| Pros |
Loan
Product |
Cons |
| · |
since the funds are guaranteed
by the federal government,
your credit report is not
used in qualifying you for
the loan: see
qualification parameters |
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| · |
federal student loans are fixed rate loans
that remain fixed for the entire term of the loan; current rates are
lower than most other financing options: view
interest rates |
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| · |
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 can fit your budget. You
can even consolidate your
federal loans into one,
low repayment plan: view
our student
loan consolidation center
for information |
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Stafford
Student
Loans
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| · |
the biggest disadvantage
of stafford loans is the
limited loan amounts --
only $2650 for first-year
students. Very small amounts considering
the cost of education: see
loan limits |
|
| · |
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 |
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| · |
you have to file and apply
for a loan for each academic
year. |
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| · |
your stafford loan is processed
by your college to pay tuition,
books, and housing. You
cannot use your loan to pay other education-related
expenses. |
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| · |
parents can borrow up to
the total cost of education
minus any financial aid
received by the student: see
product information
graduates and professional students can borrow on their own behalf up to
the total cost of education
minus any financial aid
received: see
product information
|
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| · |
federal PLUS loans are fixed rate loans
that remain fixed for the entire term of the loan; current PLUS loan
rates are about the same as most
other financing options: view
interest rates |
|
| · |
The federal government offers
flexible repayment plans
that can fit your budget
for parents: loan payments begin 60 days after disbursements have been made to the school.
for graduates: payments are deferred until after graduation. |
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|
PLUS Loans
for parents
for
graduate students
for
professional students
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| · |
since the cost of college can
be higher than most financial
aid awards, private student loans
are used to fill the gap between
cost of education and financial
aid received |
|
| · |
unlike federal loans that are processed
through the college, the processing
and distribution of funds is through
the student thus speeding up process
time: see
product information |
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| · |
private student loans can be used
for more education-related expenses
such as personal computers and
other related supplies |
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| · |
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
|
| · |
you must have a credit history
and verifiable income in order
to qualify for this loan; since
many students do not meet these
qualifying parameters, a co-applicant
may be required on the application |
|
| · |
private student loans have a higher
interest rate than federal student
loans: see
product terms and rates |
|
| · |
you have to file and apply for
a loan for each academic year. |
|
|
| · |
you do not need to file federal
forms or work through the college
processing systems; you simply use your home
equity loan to pay all related
college expenses (up to your assigned
credit limit): view
product information |
|
| · |
depending on your LTV position,
your interest rate can be as low
as the PRIME rate or lower: see
home equity rates |
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| · |
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. |
|
| · |
you only apply once for your
home equity line; you can draw
upon available funds anytime you
need money regardless of student's time
in school |
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| · |
you can use your home equity for
any expense; you are not restricted
on use of funds |
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Home
Equity
Loans
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