Student Loans

Apply for a Student Loan or Consolidate Student Loans

Federal Student Loans | Private Student Loans | Student Loan Consolidation | Parent Loans | PLUS Advantages

Federal Student Loans

There are many types of education / student loans. Learn about federal and private education loans so that you can find the right college loan to help pay for your education.

Federal education loans

Federal programs are the single largest source of education loans. The two primary programs are the Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan Program (FDLP). The loans available through these programs start with the same terms; however, in the FFELP, your bank, credit union, or school is the lender, and in the FDLP, the U.S. Department of Education is the lender.

Listed below are some of the more widely used federal education loans.

  • Federal Perkins Loans

  • Federal Stafford Loans

  • Federal Parent Loans for Undergraduate Students (PLUS)

Student consolidation loans are also available for those that want to reduce their monthly expenses. With interest rates so low - it may be the perfect time.

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Private Student Loans

There are many types of college / student loans. Learn about private education loans so that you can find the right college loan to help pay for your education.

Private education loans

Private education loans are also available from a variety of sources to provide supplemental funding when other financial aid does not cover costs. These loans are not sponsored by government agencies, and are offered by banks or other financial institutions. Sallie Mae's private loan program for undergraduate and graduate studies is the Signature Education LoanŽ Program, a comprehensive source of funding whereby federal and private loans are offered as a package from a single, convenient source.

Other private supplemental loans are available and in some cases are tailored to specific courses of study. Some examples include:

  • LAWLOANSSM

  • MBA LOANSSM

  • MEDLOANS

  • Signature Student Loans

Student consolidation loans are also available for those that want to reduce their monthly expenses. With interest rates so low - it may be the perfect time.

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Student Loan Consolidation

Do you have high interest rates on college loans? Or do you have multiple student loans? Consider consolidation!

With interest rates so low you can save hundreds or even thousands of dollars on your student loans.

Interest on student loans may be deductible on your tax return!

Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. However, there is a special deduction allowed for paying interest on a student loan (also known as an education loan). This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2003. The student loan interest deduction is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). See your tax advisor for specific details.

Common Requirements for Federal Education Loan Consolidation:

  • Minimum amount outstanding of $10,000 in Federal loans
  • Students must be graduated/no longer in school before applying
  • If you have already consolidated, you can't refinance that loan

These are just a few requirements for various loan programs. Be sure to shop around for the best consolidation loan for your situation.

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Parent Loans

Parents can also take out education loans to help pay for their child's education. Also called PLUS loans.

To obtain this type of loan the student must also be a dependant of the borrower.

The federal Parent Loan for Undergraduate Students, also known as PLUS, lets parents borrow funds to cover any costs not already covered by the student's financial aid, up to the full cost of attendance.

Like Stafford Loans, PLUS loans are either FFELP - which are provided by private lenders, such as banks - or Direct - where funds are provided by the government.

PLUS loans are based on the 1 year T-Bill + 3.10%, so the rates may vary. PLUS loans are currently capped at 9%. The repayment of these loans begins 60 days after funds are released and the loans can have terms of up to 10 years.

The parent or guardian who obtains the PLUS loan is ultimately responsible for the payment. Even if the student agrees to pay for it.

When considering PLUS loans you should always look at all your options and make sure you make the best decision for your unique situation. Other options may include : cash out refinance, home equity lines of credit, or other types of loans. Be sure you take into consideration all the different scenerios in relation to your tax situation as well. For more information on loans in relation to your current tax situation please consult your local advisor, CPA, or financial planner.

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PLUS Advantages

Parent Loans for Undergraduate Students (PLUS) can be great if it fits your situation. Here are advantages and requirements.

Advantages of the PLUS loans:

  • PLUS loans are not based on income or assets.
  • PLUS borrowers do not need collateral.
  • PLUS loans offer a low variable interest rate that will never exceed 9%.
  • PLUS loan interest may be tax deductible.
  • Parents may take up to 10 years to repay the loan. There is no pre-payment penalty.
  • Automatic Debit (automatic payment) customers get a .25 percentage point interest-rate cut. (Sallie Mae)

Requirements:

  • U.S. citizen or permanent resident.
  • Parent of a full-time or half-time undergraduate.
  • No adverse credit.

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