| Pros |
Loan
Product |
Cons |
| · |
No
Credit Checks
since the funds are guaranteed by the
federal government, your credit report
is not used in qualifying you for the
loan: see
qualification parameters |
 |
| · |
Low
Interest
federal student loans are variable rate
loans that change once per year; current
rates are lower than most other financing
options: view
interest rates |
|
| · |
Flexible
Repayment Plans
student loan payments do not have to
be repaid until 180 days after you leave
or graduate from school. The federal
government offers flexible repayment
plans that meet your budget. You can
even consolidate your federal loans
into one, low repayment plan: view
our student loan consolidation center
for information |
|
|
| · |
Low
Amount Limits
the biggest disadvantage of stafford
loans is the maximum amount of loan
-- only $2650 for first-year students.
Very small considering the cost of education:
see
loan limits |
|
| · |
Requires
Federal Filings
you must file the FAFSA form with the
federal government in order to apply
for stafford loans. The FAFSA filing
is used by colleges to determine your
financial aid award:
see
FAFSA file |
|
| · |
Multiple
Borrowings
you have to file and apply for a loan
for each academic year. |
|
| · |
Limited
Use of Funds
your stafford loan is processed by your
college to pay tuition, books, and housing.
You cannot use the loan proceeds to
pay other education-related expenses. |
|
|
|
| · |
Pays
the Entire Cost
parents can borrow up to the total cost
of education minus any financial aid
received by the student: see
product information |
|
| · |
Low
Interest
federal PLUS loans are variable rate
loans that change once per year; current
PLUS loan rates are lower than most
other financing options: view
interest rates |
|
| · |
Flexible
Repayment Plans
student loan payments do not have to
be repaid until 180 days after you leave
or graduate from school. The federal
government offers flexible repayment
plans that meet your budget |
|
|
| · |
Loan
is a Parent Loan
the loan is underwritten for the parent;
the parent is responsible for repaying
the loan |
|
| · |
Requires
Federal Filings
you must file the FAFSA form with the
federal government in order to apply
for PLUS loans: see
FAFSA file |
|
| · |
Credit
Check Required
in order to qualify for the loan, you
must pass a credit check as set by the
federal government |
|
| · |
Multiple
Borrowings
you have to file and apply for a loan
for each academic year. |
|
|
|
| · |
Fills
the Gap
since the cost of college can be higher than
mostefinancial aid awards, private student
loans are used to fill the gap between cost
of education and financial aid received: see
product information |
|
| · |
Quick
Processing
unlike federal loans that is processed through
the college, the processing and distribution
of funds is through the student thus speeding
up process time |
|
| · |
Availability
of Funds
private student loans can be used for more
education-related expenses such as personal
computers and other related supplies |
|
| · |
No Federal
Filing
you do not have to file forms with the federal
government in order to apply for private student
loans. Private student loans are perfect for
students who need additional funds to close
a gap or pay for additional study |
|
Private
Student
Loans
start
application |
| · |
Credit
Check Required
you must have a credit history and verifiable
income in order to qualify for this loan;
since many student do not meet these qualifying
parameters, a co-applicant may be required
on the application |
|
| · |
Higher
Interest Rates
private student loans have a higher interest
rate than federal student loans |
|
| · |
Multiple
Borrowings
you have to file and apply for a loan for
each academic year. |
|
|
| · |
Total
Independence
you do not need to file federal forms or work
through the college process; you simply use
your home equity loan to pay all related college
expenses (up to your assigned credit limit):
view product information |
|
| · |
Low
Interest Rate
depending on your LTV position, your interest
rate can be as low as the PRIME rate or lower:
see
home equity rates |
|
| · |
Flexible
Repayment Plans
you can use your equity line to draw upon
funds as needed while the student is attending
school. At time of graduation, you can convert
the equity line over to a fixed, rate home
equity loan with repayment terms that fit
your budget. |
|
| · |
One-Time
Application
you only to apply once for your home equity
line; you can draw upon available funds anytime
you need regardless of student's time in school |
|
| · |
Use Funds
for Anything
you can use your home equity for any expense;
you are not restricted on use of funds |
|
Home Equity
Loans
start
application
|
|
|
chart:
Financing
Notes
