The Department of Education chose Sallie Mae, a leader in student loan lending, along with three other companies to service the outstanding federal student loans and future loans owned by the government totaling $550 billion. By servicing these loans, Sallie Mae would take on the administrative work, like mailing statements, receiving payments and managing delinquent accounts. The five-year contract, scheduled to begin in August 2009, awarded to Sallie Mae is only for the management of these loans, not loan origination.

Sallie Mae has long been synonymous with student loans, as it is the largest student lender in the U.S. Read the rest of this entry »

It’s a correlation no one can deny. As college tuition and fees continue to rise (up 50% in the past 10 years), so does credit card debt. As fewer families have the cash to support college students, more students are charging their tuition, books, fees and other living expenses just to get by.

According to Sallie Mae, the average undergrad has a credit card bill of $3,173, up a startling 134% from $2,169 in 2004, and the highest amount since the organization began tracking in 1998. It seems that tenure in school correlates to debt as well, with seniors owing twice as much as freshmen.

This new study from Sallie Mae uses March 2008 data; due to the state of the economy since then, they warn the actuals for 2009 could look worse. Read the rest of this entry »

Many people choose not to attend college not because they cannot afford the education. Many individuals believe that they do not qualify for scholarships and simply give up the dream of attending college. There are numerous misconceptions about college loans as well. College loans are an excellent way to pay for school without having to add stress while in school.

A lot of individuals think that they do not qualify for loans. The fact is that banks, companies, private entities and even the government all give out loans for educational purposes. Anything related to education is considered an expense such as tuition, books, housing, lab fees, food and many other factors. The question remains as to how and where can someone receive access to these loans?

The best option is to talk to a college or high school admissions counselor as to what specific loans are best for your personal needs. Once you have found the school you wish to attend talk to a financial or admissions counselor about the specific requirements that the school has concerning tuition and financial obligations. Although rare, some institutions allow individuals to pay for tuition on a payment plan instead of lump sum payments. If you do decide to do a payment plan then you will need a smaller loan over a longer period of time from the loan provider.

Take the time to apply for grants and scholarships. There are thousands of hidden organizations willing to give away money to eager students. Do online research to locate scholarship opportunities. Fill out the FAFSA and SAR government aid options to further augment your monetary situation. After you have applied for financial aid and received any scholarships from the college of your choice, factor in the bottom line total of how much money you are going to need to cover all costs of a college education.

Check with your local bank first before reaching out to a specific college loan provider. Banks will usually offer more reasonable interest rates than other private loan providers. Banks will have college loan options tailored to your specific degree and major. Some banks will also have access to many different types of private and sometimes government loans such as the Stafford Loan, PLUS loans, School Certified Private Loans, which are dependant upon your school’s participation in the program, and Non-Certified Private Loans. The greatest plus banks have is that your loan can be repaid in a time frame that is comfortable with your schedule. Many private loan providers want students to repay loans starting within 6 months of graduation.

Private loan companies such as Astrive Loans, eStudent Loans and American Educational Services make college loans their top priority. Each company is different but mostly offers more information than banks on the student loan process. Students can easily search and apply for thousands of loans, research financial aid options and gain quick access to money. The downside of private loan companies is the structured repayment schedule, high interest rates and the impersonal feeling of not having a private banker at your disposal.

Before making any decision research all options thoroughly and decide which loan is best for your personal situation.