Student Loans
Student loans are loans offered to students to assist in payment of the costs of professional education and such loans are usually federally funded. A student loan allows a person to finance his/her education until the graduation. Student loans can not be included in a bankruptcy, have no limitations and usually charge lower interest than other loans.
No doubt, a student loan can be a great opportunity for young people to get their education. Many families turn to student loans to help pay for higher education. In fact, most award packages from colleges or universities will include loans.
Anyway, don’t rush considering financial aid and first try to explore “free money” options such as scholarships and grants or work-study programs prior to pursuing student loans. If you need to borrow money, exhaust your lowest cost options first. The Federal Stafford Loan is a low cost loan with favorable repayment options, making it the most popular solution for financing your education.
Citybank offers some attractive options for student loans. Federal Stafford Loans that mean 1) Zero Origination Fees; 2) Zero Payments for your Last Six Months; 3) Low interest rate loan; 4) Rate reduction by up to 2.25% in repayment; 5) Easy online application and your account managing; 6) No payments while in-school. Graduate Federal PLUS Loans: 1) Zero Payments for your Last Six Months; 2) Rate reduction by up to 1.00% in repayment; 3) Borrow up to the full cost of education annually less any other financial aid received; 4) No aggregate limit; 5) Minimal credit requirements; credit response in 3 minutes or less; 6) Deferment options available - including while you are in-school, immediately after graduation, and during periods of residency of bar study; 7) Easy online application. CityAssist Loans: 1) Competitive interest rates; 2) Interest rate reduction by up to 0.75% in repayment; 3) Easy online application; 4) Credit response in 3 minutes or less; 5) Borrow up to the full cost of education less any other financial aid received; 6) No annual or minimum loan amount; 7) No payments while in-school; 8 ) Flexible repayment options. Other student loans include Parent Federal PLUS Loans and Special Offers.
Interest rates on federal education loans are set by Congress. For loans issued between July 1, 1998 and June 30, 2006, the rates are variable and change each July 1 based on a formula related to short-term Treasury securities. These Stafford loans are capped at 8.25%, and parent PLUS loans may not exceed 9.00%. Interest rates on new federal education loans first disbursed on or after July 1, 2006 have a fixed interest rate. The federal student loan interest rates have been set for 2006-2007 and are effective July 1, 2006 through June 30, 2007.
Federal Stafford Loan Rate:
For all periods, including in-school, grace, deferment and repayment periods – 6.80% fixed
Federal Parent PLUS Rate:
For all periods during repayment, including forbearance and deferment – 8.50% fixed
August 16th, 2006 at 3:07 am
Student loans, and student loan consolidation - Lock in the lowest rate with NextStudent. We also offer a scholarship search engine, private student loans and federal student loan applications.