BEFORE WE GET TO OUR LENDER LIST
Here is some brief information about Stafford Loans:
The Stafford Loan is in the student’s name and the fixed interest rate is set by the federal government at 6.0% for Subsidized Stafford Loans and 6.8% for Unsubsidized Stafford Loans. Your award letter reflects the maximum amount you may borrow as established by the federal government. You do not have to qualify for a Stafford Loan as it is not dependent on credit. If the student attends both fall and spring semesters, the Stafford is divided into two equal disbursements (one for each semester). There are two types of Stafford Loans, and the results of your FAFSA and your financial need determine your eligibility. For a Subsidized Stafford Loan, the government pays the interest until the loan goes into repayment. For an Unsubsidized Stafford Loan, the borrower is responsible for all interest that accrues during and after enrollment. You may choose to pay the interest while you are in school so it does not capitalize, or you may defer the interest payments along with your principal loan balance. Repayment begins after a six-month grace period following graduation, withdrawal from school, or a drop in enrollment to less than six hours.
Here is some brief information about Parent (PLUS) Loans:
A PLUS is a loan that a parent applies for on the behalf of the student. The PLUS fixed interest rate is set by the federal government at 8.5%. Your award letter reflects the amount that is needed to pay expenses not covered by other federal and state programs and scholarships. The PLUS requires a credit check and is based on credit history and not income to debt ratio. If a PLUS is not approved by the lender, then the student may be eligible for an additional Unsubsidized Stafford Loan in his or her own name. If the student attends both fall and spring semesters, the PLUS is divided into two equal disbursements (one for each semester). Repayment on a PLUS begins 60 days after the final disbursement for the school year. Deferment of payments is available while the student is in school, however interest will continue to accrue. You may choose to pay the interest while your student is in school so it does not capitalize, or you may defer the interest payments along with your principal loan balance. Before your loan goes into repayment you may contact your lender to request a deferment.
HOW TO CHOOSE YOUR LENDER:
There are many Stafford and PLUS loan lenders to choose from. While the federal government sets the interest rates, lenders are free to offer borrower benefits that can significantly reduce the amount you pay for your student loans. We have chosen the lenders below based on their excellent customer service and borrower benefits.
Please go to www.elmselect.com to view our list of lenders.