Loans are just one of the many options which students have available to help pay for college.  Scholarships and grants should be pursued first, however; because these do not have to be paid back.  If you do find that a loan is the only way you can fund your education, you should be aware of the many different loans available to you, and the many different aspects of those loans that must be considered before applying.

Your first step is filling out the Free Application for Federal Student Aid.  It is important to get the form, found at fafsa.gov, filled out as soon as possible.  State governments use the information on a first come first served basis when determining your eligibility for their grants.  This form is also required when requesting federal loans.

If your scholarship and grant awards are not enough, begin applying for loans.  One type of loan to consider is the PLUS (Parent Loan for Undergraduate Students).  It is a loan that parents are responsible for repaying 60 days after disbursement at a current rate of 8.5 percent.  While there is no limit on funds, a credit check is required.  If your parents do not qualify, the limit on a Stafford loan may be increased.

Stafford loans are paid directly to the school by the government or are provided by lenders.  Subsidized loans are need based and the interest is paid by the government while you are in school.  Unsubsidized loans can be acquired by anyone, regardless of need.  You are responsible for the interest while in school but can elect to defer it until after graduation.  Repayment of these loans, at a current fixed rate of 6.8 percent, is not expected until six months after you graduate.  You can, however; get a rate reduction through your lender or a forgiveness of some or all of your loan depending upon your profession.  You can borrow different amounts based upon your year in school.  Freshmen can borrow up to $3,000.  Sophomores can receive $4,500.  Juniors and seniors can get $5,500.  If you are an independent student or if your parents were turned down for a PLUS loan, the limits on a Stafford loan are increased.

Another type of loan is a Perkins Loan.  This is also need based, and eligibility is determined by your school’s financial aid office.  The loan is funded by the school from money received by the government.  It is subsidized and has an interest rate of 5 percent.  Undergraduates and graduates can receive $4,000 and $5,000 per year respectively.

Those who have received loan funds before can expect their money about a month before that of a first time borrower.  This means you should apply as soon as possible, especially if you’ve never received a loan before.  An entrance interview is required before a loan can be disbursed.  Your school’s financial aid office will assist you in completing the interview, which can probably be done online.

One thing to keep in mind when applying for loans is some schools will not accept Stafford Loans.  Check with your school’s financial aid office.  If this is the case, you will either have to find a school that does or acquire a private loan.  Most private loans will have to be immediately repaid, and are most likely based upon credit checks which makes them unattainable for some students.  Some loans, such as one through U-promise, can defer payment until after graduation.

Do not procrastinate.  Get your forms in early.  Explore every avenue for aid that you can.  This will ensure that any setbacks that come along can be handled quickly, and you will get your money on time.  You have enough stresses to worry about in college.  Don’t make money one of them.

Many students acquire several different student loans during college.  Consolidating these debts can have several advantages.  Lower interest rates mean lower monthly payments and savings of thousands of dollars over the life of your loan.  Your credit score can be affected positively from debt consolidation.

You can get a federal consolidation loan if you have federal loan debt from a Perkins, Stafford or PLUS loan.  You can consolidate these loans together, resulting in one loan with a lower interest rate.  However, you can’t combine unsubsidized and subsidized loans together.  There are a few stipulations when consolidating loans.  You must be a graduate, or parent of a graduate, with at least $10,000 in loan debt.  You should either be paying on your loan or be in a grace or deferment period.  These consolidated loans are free to apply for, do not carry extra fees or prepayment penalties, and do not require a credit or employment check.  This type of loan will also boost your credit score.  You can take up to thirty years to pay it back, much longer than the ten year traditional repayment period of most student loans.

If you also have private loans in addition to federal loans, do not consolidate them together.  If you do, you will have to consolidate with a private lender.  Your loan will not be eligible for the benefits that federal loans receive.  These include lower interest rates, tax deductions, and possible payment deferment if you decide to return to school.

You can further reduce the cost of your loans in several ways.  Many lenders have programs based upon your career that can lower your interest rates.  You may also qualify for a reduction in your principal balance if you make timely payments.  This can also help you to qualify for lower interest rates if you do consolidate, some as low as two percent.  Private loans are a bit harder to maneuver.  They often have higher rates and are much more difficult to consolidate if you have poor credit.  An option for homeowners is a second mortgage or home equity loan.  These often have much lower interest rates that may be tax deductible.  You can also use the money to pay off high interest credit card debt that may have accumulated for school expenses.

There are different choices in repayment of your loan as well.  A traditional loan can be paid off with set payments over time.  An accelerated payment can be used to lower your cost the first year or two.  The subsequent years see an increase in the payment, often a significant one.  For instance, if you have a $15,000 loan, you can have a payment of about $80 a month for two years, and then the payment jumps to over $400 the following years.  This may be something to consider if you don’t have a good paying job right now but expect to get one later.

Debt is easy to come by but not so easy to get rid of.  However there are many ways to reduce your out of pocket costs and save money in the long run.  You can consolidate your student loan debt to save money, raise your credit rating and get started toward a great future.

The FAFSA isn’t enough though. You’ll have to fill out a second application to apply for a student loan. Visit your financial aid office for this paperwork. There are two different types of loans available. Subsidized loans which are based on your financial needs and an unsubsidized loan which isn’t need based. Unsubsidized loans mean the interest will begin to accrue right away.

After you’re awarded a federal loan, it’s necessary to attend a 30 minute counseling session. This session will discuss fulfilling your student loan obligations in a responsible manner. You’ll learn how to budget and also how to responsibly pay back your loans. You will not be able to receive student loan funds unless you attend this program. When you leave school upon graduating, you’ll be required to attend an exit counseling session. There you’ll be reminded of your obligations and taught the best ways to repay your loan. You’ll also assist in setting up a payment schedule that works and also discuss deferment should the need arise.

Other things to consider when filling out the FAFSA application:

•    Be sure to have all of your forms filled out and good to go way ahead of time. There are deadlines involved for receiving the maximum awarded amounts.
•    It’s preferred that forms are filled out online. This allows errors to show up immediately. This type of filing is actually more convenient thanks to the tools offered on the web site.
•    File your taxes early since your application can’t be mailed until that task is complete. The sooner you fill out all of the necessary forms the better your chances of getting the maximum amount of money available to you.
•    If you’re asked for more information, respond immediately. If you don’t, the process will become stalled.
•    Be sure to keep copies of every piece of piece of paper no matter how insignificant.
•    Fill out all paperwork completely and accurately. Neatness counts.

For assistance, visit the university or college’s financial aid office. They’re a great source of help and will answer all of your questions. If necessary, you can make an appointment with your school’s financial aid counselor. Bring along all necessary paperwork. If you’re still in high school, your guidance counselor can also coach you. Though it may seem like an intimidating process, there are trained professionals to guide you as you go.

If you’re sick of having to juggle around payments for several different student loans, student loan consolidation might be the answer. Consolidation is a good idea for anyone who has multiple payments to contend with each month. If you’re not a good record keeper, consolidation makes it easy as you only have one lending company, one envelope, and one set of payment coupons to deal with. You’ll also appreciate the cash saved when you pay one lower rate as opposed to several different loans costing significantly more money. With student loan consolidation, you’re also locking in the current interest rates so you don’t have to face rising rates in the future. What follows is a brief description of student loan consolidation.

There are pros and cons to student loan consolidation. First the pros:

Having one loan means having one lender and one payment. This eliminates having to coordinate several monthly payments. It also means less confusion when it comes time to pay the bills. By having a lower monthly payment, you’re sure to save money. When you extend your loan period, your credits are more likely to give you a reduced payment amount each month.

With today’s rising interest rates, you’re sure to appreciate the fixed interest rates of student loan consolidation. Lower interest rates will help you save money over an extended period of time. Student loan consolidation also offers more flexible payment plan options. If you’re not quite established in your career this can only work to your benefit. Make a lower payment now, and when you earn a larger salary your payments can reflect this.

Of course there are cons as well. Because you’re extending the life of the loan, you’re also extending the amount of time it will take to pay off your loan. This can mean a larger amount of money paid over time.

It’ll take 3 – 5 weeks from the time of approval for the consolidation process to begin. During this time, you’ll still be expected to make payments to your creditors. Thankfully there are no fees involved with student loan consolidation and you won’t be penalized if you decide to repay your loan early.

Because there’s so much competition among lenders, you can really take your time and shop around for the best deal. Try and find one that offers incentives for timely payments. You can receive as much as one percent back or even be able to apply that amount to your loan.

Both Subsidized and Unsubsidized Stafford loans qualify for student loan consolidation. PLUS and Perkins loans also qualify. Private loans, on the other hand, are ineligible. If you wish to consolidate your private loans, visit a private lending institution. Since there are guarantees offered by federally backed loans, credit checks aren’t necessary.

If you have trouble keeping up with the different student loans you’re obligated to pay, you might want to look into student loan consolidation. Just having one payment to make each month is reward in itself.

Just because you’re not attending college immediately out of high school doesn’t mean you’re not eligible for many of the programs offered to traditional students. Non-traditional students can reap some of the same rewards as those who just graduated. If you’re interested in learning about what loans are available to non traditional students, read on.

Subsidized and unsubsidized Stafford loans are very much available to the non traditional student. PLUS loans, which are generally offered to parents of students who are attending college, aren’t available to non-traditional students. Private lenders will offer alternative loans to those who don’t qualify for federal loan programs. The loans are not guaranteed, however. Your credit history will determine your interest rates and eligibility. Because these loans aren’t need based, you won’t be disqualified if you earn too much money. If your credit is not the best, someone can co-sign for your loan.

The amount of money you can receive depends on the lender as well as your credit history.  Each lending institution has its own set of guidelines. Because of this, you’ll want to shop around for the best interest rates and payment terms. Because this is such a competitive field, you’ll want let this work towards your advantage.

There are several private lenders from which to choose. A sampling is provided:

Campus Door: Visit the Campus Door website at www.campusdoor.com. One of the benefits of this program is that you can wait up to a year after graduation to begin repaying your loan. This should give you ample time to find employment upon graduation. You don’t have to take this long, however; as the average is 6 months. Always read the small print though.  If you’re not even a half time student by the time you graduate, you’ll have to repay the loan at 6 months past the point you dropped below half time instead of the 12 months. If you have cosigners, they can be released of their obligations after 48 payments on time. You’ll also need to be achieving a satisfactory academic basis.

Citibank CitiAssist Loans: Visit CitiAssist Loans at www.studentloan.com. There are origination fees and you’re awarded a maximum of the cost of your education minus financial aid. Your cosigner is released from his obligation after 48 on-time payments in a row, if your credit is favorable. You’ll have to repay six months after graduation.

Sallie Mae: Visit Sallie Mae at www.salliemae.com. Sallie Mae offers maximum of cost of education minus other financial aid. You can begin to repay 6 months after graduation and will be released after 24 consecutive on-time payments. If you’re an international student you may apply as long as you have a co-signer who is a citizen. You’ll have to pay origination fees for these loans.

Be sure to compare the various options available. Pay careful attention to your own financial situation and don’t borrow more money than you can pay back. Be mindful of deadlines and apply early. As you can see, student loans don’t only apply to traditional students. Everyone gets a chance for a good education.

Almost a quarter of graduating students have around $19,000 worth of student loan debt.  While the best way to get out of repayment is to not get a loan in the first place, this is not a feasible option for many.  But there are many ways to reduce the amount you owe, and maybe eliminate it altogether.

Depending on your career path, you can get some or all of your Perkins or Stafford Loans discharged.  For teachers, there are many options.  Stafford loans can be forgiven by up to $5,000 for teachers working in low income schools.  Perkins loans can receive up to one hundred percent forgiveness for working in low income schools, or for teaching in such areas as special education, mathematics, or science.  Fifteen percent of the loan can be discharged for one or two years of teaching, twenty percent for three or four years, and an additional thirty percent for a fifth year.

The Equal Justice Works can give law students information on loan forgiveness for working in non-profit organizations after graduation.  Medical students can receive help with their loans after working in areas that are economically depressed or have inadequate health care facilities.  The American Physical Therapy Association, The National Institute of Health, and the American Academy of Family Physicians Foundation can also help medical students with repayment programs provided they meet certain work criteria.

The government is a good source of loan aid through the military.  The Army National Guard offers $10,000 towards loan repayment, and other branches of the military have programs to help students pay for their education.  Also, if you or one of your parents is a veteran, you may qualify for additional aid.  If you wish to work for the federal government, you can receive additional money above your salary to pay off your loans, provided you work at least three years with the agency.

Volunteer work can also help you pay off your loans.  The Peace Corps can offer you deferment of Stafford and Perkins loans or partial forgiveness of a Perkins loan when you volunteer two years of your time in a developing country.  The AmeriCorps can give you $4,750 for twelve months of volunteer service, plus over $7,000 in stipends.

The lender who provided you with your loan may also be able to help you reduce your costs.  Some lenders, such as EdFinancial, can reduce your interest rate for qualified professions such as teaching and nursing.  They can also reduce your principal balances after you’ve made several, usually around 30, on time payments.  You can also consider consolidating your loans, which allows you to put all of your loans under one payment at a reduced interest rate.  However, subsidized and unsubsidized loans cannot be consolidated together.

If the cost of your loans is too much for you, contact your lender.  They may be able to offer you a forbearance or deferment, which can reduce or stop your payment for a certain amount of time.  Keep in mind, though, that you will still be responsible for any interest that accrues during this time.  Try your best not to default on your loan.  If this happens, you will not be eligible for deferments or forbearances.  Your debt will be turned over to a collection agency, incurring additional costs.  If you are due a tax refund, it will probably be put toward your repayment instead of coming to you, and your Social Security benefits could be affected.  You could also have your wages garnished at which point your credit score and rating will be tarnished, making it difficult for you to get another loan.  Also, student loan debt cannot generally be discharged during bankruptcy.

There are many ways to reduce the amount of student loan debt that you owe.  Do some research and get creative.  It is possible to get out from under your loan.