Archive for October, 2011

Student Loan Calculator – A Simple Tool To Determine Your Debt Obligations

 

A student loan calculator is really a digital program that permits students to calculate an estimation of the monthly loan payments. This is achieved by plugging certain information to perform the calculations. The principal amount of the loan is the most important number used to calculate the student loan payments, plus it represents how much money that still should be reimbursed to the lending institution. The interest rate is another important figure that must be entered, plus it represents the percentage of the principal that the loan holder is being charged by the lender throughout each predetermined time period. Finally, the amount of monthly payments needs to be entered into the calculator, because this tells the borrower exactly how many more months they have to make payments if the minimum is paid each and every time.

There are many places to find these records to be able to fill in a student-based loan calculator accurately. Most lenders mail loan holders a monthly statement that has these numbers. Another popular way to acquire this data is by logging onto the lender’s website and viewing the borrower’s account data there. If neither of those are options, loan holders often phone the lender directly and ask for the data.

After the information is precisely entered in to a student-based loan calculator, many facts and figures come to light. By dividing the principle amount by the amount of payout months and factoring in the interest percentage, a payment amount is calculated. In addition, most calculators estimate, based on the interest percentage, how much interest will be paid on the life of the loan. Finally, some calculation programs also just take the monthly payment figure and factor in an over-all estimate of the cost of living in order to provide the loan holder a notion of what salary will allow for comfortably paying this monthly figure.

 

Types of Students Loans

 

There are two main types of student loans which are federal loans and private loans, these two primary types of loans are divided down to offer the college student more options when trying to obtain financing that will cover expenses that are associated with a college education such as tuition and books. There are two types of private college loans; school channel loans and direct consumer loans.

Some of these loans are for parents of students for their financial needs. Each of these types of loans are aimed at different people and depends on several factors, such as region or courses taken. The types of federal student loans are

Federal Direct Stafford Loans

Direct loans are low interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education (The Department) rather than a bank or other financial institution. With the Direct Loan, you borrow directly from the federal government and have a single contact, which is the Center for Direct Loan. This center is related to the repayment of your loans, even if you receive Direct Loans at different schools.

Types of Federal Stafford Direct Loans

Subsadized: for students with financial need as determined by federal regulations. No interest is charged while the student is in school at least half time during the grace period, and during periods of deferment. Repayment begins after a grace period of six months after the graduation of the student, or if the student leaves school or ceases to be enrolled at least half-time as a student.

Unsubsadized: Not based on financial need, interest is charged at all times, even during the time a student is in school and during grace periods and deferment. Repayment begins after a grace period of six months after you graduate, leave school or cease to be enrolled at least half-time as a student.

Federal Parent Direct PLUS Loan

Parent PLUS loans: credit-based loans for parents of dependent students. Parents can apply for these loans and, if approved, may use the funds to help pay education expenses to the cost of attendance minus any financial assistance. Interest is charged at all times.

Note: The PLUS loan borrowers may not have an adverse credit history (a credit check is carried out).

Note: Students must complete the FAFSA to receive a Direct PLUS loan for parents.

Federal Perkins Loan

Federal Perkins Loans awarded to students with exceptional financial need. Interest is low (5 percent) and repayment begins after a grace period of nine months (after you graduate, leave school or cease to be enrolled at least half-time as a student).

Other Loan Options

Alternative loans: private, credit-based loans. Students can apply for these loans and, if approved, may use the funds to offset the costs of education. They are designed to help supplement federal loans for education expenses.

There are plenty of options for students who need loans to attend college. The most important thing is that they are student loans that are right for them and their particular situation. Knowing what types of student loans are available to you, you can make the right decision for your needs. Once you have determined what type of loan is right for you, check out the recommendations of the best student loan providers to know where to look.

Private Loans

Private loans are loans that individuals take through their banks or credit unions. These are not government related, and usually require that students have a credit history or a guarantor. They usually come with an interest rate much higher than federal loans; despite the limits on the loan itself is not as strict. This means that students can often receive more money with a private loan, but they will pay back much further.

Private loans are not really a good idea unless the student can not qualify for any federal loan – which is highly unlikely. The reason is that a private loan, not just the end result will be the student’s credit report if he or she is late or can not pay – but there is more at risk. The co-signers could get stuck with the payments of wages of students could be seized as a lender takes back the money borrowed. It is important to seriously consider one’s options before signing any document or take loans.

Talking to a counselor at school can be helpful when it comes to finding funding for college. They even have applications that can help students get free government money that can be used to attend school. Grants and other programs allow students to attend college without paying a penny back. There are many options for students you should consider them all before taking any loan

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