Established by an Act of Congress in 1965 and begun in 1966, the Federal Family Education Loan Program (FFELP) is a partnership program between the federal government and private lenders and an umbrella program which includes Stafford loans, student PLUS loans and Perkins loans. Since it started more than half a trillion dollars have been disbursed through this program.
Funds for the program are provided by a network of independent banks, credit unions and other financial institutions and lenders are generally happy to make money available in what would normally be considered a high risk area of lending because loans are to a large degree (although not totally) underwritten by the federal government. In about five percent of cases private guarantors do become involved with defaulted loans and are able to make application to the federal government for at least partial reimbursement.
The vast majority of funds are used for subsidized and unsubsidized Stafford loans. In the case of subsidized loans the federal government pays the interest on loans while students are attending full-time courses (and for up to six months after graduation), while in the case of unsubsidized loans students are responsible for paying the interest due on their loans. Interest […]
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Fortunately not all student loans programs grant loans on the basis of your credit record and loan schemes such as Stafford loans and Perkins Loans are based solely upon your financial need. Unfortunately not all students will qualify for these loan schemes and those that do will find that the funds they provide are not enough to meet your needs and generally have to be topped up with additional loans.
For most students therefore there is a need for supplemental loans and that means credit based student loans. And credit based student loans means being able to demonstrate a good credit history in order to get the best interest rate and indeed, in many cases, to get a loan at all.
The first lesson that students need to learn therefore is that a bad credit history can make the difference between getting a loan and not getting a loan, or getting a loan on which you are going to have to pay a higher rate of interest than would have been necessary without a bad credit history.
When you apply for a loan the first thing that the loan officer is going to look at is your FICO score. This is a number […]
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The old saying that ‘money makes the world go around’ is as true today as it was all those years ago when it was first coined and that is not always good news for many youngsters who are trying to get the funds together for a college education so that they can reach their potential and get a share of all that lovely money. Many young people today possess considerable skill but do not get the opportunity to develop their skill and reach their true potential. Fortunately, for many youngsters that is where scholarships come in.
Both scholarships and grants are designed principally for individuals who demonstrate particular talent or financial need and, of course many young people fall into both categories.
There are literally hundreds of scholarships available today and they vary widely in terms of the qualifications required for an award, the amount of money payable and the purpose to which that money may be put. Some scholarships will for example cover a wide range of expenditure including tuition, books and other course materials and housing. Other scholarships may only be used to pay for tuition fees. Similarly some scholarships will meet the full cost of tuition (and perhaps other […]
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