Fadi asked:


I am currently under default and repaying my student loans to a collections agency (ACT – Account Control Technologies). I would like to go back to school in September 2010.
Is there any way I can apply for loan consolidation so I can go back to school?
I had to leave school to help my parents out and now I’d like to go back but there is no way I can afford school without financial aid or loans.
Or does anyone know about student loan rehab program?

If anyone could direct me in the right direction it would be great help.

Thanks.

When you are trying to take the next step in advancing your education, how you will fund that education can be the furthest thing from your mind. Many financial aid departments will tell you that you are getting a variety of funding, including subsidized student loans. Not knowing what they are talking about, but understanding that you must sign on the dotted line to attend school, you simply nod your head and agree to the funding terms.

Unfortunately, most financial aid departments don’t attempt to go into great detail when helping you arrange for your education. Their one and only goal is to get you the funding you need so that they can earn more tuition for their school. They are not concerned with your needs, what interest you may pay, or what type of loans you get.

Subsidized student loans are the best type of loan to get. These loans do not have to be repaid until you graduate school. Additionally, you do not pay any interest until you have graduated-the government pays it for you.

All of your student loans will likely come with an agreement that as long as you are in school you do not have to make payments. However, not all of these are subsidized loans. Many of these loans are unsubsidized loans placed on an academic deferment. With these loans you rack up interest even while you are in school. The only way to keep these loans in check is to pay your interest monthly throughout your academic career.

Another thing that may confuse you is consolidation. Subsidized student loans cannot be consolidated until you graduate school. However, since you do not have to pay on them at all and you do not accrue interest until you graduate, you really have no need to consolidate them.

One way you can tell if a loan is unsubsidized is whether or not a credit check was required for the loan. Most subsidized student loans do not require a credit check, because they are federally backed and loaned through federal programs. However, unsubsidized loans may also be granted without a credit check, although interest rates on these loans may be higher.

The best way to tell if a loan is unsubsidized or subsidized is how much you can borrow. There is a fairly strict cap on how much you can borrow per year in subsidized loans. As a result, most people end up with a combination of the two loan types. This is where the confusion usually comes in. However, if you know these facts about subsidized student loans you will have a fairly good understanding of the breakdown of your student loan debt.

By: Joe Eitel

About the Author:

brut44 asked:


Okay, here’s the deal I’m pushing 30, have little to no income. and no kids. I’m thinking of joining the navy or going to a community college, but I want to go to college regardless. The financial aid and aquiring grants seem to confuse me some. I’ve been told, for someone like me(little to no income, late 20’s), can pretty much go tho college for free. How exactly do I go about doing this? Should I go for a Pell Grant or some other grant? I assume I need to fill out a FAFSA before I can be considered for any grant of any kind? I’m getting desperate/ left behind here and I don’t think I want to join the navy if I can go to college for next to nothing Right now.
Hey, thanks for your time and help!!…It’s starting to get a little pathetic here lol. And please just don’t tell me to just surf the web for grants-tell me which ones I need to look for please.

SRAWRRR asked:


I am a high school junior. Obviously, I’ve been looking for scholarships and financial aid for when it is time for me to go to college. Does anyone know how soon I should start applying for scholarships? I think right now is a bit early, since I wont be starting college until August 2010, but I don’t know when exactly is the right time to start applying for scholarships.

ihcuids asked:


I’m on disability right now and was thinking about going back to college. Can I keep my disability but apply for a Stafford loan or other financial aid?

Sara asked:


I just completed my FAFSA. I’ve lived on my own for two years but I still need my parents tax information, which I think is ridiculous. Does anybody know how they figure what you are able to receive in financial aid?
Well, I’ve already done all this. I’ve done my parents tax information, and mine. I just don’t understand how they assume that if you’re under 25, you still need your parents tax information.

shorty07 asked:


can someone please explain what student loan consolidation means and how it can benefit me?

i went to schoolsoup.com and i was looking at their loan options, like Federal Stafford loans and loan consolidation. i don’t really know the difference between them.

i already have both subsidized and unsubsidized loans as a part of my financial aid. i’m still short about $850, and my family doesn’t have that kind of money right now. school starts in 10 days, and i’m considering taking out a consolidated loan, but i don’t really know how they work or what good they will do for me. help, please?

Rosee asked:


Should a 23 yr old student, who is planning on persuing a Master’s degree apply for a studet loan in his own name, alone, or add his parent’s information, also?

Should the student skip step 3, and go to step 4, on the FAFSA application?

Wouldn’t the student qualify for more financial aid applying on his own?