| College students loans are meant to assist College | | | | 2. No repayment penalty is made. |
| Students. They are also called Federal Stafford Loans. | | | | 3. Repayment periods may generally vary from 10-15 |
| College student loans are perhaps the most | | | | years. |
| affordable ways to pay for school. | | | | Eligibility Criteria: |
| As the educational institutions raise their tuition fee, | | | | |
| this has become a part of living. | | | | 1. The student must be working towards a degree or |
| Advantages of College Students Loan: | | | | certificate that is eligible for application of this loan. |
| | | | 2. One must be able to show valid proofs for the |
| 1. They offer lower interest rates when compared to | | | | financial status. |
| the private student loan. The interest rates go up to | | | | 3. High school diploma certificate is essential. This |
| 6.8% | | | | must be approved by U.S. Department of Education. |
| 2. No collateral or credit check is required. | | | | 4. Other standards of the state must also be met as |
| 3. Upfront cash rebates of about 2% and 3% cash | | | | per the department approval. |
| rebate on the balance after paying for the first 30 | | | | 5. Must be a US citizen or an eligible non-US citizen. |
| months of consecutive on time payments. | | | | 6. One must have a valid SSN(Social Security |
| 4. The college student loan repayment is postponed | | | | Number) |
| until the students are out of the school. The students | | | | 7. Maintenance of satisfactory academic performance |
| need not repay until they are in school. | | | | in the educational institution. |
| 5. Stafford student loan rates are lower than other | | | | 8. Promise that this would be used only for |
| forms of consumer financing. | | | | educational funding. |
| 6. When used audio debit for repayment the interest | | | | Application Procedure (From Source): |
| reduction is up to .375% | | | | |
| 7. They can be easily consolidated. | | | | 1. Complete the FAFSA form |
| 8. Tax deductions are done | | | | 2. Next, complete the Master Promissory (MPN) form. |
| 9. Flexible multiple repayment options are available for | | | | 3. Complete the U.S. Student Information Form |
| the students. | | | | 4. Submit the MPN form and the U.S. Student |
| 10. Cosigners are not required as compared to the | | | | Information Form (described above) to the Financial |
| private student's loan. | | | | Aid Manager at Financial Aid, Newnham Campus. |
| Types of College student's loan: | | | | 5. Submit your Student Aid Report (SAR) to Financial |
| | | | Aid along with the above. |
| 1. Subsidized Loan: While the student is in school, | | | | 6. Send a hard copy of your Student Aid Report |
| repayment need not be done and the government | | | | (SAR) Student Financial Services; you can print this |
| would pay the interest during this term. Also during | | | | form from the FAFSA site after you have completed |
| the grace period and other deferment periods, the | | | | the form. |
| government would pay the loan interest. However, | | | | 7. The Financial Aid Manager will then certify your loan |
| for such a criteria to exist, student must provide valid | | | | and submit the forms to the potential lender |
| proof to show that they are not in a position to | | | | guarantor for disbursement. |
| repay the loans. (i.e., they are still in an educational | | | | Loan Amount Calculation: |
| institution).This is otherwise called as subsidized Loans. | | | | - COA: Cost of Attendance The Cost of Attendance |
| The amount of loan lent depends on the FAFSA | | | | (COA) includes not only tuition and fees but also living |
| form details. | | | | expenses, books, supplies, personal expenses and |
| 2. Unsubsidized Loan: In this type, students are the | | | | transportation costs for the eight month period while |
| one who pay the interest. Until their educational term, | | | | you will be in school. The Cost of Attendance = |
| the payments would be deferred. Once they | | | | (COA) - (EFC) - (EFA) |
| complete their course, they must pay the interest | | | | - EFC: Expected Family Contribution The Expected |
| that was deferred so long. An eligibility criterion does | | | | Family Contribution (EFC) is based on the students |
| not exist for this kind of loans. These are otherwise | | | | (and if applicable, the students families) income and |
| called as unsubsidized loans. The lent amount depends | | | | assets, as was reported on the FAFSA form. The |
| only on the educational details irrespective of the | | | | EFC is reported on the SAR and the Institutional |
| financial status mentioned in FAFSA form. | | | | Student Information Record (ISIR). It is based on an |
| Repayment of College Student Loans | | | | eight months period of enrollment. |
| | | | - EFA: Estimated Financial Assistance The Estimated |
| 1. Repayment starts only when the student leaves | | | | Financial Assistance (EFA) usually takes the form of |
| the educational institution. This mostly starts up after | | | | scholarships, grants, loans, or work that is awarded |
| 6 months of awaiting and until when the student | | | | based on post secondary enrollment. |
| earn at least a minimum monthly salary of $50. | | | | |