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Student Loans

It pays to know your student loan options.

When it comes to student loans, many borrowers take them for granted - after all, for college students who don't have a scholarship today, they are practically a necessity. Then after college when the time comes to actually begin paying off the loans, reality strikes. For those just beginning their new professions, the payments can be expensive. Of course, financial hardships can also strike at any time in life, making it hard to keep up with the student loan payments. If either one of these situations sounds a little too familiar, don't worry - you do have options.

The first step to understanding your student loan options is to find out what type of student loan you have. There are 2 main types of education loans; the Federal Student Loan and the Private Student Loan. To find out which one you have, you can access the following website, www.nsld.org. Simply click on "Financial Aid Review" button, mid-page and follow the prompts. They will ask you to input your social security number, the first 2 letters of your last name, your date of birth and your PIN number (the number you received from the Department of Education when you first applied for your loan). If your loan shows up on this site, you will know you have a Federal Student Loan. If not - most likely you have a Private Student Loan. Either way - you do have re-payment options available to you, and now you know which direction to move forward with.

Federal Student Loans

There are several types of Federal Student Loans:

Stafford Loan - These are education loans that are based on your income and not your credit rating. They have a cap on the loan amount you are able to receive.
Parent PLUS Loan - These education loans are less common, only available to the student's parent(s) and are solely based on the parent's credit rating. This loan also has a cap on the loan amount as well.
Bank Loan (for federal education loan) - You can receive a Federal Student Loan through your bank, if they offer federal loan options (Citibank is one example), and each bank will have its own set of rules and loan requirements and repayment criteria. Check with your bank for their specific student loan guidelines.

Student loans - a path to a brighter future. Federally-backed student loans usually present the borrower with a variety of other repayment options. To find out what federal student loan repayment options are available to you by visiting the website for the Department of Education www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp and click on the "Loan Consolidation" button, or visit critically acclaimed Mark Kantrowitz's financial aid and college planning website at www.finaid.org/loans for good information and help.

Private Student Loans

While they are not quite as common as federal student loans, many students find the need to borrow money for college expenses through private student loans. These loans are offered by banks and each has their own set of guidelines. Usually they are based on your credit rating and the fees are often quite high. In some cases, the terms with private student loans are reasonably generous; however, they do not offer as many hardship options as federal student loans do. Actually, private student loans are often very similar to having a balance on a credit card. Your options available will vary from one lender to the next.

Student Loan Consolidation

One way to lower your monthly payment is to consolidate your student loan debt. The biggest benefits of student loan consolidations are that they typically offer a longer repayment period and a lower monthly payment. To find out what repayment option is best for you, visit the links we provided previously on this page for you or simply call us at 1.866.467.1259 and a specialist can lead you in the right direction.

It Sounds Confusing, But GFM Is Here To Assist!

Because there are so many options and conditions with student loans, sometimes it pays to have some guidance with the decision making process. GFM does not provide student loans or consolidation, but we can offer expert practical advice for your unique situation, sometimes making a referral to a one of the quality affiliates we work with. Again, with student loans, it always pays to know your options!