federal bank loan

Federal Loan

Executive Compilation By John Noble

The Federal Direct Student Loan Program
Executive Summary By Tony Collins

The FDSLP, or Federal Direct Student Loan Program, is a program that offers financial aid to college students and is funded by the US government via the US Department of Education. This important form must be completed in its entirety for any student loan to be processed and produces what is called a SAR or Student Aid Report. There are two types of Federal Direct Student Loans that one may qualify for, either subsidized or unsubsidized loan. The Direct Stafford Unsubsidized Loan isn’t one that is based on a financial need so it is more readily available to potential students. While the student is still enrolled in college, the interest is capitalized, meaning it is added to the principal of the loan if the student chooses not to make interest payments or is unable to do so.

Many students choose to begin paying on the interest as soon as they can to lower the overall cost of their loan. If the student is considered a dependent of their parents, the parents may want to apply for a Federal Direct Parent Loan for Undergraduate Students, commonly referred to as PLUS.

Federal or Private Student Loan?

Executive Summary By Groshan Fabiola

You can also look into federal and private student loans, which come with pros and cons.  If a borrower cannot make a federal student loan payment, he or she can defer for up to three years.

Federal student loans are guaranteed by the federal government.  Consequently, federal student loans carry a fixed interest rate of 6.8%. Often times, students think that mass amounts of money cannot be consolidated along with his federal student loans because the predetermined amount was from private student loans.

Because college students are known for procrastinating, on occasion, college students might find themselves accepting student loan offers without doing much research on them. Keep in mind that private loans do serve an effective purpose.

The largest reason private loan lending grows every year is because some students take out the ceiling of Stafford Federal Student Loans and still fall short of meeting their expenses. Do not let the process of loans be intimidating.

What is the Federal Family Education Loan Program?
Executive Summary By Monique Edwards

In 2006 students and families borrowed over 78 billion dollars to pay college expenses. Federal and private lender student loans combined are in the neighborhood of half a trillion dollars. The Federal Family Education Loan Program is the private sector student loan program that makes higher education affordable. Lenders who sell their student loans on the secondary market were dealt a second hit when the subprime mortgage crisis shattered the student loan secondary market as well.

Lenders suspending FFELP Loans include 111 in total. Lenders exiting or suspending private student loans include 34 in total. Lenders expanding their loan programs are 11 total as of September 26, 2008.

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