The student loan industry is huge, and it is expanding as college costs rise. With students looking for ways to get into college and capital holders looking for ways to safely and lucratively invest their money, Great Lakes student loans management helps unite people who want to study with people who want to invest in their education.
Great Lakes offers all the federal loans available through the Federal Family Education Loan Program. This includes Stafford loans, which offer some funding for every year a student is in school. These can be subsidized by the federal government on a need basis, meaning that until the student finishes school, the government pays the interest on the loan, allowing the student to defer payment without capitalizing the interest. Students with unsubsidized loans also have the option of paying off the loan or just the interest while they study to avoid capitalizing the interest later.
Other federal loans include PLUS loans, which are offered to parents of students in any year of college and to graduate students in addition to the Stafford loan. This loan comes with a minimal credit requirement, which can be met using a cosigner. Federal loans are offered through the FFEL as well as directly from the Department of Education, in order to enforce a standard maximum fixed interest rate, but share the burden (and opportunity) of funding student loans between the government and lenders. By managing FFEL student loans, Great Lakes makes it possible for private investors to tap into this market.
Great Lakes also offers private or non-traditional student loans, tailored to meet both the financial needs of students and the investment and security needs of lenders. These loans make it possible for students to pay the remaining costs of their education after federal loans.
Great Lakes offers a number of services for prospective students and lenders which serve to help students plan their education, help lenders increase their business, and to generally promote higher education, which, as a higher education guaranty corporation, serves Great Lakes’ interests. These resources include pamphlets and online resources outlining the benefits of receiving a college education, loan calculators for students, and loan education resources for lenders, borrowers, schools, and counselors and financial aid professionals.
For lenders and borrowers who have already established a relationship, Great Lakes has online resources for borrowers and management software for lenders. Great Lakes offers personal financial management resources for students, as well as mutually beneficial resources for helping students avoid defaulting on loans, including consolidation options.
Great Lakes student loans services help students pay for their education by providing lenders who are interested in investing in their future.
By: Adam Hefner
Posts Tagged ‘Borrowers’
Great Lakes Student Loans Services Manage Loans for Lenders, Borrowers
February 6th, 2010Rehab Loans – Are Traditional Lending Institutions The Way To Go Or Should I Seek Private Money?
January 22nd, 2010
Whether you are experienced in real estate investing or a newcomer, rehab loans from private lenders may be the right choice for your next project. In today’s market, there are a number of advantages to choosing private rather than commercial financing and there are a number of advantages to borrowing, rather than relying on your own capital for repairs.
First of all, many banks have suffered from years of making sub-prime loans to high risk borrowers. There reserves are not as high as they should be. So, today, they are not making as many loans, even to the low risk borrower. While real estate investing is usually considered low risk, bankers are concerned about the sluggish market. They do not want more defaults. To the experienced real estate investor, this means that a rehab loan may be unavailable from the bank that he used five years ago.
Private lenders, on the other hand, have not been hurt by the country’s economic struggles. If they had been, they would have stopped making rehab loans. Instead they are making more loans than ever, because people are starting to see the advantages to borrowing this way. Deals can be closed faster, because there is less red tape. Another plus is that there are fewer rules about what the money can be used for.
In order to get a rehab loan from a bank, you would have to get a line of credit, based on the equity that you have in the house. Of course you made a good deal, so you have instant equity, but you also had to borrow money to purchase the house. So, now you have two loans, instead of one, both with interest accruing and it is taking longer than you thought to repair and sell the house.
A private company specializing in rehab loans can provide one loan that can be used for purchasing and making repairs. They are not governed by the same regulations that require banks to make two separate loans.
Now you might be thinking that you have enough capital of your own to make the repairs that the house needs, so why borrow at all. If this is what you are thinking, then you are not considering your cash flow. Suppose it costs a little more to rehab the bathroom than you planned. Suppose you find out that the roof leaks.
Suppose you have finished the repairs, but it’s taking longer to sell than you thought. Any of these things could tie up your own money, preventing you from finding other great deals and buying more property. A rehab loan, when used correctly, will allow you to make the needed repairs, buy more houses and make more money faster.
So, you can get one loan that covers the purchase price and the repairs. If you have the right loan to “after repair value” ratio, then you can even roll in the closing costs. In other words, you can buy an investment property without using any of your own money.
You may be able to delay repayment of the loan until the property is sold, so if it takes a little longer, there’s no need to worry. Companies that specialize in rehab loans offer a variety of payment plans, schedules and options. You might want to consider this type of financing for your next real estate investment.
By: James Whitmore
Cosigning For A Student Loan – Pro’s and Con’s
January 20th, 2010
What Are Private Student Loans?
Private student loans are issued based on credit. This means two things for those applying for a private student loan.
The loan will be based on the borrowers credit score Normally, the better the credit score, the better the interest rate
What this means to you
Some students benefit by applying for a private student loan. The borrower must remember though, if he/she has a cosigner, the cosigner is just as responsible for repayment of the loan as the borrower is. By cosigning your name a loan, you’re guaranteeing that you will repay the loan should the borrower fail to make payments.
A lower interest rate can mean that the borrower will have lower monthly payments. It can also mean the loan can be paid back quicker.
Who needs a cosigner?
Generally there are two circumstances when a consigner is needed, even if the borrower has some credit.
One of those times is when the borrower does not have an established credit history which leads to a low credit score. Having a cosigner when applying for private student loans such as a Sallie Mae Signature Loan or a Tuition Answer Loan may increase your odds of being approved.
The second circumstance to use a consigner would be to obtain a loan with a lower interest rate. The difference in monthly payments on a $10,000 loan can be $50 or more when comparing a 8% interest rate and a 12% interest rate. Also the difference in the accrued interest rate could be as much as $4900 over the life of the loan. Certainly something to give thought to!
Pitfalls To Look Out For
Having a cosigner can be a win-win situation, but it can also have its drawbacks. Here are some things to consider before cosigning for a private student loan.
Make sure if the borrower does fail to repay, that you can make the payments yourself. Make sure the person you’re cosigning for is trustworthy. Cosigning between girlfriends/boyfriends is never a good idea. If the romance goes South, the other one could be left holding the bag. Cosigning for a bum who won’t work or flunks out of school can be a hard pill to swallow also. If you do cosign, make sure you get copies of all the papers. Remember, those with the best paper trails win. Get an agreement, in writing and notarized, that the borrower will repay you all fees incurred including the monthly payments, should they fail to repay the loan and you’re forced to. You don’t want to wind up years down the road and the borrower tells a Judge that you volunteered to repay the loan as a gift.
Now that you have this information, if you cosign for a loan, make sure you do it right! Cosigning for a private student loan has it’s pros and cons, just make sure you know what they are before signing on the dotted line.
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By: Donald Lawson