Our Guide to College Loan Information

We've all read, or heard, about the runaway costs of a higher education. Both public and private colleges and universities are now charging students $15,000 to $50,000 annually to attend school. Costs of this magnitude mean that finding a student loan to help finance college costs is essential to most families and students.

Student grants are an important source of college funding, and the best feature of these grants is they don't ever have to be repaid.  We are not talking about grant programs to conduct research.  In this publication, we are focusing on federal grant programs that help college and university students pay for the cost of their education.

We have some sound advice for those of you looking for cheap student airfare:  Be careful.  We know this might seem like a departure from our college loan theme, but one of our goals is to offer sound information to our readership. 

Each September, high school seniors return to the classroom, while parents begin the process of applying for financial aid.  For many of the wealthier families in America, applying for aid will be a waste of time.  For those that are financially-challenged, the process can be quite rewarding.

Even if we start to save for college expenses the day our child is born, college costs present a challenge to many of us. With the cost of universities and colleges in the range of $15,000 to $50,000 per year, a college loan is a necessity. Fortunately, there are some attractive interest rates we can obtain through federally-funded college loan programs.

Going to college is a great career move, but it's also an expensive one.  Applying for a student loan is a necessity for most families.  If you're wondering how long it takes to apply, and what kinds of information you will need handy when filling out an application, then keep on reading.   This is one of those "all you need to know about applying for a student loan" articles.

The term federal student loan applies to three different types of loans, which are available through the federal government. The government has several ways to help students pay for tuition, and loans are only one of those ways.

If you're enrolled in a two or four-year public or private institution, a career school, or a trade school, you may be eligible for federal student aid. Nearly all federal aid is need-based, and covers school expenses such as tuition and fees, books and supplies, room and board, and even your transportation expenses to school and back home.

The Canadian government has set up the National Student Loan Center (Centre) to ensure that its students have access to all the information they need to apply for, and repay, their student loans.  The center is conveniently housed in an online website that includes all of the tools, applications, and resources that Canadian students need to manage their loans.

The federal government here in the United States provides students with an efficient way to fund their education through government student loans. But this is just one way to pay for college. The government sponsors three different programs to help pay for school: loans, grants, and work study programs.

Federal Stafford Loans are made to students as part of two loan programs: the William D. Ford Federal Direct Loan Program (Direct Loan), and the Federal Family Education Loan (FFEL) Program. Stafford Loans are true student loans. Therefore, the money must be repaid with interest.

Direct student loans are one of the Federal Student Aid, or FSA, programs that are available through the Department of Education. Direct student loans provide students with a way to borrow money to pay for their costs of higher education.

A Stafford Loan is one of three types of loans made available to students by the federal government. In fact, there are several forms of financial aid available to students, and the Stafford loan is a true loan. This means the money is borrowed by the student, and repayment is necessary; except under certain conditions, which we will talk about later.

Student loan repayment options are available to help college graduates ease their financial burden each month.  This is especially true if you're struggling to find a job after graduation.

There are several situations that allow current, and former, students to qualify for student loan deferment.  These deferment options will vary depending on the kind of loans that are outstanding as well as the borrower's financial and workplace status.  But let's first answer the question:  What is a student loan deferment?

Student loan forgiveness and service payback programs provide aid to students.  These programs are designed to attract individuals to serve in certain jobs, or work in regions of the country, that are experiencing a shortage of talented workers.

Student loans and bankruptcy filings used to be connected by a relatively simple process.  Of course, nothing is simple when it comes to bankruptcy.  The recent rise of bankruptcy filings has led to some very significant impacts on student loan forgiveness.

Each year, new student loan interest rates are published. Overall, interest rates have been relatively low; nothing like the rates that were experienced back in the early 1980s. That's good news for students because even though they can do very little to control the rising cost of tuition at their colleges, at least the interest rate on their student loans are reasonable.

As tax time rolls past, you may be wondering if you can take a student loan interest deduction in 2011 or 2012.  Perhaps you have a child that is going to college next year, and you're wondering how the interest deductions work.  We have a definitive answer right from the IRS to the question:  Can I take a student loan interest deduction on my taxes?

The Hope Credit is a tax credit that can help offset the costs of higher education by directly reducing the amount of your taxable income. The Hope Tax Credit has been around since January 1998, and allows you to claim a tax credit for of up to $2,500 in qualified education expenses for each student enrolled in school.

The Lifetime Learning Credit is a tax credit aimed at helping to offset the cost of higher education. The credit does so by reducing the taxable income for individuals paying for certain college-related expenses. The Lifetime Learning Credit allows you to take a tax credit of $2,000 for those qualifying expenses of an eligible student.

Recent graduates are often left wondering if choosing to consolidate a student loan is the right decision.  A consolidation loan is designed to help both the student and parent borrower to simplify the loan repayment process.  This is achieved by combining several types of federal student loans with various repayment terms into a single loan.

Private student loans are becoming more popular each year because federal grants have not kept pace with the rising cost of tuition, room and board.  Private loans, along with federal programs such as Stafford Loans or Perkins Loans, are a very important way for students to fund their education today.

If you're a student looking for help with rising college costs, then you've probably been told by the financial aid department to make sure you apply for an ACS Student Loan.  Let's take a closer look at ACS, as well as the student loans they have to offer.

Sallie Mae was created in 1972 as a government-sponsored enterprise to enhance public access to higher education by serving as a secondary market, and warehousing entity, for student loans.  Sallie Mae offers existing and former student borrowers a wide variety of services, including finding student loans and debt management.

Student loan consolidation allows former students to leverage the economies of a larger loan, by combining their federal loans into a single monthly payment.  This process helps students realize a savings on interest expense, and provides the convenience of managing only one student loan each month.

A few years back, Section 529 of the Internal Revenue Code authorized what are now referred to as 529 college savings plans or qualified tuition plans.  These plans are sponsored by individual states and educational institutions to encourage the growth of college savings accounts.

A 529 plan, also known as a qualified tuition program or QTP, is one of the best ways to save for higher education today.  The flexibility and unique benefits of 529 plans, allow accountholders to cope with the rising costs of a college education, while remaining very much in control of their money.

If you have children, then you're sure to notice how fast they grow up.  Unfortunately, there's something else that continues to grow over the years:  The cost of a college education.  If you've been thinking about funding a 529 plan, that's great news. A college education can help provide for a secure financial future.

We're going to let you in on a little secret when it comes to Section 529 plans.  Not only are they an excellent way to fund a child's future college expenses, but 529 college savings plans are also an important estate planning tool.  In fact, for wealthier families, a 529 plan offers excellent opportunities to transfer wealth as part of your overall estate plans.

If you've ever felt helpless against the rising cost of college tuition, you're not alone.  Fortunately, there is an answer to this problem in the form of 529 plans, which offer individuals saving for college a prepaid tuition option.  That's great news for investors looking to lock in the cost of college tuition because it provides their children with a large choice of private colleges and universities.

If you're saving for college, then the federal government provides tax breaks that can help ease the burden.  One of the ways to take advantage of these breaks is by opening a Coverdell Education Savings Account or Coverdell ESA.  You might remember the Coverdell when it was called an education IRA, but it has a new name and some new rules too.

Saving for college is an enormous financial undertaking, and rivals the burden of saving for retirement.  These two financial challenges have something in common too.  You can use your Roth IRA to save for college.  In fact, it’s also possible to use a Traditional IRA to help pay for college expenses.  For some taxpayers, using an individual retirement account to create a college fund makes a lot of sense.

There's some bipartisan legislation on the horizon that aims to send more Americans to college, and it's called the Student Aid Reward Act.  Originally sponsored by Senators Kennedy (D-MA) and Smith (R-OR), and Representatives Petri (R-WI) and Miller (D-CA), the act intends to increase college scholarships with no additional cost to taxpayers.

Back in 2005, the Wall Street Journal and the Washington Post reported that Congress was going to once again try to close a student loan loophole that's existed since the 1980s.  This isn't the first time Congress has tried to close this loophole.

In 2006, Congress slashed $12 billion in student lending funds in a desperate attempt to reduce the fiscal budget deficit. Recent studies have shown that student debt is getting out of control, and lawmakers on Capitol Hill have decided to take steps to help ease the burden for students with college loans.