexible repayment term, and no required payments while in school.

CitiAssist ® Advantages

CitiAssist ® student loan for undergraduate students is designed for students who are enrolled in school at least half-time. It can be used to pay for tuition, books, or other school-related expenses when other sorts of financial aid fall short.

Undergraduate Students can benefit from this private student loan in several ways. Firstly, CitiAssist® Loans cover all college expenses and allow students to borrow up to $120,000 with the repayment time of 15 years. Secondly, you will be able to receive a 0.25% interest rate reduction when you enroll in CitiAssist ® auto-debit payment program. Furthermore, no payment is required while in school and during grace period. There is a grace period of six months after you finish the school.You can choose to interest while in school; there is no prepaying penalty. Note that any not paid interest will be capitalized to your principal loan balance when repayment begins.

With CitiAssist® student loans you can also take an advantage of safe and easy application process, handy online account management which helps you track your loan application, update your contact info or view disbursement information easily online.

CitiAssist ® Loan for Graduate Students

In case you are a graduate student enrolled in a graduate program at least half-time, then this private student loan may be the right for you. It offers a favorable interest rate, generous repayment conditions and no required payments while you are in school.  CitiAssist ® loans for graduate students offer a borrowing limit of $150,000 and a 20 yeas repayment period.

Their main benefits include:

  • Covering all of your college costs; you can borrow up to full cost of your education minus any other financial aid received,
  • 0.25% interest rate reduction when you enroll in CitiAssist ® auto-debit payment program,
  • No payment is required during your time in school and the grace period,
  • You can choose to interest while in school – there is no prepaying penalty,
  • Secure and easy application process, handy online account management helps access and manage your account easily online.

Application with Cosigner

Most of the undergraduate and graduate students need to apply with a creditworthy cosigner in order to meet the eligibility criteria for this student loan option. Applying with a cosigner usually increase borrower’s chances of application approval and helps in getting a lower interest rate. Applying with a creditworthy cosigner typically will increase your chances of application approval and will help you to get a lower interest rate.

Loan Limits

  • For each CitiAssist ® Loan a minimum loan amount of $1,000 is required,
  • The increasing amount you can borrow throughout your college is up to $150,000; this includes all other types of student loans.
  • Your school will be asked to certify or verify the amount for which you qualify which means that the final approved loan amount could be less than the amount that you requested.

Eligibility Requirements

To qualify for CitiBank private student loans, you must meet certain eligibility requirements:

  • You must be enrolled at least half-time in a graduate program at an eligible school,
  • You must be looking for a degree, no certificate programs,
  • You must be making acceptable academic progress, as defined by school,
  • You must be at least 18 years of age, 19 in Alabama and Nebraska, and 21 in Mississippi and Puerto Rico at time of loan application,
  • You must successfully pass a credit check.

For CitiAssist Loans, the interest rate charged is based on the your credit scores and other factors. You may apply for CitiAssist ® loan on your own. Nevertheless, if you do not have an established credit history you may apply with a qualified cosigner to increase your chances for approval and potentially receive a lower interest rate. International borrowers are always required to apply with a U.S. citizen or permanent resident cosigner.

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Exploring AES Student Loans – What You Should Know

About AES Student Loans

American Education Service or AES is a loan servicing company that provides student loans to students or their parents to assist them in financing college education. AES student loans are offered by the U.S. government through the Federal Family Education Loan Program (FFELP). To be able to use services offered by AES, you have to register online and after that you can take advantage of their numerous helpful alternatives that include: loan repayment, account administration, options for the loan deferment and various additional tools. With convenient online applications, AES makes the complicated process of student financial aid management easy. AES offers management services for both federal and private loans, such as Federal Stafford Loans, Parent Plus and Graduate Plus.

Eligibility Requirements

To qualify for AES student loans, an applicant needs to be a US citizen or eligible non-citizen. Furthermore, the borrower must be enrolled in school that participates in the FFELP at least at half-time basis and he must not have previous education loans. Students whose loans are into default are not eligible.

To get one of the loans through AES, you have to fill out the FAFSA (free Application for Federal Student Aid).

AES Student Loans Benefits

The main benefit of AES student loans is that it makes the complicated process of applying for student financial aid and private student loans more convenient for students and their families.  All affordable types of student loans can be obtained through the online applications of AES. AES assists in the whole borrowing procedure, from loan application to loan guarantee, from choosing loan repayment schedules and repayment modes to actual loan payment.

Secondly, the interest rates are low and vary from 5.6% to 8.5%, depending on a loan option. In addition, there is a six-month grace period offered. Also, there is no penalty for early paying off a loan early.

Additional advantage is the ability to administer the whole user account. It’s valuable option because it’s simple. For instance, when a client logs in, he or she is able to see the overview of an account, she can make payments or read important notification. He could also keep informed about your loan details, view loan rates and check the loan balance.

Ways to pay AES loans and Repayment Options

There are different ways of paying off your AES student loan available, and the following three are the most common: direct debit, internet payments and check payments.

Direct Debit

Direct debit is the most convenient way to make your student loan payments. Automatic electronic transactions imply your payment is always on time, so you don’t have to worry each month would you make your payments on time.

Internet Payments

You can authorize a one-time electronic loan payment to your account. You can do this by using your account numbers and your banking institution’s routing number.
You should note that this is a one-time payment; using it does not authorize an electronic payment every month.

Check Payments

You can choose to mail your check or money order to AES’ payment servicing center. Be sure that you include your AES account number on your check.

There are also five different repayment plan offered for federal student loans borrowers.

Federal Loan Repayment Options

Repayment plans for federal student loan borrowers include: Level Plan, Graduated Repayment Plan, Income-Sensitive, Income-Based (IBR) and 25-Year Extended loan repayment.

  • Level Repayment Plan – This plan allows you to make smaller monthly payments and the monthly repayment amount remains the same throughout repayment period.
  • Graduated Repayment Plan – the monthly payment is usually interest-only for a certain time and it varies during the repayment period.
  • Income-sensitive Repayment Plan – The monthly installment is based on borrower’s monthly gross income and student loan debt.
  • IBR Plan – The monthly repayment is based on borrower’s monthly income and its family size. IBR helps borrowers who may be experiencing financial hardship to deal with their monthly payments.

Teacher Loan Forgiveness and Discharge

ABS student loans provide partly or full loan forgiveness options for teachers who have been working for at least five consecutive academic years on full-time basis in low-income schools.

There is also a loan discharge option available. You may qualify for discharge if your school is: closed; have signed your name without your authorization; failed to pay a tuition refund or untruly certified your ability to benefit from education.

Student Loans without Cosigner

AES student loans offer a no cosigner student loan option. Student Loans without Cosigner alternative is available for students who have an established credit record and a good credit history.

It is unusual for students to be eligible for private student loans without a cosigner, since most students lack a good credit score or have no credit history, but there are few ways for students to find a private student no cosigner loan options, so in case you have established your credit record and have a good credit score, you can try to get a no cosigner student loan.

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Chase Student Loans – What You Should Know

About Chase Student Loans

Chase Select is a private student loan program offered to undergraduate, graduate and graduate students who are going to gain career in health occupations. This student loan option is a great alternative for students who have exhausted other types of student financial aid like federal loans or college grants and or need extra money to cover their educational expenses. However, students are strongly encouraged to try to obtain federal student loans, grants or other sort of student financial aid first.

Chase Private Student Loans are provided by the JPMorgan Chase Bank, N.A., commonly known as Chase Bank. It is one of the leading commercial consumer banks of the United States. Chase student loans include different financial aid plans. Students can obtain financial aid alternatives such as Graduate Student Loans, College Student Loans, Parents Students Loans and even High School Student Loans. In addition, Chase Student Loans include Medical School & Health Education Loans offered to students who plan to enter the healthcare sector after graduation.

How to Apply for a Chase Student Loan

In order to apply for this student loan opportunity, first you have to complete and submit the FAFSA application for student aid, which will help the loan provider to evaluate your eligibility for this type of financial aid. The FAFSA or Free Application for Student Aid can be filled out online, on the Department of Education’s website. In addition, you will be asked to provide documentation related to your educational plans, current assets and your tax returns. Upon receiving your application the issuing authority will assess your capability to provide guarantee and your long term potential in returning the loan. It is not required to have a cosigner on your application; though having one can get the process of approval faster and may even get you a better interest rate.

Benefits of Chase Student Loans

The most important advantage of this type of student loans is that no repayment is required while you are still in school. You don’t have to return the amount borrowed while you are pursuing your education. Furthermore, these loan programs don’t call for any origination or repayment fees. They are also up to the cost of your studying plan, as certified by the school. Chase Student Loans are paid to your school directly.

Repayment Options

Chase Select student Loans Offer three repayment options: Immediate Repayment, Interest-Only Repayment and Deferred Repayment.

  • Immediate Repayment Plan –  Under this plan you have to make payments of principal and interest while in school, which may be beneficial in the terms of savings- it gives you the most savings when compared to other repayment options.
  • Interest-Only repayment Plan – You can choose to make interest-only payments while in school, which can save you money because it will help you to avoid having all the interest accrued on your loan balance (capitalized interest).
  • Deferred Repayment Plan – This plan is good for those who cannot afford to make payments while in school, you can opt to make no payments while in school. The main drawback of this repayment option is that it will increase the total cost of the loan, as compared to other repayment alternatives.

Applying with a Cosigner

Despite the fact that providing a cosigner is not necessary in order to apply for Chase student Loans, a creditworthy cosigner may increase the chances of approval, make the approval process faster and even help you get a better interest rate. The borrower must meet Chase’s minimum credit criteria and additional established cosigner release eligibility requirements at the time of the request for cosigner release.

Advice

Even if you opt for the deferred repayment alternative, making even small monthly payments while you are still in school will reduce the overall cost of your student loan and also can help you to graduate with less student loan debt. There are no early payment penalties, so you should consider making smaller payments before graduation.

Important Note

Effective July 1, 2012, Chase Select Student Loans will be available exclusively to Chase customers and employees. It will be required that either student borrower or cosigner are a Chase customer with a qualifying account or loan relationship, or be a Chase employee.

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Guide to ACS Student Loans and Things to Consider

About ACS Student Loans and Application Process

There are numerous student financial aid options available for college and university students in the USA and millions of students every year apply for student loans, grants or other types of financial support. If you are student looking for the best private student loan option for you, then you should consider applying with ACS Student Loans which can help you to find the suitable loan plan for you in order to pay your educational related expenses in the easiest way.

Affiliated Computer Services or abbreviated ACS is in essence an online financial assistance service that can catch potential borrowers (students) with the most appropriate lenders (e.g. the US Department of Education) for their particular financial need connected to their education. It is a company with more than 20 years of experience providing information technology services.

ACS has extensive experience in providing assistance to student loan borrowers through numerous government and private student loan programs. ACS clients comprise government, private lenders and institutions of higher education and they provide support to more than 450,000 college and university students. Applying for student loan with ACS is very secure way to obtain a student financial aid, since they have rigorous student loan scam prevention measures.

When you apply for the educational loan and after your student loan application is approved by the federal government or the private loan lender, it is obvious that you will have to pay off your loan after a period of time. ACS student loans are of assistance in repaying process by providing access to their online tools. In fact, one of the most advantageous features of a borrowing ACS is the online application that is available to students through their user friendly website. Borrower can view his or her loan details online, make payments online, and numerous other things that can be done in the most convenient way.

Online Payments

One of the most beneficial functions available for ACS users is ExpressPay system which is purposely created for making online payments and it is very easy to use. After creating your account you just have to log in and you can easily make online payments.

Notification

Notification is another useful feature. ACS will let you know when the time is to start paying off your student loan which will ensure that you start your repayments on time.

Deferment Assistant

ACS developed Deferment Assistant program to make the repayment process easier and to prevent going your student loan into default. This is confidential and secure service and it enables you to apply online for deferments and learn in reasonable period of time whether you qualify.

ACS allows you to apply for and submit an on-line forbearance and deferment in case of unemployment online simply by using your e-Signature.

The other useful services available with ACS include: Inbound/outbound communications with students, Transaction Processing, Document and Workflow Management, Document and information collection, payment counseling, Default aversion, etc.

ACS Student Loans serve both, federal student loans like Federal Stafford Loans, Perkins Loans, etc. and private student loans like Penn Guaranteed Loans, Key Bank Private Loans, JP Morgan Chase Private Loans and etc.

In order to apply for ACS student loan, the first thing you should do is to complete a FAFSA application form to help the Department of Education estimate how much financial aid you might be eligible for. It also helps them determine if you qualify for other forms of student financial aid such as college grants. After applying you will get the SAR or Student Aid Report with your FAFSA results and details on your eligibility, amount of loan you are going to receive and other important information on your student loan application. Than you can begin looking for the best loan provider for you, which can be one of the federal loan plans, private lending agency, college or university. ACS will summarize all the details and make it clear what the best alternatives are according to particular requirements.

To sum up, ACS is not a student loan lender, it is an online financial service that helps students find the best student loan plans. Helping students to find the most appropriate student loan program ACS make this complicated process easy.

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Guide to Astrive Student Loans – What You Should Know

Nowadays a wide variety of educational loans is assessable to college and university students, so they can complete their higher studies. These student loans include federal and private student loans. When federal student loans aren’t enough to cover all the educational costs, students usually seek for private loans.

One of the most popular private student loan lenders are Astrive student loans. They are similar to federal student loans: they also offer different repayment plans, the same six months grace period after graduation and the application process is very similar. The difference is in the amount you can borrow; under the federal student loan you can take a certain amount of loan, but the Astrive Student Loans offer more flexible loan amounts per student. Students enrolled in undergraduate programs can borrow a minimum of 3,000 dollars to 45,000 dollars per academic year. The maximum limit permitted is 75,000 dollars.

Repayment Plans

The Astrive Student Loans offers three repayment options. Under the first repayment alternative, you have to repay the full loan amount after graduation and you have to be considered at least as a part-time student. The second repayment option also requires at least a half time attendance and it allows you to pay only for the interest during your period in school. Under the last repayment plan, you can choose to pay off the lower amount of interest for your loan. The interest rates are variable, but the Astrive student loans do not include any penalty charges for early payments.

Astrive Student Loans Eligibility

To qualify for the Astrive student loans, potential borrower must meet some requirements, such as credit score, cosigner on student loan application, school information and other.

Credit Score

The most important condition is your credit score. To be eligible for this type of student loan, you must have at least twenty one months of an established credit history.

Cosigner

Since the majority of college students haven’t got credit history, the large number of them applies for Astrive private student loans with a cosigner. Cosigner must have a good credit history and he or she can be a family member or person you know well. Having a cosigner can be helpful in the terms of getting a good line of credit, usually with lower fees and rates. In addition, having a cosigner on your application may help to attain Astrive loan in the short amount of time; you can have your student loan approved in just five business days.

Other requirements

To be eligible for Astrive student loans, you will need a proof of enrollment; you will have to provide the name of the school you are going to attend as well as your student status. You must have at least a half-time status in order to qualify. In addition, you will need to provide the proof of income, citizenship status, etc.

Astrive Student Loans Benefits

Students can benefit from taking Astrive student loan of loan in a number of ways. Firstly, the loan application process is easy and approval process doesn’t take long. Secondly, this student loan covers all other educational operating expenses which are not covered with other types of student financial aid. And l, it includes procedure for loan deferment and a deduction in loan repayment options as well as some other services.

Astrive Lending Suspension

Unfortunately, similar to many other private student loan programs, the Astrive Student Loans has been affected with the unstable financial circumstances. As a consequence, the Astrive Student Loan program is incapable to accept a new student loan application as of November 3, 2008.

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