college loans

college loans questions and answers

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Q: college loans?
i am putting myself through college I have already taken our about 26,000 dollars in college loans and i am coming up on my 3rd year i have averaged out that my total debt out of college will be around 70,00 dollars.... is this way to much... how can i consolidate when im out... does this sound normal or had any one else been put in this position... what will be my monthly payments?

A: The bad news: That level of debt is a little high for an undergraduate program. The average undergraduate student graduates with just over $19,000 in debt (that's for all four years). (These average numbers are going to be higher for students who attend private colleges.) The good news: There's no question that college is expensive and debt is on the rise -- but you're certainly not alone (I've seen much worse) and there are ways to ensure that your monthly payments will be manageable. As you mention, consolidation is an excellent option for students in your position. It allows you to (a) fix your loans' interest rate and (b) extend your repayment term beyond the usual 10-year plan. If you repay your $70,000 over 10 years, your monthly payments will be about $805 (at the current 6.8% rate). But if you pay that same $70,000 over 30 years, your monthly payments will be reduced to $456. You can use the loan calculators on finaid.org to calculate these payments (http://www.finaid.org/calculators/loanpayments.phtml). You should be applauded for taking charge of both your education and your finances. It's not easy and your situation might not be "normal," but it's manageable. If you find yourself in a pinch when you graduate, make sure that you call your lender to let them know. Most lenders will work with you during those months when you can't quite make your payments; they can put you in a an "economic hardship deferment" or a "forbearance," as long as you request it before it's too late. One last thing: before you consolidate, make sure to look into the various types of Loan Forgiveness available to students entering certain career fields. If you plan on pursuing teaching, law enforcement, some health professions, or entering the military, you might qualify for loan forgiveness (particularly on your Perkins Loans). If you do, you can only obtain the forgiveness benefit on the portion of your loans that you have NOT consolidated. Good luck!

Q: Where can I go to obtain information about college loans?
I'm a college student looking for a small college loan to help with expenses. What are the websites, places to go, and information on getting the best rate ect.... Can I use the money to pay off a credit card with a high interest rate? Where do you go to get college loans? The bank? Do you have to payments while your in college? What can I spend the money on? I've never taken out a loan. Thank you for the help.

A: The best place to go first is your schools financial aid office and FAFSA.com They can direct you to different places that will offer you a loan. Rates are pretty consistant because the goverment helps control them. You can get student loans from just about any bank in addition to organizations that just make student loans, such as Sally Mae. Your first stop should be your financial aide office though.

Q: How can I pay for college without taking out college loans?
I am trying to figure out how I am going to pay for college without taking out loans. I have good grades and everything, but those aren't getting me the necessary scholarship money to completely pay for college without me having to go into debt. What are some helpful hints to paying for college? I am also working all that I can and still can't come up with the necessary money. Please help me with some good ways in order to pay college WITHOUT any debt!!!!!!

A: There are many, many scholarships that you can get, and they don't necessarily depend on your grades. Check into scholarships based on your ethnicity, major, gender, etc. Also, look into government grants such as Pell grants. Depending on your income and needs, you could get free money for college that way. Talk to the financial aid office at your college. They can help you.

Q: How much is the norm to owe on college loans?
I'm a 4 year college student and I just reviewed my school loans I owe about 38,000 and I have another year to go by the time i'm finished I'll end up with 40,000-45,000 in college loans is that too much or is that the norm to owe for a 5 year college student? My college tuition isn't expensive, is about 12,000-15,000 a year.

A: IT'S ABOUT $40

Q: What is the best way to go about college loans?
I have at least 3 more years which will need additional funding besides my own income, are college loans a good option? Can I pay off my loans within 5-10 years?

A: First, check with your financial aid office. Explain why you need to borrow so much to attend school. See if there isn't any way to get more grant and/or work study money. Then ask the school if they can suggest a bank - they might know which banks have the lowest rates. Check out both the interest rate and any fees the bank might charge. Unfortunately the majority of college students do have college loans. The average debt balance of college graduates is hovering around $20,000 for all 4 (5) years. That can be paid off in less than 10 years if you are careful about how you spend money. Remember most college loans begin repayment 6 months after you get out of college. There is nothing wrong with starting payment immediately, if you can. The sooner it's paid off the less interest you will be paying. If you have multiple loans form differing sources you might want to look into loan consolidation after you graduate. Ask for auto deduct, too, as that should reduce the interest rate by at least .25%. Every little bit helps. If you are considering working at your alma mater, some schools make the loan payments for you as a staff benefit. Feel free to post more questions on my blog: www.PayTuition.blogspot.com

Q: Is it possible to combine all my college loans, even from different lenders, into one monthly payment?
I have college loans from about 5 different lenders, and I want to combined them into one payment, is it possible? Is it normal to borrow from different lenders?

A: Yes you can. Start by calling the lenders you have your loans with and ask questions. ALL the interest rates will be the same. Its a weighted average. You need to look at your borrower benefits. Everyone will offer you the .25% at repayment for auto debit. Look for the best reduction with the least amount of on time payments. Stick with the big boys in the game and DO NOT go with someone that will consolidate federal with private loans. The federal consolidation plan in NOT a good one. Also try to pay it off in ten years, no more than that. Good luck.

Q: How tough is it to pay off college loans if you are smart financially?
I have a friend who is going ot have to borrow $60,000 at 6.25% for college. If she is wise with her money (no credit card debt, strong saver, not too much spending), then will she go through a lot crap paying that back? Has anyone here who is a good saver paid off college loans? I'm just worried because I hear so many stories of people having so much trouble with loans. Thanks for your help.

A: While I didn't borrow that amount I have paid off my student loans. I only borrowed what I really needed for my education and then got a good job so I could start making payments. If I had a little money left over each month I put it towards my loan payment to reduce the principle and get it paid off quicker. I guess it depends on what your friend plans on doing after graduation. If he/she is going to be a teacher or social worker where pay can be pretty low, I wouldn't even think of taking out that much. But if the career is going to pay more, then maybe...

Q: How much should you expect to have in college loans for a 4 yr degree?
I went to jr college and graduated with a nursing degree. I paid my books and tuition every semester and drove to the local jr college. I never had any loans. Welfare paid for my books and a babysitter because I was a single mother. A girl I work with says she has $40 thousand dollars in student loans to pay off and expects to have 90K in loans when she graduates. She had a scholarship that paid for her tuition and she still lives at home. What did she spend 40K on? Am I old fashioned or is that excessive?

A: Expensive apartments -- fun---party-- expensive clother-- car -- furniture--- and boy friends. $40,000... When you get a loan you can spend the money on what ever you want---loan is a loan...you have to pay the money back...

Q: What is the average amount of time it takes to pay back college loans?
I was living in a fantasy land when I thought those stupid little booklets that Student Loan Finance Corporation sent out for a payment plan, was all I had to pay. I never realized how many bloody years it actually took, until I called those creatures today. So, I'm wondering what is the average amount of time it takes for people to pay back their student loans? and why can you pay back a car loan for 20 grand in five years, but a college loans for the same amount takes 18 or something equally as insane? Thank you.

A: It usually is about ten years to pay off student loans. It takes longer to pay off student loans than car loans because the payments tend to be lower, but they don't restrict you from paying extra or even paying them off early. It's actually better for you if you do that because you will pay less interest.

Q: Does the parents of college students usually co sign for loans?
My friends son and his ex wife has asked him to co sign for a college loan which is not re payable until the year 2012. I do not understand college loans and he has asked me what I think of it. He believes he may be getting himself into some kind of a financial trap. I did not know a college loan required a co signer. Does it? He already payed for his 1st years tuition and his dorm fees and all that stuff. I do not want to give him mis information, but clearly he is concerned. Who do we ask about this for sound financial advice? Do you know anything about college loans for an 18 yr old child? Do you think he is being ripped off? Do the parents co sign a college loan for $6K not repayable for at least 5 yrs?

A: I would advise your friend to go with his son to the financial aid office at the school and speak to a financial aid officer. They can help him understand why he needs to cosign for these student loans and exactly how much his son needs for college. If your friend has already paid for dorm fees and tuition, then why does his son need more money? Did his son fill out a FAFSA? These are all questions that the financial aid officer can answer. If this man's son won't take him to the financial aid officer, he should be very concerned for the motive behind his son's need for a loan.

Q: What is a decent interest rate for refinancing my college loans?
I have $30,000 in college loans. I want to consolidate them into one payment with a decent interest rate.

A: Hi, I used "Credit Solution" to settle my college loan.They managed to reduce my loans up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here: http://urlhawk.com/4ys

Q: How long did it take you to pay off your college loans? What college did you go to?
My parents are encouraging me to go somewhere very close to our house, but i have my heart set on going somewhere else. They are trying to sell me the idea that i may never pay off my college loans.

A: Still paying.......U.C.L.A.

Q: What about the fannie may college loans?
I only knew fannie may as college loans, not mortgages. So, how will it's failure affect the college loans?

A: For those with current college loans, there should not be too much grief, I mean how would they repossess an education. For those applying for college loans, the criterion may be firmed up a little, however the loans should still be available to most.

Q: Is it still possible to get college loans?
I and my fiance are planning to go to Bible College in December, and today my father told me it might no longer be possible to get student loans. Is this true?

A: Have you completed the Free Application for Federal Student Aid? Have you contacted the Financial Aid Office of the Bible College that you would like to attend to ask about the aid application process. Before you do anything, you should speak with a financial aid counselor at the Financial Aid Office of the Bible College.

Q: What are some good low intrest college loans?
I'm starting college full-time in the fall and I need student loans, there are so many types and options I need help!

A: you should have applied for FAFSA loans, its based on ur familys income and their loans are thru the governemtn, very low interest....i think the deadline has passed, but you can still try try with pell grants as well, again i think the deadline has passed, but for next year, do all loan stuff in jan-march.... u can try to look around at banks...or try websites such as fastweb.com or scholarships.com