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 ‘Fixed Interest’
Great Lakes Student Loans Services Manage Loans for Lenders, Borrowers
February 6th, 2010Converting Loans Into Fixed Rate Student Loans
January 17th, 2010
The only fixed rate student loans available are federal loans, and even those can change based on federal law. However, if you want to lock in your interest rate, you can do so after you finish school.
Federal student loans offer a more stable rate; even though changing laws can change the interest rate on these loans, it is not going to happen from one day to the next, which is a possibility with private loans. Private loans should only be considered when federal loans and financial aid do not cover the costs of your education.
Education costs are rising faster than federal student loan amounts, so many students are finding themselves in a situation where they need extra funding. Lenders take advantage of this situation and stepping in to fill the gap.
If you have excellent credit, you are eligible for loans which offer Prime interest rates. Good credit takes time to build up, however, and if you’re a young student, if you don’t have bad credit, you probably have no credit or a very short credit history. This doesn’t make it impossible to get a loan, but you may need a cosigner or be charged higher fees and interest rates.
This puts you in an even more precarious situation than other sub-prime borrowers, because unless bankruptcy laws change, you will not be able to have your student loan debt excused by declaring bankruptcy unless you have extreme economic difficulties and, according to current precedence, absolutely no chance of future improvement.
You do have the option of consolidating student loan debts. This will give you the chance to freeze the interest rate for the life of the loan. The downside of this is that, while you will also pay less per month, you will be paying off your debt over a longer period of time and in the end, it will cost more. Having a fixed interest rate and lower payments now may be worth the future increase in total cost.
Consolidating student loan debts also allows you different payment options. You can pay interest-only for up to four years with some lenders, allowing you to get a head-start on a career, or you can take advantage of a graduated repayment plan to start paying off the debt now. You can switch payment options, so if you ever suffer financial difficulties, you can switch to an income-based plan. And you can always make early payments on the principle.
Students wishing to convert their private student loans into fixed rate student loans should consider consolidation. It offers a locked interest rate but allows borrowers the chance to use varying payment plans to make student loan payment easier.
By: Adam Hefner
Private Student Loan Consolidation
December 25th, 2009
Like any form of consolidation a private student loan consolidation is when a borrower is allowed to combine multiple private loans under one single private lender at a new interest rate. This allows debtors to find payment relief by spreading the repayment over longer time duration and making the installments for the loan easier. Often it is possible for lenders to consolidate education related credit card debt into the loan but the debtor should have a good credit history or a reliable cosigner.
• The advantages of a private loan consolidation are:
• Lowers fixed rates and longer deferment time periods
• Single easy monthly payments rather than multiple payments
• Collateral not needed loan given against previous history
• No penalties on pre-payment
The advantages of loan consolidation cumulatively are more since multiple loans are easily consolidated into a single loan. A fixed interest rate then helps lower the monthly payments compared to a variable rate loan. Homeowners are allowed to retain the equity on their homes without taking out additional mortgages to repay previous debts.
A student who wants to opt for this must have completed at least 30 days of graduation and begin the loan application process in a expedient manner. The consolidator must be a US citizen and be 18 years of age. The must be fully disbursed within the time limit and their will be no penalties imposed. Private student loan consolidation allows the main burden of debt to be lifted from the students and/or parents shoulder and allow them to work and repay the single loan taken in a proactive manner.
By: Sara Sentor