| So, you are going to college or another institute of | | | | resource FAFSA Loan will let you be prepared to deal |
| higher learning? If you are smart, you have already | | | | on equal terms with the education financial aid |
| done your FAFSA or Free Application for Federal | | | | industry. |
| Student Aid. There are some sources of aid, such as | | | | There is nothing underhanded, but you do want to |
| grants and scholarships, which are a limited resource | | | | be prepared so that you make the decision which is |
| and the early birds are going to have first bite at | | | | best for you, not for the student loan officer. These |
| those particular worms. The FAFSA is the key to | | | | people are paid on a commission basis. |
| these and the loans which are available under the | | | | PLUS Loans and Stafford Loans |
| Federal Government's programs. | | | | On the PLUS Loan and Stafford Loan Script page |
| Many of the Federal student loans from the FAFSA | | | | you will find an explanation of the pitch I used for |
| or are funded by private companies, such as Sallie | | | | Federal education loans for when the student was still |
| Mae (not a government organization at all as many | | | | at school. Two of the things that were drummed into |
| think), Wells Fargo, College Loan Corporation, etc. | | | | us was to convey a sense of urgency, and also that |
| These are lenders under the FFEL or Federal Family | | | | this was a FEDERAL GOVERNMENT program. We |
| Education Loan program. | | | | weren't told to make anyone think that we were the |
| Many of you will have no choice as to who your | | | | government, but if they did, it certainly couldn't hurt. |
| lender is. Your school may work with the Federal | | | | Note that Stafford loans are sometimes referred to |
| Government's DIRECT program which means the | | | | as an unsubsidized student loan or a subsidized |
| loan is directly from the government. There is no | | | | student loan. |
| confusion in that case, however you may miss out | | | | Consolidation Loans |
| on some of the bonuses that the private companies | | | | Once you have finished school you may want to |
| working with the FFEL program offer, such as | | | | consolidate your student loans. At this point you may |
| discounted interest rates. | | | | have the opportunity to contact the lending |
| Others will find that their school has a "preferred | | | | companies again. And don't worry, they will be |
| lender", and you have no choice in who their student | | | | contacting you, too! |
| lender is. This may be for the school's benefit, as | | | | On the Consolidating FAFSA Loans page you will find |
| their process is streamlined, or maybe there was an | | | | the a summary of the script that a lender will use to |
| incentive from the lender for the school using only | | | | convince you to consolidate. Again the modus |
| that company. | | | | operandi was to convey a sense of urgency, and |
| The rest of you are going to be bombarded with | | | | also that this was a FEDERAL GOVERNMENT |
| choices. In most cases you will end up phoning the | | | | program. |
| numbers in the mailers and speaking to a student loan | | | | Remember that there are deadlines for these loans |
| officer. | | | | but they are usually based on publicly known dates |
| I used to work for one of the bigger student loan | | | | such as school dates and interest rate changes by |
| companies. When you try to get a FAFSA based loan | | | | the Federal Government. If a lender tries to tell you |
| for college and university, you will be pitched in a | | | | to get your application in within three weeks or "your |
| very particular way. | | | | file will be closed", don't worry. The "file" can be |
| I am going to let you in on how they sell these loans | | | | opened again real easy! |
| to you. | | | | All the best in your education, and don't hesitate to |
| The education loan consolidation and Plus / Stafford | | | | contact us if you have any questions or comments. |
| loan pitches that you will find at the consumer | | | | |