Direct Student Loan Consolidation
There are websites like federal student finance that lists all aspects of federal student loans and therefore are useful for students to get all the useful information they need student loans or financial assistance. Types of Federal Student Loans There are two types of student loans which are federal loans and private student mortgages. 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 Stafford These loans are granted by the federal government or any third-party educational organization. These loans are given on the students financial need and may be issued by a bank or credit union or any of the government offices.
Under this legislation the Department of Education can buy federal college loans from lenders thereby providing these lenders with the liquidity they need to continue funding new parent and student loans. The law specifically targets lenders who in the current credit crunch are unable to find investors in the secondary market willing to purchase their student loan portfolios. Even with this legislation in place however lenders continue to find themselves forced to suspend their student loan programs. As recently as July 28 the Brazos Higher Education Service Corp. the 26th-largest originator of federal student loans in 2007 and the Massachusetts Educational Financing Authority the largest student loan issuer to Massachusetts residents both announced that they would no longer be able to provide either new or current borrowers with student loans.
Most Popular This Week
Some of the benefits and advantages of federal student loans is given below. Unlike other forms of consumer debt student loans receive special protections under current laws ranging from collection to bankruptcy. This special status applies not only to the primary borrower (the student) but also to any co-signer on the loan. Student loans are one of the hardest types of debt to shake. Current U.S. bankruptcy law allows a court to discharge these loans in bankruptcy only in the narrowest circumstances. In fact the legal requirements for discharging education loans are so formidable to meet that most bankruptcy attorneys avoid student loan cases altogether. Since so few loan borrowers qualify for bankruptcy discharge under the law the vast majority of loan debt is carried until the borrower repays the loan or dies -- although some non-federal student loans even survive death passing the debt on to the borrowers co-signer.
2) Work with the lender to ensure that you receive duplicate copies of monthly statements and periodically check your credit report to make sure your credit is still in good standing. Also bear in mind that being a co-signer on an outstanding loan may reduce your overall creditworthiness since the loan debt will be viewed as a liability. 3) If your primary borrower communicates to you that s/he is having difficulty making the monthly loan payments contact the lender immediately. For federal college loans ask about your loan deferment and forbearance options. Private student loans generally dont offer the same deferment and forbearance benefits as federal student loans but some private student loan lenders may be willing to discuss a deferred payment arrangement or alternative payment plan.