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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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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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Understanding Federal Direct Student Loans Program

Direct student loans are federal educational loans with low interest rates. These loans are provided by the US Department of Education with the intention to help students and their parents to pay for postsecondary educational expenses and usually cover tuition costs as well as additional expenses like transport, books, food, accommodation, etc. Direct Student Loans should not be confused with uncertified student loans, which are regularly characterized as direct-to-consumer loans.

The main benefits of Direct Student Loans are following:

  • Low interest rates;
  • Student borrows money directly from the federal US government, without third-party lender such as bank or financial institution;
  • Borrower have the opportunity to choose from numerous repayment plans which can be switched at any time, if the borrower needs a change;
  • Borrower has online access to his or her Direct Student Loan account information via his servicer’s website.

As it was mentioned before, the lender of Direct Loans is the Department of Education. Before the passing of SAFRA (Student Aid and Fiscal Responsibility Act) in 2010, federal loans for students could be offered as a part of the Direct Loan Program or the FFEL (Federal Family Education Loan) program, but SAFRA basically eliminated FFEL Program, and now most federal student loans are offered through the Direct Loan Program.

The four main types of federal student loans are:

  • The Subsidized Stafford Loan
  • The Unsubsidized Stafford Loan
  • The Direct Consolidation Loan
  • PLUS Loans

The Subsidized Stafford Loan

The Subsidized Stafford Loan is offered as a financial aid for students in who are proved to be in financial need, and it can be obtained without charge of interest during the time student is enrolled in school and during grace period and approved deferment periods after graduation.

The Unsubsidized Stafford Loan

Unsubsidized Loan is not based on student’s financial need. This loan option offers a choice to borrow of paying the interest while still is enrolled in college or university as well as during grace period and deferment period or can choose to accept for the interest to be added to the principal amount of his student loan.

For the both of the Stafford Loans student can apply via the completion of FAFSA.

The Direct Consolidation Loan

The Direct Consolidation Loan is category of loan which allows borrower to replace multiple student loans with just one. The Federal Direct Consolidation Student Loan Program lets borrower to consolidate most federal loans.

The Direct PLUS Loan

The Direct PLUS Loan is federal student loan for parents of the depending students intended to assist parents to pay for their child’s school expenses. To be eligible for the Direct PLUS Loan parent and student must meet certain requirements: must be the U.S. citizens or eligible non-citizens, parent must be the biological or adoptive parent, and in good standing with earlier loans and the student-depending child must be enrolled at least half-time at school participating in the Direct Loan Program.

Student loans provided under the Direct Loan Program will also require that applicants sign a Master Promissory Note (MPN) that will serve as a guarantee of their ability to repay the loan.

To sum up, the Direct Student Loans are federal education loans offered by the US Department of Education. Therefore, loan comes directly from the federal government, without involvement of third-party lenders like banks or financial institutions.

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The Graduate and Professional PLUS Student Loans

If you are a graduate or professional student in need of financing for college, the Direct PLUS loan may be right and one of the best student loans for you. To qualify for this federal student education loan, you must have already earned a Bachelor degree and be working toward an advanced degree in your chosen field. Parent student loans are also available through the Direct PLUS program if you are under the age of 25 and are dependent on your parents for more than half of your support.

Terms of the Direct PLUS Loan for Students and Parents

Unlike other forms of federal student loans, the Department of Education checks the credit history of the primary applicant for federal student loans. A good credit history is required, whether the applicant is you or one of your parents. If neither you nor your parents can pass the credit check, your federal student loans request will be denied.

How to Apply for the Direct PLUS Loan

In order to be considered for this loan type, you must first complete and submit the Free Application for Federal Student Aid (FAFSA). Before the college you plan to attend can determine your eligibility for graduate student loans, it must first determine the maximum amount you can receive with either a direct subsidized or an unsubsidized Stafford student loan. Once that step has been completed, your next steps in obtaining a Direct PLUS are to fill out the application and the Master Promissory Note . This is a promise to pay back all of your graduate school expenses, plus all interest that accrues while you are in school.

Direct PLUS Loan Limits

Under this loan for professional students, you can borrow up to the cost of attendance at the college of your choice for one school year. Prior to issuing you the Direct PLUS loan, the Department of Education will deduct the amount that is equal to all other forms of financial assistance you are eligible to receive.

Fees and Interest Rates

Before each disbursement of your Direct PLUS loan, the Department of Education will deduct four percent of the total as a processing fee. In addition, you will be charged a 7.9 percent annual percentage rate and deducts a 4.0 percent fee each time a loan disbursement is made. This is a fixed interest rate that is not subject to market variations.

Repaying Your Loan for Graduate Students

The repayment period for a Direct PLUS loan begins as soon as you receive the loan, but it can be deferred while you are attending college at least half-time. Once you graduate or drop to attendance level lower than half-time, your first payment will be due within 60 days. You may be able to extend the deferment period to six months if you received your loan after July 1, 2008.

After you begin making payments on this loan for professional students, you typically have between 10 and 25 years to repay it in full. If you do not make any payments on your Direct PLUS loan during the deferment period, the interest will be capitalized and charged to you once repayment begins.

Types of Repayment Plans

The Department of Education allows several options for the repayment of federal student loans. The standard repayment plans provides a fixed monthly payment and up to 10 years to repay your loan. The extended plan is similar, with the exception that you have up to 25 years for repayment. A graduated repayment plan starts out low and then the monthly payment increases every two years. Finally, you may be eligible for the income based repayment plan if you meet income and family size guidelines or work in the public service sector.

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How to Find Low Interest Student Loans

When it comes to paying for the rising costs of tuition, student loans are the vehicle of choice for many college students. If you are going to be borrowing money from a student loan lender to pay for college or medical school education, you need to minimize the amount of interest that you pay for this loan. Otherwise, you’ll end up paying a lot more than you should for the money that you borrow.

Federal Loans

If you are interested in saving money on interest, you need to consider federal loans. Federal student loans are issued directly from the Department of Education to students. These loans come with interest rates that are below the market and cheaper than private student loans.

One of the most commonly used federal student loans is the Stafford loan. When you apply for a Stafford loan, you’ll be required to include a Free Application for Federal Student Aid. This is an application that provides the government with detailed information about your finances and the financial situation of your parents. This way, the Department of Education can determine if you are eligible for a subsidized or unsubsidized Stafford loan. If they determine that you have a big financial need, you can qualify for a subsidized Stafford loan. These subsidized loans come with lower interest rates and vary at 3.4% – 4.5% than unsubsidized once vary at 6.8%. While you are in college, you won’t have to pay the interest on your loan because the government will actually subsidize those payments for you.

Another option that you have is the Perkins loan. These loans are only given to individuals who can demonstrate a financial need. They also come with very low interest rates vary at 5.0% and they don’t require you to make interest payments while you’re in school.

PLUS loans parent student loans are another option of federal educational loans that must be applied by the student’s parent and come with low interest rate vary at 7.9%, a little bit higher than Subsidized Stafford Loan and the Perkins Loan, as these both have extremely low interest rates.

Private Loans

If you do not get all of the money that you need for school through federal student loans, you may want to consider getting private school loans. Private loans are issued directly from private lenders instead of from the federal government. These types of loans are approved based on how much money you make and your credit history. The interest rate is also based on your credit history. Presupposition to get this kind of student loan is to have an excellent credit profile, a solid employment history with stable income, some types of collateral and a significant downpayment or a cosigner.

If you want to save money on education loans from private lenders, you need to do your best to make yourself look like an attractive borrower. You can do this by getting your credit history in order before you apply. If you can come up with a strong and creditworthy cosigner or co-borrower for your loans, this may also provide you with cheaper interest rates. For instance, if you can get one of your parents to cosign a loan with you, and your parent has good credit, this can give you a cheaper loan, or need to consider to get private education loan without cosigner requirement.

Making it Work

As a general rule, you should try to get as much money as you need from federal student loans before pursuing other options. They have the lowest interest rates and the easiest approval standards. From there, you can use private student loans to fill in any gaps in funding but need to consider also some loan fees, and other finance charges.

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Federal Stafford Loans for Undergraduate or Graduate Students

Stafford Loans are type of direct federal loans offered to students enrolled in accredited U.S. educational institutions of higher education with the purpose of giving them assistance in paying for their academic expenses. One of the most important conditions which student must meet in order to qualify for Federal Stafford Loan is to be enrolled at college or university at least on half-time basis. In addition, to be eligible for this student loan plan, applicant must attend a post-secondary institution that participates in Federal Family Education Loan Program, must be a U.S. citizen or national, a U.S. permanent resident or eligible non-resident.

Stafford Loan Plans

Federal Stafford Loans consist of following two types of plans:

  • Subsidized Loans which are introduced as a financial aid for students in economic need, and they are offered without charge of interest during the time student is enrolled in school and during grace period and authorized deferment periods.
  • Unsubsidized Loans which are not based on student’s financial need. Under this loan plan applicant may select option of paying the interest while still attends college or university as well as during grace period and deferment period or can choose to agree for the interest to be added to the main amount of his/her loan. With this alternative the total loan amount student has to repay is higher.

Stafford Student Loan Benefits and Drawbacks

With this student loan plan student can benefit in several ways. Firstly, you will enjoy loan repayment exclusion during the time you are in school, you will start to pay off the loan six months after you finish the school. Secondly, borrowing limit increases in some cases to up to $20,500 per year and finally, Stafford Loan is issued with fixed interest rate. This loan’s interest rate may differ depending on the date the loan was disbursed and in some cases on the education level of the student (undergraduate or graduate).  Additional advantage of Stafford Student Loan is the fact that Interest rates do not fluctuate with default risk, which means that all students are given the equal interest rate apart from of their major or their future career prospects.

Federal Stafford borrowers under certain conditions meet the requirements for the loan forgiveness program, for instance if they work as teachers in designated “low-income” schools, social services or if they join the army.

On the contrary, there are strict eligibility requirements and borrowing limits on Stafford Loan Plan and we recommend that you consider all the borrowing and repaying terms and conditions before you apply.

Stafford Loan Interest Rates

Given the fact that this type of loan is provided by the U.S. Government, it is offered at a lower interest rate than private student loans. Stafford loan interest rate may differ and are established upon the date the loan was disbursed. It also depends on the education level of the student (undergraduate or graduate).  As of 1st July 2006, Federal Stafford Loans are issued with fixed interest rate at 6.80% for unsubsidized loans and with somewhat lower rates for subsidized loans for undergraduate students. Starting from 1st July 2012 the fixed interest rate for all new subsidized loans will be changed to 6.80%.

How to Apply

  1. First step in applying process is to complete a FAFSA
  2. Than your school will evaluate your results and inform you of your Stafford loan eligibility by sending you an award letter
  3. After you have your award letter received you should apply for the Stafford Loan

Your Stafford loan lender will pay out your funds directly to your school. The money will be disbursed in two installments, typically in the fall and winter semesters. Your loan money will be used to pay your education and other school fees. In case you have extra funds left, your school will credit your account or pay you directly based on your school’s policy.

There are also other federal financial aids as well as private loan options available, so you should keep informed about all of these borrowing alternatives in order to choose the best student loan plan for you.

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