Educating yourself about student loans

                                                                                         

When it comes to student loans, there is a huge variety to choose from. One of the nation’s leading providers of student loans is Sallie Mae. The Sallie Mae Company has provided numerous federal and private loans, including consolidation loans for undergraduate and graduate students and their parents.

What types of Sallie Mae loans are there? Here are a few:

1. Signature Student Loan – This loan is a popular after-Stafford loan. If grants, scholarships and Federal Stafford loans have not covered the total cost of your education, Signature Student loans can help. To qualify, you must attend a community college or a four- or five-year college at least halftime and be working toward your degree; you must meet credit criteria; and you must be making progress toward a degree.

There are aggregate loan limits with Community Colleges at $50,000, four and five year colleges starting at $100,000 and going up to $220,000. The interest rates are variable and based on the Prime Rate. Fees are usually zero percent and are assessed depending on credit history. Standard repayment term is 15 years with the option to extend to 30 years.

2. Tuition Answer Loan – The Tuition Answer loan helps bridge your education financing gap after federal student loans and traditional financial aide have been considered. The amount borrowed is from $1,500 to $40,000 per year. The borrower must have good credit. Applicants must be able to provide proof that the student is enrolled (full or half time) at an eligible college, graduate, trade, or technical school. This may be any document that displays the student's name, enrollment period, and the name of the school, such as a tuition bill, application, or a printout of an online class schedule. The interest rate for the Tuition Answer Loan is Prime Rate, adjusted monthly, plus a margin depending on your credit history and/or the addition of a cosigner. There is a one-time loan fee and repayment options are varied.

3. Signature Student Loans for Community Colleges - If grants, scholarships, and Federal Stafford loans have not covered the total cost of your community college education, the Signature Student Loan for Community Colleges can help. The Signature Student Loan a popular after-Stafford loan. You must attend a community college at least halftime and be working toward your degree. To qualify, you must meet credit criteria, borrowers must be U.S. citizens or permanent residents, and International students are eligible with a creditworthy cosigner.

The Signature Student Loan has a high approval rate. If you have less-than-ideal credit or no credit at all, you can still be eligible for the Signature Student Loan by applying with a creditworthy cosigner. The minimum amount you can borrow is $500 with an aggregate amount of $50,000. Interest rates are variable and based on the Prime rate and there is no disbursement fee; repayment fees are 0%–3% depending on credit history. Standard repayment term is 15 years, with the option to extend terms (up to 30 years) for higher aggregate loan balances.

4. Continuing education loans - The Continuing Education Loan is a private, credit-based loan that provides financing for postsecondary students not seeking degrees and for part-time, degree-seeking students. The Continuing Education Loan has interest rates and fees that reward good credit.

Repayment terms of up to 15 years are available. If you have less-than-ideal credit or no credit at all, you can still be eligible for the Continuing Education Loan by applying with a creditworthy cosigner. You may borrow for both tuition and other education-related expenses. There is no aggregate loan limit.

The Continuing Education Loan has interest rates that reward good credit and are as low as Prime + 0% for borrowers with excellent credit. Interest rates are variable and reset monthly.

Loan fees are 0%–6.5%. As for repayment, you may take up to 15 years to repay your loan. With the standard repayment option, you make level, monthly payments of principal and interest. The minimum monthly payment is $30. With the interest-only repayment option, you make interest-only payments while you are in school and begin standard repayment of principal and interest once school is completed.

The options are numerous, which one will you choose?

About the author:
Kara Lilly, a Librarian for over 15 years in College Park, creates the Eduology for schoolwork.org, a leading provider of homework help, college directories with satellite maps and a comprehensive breakdown of student loans. For more information, please visit www.schoolwork.org.

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