Tag Archives: federal
ACS Student Loans
An ACS student loan is a loan that is serviced by the Affiliated Computer Services, Inc. It is a company known for outsourcing technology and business solutions. Universities across the country use the ACS student loan services because of the company’s reputation for using technology to effectively handle some of the more difficult aspects of loan services.
ACS student loans allow students to make payments online, instantly be able to see the status of an account, make changes to personal details such as name and address, and also to be able to receive email notifications when a payment has been processed.
Many different programs for financial aid fall under the heading of an ACS student loan. One of the major ACS student loan groups is the Campus Based Student Loan Program (CBSL), which includes Federal Perkins Loans, Nursing Student Loans (NSL), and Institutional Loan Programs, among others. Another major group of educational loans handled by ACS is the Federal Family Education Loan Program (FFEL), which includes the Stafford (GSL) Loans, PLUS loans to parents of students, and loan consolidation services. ACS also has the ability to handle many other groups of educational loans donated by a variety of private companies.
For those who do not already have an ACS student loan, applications and guidelines for different financial aid options are available online. The ACS website gives a clear example of how to fill out a Free Application for Federal Student Aid (FAFSA) form, and demonstrates what the results mean in terms of your eligibility for financial aid. Furthermore, applications for both Stafford and PLUS loans for parents can be found on the ACS website, and can be completed and sent in online.
If you are the holder of an ACS student loan already, you may be interested in knowing about the benefits of student loan consolidation. The ACS website provides information and application forms that could help you lock in a lower rate and reduce your monthly payment amount.
Some other tools that can help you with your ACS student loan are a repayment calculator, guidelines from the IRS about how to use your student loans for tax relief, and a glossary of important student loan-related terms.
All in all, an ACS student loan is one that will give the borrower plenty of ease and flexibility when it comes to loan servicing from application to repayment and consolidation. ACS works with a number of universities across the United States, including the University of Pittsburgh and the University of Vermont. Even if your specific university does not offer student loans handled by ACS, their website is a treasure trove of helpful tools and information, and well worth a look.
Federal Student Loans vs. Private Student Loans (Page 1 of 2)
Few students can afford to pay for college out of their savings, so they use student loans to pay for school. Two major categories of student loans include federal loans and private loans. Because we believe that it is important to understand your education-funding options, this article investigates the difference between federal and private student loans.
These days, there are very few students who can afford to pay for college without some form of education financing. Two-thirds of undergraduate students have some debt, while 88% of law students need to borrow to finance their education. A typical undergraduate may graduate with more than $20,000 of debt, while graduate students may have significantly higher indebtedness. Law school students may graduate with an average of $80,000 in student loans. Typically, students have acquired both federal and private debt, but what are the differences between these types of loans? And is one better than the other? Read on for an explanation of both categories of student loans.
Many students rely on federal student loans to help finance their education. The most common federal loan is a Stafford Loan. These may be issued directly from the government to the student, or they may be issued by a private lender, such as a bank or credit union, belonging to the Federal Family Education Loan Program (FFELP). Either way, these loans are guaranteed against default by the federal government.
Something else to remember about Stafford Loans is they may be subsidized or unsubsidized. If you are eligible for a subsidized Stafford Loan, the government will pay the interest while you are in school. Subsidized Stafford Loans are generally given to students who can demonstrate financial need. If you receive an unsubsidized Stafford Loan, you will be responsible for paying all of the interest, although you may have the payments deferred until after graduation. If you choose to defer paying the interest until after graduation, the interest will be capitalized, or added to the loan amount. To qualify for an unsubsidized Stafford Loan, you do not need to demonstrate financial need.
The amount of your Stafford Loan will vary depending on your year in school. However, graduate students may borrow up to $18,500 each year (with $8,500 being subsidized) with a combined limit for graduate and undergraduate federal loans of $65,500 for dependent students. If you are an independent student, the cumulative limit you may borrow is $138,500 for your graduate and undergraduate studies.
Stafford Loans have variable interest rates, based on the 91-day T-bill, and this interest rate is adjusted each year on July 1. Stafford Loans have an interest rate cap of 8.25%. All lenders offer the same base rate for Stafford loans because the interest rate is predetermined by the government, although many lenders offer payment incentives and/or discounts to help you reduce your interest rate further. Another benefit of federal loans is you may lock in a fixed interest rate if you choose to consolidate your federal student loans. That way, you will not be affected by adjustments in the interest rate each year.