Education Loans

Applying for a Signature Student Loan

After the Stafford Loan the most popular signature student loans US is the signature student loan through Sallie Mae. The reason why these student signature loans are so popular is because they can easily be found, their approval rates are high and you can borrow enough to cover all of your education costs. Take a look at just how easy the application process is.

The Application Process

After you complete a FAFSA you will receive information from your school regarding your financial aid status. You will typically get this in spring or summer. At this time you can apply for Sallie Mae signature student loans. A signature student loan can be applied for online by you and your cosigner. Once you apply you will get instant notification of their credit decision. To speed up the process you can even sign the application for student signature loans electronically. However, before applying you need to know what the eligibility requirements are for these loans.

Eligibility Status

The eligibility requirement for student signature loans include being enrolled at least half time in either a four or five year college and are actively working towards obtaining a degree. You need to meet specific credit criteria which mean you can't currently have any loans in default when you apply for Sallie Mae signature student loans. You should also have good academic standing. For international students they will need a cosigner for a signature student loan that is a U.S. citizen or permanent resident. Both permanent residents and foreign students will need to have their proper CIS documentation. A signature student loan is not available for graduate law students and they are advised to try for private loans. A financial aid office at your school can help assist you with the application process, but you should always try for federal loans before you apply for student signature loans. Although you should consider the benefits of these loans and see if it is something you want to sign for.

The Benefits

A signature student loan has many benefits you should consider when looking at your student loan options. Student signature loans come with a very high rate of approval. You can have lower interest rates by having cosigners and after twenty-four on time principal and interest payments your cosigner will be removed from credit obligation. Student signature loans come with high amounts so you will have no trouble getting enough money to pay for all your college needs. Student signature loans are quick and easy to apply for through an online process. You also have an added convenience when you can manage all your student loans through one monthly payment. Although many wonder why you need a cosigner and how the process helps.

Most college students who are in need of financial aid get federal Stafford loans as one of their financial aid options.

What is a Federal Stafford Loan?

A federal Stafford loan is one of the most flexible financial aid options for college students. Federal Stafford loans actually refer to two loan programs, the Federal Family Direct Loan Program and the Federal Direct Loan Program. Most schools choose one program or the other in which to participate. The student will qualify for the loan based on their need as determined through the FAFSA application.

Federal Family Education Loan

The Federal Family Education Loan Program, or FFEL, is one of the versions of the federal Stafford student loans. With FFEL loans, the student borrows the funds from a lending institution, and not directly from the federal government. You repay the loan to the institution that you borrow it from. The loan could be through participating credit unions, banks, savings and loan associations, or other lending institutions, that have chosen to participate in the student loan program.

Federal Direct Student Loan

Federal direct student loans are borrowed directly from the federal government. The government funds the direct federal student loans through the US Department of Education. The student will pay the government back for the balance of their loan.

Subsidized vs. Unsubsidized Stafford Loans

When choosing your federal Stafford loans, you have two options. You can have either federal subsidized Stafford loans, or unsubsidized Stafford loans. What you choose will depend on the results of your FAFSA. The amount of money that you are qualified to borrow based on the results of your FAFSA can be in the form of a subsidized loan. A subsidized loan is a loan where the federal government actually pays the interest the loan is earning while you are attending school, and for the first six months after you graduate.

If, however, you do not qualify for subsidized loans, or if your subsidized loan amount is not sufficient to pay for your education, you can also apply for unsubsidized loans through the Stafford loan program. In this case, you are responsible to pay the interest the moment you start receiving the loan, and the federal government will not help with loan payments. In many situations, you can receive both subsidized and unsubsidized loans at the same time.

Why Choose Stafford Loans

Stafford loans are one of the most popular student loans from federal sources. Part of the reason for the popularity of the Stafford loan program is the fact that the with subsidized loans, the student gets six months after graduation before they have to start paying back the loan's interest. Another reason for the popularity of the Stafford loan program is the fact that the interest rate is fixed.

If you are considering furthering your education, then you might be in the market for higher education loans to help cover the cost of your education. College is expensive, and most people cannot afford to pay the complete cost of education out of their pocket. This is where higher education student loans come into play. If you cannot afford to pay for college, consider looking into student loan options!

What are Higher Education Loans?

Students who are seeking college level education can pursue student loans for higher education. Student loans higher education are loans to cover the costs involved in pursuing a college level degree. Loans do not just apply to college tuition, but can sometimes be used to cover the cost of books, room and board, and meals while in college.

How Student Loans Differ from Other Funding Options

Some students pay for their college education through grants or scholarships. A scholarship is money given to a student due to some merit that they have achieved, usuall y for community service, grades, or athletics. Grants are money given to pay for education, but not based on merit. There is usually some sort of a clause in a grant specifying the course of education the person can take. For example, a potential medical student may receive a grant from a medical foundation, but in order to receive the money, they must pursue a degree in a certain field of medicine. Neither grants nor scholarships must be repaid.

Loans, on the other hand, must be repaid, with interest. Student loans for higher education are really borrowed funds. When the education is complete, the student must pay back their higher education student loans.

Types of Higher Education Loans

There are several types of higher education loans that students can apply for. Some are handled by the Federal government, while others are state higher education loans.

Federal Loans to Students

The Federal government offers a couple of loan options that are given directly to students. One of the se is the Federal Stafford Loan. Stafford Loans can be either subsidized, where the government pays part of the interest while you are in school, or unsubsidized, where the government pays nothing. Stafford Loans carry a fixed interest rate of 6.8%. Students who have used Stafford Loans for their undergraduate degree programs can then apply for Federal Graduate Plus loans, which are financing for graduate school programs.

The other Federal program is the Federal Perkins Loan. These loans are set at a 5% interest rate, and can apply to both undergraduate and graduate work. Students can borrow $4,000 each year for undergraduate schooling, and $6,000 for graduate school. The loan is actually made by the school, with help from the government. Students pay the school back for the cost of the loan, rather than the government.

Loans for Parents

While higher education and student loans seem to go hand in hand, many people do not realize that parents of potential students can also receive financing for their children's education. PLUS loans are loans parents can receive to pay for their children's college education, provided that the child is enrolled at leas in a part time status. Parents can borrow the entire cost of their child's education, minus any financial aid the child received. The funds are sent directly to the school, and can apply to room and board, tuition, fees, and any other charges for the schooling.

State Aid

While every state is different, several states offer student aid for students who live in their state, and also attend school there. Some states offer non-residents aid as well. This can be loans, as well as grants or scholarships.

Distance education allows you to live in a different place, away from your college or university. Usually when you attend college, you must live near the campus in order to attend classes. With distance education, you can get all your materials and submit all your work remotely. The newest version of distance education is online education, which allows you to get all your work completed via an Internet connected computer. There are many benefits associated with distance education -- it is less expensive, more convenient, and allows you to get a degree or certificate regardless of your hectic schedule. If you hope to make use of this beneficial education option, you may need online distance education loans in order to pay for your tuition, books, and other fees. Many students do not realize that distance learning education loans are available from a number of sources and can be acquired without much hassle.

How Do Distance Education Loans Work?

Online education loans or more general distance education loans work much like any other type of borrowing. You need to approach a lender who offers this type of loan. You will need to fill out an application, and agree to have a credit check run on you. Your lender will check to see if you are credit worthy. If you are, you will be given an amount of money to pay for your distance education. Depending on your agreement, you will need to start paying back the loan either right away or after you finish your coursework or degree. You'll need to pay back all the money you borrowed with interest. However, borrowing will allow you to complete your distance education, something that can help you get a better paying job.

Unlike other types of education loans, distance education loans usually provide you with money up front. That is, you will get the money and you will be responsible for paying your distance education program. Whether you spend the money on schooling or not, you will be responsible for paying it back. Many programs have a limit of how much you can borrow for distance education. Almost all programs are based on your credit history.