To be considered for need-based federal, state, and university loan funds, graduate students must complete and submit the FAFSA. Unsubsidized loans and alternative loans, which are not based on need, are available for students who don't qualify for need-based financial aid. UC Davis has chosen to participate in the William D. Ford Direct Loan Program. Under this program, the loan funds come directly from the U.S. government. We are unable to process Federal Family Educational Loan (FFEL) Program applications offered through banks or other lending institutions.
If you are offered a loan, you'll be notifed by an e-mail or postcard to visit the electronic Financial Aid Notice (eFAN) Web site to review your awards and instructed how to accept, decline, or reduce the amount.
Federal Direct (subsidized) Loans
UC Davis offers loans through the William D. Ford Federal Direct Loan Program. When the Financial Aid Office receives your FAFSA from the federal processor, we will usually award one or more of the following federal direct loans according to your eligibility:
Federal Direct (subsidized) Loan
Federal Direct (unsubsidized) Loan
Current Interest Rates as of July 1, 2008. Interest rates and information about the Direct Loan Program are also available online at the Direct Loan Servicer Web site at www.dlssonline.com.
Federal Direct (subsidized) Loans are based on financial need and have a variable interest rate that is adjusted annually, capped at 8.25%. Subsidized means that the interest is paid by the federal government while the student is in schoo1. Repayment begins six months after graduation or withdrawal from school.
You have the option to borrow less by changing the amount online through eFAN before accepting the loan. The minimum amount of Direct Loan offered is $200. For maximum loan amounts, see the Direct Loan Program Maximums chart.
Loan Fees and Repayment Requirements
As a borrower, you will be charged a loan fee when you borrow Federal Direct Stafford Loans. The fee is 2.5% (2% after July 1, 2008), which is deducted proportionately from each disbursement of your loan. After you graduate, leave school, or drop below half-time enrollment, you have a six-month (grace period) before you begin repayment. During the grace period on an unsubsidized loan, you don't have to pay any principal, but interest will be charged. You can either pay the interest or allow it to accumulate. Every educational loan you receive will require that you sign a Promissory Note, in which you will agree to the interest rate and repayment requirements required for the loan.
The Master Promissory Note
Federal Direct Loans and Graduate Plus loans require a Master Promissory Note, which allows a student to receive multiple Direct Loans under one Promissory Note while enrolled at UC Davis. Entering students or first-time borrowers will be asked to sign a Promissory Note online at dlenote.ed.gov. If necessary, students can request a paper Promissory Note from the Financial Aid Office.
Federal Direct (unsubsidized) Loans
Federal Direct Unsubsidized Loans are not based on financial need. Interest is charged beginning the day the loan is disbursed until the loan is repaid in full. Students may pay the interest while they are in school, during the grace period, or during deferment, or they may capitalize the interest (by adding it to the total principal of the loan).
Again, you have the option to borrow less by changing the amount online through eFAN before accepting the loan. For maximum loan amounts, see the Direct Loan Program Maximums chart.
To receive a Federal Direct subsidized or unsubsidized Loan you would need to accept the loan through our electronic Financial Aid Notice (eFAN), and sign the Master Promissory Note online at dlenote.ed.gov.
Graduate Plus Loans
Students who need to borrow funds beyond the federal subsidized, unsubsidized, and Perkins loan limits will now be able to choose between the new federal Grad Plus Loan and Private Loans. The Grad Plus Loan is provided by the William D. Ford Direct Loan Program because UC Davis is a Direct Loan institution for federal student loans. Students in Teaching Credential programs are not eligible for Graduate Plus loans.
The Direct Grad Plus being offered at UC Davis has a fixed interest rate of 7.9%, no annual or aggregate borrowing limits (other than cost of attendance less other financial aid received). While credit checks are required to be eligible for the Grad Plus, the credit criteria are less strict than those associated with private student loans. Furthermore, if you do not meet the credit requirements for a Grad Plus, you may still obtain the loan with an endorser who does meet the credit requirements. All Federal Graduate Plus Loans have a 2.5% origination fee deducted from the loan amount.
The Loan Comparison Chart is designed to help you to consider the significant variables when choosing between the Grad Plus Loan and Alternative Loans. An Alternative Loan may be less expensive depending on your credit score and whether the variable interest rate will increase before you complete repaying the loan.
Direct Plus Loan Request & Credit Authorization Form: Print, complete, and submit it to the Graduate Financial Aid Office. Students in the Schools of Law and Medicine can obtain the form from their respective Financial Aid Office web sites.
Alternative Loans for Graduate Students
Alternative loans, also known as private loans, are obtained through outside lending institutions. They can help a student pay for college expenses that may not be covered by Federal Title IV loans or other financial aid. Alternative loans can assist in filling the 'gap' between what a student receives from all funding sources and what the student's need is.
The Graduate Unit can assist in determining the student's eligibility for loan. The federal government does NOT guarantee the alternative loan so the student must be credit-worthy or secure a credit-worthy cosigner to be eligible.
For more information and an application, visit the Alternative Loans Web page.
Federal Perkins Loan
Federal Perkins Loans are currently at a 5% interest rate (subject to change). Perkins Loans may be limited to a percentage of student's need, their respective programs, or because of demand and limited funds. Repayment begins nine months after graduation or withdrawal from school and may be extended over ten years. Additional deferments are possible for temporary total disability or volunteer service in a private, non-profit organization, VISTA or the Peace Corps. Effective July 1, 2001, for a period not to exceed three years students serving on active duty during a war or other military operation or national emergency, or performing qualifying National Guard duty during a war or other military operation or national emergency. Some teachers of students from low-income families and full-time teachers of handicapped children may also qualify for partial loan cancellation.
If you are offered a Federal Perkins Loan, you'll be asked to complete and submit a Promissory Note, Truth-in-Lending form, Acceptance of Loan Obligation form, and Loan/Borrower Information form to the Financial Aid Office before the loan is disbursed.
Entrance and Exit Loan Counseling Required
Federal regulations require that all first-time borrowers receive entrance loan counseling before funds are disbursed. Entrance Loan Counseling is available online through the Financial Aid Office, or through the Direct Loan Servicer website.
Students who are approaching graduation, and before leaving school, are required to attend Exit Loan counseling to assess their loan indebtedness and to receive a repayment schedule. Student Accounting will provide Exit Loan counseling for your Federal Perkins and University Loans. For Exit Loan Counseling for your Direct Loans, visit the Direct Loan Servicer website.
Federal Student Loan Ombudsman
The Federal Student Aid Ombudsman of the Department of Education helps resolve disputes and solve other problems with federal student loans.
Short-Term, Emergency, and Assistant Loans
If you are experiencing a temporary shortage of funds, the Financial Aid Office administers the UC Davis Short-Term, Emergency, and Assistant Loan Program for all students. These loans are available only to regularly enrolled UC Davis students or new students who have enrolled in classes. The funds may be used for educational purposes only.
To apply, read and complete the application before the loan application review. Assistant and Short-Term Loan review for graduate students takes place Mondays, Wednesdays, Thursdays, and Fridays: 8:30-9:30 a.m.; Tuesdays 11:00 a.m.-12:00 noon.
Tuesday, June 17, 2008
Loans for Graduate Students
Sunday, June 8, 2008
How to get the cheapest loans
As interest rates have risen over the past year, cheap personal loan rates have been disappearing from the marketplace.
2007 there were an array of deals at below 6%, but these have dried up as lenders struggle to make money on their loans and the number of borrowers defaulting has risen.
But although choice has diminished, it's still possible to borrow money at below 6% and there are other avenues that consumers should consider if they want to borrow money. We look at the cheapest loan options.
Personal loan market
The final sub 6% loan, provided by Masterloan, has finally disappeared. The company now shares the top of the best buy table with Alliance & Leicester-owned Moneyback Bank. Both companies offer rates of 6.1% on loans over £5,000. Northern Rock is a close second at 6.2%.
However, these three rates are dependent on the applicant's credit ratings and only those with squeaky clean records are likely to get the advertised rate. Therefore, it is worth going through a service that scans your credit rating (but doesn't leave a footprint) before you apply.
If you want to borrow less than £5,000, your options are even more limited but there are still some good rates available. Barclaycard, which owns the Masterloan brand, offers 6.3% above £4,000, while Virgin offers 7.3% for loans above £3,000.
Sunday, May 4, 2008
House Panel Approves Bill to Assist Borrowers
The House of Representatives Financial Services Committee on Thursday approved a sweeping bill led by the Democrats to finance $300 billion in distressed mortgages with the aim of helping homeowners facing the threat of foreclosure.
The Financial Services Committee approved the bill 46 to 21, with 10 Republicans joining the Democrats in favor of it. The committee chaired by Rep. Barney Frank, the main author of the bill stressed the need for urgency.
"There are people who made loans that should not have been made; there are some people that were wrong to take loans out, some wrong to make the loans. If nothing happens all those loans go under foreclosure, the economy suffers," he highlighted.
The Massachusetts Democrat also said he hoped President Bush would sign the bill if it reached the White House as part of a wider package and it contained the legislation that Mr. Bush had demanded.
The new loans would be limited to no more than 90 percent of a property's value based on an updated appraisal. The government would retain a stake in any future sale of the property, worth 3 percent of the initial loan balance or 50 percent of net profit from a sale, whichever is greater.
Borrowers would have to demonstrate the ability to repay the new loan and if they default, they will forfeit the property. Democrats say the plan could help as many as 2 million homeowners.
House Panel Approves Bill to Assist Borrowers
By: MortgageLoan.com
Impossible - Loans Even With Bad Credit?
Impossible - Loans Even With Bad Credit?
by Landon McGehee
There are ways to consolidate your debt, even if your credit is bad. You may not even know you have bad credit until you check it, right before you really need good credit. Most of the time, bad credit accumulates when you fail to pay credit card bills and the interest that goes with it. When you accumulate too much credit card debt without being able to repay it, you will no longer be able to use the credit cards, and your credit score will drastically drop. You can fix your credit by getting help from a debt consolidation company.
The debt consolidation company will look at your finances, then talk to your creditors to work out the best way to help. They will consolidate all your bills into one, while at the same time, reducing the interest rate.
Consolidation will relieve a lot of stress, and it will also show that you are paying off your credit, which will take away your negative credit. Next time you want to get a loan, it will be much easier.
You can also repair your credit by taking out a debt consolidation loan to immediately pay off all of your debts to credit card companies. You will then owe just the consolidation company, but it will show that all of your credit cards are paid off. You have to qualify to take out this type of loan, though, just like any other loan.
Be very careful that you negotiate all of the details of the loan. You have to make sure it will really help you.
If you have bad credit, need a loan, and don’t have time to consolidate before getting the loan, it is possible to get a private loan from a bad credit loan lender. You can use this loan to consolidate your debt, or for anything else that you really need. Beware, though, the bad credit loans have quite a high interest rate, and a high down payment requirement.
You can even get some loans, such as payday loans or cash advance loans, without a credit check. You can only borrow a small amount though, and it has to be paid back quickly.
You should only get a bad credit loan if multiple financial institutions have turned you down. If you need to get a bad credit loan, you should not have the payment period exceed 12 - 18 months, because of the high interest rate.
If you have bad credit, you should try to fix it any way you can so you can acquire lower interest loans. The high interest loans are more difficult to pay back, and if your credit isn’t great in the first place, this can be even more difficult. You’ll be amazed how much lower interest rates will reduce your payments. Contact a debt consolidation company to see how they can help you.
About the Author
Landon McGehee continues to learn more and enjoys shares that knowledge providing resources, advice and tips on topics like bad credit secured consolidation loans.
