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The federal government has several programs administered by the Department of Education aimed at assisting college students and their families with postsecondary education expenses. These include the Stafford Loan, PLUS Loan program for parents and graduate students, and consolidation loan programs that allow students to combine individual loans into a single repayment.
About The Stafford Loan ProgramThis loan program is need-based and is offered to all undergraduate and graduate college students regardless of the family's credit standing. The Stafford Loan is awarded based on information submitted in the Free Application for Federal Student Aid. The expected family contribution and other financial aid already awarded is taken into account before a loan amount is awarded. The Stafford Loan carries a low interest rate of 3.4 percent for undergraduate students and a 6.8 percent interest rate for graduate students. No repayment of the loan is required during enrollment in school.
Direct PLUS Program For ParentsParents of college students may apply for a Direct PLUS Loan from the federal government. These loans carry an interest rate of 7.9 percent and eligibility depends on several factors including the household income, credit score of the applicant and the amount of other financial aid awarded the family or student. There is a special application form for a parent Direct PLUS Loan and the repayment installments including interest must commence as soon as the student is no longer enrolled.
Federal Consolidation Loan ServicesThis program is also a part of the federal PLUS service. Students who have several different loans through the government may be allowed to consolidate them into one repayment package. Stafford Loans and federally guaranteed loans for education are eligible for consolidation. Interest rates for a federal consolidation loan is the average of the loans being combined but may not exceed 8.25 percent.
Federal Guaranteed LoansThese loans are not made by the federal government but rather by a banking institution or credit union. The federal government guarantees the loan against default and also sets upper limits to the interest rate. The interest rate for a federally guaranteed Stafford type loan extended by a banking institution is identical to the Direct Stafford Loan program. The upper limit on interest rates for federally guaranteed parent Direct PLUS Loan offered by banks is 8.5 percent.
What else can I help you with?
How does one obtain a Federal Consolidation Loan?
A Federal Consolidation Loan can be applied for through Borrower Services, Direct Consolidation Loans, or Nelnet. These are all services that will allow you to complete your application online.
What type of services does a Federal consolidation loan program provide?
A consolidation loan program for Federal student loans allows one to take out one large loan to settle all outstanding Federal student loans. This may allow one to have only one loan and debt repayment to worry about.
What is the best federal student loan program?
There are many federal student loan programs to choose from. They include Federal Perkins Loan, Federal Direct Subsidized Loan, Federal Student PLUS Loan, etc. When it comes to deciding which is the best, it depends on one's circumstances.
Where can one find federal college loan consolidation?
One can find Federal College Loan Consolidation at several facilities of the Federal College Loan Consolidation located at different outlets of Federal College Loan Consolidation.
How do you know if you have a federal student loan?
You can know if you have a federal student loan by checking your loan documents or contacting your loan servicer. Federal student loans are issued by the government and typically have terms and conditions set by federal regulations.
Where can I find direct loan servicing?
There are many online websites that can be used to find direct loan servicing. http://www.direct.ed.gov/ is a federal government based website that can help you find perfect loan services to manage your loans.
What does the company Firstmark Services primarily do?
The company Firstmark Services is provides private loan studentservices. They specifically focus on student loans which are outside the realm of Federal Student Aid loans.
What is the average rate of a federal plus loan?
The average rate of a Federal Direct Parent Plus Loan and Federal Direct Plus Graduate Loan is now 7.9%. This rate is fixed for the life of the loan and cannot exceed 8.25%.
What kind of loan services does Nelnet Loan Services provide?
Nelnet Loan Services is a company dedicated to offering loan service tools and information. They offer options for lowering and adjusting your loan payment amounts and times.
What are the differences between a Federal Perkins Loan and a Direct Subsidized Loan?
The main difference between a Federal Perkins Loan and a Direct Subsidized Loan is the entity that provides the loan. The Federal Perkins Loan is offered by the school itself, while the Direct Subsidized Loan is provided by the federal government. Additionally, the interest on a Direct Subsidized Loan is paid by the government while the borrower is in school, whereas interest on a Perkins Loan begins accruing immediately.
Is a federal loan the same as a federal grant?
not on your life!
What financial services are offered by Keesler Federal Credit Union?
Keesler Federal Credit Union offers a range of financial services including checking and savings accounts, loans (such as auto, home, and personal loans), credit cards, investment services, insurance products, and online banking services. They also provide a mobile banking app for added convenience.
