Stafford Student Loan News

Federal Stafford loan interest rates have been on a steady incline since 2003-2004, but that has finally changed. Effective July 1, 2008 subsidized Stafford Loans decreased from 6.8% to 6% fixed. That is the largest interest rate drop federal loans have seen in nearly seven years. And it came not a moment too soon. Interest rates matter.

If you’re like me when I was 18 you may be thinking, “Whatever, 6%, 6.8%, or 10% I don’t really care. I’ll worry about the bill later.” And if that is the misguided logic you operate under than shame on you. I wish I could go back in time and kick my own fanny. I was a complete nitwit! Now clarity of thought and not naivety of youth serves as my ally. That said, the financial ramification of my poor decisions when I was younger still looms heavy over my head today. I want better for you.

Below is a cost comparative between student loans at 6.0% versus student loans at 6.8%. You may be surprised by the amount of money you save over a 10-year period.

As you can see that’s a $2,200 savings over the standard 10-year loan term assigned to federal loans with the lower 6% interest rate. That said most students don’t pay off their loans within 10 years. Many students choose to consolidate after school to lower their monthly payment. Consolidating extends your loan term which does minimize your monthly payment in the short run but you pay back more in the long run.

For example if you have $45,000 in loans you may extend your 10-year loan term to a 25-year term. The cost disparity in that case jumps from $2,200 to over $6,700! It doesn’t take much to get that ball rolling in the wrong direction.

The fact is you are in a better place today than you were one year ago at this time. Take advantage of the lower 6% interest rate! I am the best kind of hypocrite. I did everything wrong so you could everything right.

Apply now for a Stafford Loan and take advantage of the low rate!

If you’re a member of www.ScholarshipPoints.com you can use the code SAVSHOWME to earn 15 scholarship points.

“Save me the money!!!!!!!” Can you picture Cuba Gooding Jr’s character from the 1996 hit movie Jerry Maguire screaming that out? Me neither. I guess we all want someone to “show” us the money instead. We bow to the almighty dollar. We salivate like that dog in Pavlov’s theory when the bell rings. We are thirsting for those Benjamin’s. Well, what if I could do both for you? What if I could both show you and save you the money?

As many of you have probably heard, countless nonprofits, major banks, and government agencies stopped offering federal loans, like the Stafford loan. With less lending sources available it doesn’t take a genius to figure out its more difficult and time consuming to get the funds you need these days. So where can you go to get your Federal Stafford Loan? Right here! Your search is over. Here at The Student Loan Network we’ve got you covered. Just click Stafford loan and complete your online application today. It’s fast and easy!

So that answers the first half of our equation, how I can show you the money, but how can I save it for you?

Some educated consumers ask me, “What are the fees on your Stafford loans,” to which I gleefully reply – we have none! Many lenders in the industry charge a 2% fee on Stafford loan applications (1% origination fee and a 1% guarantor fee). It is perfectly understandable too given these difficult times, but I’m pleased to inform you that we have waved the 2% fee for you. What that means is if you get approved for $5,500 than we send all $5,500 to the school on your behalf. Nothing comes off the top. That’s how we can “Save you the money!!!!”

So now I’ve showed you how to get the money for school and how you can save it. Hey Cuba, calm down over there. We’ve got everything under control.

On July 1, important changes went into effect for all undergraduate Stafford loans. The Stafford interest rate dropped from 6.80% to 6.00% for undergraduate subsidized loans and loan limits were increased. Students can now borrow $2,000 more in unsubsidized funds on top of their base amount. With a low fixed rate, it is important to maximize your Stafford Loan award.