Tuesday, July 5, 2011

Sallie Mae Tip on Paying for College: If You Need to Borrow, the Coming Year May Offer Lower Rates

(Source: Business Wire) - Students who need extra funds for college can take advantage of changes in the law and improving the economy that result in student loans under one of the best interest rate the last five years, said Sallie Mae, the No. 1 nation financial services company specializing in education. "The good news for students is that the interest rates on several types of student loans are among the lowest in recent history," said Joe DePaulo, executive vice president, Sallie Mae. "Our ~ How the American National College Pays study confirms that students and parents the value of investment in college education and are willing to stretch financially to get there. Sallie Mae advises families to follow our step 1 -2 to 3 to pay for college, so you do not pay more for college you have to: first, to maximize the money ~ Free "Second, if you borrow, consider federal loans and third, closing the gap with private education loan officers. "

While the deadlines for many scholarships for the 2011-12 academic years have passed, Sallie Mae database of free scholarships can help students identify opportunities for last minute. In addition, it is not too late to complete the FAFSA or Free Application for Federal Student Aid to verify eligibility for federal grants.

For the 2011-12 school year, interest rates on new federal loans based on the needs of students Stafford will drop by more than 20 percent from 4.5 percent to 3.4 percent, fixed . Tariffs on non-need-based federal Stafford loans or graduate Stafford loans remain at 6.8 percent, and PLUS loans remain at 7.9 percent, the two types of fixed-rate loan for the duration of the loan . Most students receive subsidized loans come from families with annual incomes less than $ 50,000, but some with high incomes may qualify because of family size or other factors. Dependent undergraduates can borrow up to the federal Stafford subsidized loans to $ 3,500 for freshmen, $ 4,500 for sophomores and $ 5,500 for juniors and seniors.

For students who need private loans to bridge the financial gap, Sallie Mae Student Loan Smart also offers new options, lower variable rates and no fees for disbursement. For the next academic year, rates vary between 2.25 and 9.37 percent in April April percent for students seeking degrees, based on the LIBOR index today. Sallie Mae also offers students at the school of choice of payment and shorter repayment terms that help reduce the amount of interest paid over the term of the loan, as well as benefits of new insurance education. A typical rookie who borrows $ 10 000 and opts to pay the interest while in school can save more than $ 5,200 over the life of the loan compared to a typical installation, the deferred payment, private loan.

Sallie Mae advises families to follow the 1-2-3 approach to paying for college: first, press college savings and maximize scholarships and grants. Second, explore federal student loans. Third, close the gap with private education loans loaded with your choice of payment options at school to help you save money.

Sallie Mae (NYSE: GDT) is No. 1 in the nation's financial services company specializing in education. Serving 23 million customers, Sallie Mae offers innovative tools for savings, tuition payment plans and education loans that encourage accountability and habits of rewarding success. The company manages and services $ 238 billion in student loans and administers $ 37 billion in 529 college savings plans. Members of the Upromise college savings rewards program earned $ 600 million to help pay for college. Sallie Mae is also a leading provider of financial services for universities and governments at all levels, including support for 8 billion dollars in e-commerce transactions annually at nearly 1,000 campus. More information is available at www.SallieMae.com. Commonly referred to as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

Source: Business Wire

A service of YellowBrix, Inc. Publication Date: 22/06/2011

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