Stafford Christian College Loans
Stafford Christian college loans are Federal student loans that offer a fixed low interest rate and do not have to start being paid back until six months after graduation. This type of financing can be obtained after filing for Federal financial aid. The first step in the process of going back to school is to fill out an application with the school of choice. After being approved a student will be instructed to go online and fill out an application for Federal financial aid. Once this is done the school will allow students to choose who they want to use for Stafford college loans. Student loans are generally non-negotiable fixed rate loans. This means the interest rate will stay the same throughout the life of the loan. Making financial arrangements to be able to go back to school and get an education is much like an investment. The investment may seem costly but in most cases the investment more than pays off as the borrower is able to excel in a current position or find a better paying position somewhere else. "A wise man will hear, and will increase learning; and a man of understanding shall attain unto wise counsels" (Proverbs 1:5).
The two types of financing available are subsidized and unsubsidized. Subsidized Stafford college loans are given to a student based upon his or her financial situation. Subsidized financing does not include interest until the student begins repayment. Unsubsidized financing means that the student is charged interest at the time the funds are disbursed even though they will not have to be repaid until six months after graduation. Unsubsidized interest rates are normally higher than subsidized interest rates. There are limits on the amount that a person can qualify for when it comes to both types of funding.
Important factors that are helpful to know about Stafford college loans can be found on the Internet by doing a search. There are limits on the maximum amount of funding depending upon the year in college and whether the student is an undergraduate or a graduate, a dependent or independent. Deferment from paying back the funding can be granted for various reasons. If a borrower becomes unemployed he or she can ask for a deferment. If a borrower goes back to college a deferment can be granted while enrolled in school. If the borrower happens to become disabled he or she can be granted forbearance where paying back the funds is postponed or reduced.
Determining whether a student is dependent or independent can be found out by going online and answering a series of questions. Students that do not qualify as independent must use their parent's information on the Federal financial aid form. Students that are dependent can have their parents fill out an application for Plus loans if needed. Plus loans have higher interests compared to Stafford college loans but the amounts that can be borrowed are higher in comparison. A student will still need to fill out the online Federal financial aid form to see exactly what he or she will qualify for in Federal aid.
The school receives the funds for students who have been approved for Stafford college loans. Then the money is disbursed and applied to tuition and housing if applicable. Any funds left over for that payment period may go to the student and the student can designate to have the funds applied to future tuition. In addition, some students may qualify for a Pell Grant from Federal aid. If the Pell Grant is not needed to cover tuition then the amount is paid to the student and can be used for purchasing supplies and books or whatever is needed. First year students have a waiting period of 30 days after enrollment before their funds can be disbursed in case they withdraw from classes early or change their mind. This is not uncommon, some students do not realize how hard it is going to be or they do not realize how much time will have to be spent on studying.
Fees that are charged for funding are usually deducted from each loan disbursement and are not usually over 4%. Some of the amount goes to the Federal government and the rest goes to the lender of the Stafford college loans. Having a Direct Stafford loan means the Federal Government is the lender and in this type of situation the fees all go to the Federal Government. The lender used is chosen by the student. The school may have some preferred lenders that they suggest but the student can choose who to use. When evaluating and choosing a lender pay attention to the fees charged and if they offer simple repayment terms. Some lenders offer better terms and discounts for students who make their payments on time.
Students who have trouble making their payments after graduation have a few options, consolidating their loans into one monthly payment, asking for loan forgiveness, or asking for a deferment. A lender may allow the borrower to have a reduced interest rate if they set up automatic bank drafts for making payments. Defaulting on Stafford college loans is not a good idea. Defaulting will be noted on financial history which could cause a significant reduction in the borrower's credit rating. A borrower may be subject to automatic deduction of the loan amount from his or her paycheck. Income tax refunds can be withheld and the amount owed will be deducted from the refund. In addition, the borrower can be sued and may have to pay late fees and collection costs.
Government Christian College LoansGovernment college loans are the vehicle by which millions of students are able to afford the sky rocketing costs of attending an institution of higher learning, be it a two year, four year, trade or graduate school. The total cost of attending a four year university is quickly moving past thirty thousand dollars a year and many schools are above fifty thousand dollars for tuition, room and board, lab expenses, books and other related costs. These high costs are making college only a dream for many and if it were not for government college lending agreements even more students would only be dreaming of such an opportunity. For Americans of modest means, these programs are a lifeline. But like any other loan, there comes a day of reckoning.
The Stafford Loan is the first of a number of lending agreements available for students in certain economic situations. Two thirds of all Stafford Loans are awarded to the students whose families have a gross income under fifty thousand dollars. Another one fourth of all these lending agreements go to those households between fifty and one hundred thousand dollars of annual gross income and about one tenth go to those above one hundred thousand dollars a year in gross household income. These lending agreements are fixed amounts of one year loans that are dependent upon the student's academic designation. Freshmen students are allowed up to thirty five hundred dollars of loan money while sophomores are allowed forty five hundred dollars of loan allocation. Juniors and seniors are allowed fifty five hundred dollars in one year Stafford government college loans. Medical students are allowed eighty five hundred dollars a year for subsidized lending agreements and up to thirty thousand dollars a year in unsubsidized Stafford government college loans.
Subsidized Stafford government college loans are awarded on financial need. With a subsidized lending agreement, the US government pays the interest on the loan until the deferment ends. Interest charges begin usually after graduation or after the student ends schooling. An unsubsidized Stafford loan is not based on financial need. Any student who qualifies can get a loan, but interest begins as soon as the money is deposited into a school's account. A federal Perkins loan is also available at five percent interest, and is a lending agreement in which both the government and the school of choice contribute up to four thousand dollars each year for undergraduate work.
Parent Plus government college loans are available for parents who have very good credit histories with no loan repayments more than ninety days in arrears. This particular lending agreement allows parents to borrow the entire amount of a student's education. Tuition, books, lab expenses, room and board and other costs are able to be funded by this lending agreement. Parents are able to co-sign these government college loans with their children to help their children actually begin building a good credit history for themselves. Up to forty thousand dollars can be loaned each year at a modest eight and a half percent interest. There can be no wage garnishments, tax liens, repossessions, foreclosures or write-offs in the parents borrowing history over the five years prior to application of a Parent Plus loan.
Graduate students are eligible to borrow government college loans through the Graduate Stafford loan program. Graduate students may borrow up to twenty thousand dollars a year and no more than eighty five hundred dollars can be subsidized each year. The total amount that can be loaned to grad students is one hundred and thirty eight thousand dollars with no more than sixty five thousand dollars being subsidized. This total debt limit for grad students does include undergraduate work. 21st century America worships those academicians with degrees and accomplishments but Solomon said the counsel of God is the education that will last. "There are many devices in a man's heart; nevertheless the counsel of the Lord, that shall stand." (Proverbs 19:21)
There is always a day of reckoning, even with lower interest government college loans. They must be repaid and many students with today's high loan values are discovering the great weight an educational loan can be when beginning life after college. Some loans do offer graduated repayment plans which start at lower payment amounts as the graduate is getting started and increase over time as, hopefully, the earnings also increase. Extended repayment plans are offered for Stafford Loans, stretching all the way out to twenty five years. If the students or parents pay on time for forty eight payments the loan can be reduced in interest rate by as much as two or three percent.
No matter how easy these federal loans are to secure, the Christian student must remember that a repayment day is coming. Parents will have to do some long term calculations to see how large loans will affect retirement, savings and other issues. Bankruptcy laws have made it very difficult for students to default on federal student loans and students may want to work a year or so and save money to pay for some of their anticipated expenses. The traditional paradigm of going straight from high school into college may have to change as the cost of higher education continues to soar. And the old adage that everyone must go to college to succeed is also being challenged on many fronts. Many entrepreneurs are espousing the idea that making a living is more about living out a passion in life and there are times when an expensive college education can actually get in the way of developing and making a living with that passion. Having to pay many years on a student loan may hinder some from really pursuing that passion.