Best student loan

In the present day competitive world, childrens education is the prime focus for all parents and students alike. Hence, it is important to know the best available student loans and the terms at which they can be availed.

Here is a brief discussion on the different kinds of student loans:

Subsidized Stafford Loan- Both undergraduate and graduate students can avail of this loan. A subsidized Stafford Loan means there are no payments required to be made until six months after the student ceases to be at least a halftime student. It is the responsibility of the federal government to pay the loan interest as long as the student is in the school at least half time. Interest does not accrue and payments do not begin until a six-month "grace" period transpires after the student leaves school. To avail of this loan, the student has to show a need for the fund by filing the FAFSA application.

Unsubsidized Stafford Loan- Both undergraduate and graduate students are eligible for this loan. However, unlike the subsidized Stafford Loan the students will have to pay the loan interest while they are still in school. Also it is not a needs based loan, so the students dont have to show any need for the fund. A student can choose to pay the interest or allow it to accrue and be capitalized (that is added to the principal amount of the loan).

Federal Perkins Loans Both undergraduate and graduate students are eligible for this loan. The student needs to show a financial need to avail of this loan. In this type of loan, the funds are given out by the school and hence it must be repaid to the school.

Federal PLUS Loans for Parents In this type of loan, parents are allowed to borrow up to 100% of their childs cost of education. Parents can avail of this loan irrespective of their income and without showing any need for the fund.

As much as the debt burden is a concern for the students- This type of loan has a variable interest rate and is eligible for dependent undergraduate students alone. These are first applied to tuition and fee. The student doesnt have to show any financial need.

Federal Consolidation Loans In this type of loan, borrower has the advantage of monthly payments and lower interest rates. The loan availed from different sources are clubbed together into a single loan with one repayment plan.

Federal Nursing Loans- This type of loan is available to the students of nursing schools. The borrower has the advantage of flexible repayment options. Cancellation of loans is at times allowed.

Federal Insured Student Loans - This loan is meant for those students who are not eligible for the other student loans.

Health Professions Student Loans This loan is meant for students pursuing courses in the fields of dentistry, optometry, pharmacy, veterinary medicine or podiatry. These are long term loans with low interest rates.

Private Student Loans In this type of loan, the credit worthiness of the borrower is taken into account. Unlike federal student loans, private loans aren\'t guaranteed by the federal government. While guaranteed student loans carry a fixed rate of 6.8%, there are no limits on the interest rates and fees private lenders can charge.

Loan Information

Requesting a loan must be done online for the 2007-2008 academic school year. Request a loan only after you have carefully reviewed your financial aid award packet, the award letter, and the amount of loans offered. Included in each award packet is the Cost Estimate Worksheet. Please review the Cost Estimate Worksheet in order to estimate the annual costs associated with the academic year and plan accordingly.

STUDENT Stafford Loan - If you are awarded a Stafford Loan and would like to accept it, you can accept any amount up to but not exceeding the amount on your award letter.

• Review the Award Letter.
• Go to the online Lender List to Best Loans Information Be sure to request the annual amount desired.
• Simpson University will receive confirmation of the loan request. As prompted, please complete and e-sign the Master Promissory Note online.
• If you do not request a loan, Simpson University will decline it on your behalf.

New Borrower - If you are a new, first-time borrower, you are required to complete online entrance loan counseling with EdTest to better understand the Stafford Loan. Failure to complete the new borrower meeting will result in delayed processing of funds.

Previous Borrower - If you have already borrowed a Stafford Loan, we recommend that you use the same lender you have used in the past. If you choose to select a different lender than previously used, you must complete a new Master Promissory Note, or your loan funds may be delayed.

PARENT Plus Loan - If you are the parent of a dependent student, you will have the opportunity to help with your student's cost of college by taking out the Parent PLUS Loan. You can borrow any amount up to but not exceeding the amount on the Award Letter.

Important facts to remember: (1) Only one parent should request the loan; (2) requesting a PLUS loan does not obligate the parent to take out the loan; and (3) it is necessary to request the loan even if you believe you may be denied, as the student may become eligible for an additional unsubsidized Stafford Loan through a denial.

• Review the Award Letter and compare it to the Cost Estimate Worksheet; analyze the annual amount you will need to request (deducting the 3% Origination Fees).
• Go to the online Lender List to Home Loans Be sure to request the annual amount desired.
• The Parent PLUS Loan request is a three-step process: (1) fill out the required confirmation form; (2) fill out the required pre-approval credit check; and (3) e-signing the Master Promissory Note. If you are a continuing parent borrower (at Simpson University), be sure you are the same borrower from the previous year as continuing borrowers only need to complete the confirmation form and the pre-approval credit check.
• If you do not request a loan, Simpson University will decline it on your behalf.

Federal PLUS Loan for Graduate Students - Once you have requested the full amount of your Stafford Loans, you will have the opportunity to help with your cost of college by taking out the Graduate PLUS Loan. You can borrow any amount up to but not exceeding the amount on the Award Letter.

• Review the Award Letter and compare it to the Cost Estimate Worksheet; analyze the annual amount you will need to request (deducting the 3% origination fees).
• Go to the online Lender List to Online Loan Company Be sure to request the annual amount desired.
• The PLUS Loan request is a three-step process: (1) fill out the required confirmation form; (2) fill out the required pre-approval credit check; and (3) e-signing the Master Promissory Note.
• If you do not request a loan, Simpson University will decline it on your behalf.