I’d bet their numbers are up.

Why? Why not. Taking a MBA program for example online could save you $50,000 easily vs. a traditional brick and mortar program.

Take a look at a 2 year chart of Capella Education, which operates the accredited Capella University.

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As you can see, they are holding up very well during the downturn. As I dig more into the financials, I’ll see if enrollment is up this year.

Consolidate my private loan by paying more?

This is probably the route I am going to take. Most private loans don’t compete on price so a private consolidation loan is simply replacing the private loans with one another and combining their total value. Your main goal and its main benefit is to pay a single monthly payment. Additionally, consolidating your private loan resets the term of the loan. So your monthly payment will be lower. You do end up paying more on interest over the lifetime of the loan, then you would have if you did not consolidate, but that is the least of our worries when we have to eat and find a job right? Plus this interest is fixed.

If Brett Favre consolidated

Interest rates on Private loans are based primarily off your credit score. What this means is your score may have improved since graduation. If this is the case then you may be able to get a lower interest rate on your consolidated loan, by talking to the current holder of your loan or a consolidated lender. Here is where Brett Favre comes in. Even if your credit score has not improved, you can talk to your current holder and see if they will lower your interest rates, rather than lose you to another lender. If they do not oblige, go to the Jets and live in NYC. Kapeesh?

Who will consolidate my Private Loan?

Now you have to make a decision. Which lender will consolidate my private student loans? I have made a list that might help your decision. These are private programs that consolidate your loans so the interest rate is not set by the government, it is dictated by the lender. So ask questions like is the rate fixed or variable? and whether there are any fees or prepayment penalties.

Really Important: Don’t consolidate your federal loans with your private loans. The interest rates, and superior benefits of federal loans far outweigh that of a private loan.

They are not listed in any particular order. I found them on FinAid.org

Educated Borrower Private Consolidation Loan
$7,500 minimum. $300,000 maximum. Up to 30-year term. Introductory rate of LIBOR + 1% to LIBOR + 1.75% during the first year. After the first year the rate increases to LIBOR + 5% to LIBOR + 5.75%. Origination fee of 0% to 5%. No prepayment penalty.

MELA Private Consolidation Loan
$10,000 minimum. No aggregate loan limit for MELA loans. $125,000 aggregate loan limit for non-MELA loans. Variable interest rate updated annually based on the MELA tax-exempt bond auction rate plus a spread of 3.5%. The 2007-08 MELA auction rate was 3.85%, yielding a consolidation interest rate of 7.35%. The same interest rate is provided to all borrowers, regardless of credit. The fees vary based on credit score, with 1% for excellent credit, 3% for good credit, and 6% for fair credit. The repayment term is 15-30 years, depending on the amount owed (15 years for up to $20,000, 20 years for up to $40,000, 25 years for up to $60,000 and 30 years for more than $60,000). 0.25% interest rate reduction for auto debit. Borrowers must be a Maine resident, existing MELA borrower or a student who attended a Maine college. There must be a Maine affiliation to apply for this loan.

NextStudent Private Consolidation Loan
$7,500 minimum. $300,000 maximum. Up to 30-year term. No prepayment penalties. Variable rate loan. Interest rates of 3-month LIBOR + 1.00% to 3-month LIBOR + 1.75% during the first year and 3-month LIBOR + 5.00% to 3-month LIBOR + 5.75% after the first year. Interest rates vary quarterly. Origination fees of 0% to 5%. No prepayment penalties.

SC Student Loan – PAL Consolidation Loan
$5,000 minimum. $150,000 maximum. Loans must be in grace period or repayment. Borrowers under age 24 must have a creditworthy cosigner. Borrowers age 24 or older must either be creditworthy or have a creditworthy cosigner. Repayment term of 10 to 30 years depending on the loan balance. No prepayment penalties. Variable rate loan. Interest rates of 3-month LIBOR + 4.50%. Interest rates vary quarterly. No fees. No prepayment penalties.

Student Loan Network Private Loan Consolidation
$10,000 minimum. $300,000 maximum. 20-year term for loans less than $40,000. Up to 30-year loan term for higher amounts. Variable rate loan. Interest rates of 3-month LIBOR + 5.00% to 3-month LIBOR + 8.5%. Origination fees of 1% to 5%. No prepayment penalties. Cosigner release after 48 on-time payments, contingent upon primary borrower credit.

StudentLoans.com Private Consolidation Loan
(A Brazos company.)
There is only minimal information about the loans on the web site. This loan appears to be a private label of the Education Finance Partners Private Consolidation Loan.

Wells Fargo Private Consolidation Loan
$5,000 minimum. $40,000 to $100,000 maximum, depending on credit. Aggregate loan limit of $100,000 (including other education debt). Up to 15-year term. Variable rate loan. Interest ranges from Prime + 0.0% to Prime + 6.75%. No origination fees. Up to 0.50% interest rate reduction for auto-debit. 0.5% interest rate reduction after making 48 initial on-time monthly payments.

Thank the Department of Education

Direct Loans are the same as Stafford and PLUS loans except they are funded by the department of education or offered through the Federal Family Education Loan Program. (mouthful, so FFELP for short). Your school will choose which program best fits the needs of their students, The FDSLP or the FFELP. Confused yet? All you should know is that there was $509 million dollars budgeted for 2008 and that amount is expected to be higher with Barack Obama as president.

How to get these Student Direct Loans

In the FFELP, Private organizations market and service federally guaranteed loans. These institutions include non-profits and some commercial organizations. Why do they do this? To make money off the interest. In order to qualify for these loans you need to fill out the FAFSA. I have said this in most of my articles, but filling out the FAFSA and filling it out early can make all the difference when it comes to getting the money you need for college. There will be a section on the FAFSA where you can request FFELP or FDSLP. You will only be able to choose one depending on your college and the Student Direct loan they offer.

Consolidating you Direct Loan

Once you graduate you can consolidate Stafford Loans, PLUS loans and Perkins loans into one single debt. This is the definition of consolidation and its smart to do this once you graduate because it reduces monthly repayments and lengthens the term of your loan. Consolidated loans have a fixed interest rate for the entire life of the loan. So your payment won’t change. When I graduate I am definitely signing up for this option. Multiple bills from separate loans can cause headaches. This makes it easy to lower your payment and pay it off gradually.

Where to Consolidate your Direct Loan

There are some great companies out there to consolidate your loan. First place is where you received your direct loan, and that is the FDSLP. The department of education will consolidate your loan with a fixed interest rate and one monthly payment. Other companies that are leaders in consolidation are Sallie Mae, CitiBank and NextStudent. Make sure you do your research when deciding which to consolidate with. Options may very with each company or program.

There you have it. All the Direct Loan information you need. When you decide to get a student direct loan, make sure you know what you are getting into and read the fine print. My education is really important to me, but after college I want to make sure I am not paying huge monthly payments and getting myself into even bigger holes.

Who funds the Government student loans?

It is actually not the government that provides the finances for these student loans. Private organizations provide the necessary means for your education in accordance with the Department of Education through 2 programs which I have stated in previous articles, the FFELP and the FDLP. There are many different student loan programs. Check with your college or potential college to make sure you are applying for the right ones. Each college is different in the programs they participate in.

The faithful Stafford Loan

Stafford loans are probably the most common government student loans. They are federal loans made directly available to college and university students and supplement resources such as grants, scholarships, and work study. I have done work study all 4 years of college. The experience I gained, while helping to pay for my tuition was one of the best aids I received. The Stafford loan can come subsidized or unsubsidized. Subsidized means the government pays the loans interest while you’re in school, obviously being a better way to go. Unsubsidized student loans requires you to pay all the interest, however you can have these payments deferred after graduation.

In order to receive a subsidized Stafford loan you have to show some sort of financial need. This includes your family. I was able to receive a subsidized student loan last year by claiming myself as an independent on my taxes and FAFSA. This helped the amount I received because I was not under my parents income. If your family makes over $100K then there is only a 10% chance you will receive a subsidized Stafford loan. If it is less than that you have a pretty good shot.

Stafford Loans have limits. It depends on your status in school. If you are a freshman you can receive up to $3500, a sophomore $4500, and $5500 for Juniors and Seniors. Some majors have higher limits like medical school etc…

The other Government student loans

There are other government loans worth looking into and doing your research on. They are not as prevalent as the Stafford loan but can significantly help fund your education. Last year there was $31 billion in unmet financial need. That is a lot of money that was not given out. Don’t be the student that doesn’t get the financial aid they need. Other loans which I have mentioned in other articles is the Parent PLUS loan, which your parents can apply for. This loan differs from the Stafford or Perkins loan. The other loan that is popular among undergraduate students is the Perkins loan. It is a low interest loan (about 5%) for both undergrads and graduate students. With a Perkins loan the school is your lender. The loan is made with federal funds and your school contributes a piece of the pie. You pay back the loan to your school. It is a great loan because it is set at a low interest rate and you conveniently deal directly with your school as opposed to some outside company.

Now go get a Government student loan.

From one student to another, I strongly recommend a government student loan to help fund your education. The interest rates are fixed and the school will urge you toward this. I have subsidized and unsubsidized its OK to have both and you can consolidate them when you graduate. I love going to school and can only imagine if I was unable to pay for it. If you need help there is help out there and lots of money to be had.

The categories of Student Education Loans

There are 4 major categories that make up education loans.

Student Loans: Perkins or Stafford loans that are federal loans given by the government for your education. When you fill out the FAFSA these are the first loans to be offered and funded.

Parent Loans: PLUS loans for parents with students in college. They can come at low interest rates depending on your parents credit and income. If your parents cosigned a loan they may have been eligible for this option.

Private Education Loans: also alternative student loans that are privately funded by non-profits and organizations/banks. These loans come at higher interest rates and often come at variable rates. The government does not set the interest for these loans so it is wise to shop around when deciding which one to go with.

Consolidated Loan – This is primarily for after you graduate. You can consolidate all of your loans into one lump sum. A monthly payment with the term extended from your initial loan.

Another type of loan worth mentioning is that of Peer to Peer loans. These loans are referred to as social lending, or person to person lending. Its a non-traditional form of lending and a lot harder to find. The benefits of Peer to Peer lending is that you can defer payments of principal and interest while you’re in school.

Worrying about student education loans?

The federal government sets the maximum interest rate that lenders can charge for federally guaranteed loans. Nothing prevents them from charging lower fees except for competition. So many companies will offer initial deals and low financing to get your feet wet. They are usually great deals for incoming freshman and will help you justify that glorious education of yours. I was pretty stressed out when I was forced to go the private loan route for my education. Now that I am a senior, and have done my research I am pretty relieved at the outcome of my student loan consolidation.

Get a Student Education Loan

Fill out the FAFSA and calculate the interest of your other loans. It is better to be prepared when the time comes for you pay them. There are a lot of tools out there to help you calculate your interest and analyze your payments. Look into it online. Now I have to finish my last paper. 10 pages to be exact. Your Student Education loan is well worth it, to stay in school and get a great job. Stick with it.

Grants are only for smart people?

I am so far in the red; my payments will be close to $900 a month when I graduate. To avoid this, the trial and error of looking for grants and scholarships is imperative. A lot of people think grants are for the poor and scholarships are for the smart. This is just not true. Native Americans all over the U.S. can get a substantial amount (if not all) of their college education paid for simply for being Native American. Student financial aid from the government or school usually has nothing to do with academic standing either. I got a few grants this year for having good grades, but also because I claimed myself for the first time as an independent this year on my FAFSA. In another article I wrote I talk about the different places grants come from that is important to note the sources as well, so you can tap into them.

Subject – Specific Grants

Grants such as subject-specific are great if you already know your major or what you want to do. The subjects that pull the most grant money, are art, teaching, nursing, math, engineering, and science. Morris Udall Foundation grants is a resource to look up as they provide grants to both talented and disadvantaged students. If you are a Science, Math or engineering major then Bell Labs and Lucent Technologies are two great companies that constantly poor money into students educations. If you look up subject – student grants and your major, you will find places to apply. Places you wouldn’t normally think of.

Grants for Student Type

The student specific grants are broad and are relatively untapped free college grants you don’t want to miss. Student type is very broad, but can range from gender, ethnicity, religion, etc… The student type does not mean that students are ranked on degree level but rather individualism. Once you find you are more specified in your education and career goals will you then see degree goals. When the farmer has more seeds to plant more trees will grow, and this is what will happen as you progress through your education.

Free grant deadlines

Grant deadlines are important and they are also tricky. In order to qualify for many grants you have to have your information submitted at a certain time. Much like the FAFSA, there is a certain amount of money that can be give away. If you submit late or on the last day of submission, you may miss out on doubling your grant money and being SOL. Make sure to not give up and keep applying and looking up information on free college grants. They are a dime a dozen, just find the right one for you.

If you don’t know what a student loan involves or are a high school grad looking for loans to start college I will define it. Student loans help pay for your college and usually they carry a lower interest rate than other loans. You may not need a cosigner or may need to have your parents cosign. If they are supplemented by a student grant they do not have to be paid back. Alternative student loans are a bit different. Alternative loans differ the payment while in school and for 6 months when you get out. This is different than federal financial aid and is an intermediary filling in the gaps and unpaid bills that you otherwise couldn’t while in college.

What are the Benefits of Alternative student loans?

The differed grace period is a big one. Because it gives you time to find a job before your payments start. Another benefit of these alternative loans is no upfront, origination, or prepayment fees. What this means is that the fine print shouldn’t be too small to read and you should be left with a good deal. It is cheaper than an unsubsidized federal loan with lower interest rates by 0.25%. I applied for 2 alternative student loans while in college. One with Sallie Mae and the other with Wells Fargo. Sallie Mae is the better route with easier to work people, but both decisions I am happy with and would recommend.

Where do I find a private alternative loan?

If you have yet to start college, I would talk with the office of financial services at your school. They will give you the best options for your situation and should work with you to find more funding. Otherwise most banks offer alternative student loans. The bailout does not bode well for banks lending and mortgage woes, but they all should be eager to get students on board. Companies I have used and read about that are major players:

Sallie Mae

Bank of America

U.S. Bank

CHELA

Chase

There are many more. If your college has been chosen, go to their financial services or financial dept. on their website and you will find a bunch of information on who the college has a direct relationship with and cheaper rates. At SPU it is US Bank.

What should I look for in a Private Student Loan?

Interest rates, fees, and service can vary drastically among lenders. If the lender offers you borrower benefits that reduces your principal or eventually your interest that is really good. Look really closely at the terms and conditions to make sure you are not getting screwed over. Every year I have been in college it has been great to look at my student financial aid, grants, work study, etc… and then look at alternative loans. My Freshman and Sophomore year I got alternative loans and don’t have to pay them back until the beginning of 2010. I would recommend going this route if finances are tough.

Free Scholarship Competitions

The College Scholarships foundation, which can be found at www.collegescholarships.org offers competitions in:

Web Blogging – It should still be $10,000 offered to whoever maintains a weblog. Issued annually.

Politics – $2000 is given to people who maintain a Political weblog

Minority Students – $1000 for minorities who simply add their name to the list.

Female Students – Women studying in any field nationally can get free scholarship for submitting their information.

There are so many competitions like these. This site is one that I found credible, and that I have used. I did not win any scholarships but it is great to know that you can win money like this for simply submitting information. Read the fine print though, for some there is GPA requirements etc. to be considered.

Free College Scholarships for Women

Women in the workforce has been growing rapidly. At my school girls beat guys 4 to 1 in the classroom. Hey, I’m not complaining. There are also a lot of scholarships out there for women. The competition above for example, wants to help deserving female students pay for their education. There is an essay required and academic information which is common among many scholarship opportunities. Women’s groups and companies will also give female students scholarships if they fill out their form or application.

Different Types of free scholarships

Athletes - The most obvious scholarship at my school and probably yours are the athletic scholarships. They can be really competitive and political scholarships to give out, therefore we hear about them, and they are usually for a lot of money.

Minority – Probably the second highest as far as money and scholarships awarded goes to minority students. FAFSA will even help out minority students by having the race option available. You should not neglect this category. You will miss out on a lot of free money out there. Plus it seems like everyone is a minority nowadays so commit yourself to applying.

Degree’s – There are myriad of scholarships out there for pertaining degrees and majors. I am an undergrad. So all I can add to this category is primarily need based scholarships. There are subject matter scholarships which I have mentioned in other articles, but many students change their major midstream so there are not many out there.

State Funded – This one is without a doubt crucial to go for. My sister got $10,000 from Arnold and the CA state government. These scholarships are merit based, so look to provide some valuable information to your state. Here are the most common

Merit scholarships for minorities, academic talent, nurses, and funds for low-income students.

These are just a few of the different types of scholarships available to you. Don’t be conned into thinking all the websites out there are good to give your information to, but also know that you can apply for all that I mentioned right online. Free college scholarships are available. Now that you know the pertinent information get out there and apply!

Fill out the right FAFSA

There are 4 sites that claim to be the FAFSA application online. They aren’t. You need to go to the .gov site which I have linked to at the bottom of the page. You will know it is the correct site because it is run by the department of education, hence “federal” financial aid. Never pay for FAFSA! The department of education does not charge to fill out the FAFSA, however these other sites will claim they will get you more aid for $70 bucks etc…

Before beginning the FAFSA make it easy on yourself by grabbing the documents you need. Things like your Social Security card, drivers license, income tax returns (parents if dependent), and maybe a bank statement (only for investments, if you are broke like me you don’t need it).

Once you have everything ready you will want to get a FAFSA pin. You don’t have to, but you will have to mail in your FAFSA signature page which is annoying. When you get it, don’t forget your pin! I did a few times, and it usually takes more than 24 hours for them to send you a new one via email.

State Deadlines for FAFSA

The information you fill out online is sent to you and your school. Your school reviews it to see if you qualify for any school financial aid, work study, etc… What they get is called an ISIR and it’s sent to state agencies that award state-need based aid/grants as well. One thing I learned is the earlier you fill out the FAFSA the better. Many state funded programs and your college give aid on a first come first serve basis. If you fill out the FAFSA a week before school starts you won’t get much financial aid. The first day you can submit the FAFSA is January 1st. There are also important state deadlines that are listed here on the FAFSA website.

Tips to filling out the FAFSA application

The FAFSA application is a government document, so you can’t lie about your taxes, income etc. However there are a couple ways you can maximize the most out of your FAFSA application:

1. Claim yourself as an independent – You need to talk to your parents about this, and see if they will take a big hit if you are claimed as an independent on their taxes. It may not be beneficial for you to do this, but my senior year, it helped immensely and I got a ton of financial aid.
2. Estimate your EFC (Expected Family Contribution) – This will help in knowing how much money you will need for college before submitting the FAFSA and for the school to get back to you. I had to get alternative loans a few times. Once I started doing this first, it wasn’t a shock and you know how much to take out for loans etc…

3. Get the best financial aid package – I know with my family, my parent’s income looks a lot better on paper than it does in my Dad’s wallet, which is not good when it comes to filling out the FAFSA. The more your parents make the higher the EFC and lower the aid. Your aid package can be adjusted for appropriate circumstances, like large out of pocket expenses, multiple siblings in college etc… Talk to the college they can help you out and even adjust your FAFSA.

I hope some of these things helped from my past. Just thinking about the FAFSA gives me the chills. You only have to do it a few times and it is well worth it to get some of your education paid for. Remember my tips and those deadlines and you will do great. Now go fill out the FAFSA form online here.