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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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Introduction to Federal Student Loans for Education

After high school, many students are unsure of what to do with their lives. They have the option of going to work or enrolling in college. Many who want to enroll in college do not have the money that it takes to pay for tuition. In this situation, students can borrow much of the money they need from federal student loans. If you are about to graduate from high school or you are thinking about going back to college, understanding how student loans work can be extremely helpful.

Direct Loan Program

The federal government offers a Direct Loan Program through the Department of Education. With this program, the federal government loans money directly to students, with the help of loan servicers. This means that when you borrow money from the Direct Loan Program, you’ll be able to get any help you need from an individual loan servicer instead of having to deal with the Department of Education.

Types of Student Loans

When you want to get involved with federal student loans, there are a few different types of loans that you could pursue. Two of the most common types of loans are Stafford and Perkins loans. Stafford loans are typically available to anyone who wants to go to school, regardless of credit history or income. With Stafford loans, you can get a subsidized loan or an unsubsidized loan. Whether you qualify for a subsidized loan will depend on the information contained in your Free Application for Federal Student Aid or FAFSA. If they determine that you have a significant financial need, then you can qualify for a subsidized loan. This means that your interest will be paid while you are in school, and your loan interest rate will be lower overall.

The Perkins loan is a similar type of loan, except it is only for individuals who have a significant financial need. There is a maximum amount of money that you can borrow each year with the Perkins loan program. If you still need to borrow money after the Perkins loan, you can use a Stafford loan.

PLUS loans are another type of federal education loan that you can get from the government. These loans are designed for parents of college students or for graduate students. Eligibility for this type of loan is also determined with the information from the FAFSA.

You also have the option of getting a consolidation loan from the government. With this type of loan, you can consolidate multiple student loans into a single package. The only have the option of consolidating once, so you need to make sure that you do it at the right time to get the best interest rate.

You may also be able to qualify for state-based student loans. These loans are actually issued from state governments and agencies instead of the federal government. Minnesota, Texas, Hawaii, New Jersey and Alaska are the five states that offer this type of program.

Considerations

Getting education loans from the federal or state government can provide you with cheaper interest rates than what you can get in the private market. They are also easier to get qualified for because you do not have to have a certain amount of income or credit score. The repayment terms of these school loans can also be very flexible. You have the option of choosing from a fixed payment, a graduated payment or an income-based repayment option. If you are interested in going to college, looking into federal loans should be one of the first things you do. After scholarships, grants and other sources of funding have been exhausted, they are often the most attractive option.

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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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Federal Perkins Loans for Undergraduate and Graduate Students

Federal Perkins Loans are a type of federal financial aid offered by the U.S. department of Education, intended to help students in financial need enrolled in one of 1,700 accredited U.S. postsecondary educational institutions to pay for their college or university expenses. The lender is college or university, rather than financial institution or Federal government. Government provides funds to each participating postsecondary institution and the institution then distributes funds to students in high financial need.

Under Federal Perkins Loan plan, undergraduate students can borrow up to $4,000 per year with a full amount of $20,000 borrowed during student’s undergraduate years at college. Graduate students or students in professional studies, may borrow up to $6,000 annually with a total sum of $40,000 of student loan. The definite amount you will receive is based on your financial need and amount of funds your college or university has available for providing students with this type of aid.

Eligibility Requirements

To be eligible for Federal Perkins Student Loan student must meet certain criteria:  he or she must be enrolled at least on half-time basis in postsecondary educational institution that participates in Federal Family Education Loan Program. Furthermore, she/he must demonstrate high financial need. Additionally, to be eligible for Perkins Student Loans student loan candidate must be a U.S. citizen or national, a U.S. permanent resident or eligible non-resident.

Perkins Student Loan Benefits and Downsides

In the contrary to other student loan options, under the Perkins Loan program students have advantage of nine months grace period, which means that your repayment of the loan will begin nine months after you finish college or university or fall under half-time college status. Further benefits of this plan are ten years repayment period and no penalty charged  if you choose to pay off the loan in shorter period.

Perkins Loans borrowers qualify for Federal Loan Cancellation or loan forgiveness program under condition that they work in authorized “low-income” schools or as teachers in designated high demand teaching areas like science, math and bilingual education. Peace Corps Volunteers also qualify for the loan cancellation.

On the other side, eligibility requirements are stricter than under, for example, some private loan plans and you will have to pay the higher monthly amounts because of the relatively short repayment period.

Perkins Loan Interest Rates

Perkins Loans are issued with a fixed interest rate of 5% during the ten-year repayment period. This loan plan has nine month grace period which allows you to find a job after graduating in order to repay your loan easily. You will also have to repay your Perkins loan in case you fall below half-time status at school or withdraw from the college or university.

How to Apply

In order to apply for this type of financial aid, you must first file a Free Application for Federal Student Aid (FAFSA), which can be completed online, at http://www.fafsa.ed.gov. You also must complete a Federal Perkins Loan Master Promissory Note (MPN) in order to receive this student loan. The MPN classifies the all the conditions connected to terms of borrowing and repayment of the loan.

You are also required to complete Perkins Loan Entrance Counseling before loan funds are paid. The reason of this counseling is to ensure you completely understand your rights and obligations connected to a student loan borrowing. Additionally, you must complete exit counseling after you graduate, withdraw or enroll in less than 6 units.

You are going to receive the loan funds from your school divided into two installments. There are two disbursement options: money can be placed in your student account for you or you can receive a check. The loan is usually divided into two payments, unless the loan is for a very small amount. As a Perkins Loan borrower, you don’t have to pay origination or insurance fees.

Federal Perkins Student Loan is one of the available financial aids for students today. Before applying for the student loan you should consider all the other existing borrowing options as well.

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Student Loans and What You Should Know

An Introduction to Educational Loans

With rising expenses of education today, a great number of students reach for different types of financial aid to invest in their studies. One of the most popular financial supports to college and university students are student loans. Different from college scholarships and grants which you don’t have to return, student loans are repayable, which means that you have to pay it off during your time at school or after you finish it. Bear in mind that whatever amount of loan you borrow, you will have to return it with interest. In the most cases, there is a grace period of six months after student finishes college and repayment of student loan starts after that period, no matter of you graduated or not. Usually you have ten to twenty five years to repay your loan, depending on the plan you have chosen.

The most popular student loan plans among students are federal loans, which are supported by the government and therefore have better terms and conditions such lower interest rates and more flexible repayment options. In addition to federal loan programs, there are different private student loan plans which have slightly higher interest rates, but represent a good option for students who cannot accomplish student loan for federal government programs.

In order to help you choose the best student loan plan, here are some general information about different student loan programs and repayment options.

Different Student Loan Plans

As it was mentioned before, very popular amongst students are low-interest direct federal loans. The lender is the U.S. Department of Education. You borrow money directly from the federal government and sign only one contract. Furthermore, you can choose between different loan repayment options and you can change your plan at any time if you need to, you just have to contact your loan servicer. Also, you always have online access to your loan account.

Direct Federal Student Loans

Direct Federal Student Loans offer next three types of loans:

  • Subsidized with no interest while student is in school as well as during grace and deferment periods, intended for students with verified financial need;
  • Unsubsidized loans with interest rate of 6.8% charged;
  • PLUS unsubsidized loans with interest charged while student is in school, which are intended for the parents of dependent students and for graduate and professional students.

Federal Stafford Loans

Stafford Loans are fixed-rate student loans with interest of 3.40% for undergraduate and graduate students attending college at least on half-time basis. This type of student loan has fixed interest rate and it’s intended for undergraduate and graduate students who attend school at least as half-time students. Similar as the the previous plan, Direct Federal Stafford Loan plan also offers subsidized and unsubsidized loans.

Federal Perkins Loans

This loan program has fixed low-interest rate of 5% for college and university students. If you choose this plan, you will enjoy nine months grace period and will repay your loan in shorter period of time, because repayment period with this loan option is ten years.

Consolidated Student Loans

With this plan you can replace multiple loans with just one, which can make your loan more affordable.

Private Student Loans

Private loan programs can substitute or work together with federal loans and they vary in terms and conditions. To choose the best borrowing plan, you should consider it all very carefully and get as many information on their rates, terms and condition as it is possible.

You can apply for federal student loan by completing the Free Application for Federal Student Aid, or FAFSA. Furthermore, you need to collect all the documents required, submit a FAFSA online, and remember that this process is free. After processing your FAFSA, your results will be sent to schools you listed on your application and you will get a Student Loan Report.  Under some particular conditions, federal loans have student loan forgiveness option.

Repayment options

With different student loan plans you can choose between a number of available repayment options. Some of they are:

  • Standard repayment plan has fixed monthly payments up to ten years. If you do not choose other repayment plan when apply for the loan, your loan servicer will place you onto this payment plan. This is also the plan the most of the borrowers choose to stay with.
  • Income based repayment follows your income: as your salary rises, so does your repayment amount.
  • Biweekly Repayment Plan offers you to pay half of your monthly payments every two weeks.
  • Extended Repayment which allows you to enlarge your repayment for almost thirty years. But, in that way you are going to pay much more in interest.

There is no doubt that student loans can be very helpful investment in your future, still, you should be aware that taking this loan is a serious responsibility as well, so be sure that you will be able to manage it.

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