April 22, 2014 By

Want to Study – What Are Your Options?

Loans under government programs come with subsidized interest and extended repayment plans. There are different ways to fund your college education, including unsecured signature loans and peer to peer lenders. The type of financing to choose depends on your expenses. You can choose from different options, including private and subsidized loans.

studentsWhether you qualify depends on many factors such as marital status and course of study, but it makes sense to explore your options . With government loans, the interest rate is fixed, and the amount covers your college tuition expenses. A fixed interest rate means that the payments stay the same over the loan term. A fixed rate means that your last and first payment are the same. Financial institutions take different factors into account, including the borrower’s credit history, income, employer, and others. There are also certain criteria to meet when applying for a federal loan. Repossessions, tax liens, bankruptcies, and foreclosures are red flags that you are a risky borrower. In some cases, you need a person who will guarantee timely repayment. Some loans also require proof of financial need.

If you do not qualify for a subsidized loan, consider other options such as parent loans. There are exceptions but unmarried dependents usually qualify. Students must be enrolled at least half-time. On the student loan application you have to specify the loan amount, whether the funds cover school-related or non-tuition expenses, and other details.

Subsidized and unsubsidized student loans are one option to consider, but there are others. Some students work part-time while others apply with a private lender. You can apply for an university loan or ask your family for help. You may want to contact your financial aid office to check whether loans are available.

There are different types of scholarships, including unique and student specific. Scholarships are offered by universities and different organizations. Corporations and local groups and communities offer awards. For example, there are scholarships for minorities, students who are interested in community service, those with a history of cancer, and many others. Contact your university if you are a returning student. Visit your student aid office and local bank to ask about different options available.

Related Resources:
http://www.equifax.com/credit-report-ca/en_ca
http://www.yourloan.ca/loan-articles/student-loans/

Filed Under: Loans Tagged With: , ,
January 27, 2014 By

How to Repay a College Loan

Credit unions, banks, government agencies, and universities offer student loans. Students can apply for subsidized, institutional, and private loans.

Requirements       

collegeThe lending criteria vary by lender, location, loan amount, and more. Students can choose from various options such as maintenance and tuition fee loans, and the main difference between them is that the former help with bills, textbooks, and room and board while the latter cover tuition expenses. To apply for a loan, students must show proof of unearned and earned income such as self assessment tax returns, income details, pension statements, recent pay slips, and so on. If applicable, students also need to show proof of separation or divorce such as a council tax bill or a letter from an attorney that confirms this. Students need to provide information about their income if applying for a loan or grant, including childcare and special support grants, maintenance grants, and maintenance loans. In addition, you will be asked to present information about your business assets, investments, and savings, if applicable. In general, applicants for government loans must fill in information such as their home and term-time address, course year, campus, and college or university.

Types of Financial Aid

Students are offered loans and financial aid under different government programs and by private and institutional lenders. The main difference between government and private loans is that banks offer variable interest rate that is tied to some index. Private lenders usually require a cosigner unless the applicant has very good or excellent credit. Borrowers with a poor credit score are offered a higher interest rate. The repayment schedule and terms are also less flexible compared to government loans. Federal loans are offered to students who are enrolled half-time or full-time and are need-based. Students enrolled in trade schools, community colleges, and universities can apply for subsidized and unsubsidized loans. The main benefit of subsidized loans is that they are interest-free until graduation. The borrowing limit depends on the grade level, i.e. junior, sophomore, etc. There are alternatives to federal and institutional loans, including scholarships and grants. There is plenty of choice when it comes to awards, including international, federal, and college scholarships. In addition to college-specific awards, there are scholarships by major. There are different sources, including professional organizations and state grant and federal agencies. The money is applied toward tuition, room and board, and other fees. In general, awards come in different types and sizes. In addition to awards, students are also offered work-study jobs.

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