Student loan check question?
Asked by PechapaiqI'm considering taking out a student loan for the first time and my questions are: 1/ are there any student loans / loan providers that gives the money/ check directly to me and not to my school?? 2/ Does it matter if I'm already in dept on credit card my $2,000? 3/ Is there a min. that I have to loan because I only want about $5,000~10,000. 4/ What's this type of loan called if not Stanfford loan or PLUS loan? 5/ I still pay the loan either as subsidized or unsubsidized? 6/ Any good lender that provides a low APR?? Thank you so much!
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Answered by superstar_81882
1. No, there are no student loan lenders that will give the money directly to the school, especially if it is a federal student loan. On federal student loans, it is a requirement that the funds go to the school first. Most private or alternative education loans also require disbursement to the school and the check will be either copayable to the school and the student or just to the school alone. Only if you took out a private personal loan would the funds go directly to you, because this types of loans have nothing to do with school certification of educational costs. 2. For federal student loans there is no credit check involved, so none of your credit history will effect your eligibility. To qualify for a federal student loan you must file a FAFSA, complete your file at the school you are attending, meet satisfactory academic requirements of you school, and be enrolled at least half-time. Then you complete the loan process at your school's financial aid office--each school can have a slightly different process so contact their offices prior to completing any applications. If you are applying for an alternative loan, then credit will be a determining factor. You may also be required to have a cosigner depending on your credit history. 3. Yes, there are minimum and maximum loan amounts per academic year. The minimum loan amount a school can certify on a federal Stafford loan is $250. There are also maximums based on your grade level. First year students are eligible for a maximum of $3500 for a year, 2nd year is $4500, 3rd and 4th year is $5500, and those amounts further increase if you enter a graduate program. These are the yearly subsidized maximums, but there are also unsubsidized loans. You must be an independent student on your FAFSA to qualify for additional unsubsidized. Furthermore, your total aid cannot exceed your Cost of Attendance, so the amount of other aid you are receiving could effect your loan eligiblity. 4. The information I am providing pertains to federal Stafford loans. The PLUS loan program is a loan that the parent would take out in their own name for the student. The student has no responsibility to repay a PLUS loan because only the parent is listed as the applicant. 5. Yes, whether the loan is subsidized or unsubsidized, it must eventually be repaid. Subsidized loans are based on need and therefore do not accrue interest during deferment and grace periods. Unsubsidized loans are when the student does not have the financial need, therefore interest will accrue on this loan from the date of disbursement. Either way payments do not begin till 6 months after you stop at least half-time enrollment. 6. For federal student loans, the interest is the same no matter what lender you go with. This is because the federal government has predetermined the rates. The rates on federal Stafford loans is a 6.8% fixed rate. This is not true for alternative loans though, because these are based on credit and therefore your rate may differ depending on your credit history or that of your co-signer if one is required.
1. No, there are no student loan lenders that will give the money directly to the school, especially if it is a federal student loan. On federal student loans, it is a requirement that the funds go to the school first. Most private or alternative education loans also require disbursement to the school and the check will be either copayable to the school and the student or just to the school alone. Only if you took out a private personal loan would the funds go directly to you, because this types of loans have nothing to do with school certification of educational costs. 2. For federal student loans there is no credit check involved, so none of your credit history will effect your eligibility. To qualify for a federal student loan you must file a FAFSA, complete your file at the school you are attending, meet satisfactory academic requirements of you school, and be enrolled at least half-time. Then you complete the loan process at your school's financial aid office--each school can have a slightly different process so contact their offices prior to completing any applications. If you are applying for an alternative loan, then credit will be a determining factor. You may also be required to have a cosigner depending on your credit history. 3. Yes, there are minimum and maximum loan amounts per academic year. The minimum loan amount a school can certify on a federal Stafford loan is $250. There are also maximums based on your grade level. First year students are eligible for a maximum of $3500 for a year, 2nd year is $4500, 3rd and 4th year is $5500, and those amounts further increase if you enter a graduate program. These are the yearly subsidized maximums, but there are also unsubsidized loans. You must be an independent student on your FAFSA to qualify for additional unsubsidized. Furthermore, your total aid cannot exceed your Cost of Attendance, so the amount of other aid you are receiving could effect your loan eligiblity. 4. The information I am providing pertains to federal Stafford loans. The PLUS loan program is a loan that the parent would take out in their own name for the student. The student has no responsibility to repay a PLUS loan because only the parent is listed as the applicant. 5. Yes, whether the loan is subsidized or unsubsidized, it must eventually be repaid. Subsidized loans are based on need and therefore do not accrue interest during deferment and grace periods. Unsubsidized loans are when the student does not have the financial need, therefore interest will accrue on this loan from the date of disbursement. Either way payments do not begin till 6 months after you stop at least half-time enrollment. 6. For federal student loans, the interest is the same no matter what lender you go with. This is because the federal government has predetermined the rates. The rates on federal Stafford loans is a 6.8% fixed rate. This is not true for alternative loans though, because these are based on credit and therefore your rate may differ depending on your credit history or that of your co-signer if one is required.
