5 Facts Parents Need To Know About Student Loans

Here are 5 facts parents need to know about student loans.  I want to first mention the drawbacks of a private student loans that may include the interest is often variable, less flexible repayment options, the student may have to start making payments while they are still in school, there is a higher limit on lending which will mean the student will be paying more interest, the loan will be dependent on the student’s credit score, and if the lender requires a co-signer, the student may be putting that person at financial risk.

  1. Borrow only what you need.
  2. Be clear in what you are signing.
  3. Know the differences between subsidized and unsubsidized Federal loans.
  4. Never turn down a subsidized loan.
  5. Shop around at local banks and credit unions to learn what they have to offer in private loans before utilizing any unsubsidized Federal Direct Stafford loan. Why? Friendly terms! Over the last 2-3 years I have been learning from some of our clients that they have secured a private loan with a lower interest rate then a Federal loan. For example, I talked to a client recently that retained a private loan at a 3% rate.

If you need more advice about student loans, financial aid, FAFSA, CSS Profile or scholarships please don’t hesitate to contact our office.  We offer a complimentary consultation to see if our service would be a fit and help your family reduce the out of pocket cost of college.

Federal Student Loan Limits 2107 & What You Need To Know

In this interview with Student Loan Hero our founder Ronald Ramsdell discusses Federal student loan limits 2017 and what you need to know. In the article with Elyssa Kirkham, Ronald covers the three most important points parents and students need to know are, families need to plan ahead regarding paying for college resulting in less college debt and more importantly loan debt. Second, the Federal parent PLUS Loan should be the very last option. And third, parents should defiantly shop around at local community banks, major banks and credit unions.

Over the last couple of years we have learned from some of our clients that they have secured private education loans at better terms compared to Federal student loans. If you would like more information regarding loans, FAFSA, CSS Profile or an expert help to better afford a college education, please contact us for a complementary consultation.

Read the article Federal Student Loan Limits on Student Loan Hero now.

Amazon Prime Student Loans. What You Need To Know.

Amazon is stepping into the student-loan marketplace with Wells Fargo to offer discounts to customers of the online retailer as Amazon Prime Student Loans.  A student-loan discount will be offered to Amazon Prime Student members. The online retailer has entered into a partnership with San Francisco lender Wells Fargo& Co. in which the bank’s student-lending arm will offer interest-rate discounts to select Amazon shoppers.

Before considering private loans for college, families should always utilize all  Subsidize Federal Loans (Stafford and Perkins) offered. With that said, if a family still needs additional educational loan assistance, they should shop around at various lending institutions large and small  for the best terms.  Over 70% of families borrow less when their financial aid forms are filled out correctly. Unfortunately the majority of families who do not retain professional guidance will make mistakes. Please contact our office to lower your out of pocket cost for your child’s education.

Amazon Tiptoes Into Banking Business Through Student Loans
News Source: Wall Street Journal

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