Consolidating student loans with credit card

24-Sep-2019 05:43 by 2 Comments

Consolidating student loans with credit card

Your first step toward landing federal financial aid is to complete a standardized request called the Free Application for Federal Student Aid (FAFSA).The form uses information about your family’s financial situation to determine your Expected Family Contribution (EFC).

In times of need, college students can be forced into high-risk loans that carry hard to manage interest rates.If you already have credit strikes against you, from late payments or defaults, your outlook for conventional borrowing is even more bleak.However, there is good news for students who need college funding, and it comes in the form of no credit-check federal loans.Qualifying for Direct Loans does not require a formal credit check, so this is your best avenue for borrowing if your credit is bad or non-existent.Interest rates are low, currently 3.4% for subsidized and 6.8% for unsubsidized loans, and rates are fixed-so there won’t be any surprises during repayment.Perkins Loans are federally funded student loans, which are administered directly by the Institution of Higher Learning you are attending.

Perkins funds are reserved for undergraduate and graduate students exhibiting the greatest need for financial assistance during college.Applicants for federal aid do so as ‘dependant’ or ‘independent’ students, which is determined by whether or not parental information is included on the FAFSA.Independent students enjoy higher borrowing limits. As of July 1, 2012 Direct Loan maximum borrowing limits range from ,500 to ,500 annually, depending on your individual situation.Once your grant eligibility is exhausted, the government might offer you long-term low-interest loans to help meet your remaining college financial obligations.These funds were once called Stafford Loans, but the program is now referred to as the William D. The Direct Loan Program issues two distinct types of loans, those that are subsidized by the Federal Government, and those that are not.Borrowing has a paradoxical component that can be particularly confounding as you launch your quest for college funding.