How can I apply for student loan for Virginia student?
Your question did not indicate if you're aware that your first loan option should be the federal government's Stafford lending program. If you are looking for any other type of student loan, the loans commonly called “private” or “alternative” loans, you are in for a very difficult challenge.
The attractiveness of the Federal government's Stafford loan program is that Stafford approval is not based on your creditworthiness. You will not need to answer any questions about income, credit history, or debt in order to apply. A Stafford borrower is never asked for a cosigner.
The interest rate on the Stafford loan is far lower than any other type of educational loan, and the rate is a fixed 6.8% for the life of the loan. Private educational loans all carry a higher, variable interest rate. The repayment period for a Stafford is 10 years, and the borrower's first payment is not due until 6 months after they leave school.
The maximum Stafford borrowing eligibility is tied to your grade level – freshmen can borrow $5500 a year, sophomores $6500, and juniors and seniors can borrow $7500 each year. If you are over 24, married, or a military veteran, or if you support dependents of your own, you may qualify to borrow more each year.
If the Stafford loan fits your needs, there is only one way to apply – and that's by completing the Free Application for Federal Student Aid, or FAFSA. The US Department of Education administers the FAFSA, and their official website can be found at http://www.fafsa.ed.gov/ . Do not be fooled by look-alike websites that want you to pay for “assistance” with completing the form.
If you are looking for a non-Stafford loan, there are only a small handful of lenders making these kinds of loans right now. In theory, you can borrow up to the amount of your total educational expenses. In reality, a college student will find it nearly impossible to qualify for a private educational loan without a cosigner.
You may know people who have taken out liberal private loans in the past, but that was before the banking and lending crisis. Banks have responded to that crisis by abandoning all lending products that carry high risk, and the educational lending market is about as high a risk as lending comes. Student applicants have little or no income, no assets, and no credit history, and ask the banks to lend them tens of thousands of dollars in return for a promise that they'll try really hard to get a good job in a few years. Right now, lenders aren't taking those risks, and almost 99% of all educational loan applicants are being asked to provide a highly creditworthy cosigner to guarantee their loan.
I hope this information helps you – good luck!
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Posted under Financial Aid
This post was written by admin on August 10, 2009
