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FAFSA PLUS Loan / FAFSA Stafford Loan Secrets About The FAFSA Loan Site |
PLUS Parent Loans and Stafford Student Loans - an insider's guideI used to work as a student loan officer. Many of you may be getting these loans about now. They are usually pretty straight up, but they have their tricks. Forewarned is forearmed so discover what they will do to lure you into their web when you contact them. There is also a page on this site for consolidation loans, the ones you get when you finish college. When I worked for a company that was a private funder of Federal student loans, the first products that I was trained to sell were PLUS loans and Stafford loans. Parent or Student borrower?First off we established who was calling. Obvious you would say to yourself, you would always want to get the name. It is actually more important to determine the relationship to the student. Is it the student him or herself, or the parent of the student? If a parent we would tell them about the Stafford Loan (a Federal Education Loan in the student's name) and the PLUS Loan (a Parent Loan for Undergraduate Students). If it was a student, the aim was to try to get the parent on the line either on this call or on a follow up call. Stafford Loans are limited in size whereas a PLUS education loan can be whatever is needed to pay tuition at the college in question. This is because the parent is a much more known quantity, i.e. the parent has a credit history. If we just had a student, then we would only pitch the Stafford Education Loan to them. A Stafford college loan was much less attractive to the lender due to the small amount involved. Stafford Loans, Fafsa Loans, Unsubsidized Loans, Subsidized Loans, Stamford Loans and Stanford LoansPotential borrowers would often refer to the Stafford education loan as a FAFSA loan, a subsidized loan, an unsubsidized loan or erroneously as a Stanford Loan or a Stamford loan. Remember the FAFSA is the financial aid application, not the loan. The loan may be a subsidized loan while student is in school, meaning the government will pay the interest, or an unsubsidized loan, meaning that the interest will accrue. There may be Stanford loans or Stamford loans but you don't have to go to Stanford or live in Stamford to get the Federal Stafford loan! Institutional Loan Eligibility - AccreditationEducation Loan Officers also had to establish which institution was being considered. Not all are accredited and thus recognized by the Federal Department of Education. For example, Bob Jones University cannot get Federal education funding as it is predicated more on religious faith than on academic principles. Institutional Loan Eligibility - DIRECT LoansAlso some schools work exclusively with the Government Department of Education loan program, the DIRECT program. No private education lenders will be able to lend to a student at these schools. Students and parents will have to get a Direct Stafford loan or a direct PLUS Loan. |
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