Stafford Student Loan News

There is an article from the Boston Globe about a young soldier to be who died right before his tour in Iraq was set to begin. His name was Ian McVey. The article focused on his student loans that he left behind….he had both federal and private loans.

His federal loans were forgiven after his death…as all federal loans are, whether you are in the military or not. His private loans with Sallie Mae, will not be forgiven. Why? Because they are private loans, and it clearly states in the promissory note that the cosigner on the loan will be responsible for this loan if the primary borrower is not able to pay.  Ian McVey’s parents wrote a letter to Sallie Mae, hoping that they would forgive their son’s 53k debt, so that they would not be burdened with that debt. No surprise that Sallie said no…but it was in the way they said no that has me heated. (again, not surprised)…

Ian’s dad took the time to write a very personal and heartfelt letter to Sallie Mae. Stamped it, sent it off, and waited for a reply. Sallie Mae sent back a computer generated letter, with no name on it, stating that the loans would not be forgiven and he owed them 53k. You would think with all the bad press Sallie has gotten in the last year they would TRY to clean up their act??? Shouldn’t they have at least one person in their monstrous corporation that can write these letters, and be a contact for these families that are grieving….and burdened financially? I am not saying that Sallie should forgive those loans…because legally they do not have to…but why didn’t one person  take the time to answer this Dad? What do you think?

Read the article here.

How many times have you uttered these nine words to yourself, “If I only knew then what I know now.” If you’re south of the legal drinking age, probably not often, but as father time marches on you gain new perspective.

I can tell you unequivocally that I wanted to hop into a Delorean, hit 88 mph, and go back in time to save me from myself on several occasions. I would have saved myself thousands on student loan repayments. Actually, who am I kidding, I would have placed a few choice wages on sporting events while I was back in time and became wealthy enough to pay my way thru school, but I digress on my fantasy adventures. My aim today is to have you eliminate those aforementioned nine words from your vocabulary as it pertains to student loans.

So let’s pump those 1.21 gigiwats of electricity thru the flux capacitor and get you where you need to go. Just follow my 6 easy steps below and you can’t go wrong.

1. Complete your Free Application for Federal Student Aid (FAFSA) (this application is sent to the Department of Education). Please note, if you do not have a pin number you will need to request one at www.pin.ed.gov
2. You will receive a Student Aid Report (SAR) which will be sent to both you and the school(s) you list on your FAFSA (up to six schools max) within 5-7 business days.
3. The school will send you an Awards letter outlining the financial aid you are qualified to receive. Financial aid which includes grants, scholarships, and federal loans.
4. If you qualify for a Stafford Loan you will need to find a lender to fund your loan. You can go to http://www.staffordloan.com/ and one will be assigned for you. We make it easy!
5. If you are a dependent student who needs additional funds for school you may have your parent apply for a parent plus loan. If they get accepted for the loan that would obviously be great, but if they get declined for any reason you will be qualified for additional Stafford loan funds. You can take that denial letter to your financial aid department.
6. If you do not qualify for a Stafford loan than you may wish to explore private student loan options. You can visit ActEducationLoans.com for more details regarding undergraduate private student loans.

So now that you’re back from the future, what is your game plan? Will you travel down the road of uncertainty like so many others before you? Will you navigate the course I have outlined? Regardless of choice one thing is certain, “Roads, where you’re going you don’t need roads.”

Why does it matter if I qualify for a Federal Loan? I can just take out a Private Loan and have the funds disbursed directly to me. What’s the difference between federal and private? I mean, I have to pay the money back anyway, right?

It’s true you do have to pay the money back regardless, but if I asked you a simple question like would you rather pay me back $20 or $50 for my services, which would you choose? If you value your hard earned dollar you would choose $20. That’s why you should take the time to complete your FAFSA and see if you qualify for federal loans, like a Stafford loan. Stafford loans are fixed at lower interest rates than private loans. That said, private loans have benefits too.

Let’s review some pros and cons for both and determine the best option for you.

The real world can be scary, my suggestion, stay in school as long as you can and exercise your mind. Earning your Bachelors degree will increase your earnings potential in this competitive fast-paced world of ours. Then, by the time you get out of school you’ll have a better shot at jogging thru life rather than running at a fever pace to keep up with the Jones’ and living paycheck to paycheck. If you obtain your Masters degree you’ll enter the power walk zone. But let’s crawl before we even think about jogging, running, or power walking. I know I have to sell some of you on the idea of even going to college.

Some of you are thinking, why even bother with college? What is the benefit? Heck, even some that go to college are left scratching their heads. I hear my friends say, “I’m not even doing what I went to school for. What a waste of time and money,” to which I respond – that degree still helped open the door to your current job. Prospective employers want to see that you paid your dues and that you are intelligent enough to construct a sentence. Granted, if you are gifted at selling yourself and getting in front of a decision maker you may be able to escape your uneducated past, but chances are they’ll move right along to the next applicant who is you + education on paper. No one wants to be Mr. Bojangles, left out in the cold, and if you’re like me at 18 you are clueless to the world of financial aid and what you truly qualified for. Here is my Bonvie Basic overview to get you started.

1. Complete your Free Application for Federal Student Aid (FAFSA) on http://www.fafsaonline.com/ (this application is sent to the Department of Education)
2. You will receive a Student Aid Report (SAR) which will be sent to both you and the school(s) you list on your FAFSA (up to six schools max)
3. The school will send you an Awards letter stating what grants, scholarships, and federal loans you are eligible for.
4. If you qualify for a Stafford loan you will need to find a lender to fund the loan. You can go to www.staffordloan.com and one will be assigned for you.
5. If you do not qualify for a Stafford loan than you may wish to explore private student loan options. You can visit www.acteducationloans.com for more details.