Christian Guaranteed Student Loan
A Christian guaranteed student loan is a loan that is backed, or guaranteed, by the Federal Government and extended to college and university students. Through this means, students can qualify for financial aid and the government guarantees that the college will be paid. Each state has a service that provides distribution and management of federally guaranteed student loans. The very latest information from colleges in each state regarding federal financial aid, can be found online by searching for the particular state's requirements.
Most colleges will encourage students to investigate several financing options before applying for Federal Student Aid with a Free Application for Federal Student Aid (FAFSA). There also are grants and scholarships that can help to pay for attending college. Therefore, financially responsible kids and parents should consider the responsibility to exhaust all avenues possible, before applying for a Federal Stafford Loan with an FAFSA. While this is a guaranteed student loan, there are special considerations with interest fees and payments with a Federal Stafford guaranteed student loan. They do not require payment until six months after graduation from college. However, some exceptions to the rule, include leaves of absence and dismissals from the college campus. Generally, these loans have variable rates for interest fees.
The application for assistance with college education can be filled out and submitted to any college. The extensive application is online or can be gotten from the financial aid office at the college. These applications for guaranteed student loans ask questions about a family's finances, and should be completed with as much detailed information as possible. Also, families are encouraged to read all documentation and to completely understand the promissory note, including personal rights and repayment strategies, because the guaranteed student loan must be repaid.
With college costs seemingly increasing each academic year, families may need additional help paying for education. An advantage therefore, with this financing option, is that payments are not due until after graduation, although they will need to be made. Defaulting on guaranteed student loans can result in damage to a credit report and compounding interest and late fees. There even can be serious consequences with tax returns and refunds. In some cases, the federal government can have a paycheck garnished to repay the debt. Careful consideration is therefore advised, before applying for the money to cover tuition, books, and living expenses. "Only by pride cometh contention: but with the well advised is wisdom" (Proverbs 13:10).
An undergraduate student loan is available from many different sources, and pupils desiring a college education can find the financial help needed to enroll in a place of higher learning. When a high school graduate wants to continue education, but does not have access to the funds needed to pay for college, there is hope. College goers seeking help from the government are encouraged to research the many funding options available online and through their high school counseling office. This can be done through grant and scholarship access, thus reducing the amount of money needing to be borrowed.
There are private and governmental undergraduate student loans available to those pursuing college. Guaranteed funding sources granted by the Federal Government are administered through lending agencies that work directly with colleges and universities. A lower-classman seeking available funds can learn that monies are backed by the government and can be applied for with a Free Application for Federal Aid (FAFSA), which is an application that can be found online or through the school's finance office. Most colleges will encourage students to investigate several student finance options before applying for Federal Student Aid with a FAFSA. An undergraduate student loan backed by the Federal Government will need to be repaid, and default on a Federally funded undergraduate student loan can lead to serious consequences.
There are many private lenders offering low interest rates and options for undergraduate student loans. Students searching these types of monies can also work with banking institutions that offer low interest rates and terms that may rival the Federal Government's terms. Many of the lenders offering special financing rates offer their services online, where students can apply for and submit applications expediently. Often, a lending institution or agencies can custom fit a package to the student's financial circumstances.
Research for undergraduate student loans can begin online with the Internet. There is information on guaranteed undergraduate student loans and private pupil funding. Getting an education and growing in knowledge is Biblical. But, the Bible teaches that we are to focus on God's wisdom and ways; we are not to focus on man's wisdom. When seeking an undergraduate student loan, seek God's wisdom in all things. "The heart of the prudent getteth knowledge; and the ear of the wise seeketh knowledge." (Proverbs 18:15) When a person includes the Lord in their decision-making, he or she will feel more confident in which path He would want them to pursue.
Christian personal Student LoanPersonal student loans can help a coed finance the education needed to start a new career or move up the professional ladder of success. These contracts come from different sources and can be used in many ways and require specific qualifications. Most personal student loans require the person to attend classes, at least part-time, in order to qualify. They are available through the government, local banks, and online. The first place to search when looking for these types of funding is at the educational institution the coed is planning on attending. Most schools gladly help applicants fill out forms, provide paperwork verification, and do whatever is necessary to help them get a personal student loan.
Some people think that getting a personal student loan is a bad idea. For some, that's true. A wise borrower carefully considers all the options before entering into a contract. If the education gained will allow the borrower to enhance employment opportunities and make more money, than certainly it's a good idea. Make sure that the school is accredited and the professional field is feasible. Look for the lowest interest rate available and endeavor to pay the money back as quickly as possible after graduation.
Gaining wisdom and knowledge is never a bad idea. Proverbs 1:7 says, "The fear of the LORD is the beginning of knowledge: but fools despise wisdom and instruction." Our first source of knowledge is God, the creator of the universe and the one who knows the future. When an undergraduate uses a personal student loan to better himself and increase his self-confidence, that is a wonderful idea. But just because the contract is for education, doesn't mean that it is a sound financial decision. The borrower will have to pay back the money in the future. A wise borrower reads all the information he can find about the contract and understands all he is signing. An unwise person could get in over his head and spend the next ten years repaying a personal student loan because he didn't read what he signed. Some people are attracted by the low interest rates offered and neglect to consider the impact it could have for years to come. Prayerfully consider the decision to take out personal student loans. Only God can lead us into the right financial decisions. When we follow His leading, we will avoid many of the financial errors that come our way.
Professional student loans are designed for collegebound individuals who are seeking to obtain additional training to change occupations or receive additional training in their current career. "Give me now wisdom and knowledge, that I may go out and come in before this people: for who can judge this thy people, that is so great?" (2 Chronicles 1:10) God often calls people in the direction of education, but it's often hard to afford. With all types of borrowing, though, higher education is far easier to obtain.
A Federal Stafford loan, a type of professional student loan, consists of simple interest, is government guaranteed, and requires no collateral. A Federal Stafford can be subsidized or unsubsidized. The Federal Government will pay the interest for those who have secured a subsidized amount up to 6 months after graduation. An unsubsidized amount requires that the borrower pay the interest. In order to qualify for a Federal Stafford, the individual applying must be a U.S. citizen, have a high school diploma or GED, not be in default of a previously lended amount, and must be enrolled in school at least halftime.
The Federal Perkins is another professional student loan. This type is low interest for graduate or undergraduate students. The school is the lender but the government funds part of the loan and the school funds the rest. Repayment of Federal Perkins are made to the school. There are limits to the total amount borrowed both for graduate and undergraduate students. Repayment of these funds usually doesn't begin until 6 months after graduation. There are usually no fees associated with a Federal Perkins professional student loan. Deferments may be obtained by requesting in writing through the school. Forbearance allows for payments to be postponed or delayed and may be obtained by requesting in writing.
Repayment of professional Christian student loans, vary depending on the type. A standard repayment plan is usually set up with a term of 10 years, has a fixed rate, and a minimum amount of a monthly payment. Extended repayments are set up for 12 to 30 year terms. An extended repayment decreases the monthly payment amount but increases the time for payoff. Graduated repayments are also available. This type of repayment means an initial lower monthly payment with increases every 2 years. The terms for these repayments are for 12 to 30 years. The monthly payment must cover at least the interest due on the amount. Income contingent repayments for professional student loans are based upon income and total debt. Payments are adjusted each year based upon income fluctuations.