Study loan : 3 Changes that will help Student loan borrowers

1
Study loan
2
3 Changes that will help Student loan borrowers
3

• Applying for financial aid is easier. One of the
  most stressful times in the college planning
  process can be applying for financial aid.
• If you haven't done your taxes yet, the Free
  Application for Federal Student Aid process can
  be difficult, and often, the acceptance deadline
  for colleges is close to when financial aid award
  letters start coming in.
• This can make the college choice and financing
  process challenging.
• Last fall, the government announced a new
  initiative intended to allow families to apply
  for federal financial aid earlier, and receive
  information about awards in enough time to help
  decide which school might be the best financial
  fit.

4

• Under the current process, the new FAFSA becomes
  available on Jan. 1 of the award year. Families
  use the prior year's tax information to file the
  FAFSA.
• If you've already filed your taxes when you fill
  out this application, use the data retrieval tool
  to have your tax information automatically
  downloaded.
• Not only is this much faster than filling it in
  by hand, but the chances of error have
  essentially been eliminated.
• The problem is that many families choose to defer
  filing their taxes.
• Deferred filing also results in families being
  forced to estimate their income for FAFSA
  purposes something that can result in changes
  to the amount of aid the student ultimately
  received.

5

• Under the new process, known as "prior prior
  year," the FAFSA will become available in
  October, prior to the award year.
• Families will be asked to use their tax
  information from the year prior to that one
  hence the name.
• For example, if you are applying for aid for the
  2017-2018 academic year, you'll be able to access
  the FAFSA in October 2016, and use your 2015 tax
  information to complete it.
• Not only does this mean families will receive
  their student aid reports that much earlier, but
  most if not all will also have their tax info
  filed with the IRS by then, meaning more can use
  the data retrieval tool.
• More good news The common application used by
  many colleges for other financial aid, the
  CSS/Financial Aid Profile, will also be switching
  to this timeline.

6

• The customer experience will improve. One of the
  most frequent questions received by the Student
  Loan is, "How do I know who holds all my loans?"
  Having multiple loan holders is a very real issue
  for many students with debt, and it can be
  confusing at best at worst, it can destroy your
  credit if you do not realize that you have
  another loan at a different servicer.
• The Department of Education has tried over the
  years to improve this by combining loans under a
  single loan holder as much as possible, but the
  struggle remains.
• Last week, it announced that it would work
  toward a single portal for all direct loan
  borrowers to use regardless of loan holder.

7

• Not knowing where one's federal student loans are
  which you can find at www.nslds.ed.gov is
  just one of many complaints from study loan
  borrowers.
• In addition to the single portal, the department
  will also standardize communications so all
  borrowers, regardless of loan holder, receive the
  same messages.
• It will improve oversight of servicers, reduce
  the frequency of loan transfers and implement
  better customer service practices to ensure
  consistent treatment and standards regardless of
  the loan holder.
• Source http//bit.ly/1T96MON

8
Follow us on
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
9
Read more on Education Loans
http//www.avanse.com/avanse-education-loans/
Thank You..!!!