Best Education Loan : The Best Place to Borrow

1
Best Education Loan
2
Student Loan The Best Place to
Borrow
3

• Don't get taken when you sign for a college loan.
  Federal loans are cheaper than ever this year,
  for both parents and students. But loans directly
  from banks or other for-profit lenders can trip
  you up. You might lock yourself into thousands of
  dollars of unnecessary spending and, potentially,
  a greater risk of default. Here's where to
  borrow, with the best options first

4
Federal student loans

• They now go directly though the colleges, not
  through banks. For undergraduates who qualify for
  a federal subsidy, the fixed rate on new Stafford
  loans dropped to 4.5 percent for 2010-2011, down
  from 5.6 percent last year. The government pays
  the interest while you're in school and for the
  following six months. Unsubsidized Staffords cost
  6.8 percent. Both programs charge a 1 percent
  fee.Whether you qualify for government aid
  depends on your income and assets, as reported on
  the FAFSA -- the federal Free Application for
  Federal Student Aid. In general, the subsidy goes
  to families earning up to about 80,000 a year.
  If the loan amounts aren't enough to cover your
  costs, look first to programs offered by the
  states.

5
State programs

• Seventeen states lend money to students who live
  or will attend college there. Fixed rates range
  from 6 to 8.19 percent. Variable rates generally
  range from 1.78 to 3.8 percent, with Iowa and
  Maine as expensive outliers. Fees run from zero
  to 5 percent, with Iowa and New York spiking
  higher.
• Go for Stafford loans first. The interest rates
  are fixed and you get the best repayment terms.
  States often require co-signers. The variable
  loans might have no caps, so you don't know what
  you'll be paying five or 10 years from now. In
  some states, repayments start while you're still
  in school. Nevertheless, state programs offer
  better terms than you'll get from banks.

6
PLUS loans

• If parents can help, the right choice is a
  federal PLUS loan. You pay a fixed 7.9 percent
  (last year, some parents paid 8.5 percent), plus
  a 4 percent fee.Parents can borrow the entire
  remaining cost of higher education, provided that
  they can pass a credit check. That's gotten
  harder since the recession began. You're
  disqualified if, among other things, you've gone
  through foreclosure or bankruptcy within the past
  five years or are more than 90 days late on
  repaying any debt. A parent can rescue the loan,
  however, by finding a co-signer.

7
Loans from private lenders

• If you've run through all the government
  possibilities, and are still short of cash, look
  at the loans offered by private lending
  institutions. You might think that they all cost
  about the same but that's not true. Rates vary
  widely. You can save yourself tens of thousands
  of dollars by investing a couple of hours in
  comparison shopping.
• Tim Ranzetta can prove it. He's the president of
  Student Loan Analytics, whichrates 14 private
  lenders based on their program's average cost.
  Last May, he applied online to six lenders as a
  co-signer on a nephew's loans. He calls his
  credit score "average." The offers came in at
  interest rates ranging from 6 percent, at a
  credit union, to 12.25 percent (plus a 3 percent
  fee) at Sallie Mae. (Rates on some loans have
  dropped since May.)
• Tim's brother, who has a high credit score,
  applied as a co-signer, too. The offers he got
  ranged from 4.25 percent at SunTrust and Discover
  to 10.125 percent (plus a 3 percent fee) at
  Citibank. In both cases, loans from the biggest
  brand names would have cost the family the most.

8

• The only way to discover the lowest available
  rate is to apply to several lenders at once.
  Multiple applications won't hurt your credit
  report. They'll count as a single inquiry as long
  as you make them all within 30 days.Private
  lenders are searching for ways to make their best
  education loan more appealing. For example, Wells
  Fargo is offering a new loan not only to parents
  but to other sponsors, such as grandparents. It
  has no origination fee. Variable rates range from
  4.25 percent to 10.74 percent, depending on your
  credit standing. Parents with top credit will pay
  less, at the start, than they would for a PLUS.
  On the other hand, they could pay much more if
  interest rates rise over the 10- to 15-year
  repayment period. The PLUS program also offers
  better choices to borrowers who become
  financially pinched and need to stretch the
  payments out.Some schools provide short lists
  of preferred private lenders who supposedly
  provide the best deals. Compare prices anyway.
  The lists don't necessarily cover lenders with
  the lowest costs.
• Source http//www.cbsnews.com/news/student-loans
  -the-best-places-to-borrow/

9

• The only way to discover the lowest available
  rate is to apply to several lenders at once.
  Multiple applications won't hurt your credit
  report. They'll count as a single inquiry as long
  as you make them all within 30 days.
• Private lenders are searching for ways to make
  their best education loan more appealing. For
  example, Wells Fargo is offering a new loan not
  only to parents but to other sponsors, such as
  grandparents. It has no origination fee. Variable
  rates range from 4.25 percent to 10.74 percent,
  depending on your credit standing. Parents with
  top credit will pay less, at the start, than they
  would for a PLUS. On the other hand, they could
  pay much more if interest rates rise over the 10-
  to 15-year repayment period. The PLUS program
  also offers better choices to borrowers who
  become financially pinched and need to stretch
  the payments out.Some schools provide short
  lists of preferred private lenders who supposedly
  provide the best deals. Compare prices anyway.
  The lists don't necessarily cover lenders with
  the lowest costs.
• Source http//www.cbsnews.com/news/student-loans
  -the-best-places-to-borrow/

10
https//www.facebook.com/AvanseEducationLoan
https//www.linkedin.com/company/avanse-financial-
services
https//twitter.com/avanseeduloan
https//plus.google.com/AvanseFinancialServicesLt
dMumbai
https//www.youtube.com/channel/UCcsuUx1EH1C08XmX2
embpug
11
Read more on Best Education Loan
http//www.avanse.com/avanse-education-loans/
Thank You..!!!