Student Loan Corporations
By Nigel Kerry
A student loan corporation is a complete financial aid services company that manages loan applications of students and client accounts. There are also a number of student loan corporations that act as civic services and are a part of the state funded loan programs. An example of a student loan corporation would be the Kentucky Higher Education Student Loan Corporation which is a non profit student loan processing service works for the Kentucky State government.
Like other educational loan services, these student loan corporations give students advice on saving for a college education, choosing and applying for the right kind of student loan. They also give detailed and comprehensive information on repaying the loan and at times give options on how to apply for debt consolidation loans.
The Student Loan Corporation is a subsidiary of Citibank and is one of the leading educational lending institutions in the country. They manage the loan accounts of millions of students and thousands of educational institutions. At present, Citibank, in conjunction with the Student Loan Corporation, has joined forces with Yahoo to offer students an online Student Resource Center.
Any student loan corporation handles the business end of college funding. It is an enormous undertaking for each bank, college and university to manage their student loans. The technological demands of such an undertaking have increased the need to outsource data management and critical account services. The business of student loans is a specialized branch of the banking industry. Therefore, most private banks have also become involved in the student loan business.
About the writer: Nigel Kerry is an American free lance writer born in Los Angeles, California. Kerry writes Sportsbook reviews, sport book articles and articles with respect to Sports Betting.
Article Source: http://EzineArticles.com/?expert=Nigel_Kerry
Saturday, November 3, 2007
Thursday, November 1, 2007
Private Student Loan vs Federal Student Loan
Private Student Loan vs Federal Student Loan
By Oliver Turner
Federal Student Loan is the most common college student loan. There are mainly two kinds of federal student loans i.e. subsidized and unsubsidized.
Subsidized college student loan: Government pays the interest whilst the student is attending the college.
Unsubsidized college student loan: there is no interest free period and you will have to pay the interest with principal amount, after completion of education.
Not all students qualify for a federal student loan. In case when students are unable to grab a federal
student loan, there is another kind of student loan known as private student loan. Many lenders offer private student loans and the rate of interest vary greatly.
Private student loan also known as personal student loan or alternative student loan will help you paying the college fees, hostel rent, stationary and other expenses, at much competitive interest rates than credit cards. Nevertheless, private student loan should be only used when there is no option left. You should be very cautious while borrowing money from the lender, as you will have to pay it back with interest.
Qualifying for private student loan depends upon the credit criteria established by the lender. Credit criteria mainly differs with private student loan, whether the borrower is a parent or a student.
Here are some factors, which decide eligibility for a private student loan.
1) Your credit report
2) Your parents credit report
3) Delinquency problems
4) Excessive debt loads
5) A cosigner will be an advantage in getting a private student loan because when primary borrower fails to repay, that responsibility falls to the cosigner.
Before applying for a private student loan you should study the offers at your local financial institutions. Then compare this search with the offers made by the online student loan companies. Only then you will be able to know the best one tailored for you.
Find more about Student Loans on http://www.LeanderNet.com/Student_loans/Student_loans.php . More useful content on LeanderNet - http://www.LeanderNet.com
Article Source: http://EzineArticles.com/?expert=Oliver_Turner
By Oliver Turner
Federal Student Loan is the most common college student loan. There are mainly two kinds of federal student loans i.e. subsidized and unsubsidized.
Subsidized college student loan: Government pays the interest whilst the student is attending the college.
Unsubsidized college student loan: there is no interest free period and you will have to pay the interest with principal amount, after completion of education.
Not all students qualify for a federal student loan. In case when students are unable to grab a federal
student loan, there is another kind of student loan known as private student loan. Many lenders offer private student loans and the rate of interest vary greatly.
Private student loan also known as personal student loan or alternative student loan will help you paying the college fees, hostel rent, stationary and other expenses, at much competitive interest rates than credit cards. Nevertheless, private student loan should be only used when there is no option left. You should be very cautious while borrowing money from the lender, as you will have to pay it back with interest.
Qualifying for private student loan depends upon the credit criteria established by the lender. Credit criteria mainly differs with private student loan, whether the borrower is a parent or a student.
Here are some factors, which decide eligibility for a private student loan.
1) Your credit report
2) Your parents credit report
3) Delinquency problems
4) Excessive debt loads
5) A cosigner will be an advantage in getting a private student loan because when primary borrower fails to repay, that responsibility falls to the cosigner.
Before applying for a private student loan you should study the offers at your local financial institutions. Then compare this search with the offers made by the online student loan companies. Only then you will be able to know the best one tailored for you.
Find more about Student Loans on http://www.LeanderNet.com/Student_loans/Student_loans.php . More useful content on LeanderNet - http://www.LeanderNet.com
Article Source: http://EzineArticles.com/?expert=Oliver_Turner
Saturday, October 13, 2007
The Study Loan
Banks are increasingly reluctant to extend study loans thanks to the size of the standard in this segment. A look at the new roadblocks to the formation of the highway.
Default Study
College fees -- two words that can strike terror into the heart of every parent. And if their offspring decides that a professional, or opts for a Master's Degree, woe parental love. The minimum fee to a specialized high school is Rs 35,000 (the better calculate more), while an MBA cost about Rs 2 pounds (Rs 200,000); At a foreign university the same comes with a day of the Rs 15 pounds (Rs 1 , 5 million) or so.
Yes, this is a bad message, but this one is worse. Banks are no longer offering study loans with the open hand generosity of a few years ago, especially for students who plan to study abroad. The reason for this is that the default rate is rising in banks' education loan portfolios. According to a public sector bank official, the problem of default is worse in the case of overseas education, as the students change their address, without the bank.
Even students from prestigious engineering and management institutions default on their payments. And banks find it difficult, due to the development of jobs and the city to jump-jump. Kiran Rao, for example, a study loan of Rs 12 pounds (Rs 1.2 million) from a public sector bank in 2004 to complete her engineering from a college in Bangalore. Then landed a job with an MNC in the USA, where they may raking in dollars. But the bank has not heard from her in more than two years, and Rao has not bothered to pay back their education loans.
But because of their social responsibility and political pressure, banks can not simply stop the study loans. Instead, they have decided to move the loans, so that their NPAs in this segment are not too unmanageable.
What's new
The Indian Banks' Association (IBA) has set up a working group to find out how the study loans can be a profitable business. On the basis of their recommendations, the banks have their standards.
Most banks have now mandatory for the students to parents or a legal guardian to cooperate borrowers and therefore liable for the repayment. Rajan Ghogalkar, corporate head, Retail Banking, IDBI Bank, says: "Our study focuses on loans to the borrower parents. It is sanctioned only after the parents of stay. They are also the co-operation to facilitate the recovery borrowers. "This makes it even easier for banks to the students whereabouts.
The group has also suggested that banks disburse loans from branches close to the permanent residence of the student-borrower. This would help banks to credit in a cost-effective manner.
The risk
The IBA has also debate a Rs 250 Taka (Rs 2.5 billion) Credit Guarantee Fund on the basis of "Credit Guarantee Trust Scheme for small industries. This would cushion loan defaults, and will also serve as a group insurance.
It was suggested that half of the corpus be funded by the central government, while the rest could be shared by the banks and the borrowers. The student-borrower is a premium of say Rs 15/10 per Rs 1 pound (Rs 100000) borrowed, and the bank can claim the insurance, if the student defaults. The proposal is under consideration of the Reserve Bank of India and the Union Ministry of Finance.
Some banks already had insurance to cover such a loan. UTI Bank, for example, asks borrowers, a LIC, the 10% of the loan, while Andhra Bank offers insurance to protect the students and their parents.
Most foreign universities on the compulsory health insurance and have a waiver clause if the student has a comparable insurance in the parent company. On the whole, it's a good idea, insurance, as foreign policy generally relate only to medical care. They are also far more expensive -- the difference in costs can work on 35000 Case It takes about a day to the right insurance; The insurance request to the student visa and admission letter before it sells the appropriate coverage .
Loan Offer
As we said, the banks are still the study loans, despite the higher default. All products of the credit in this portfolio, the RBI approved model education loan program. The quantum and duration of the loan can be from bank to bank, and also depends on the educational institution. The loans typically cover the tuition fees, examination, library and hostel fees, travel expenses, books, equipment and uniforms, and sometimes even the cost of a two-wheeler.
Before joining the loan, banks study the viability of the borrower on the basis of personal interviews with the students, family's assets and annual income, the nature of the course and reputation of the institute.
The best deal
The problem with the study loans is that few banks offer a concessional. In general, banks 10.75% on loans below Rs 4 pounds (Rs 400,000), and 11.75% on loans over Rs 4 pounds. (For loans up to Rs 4 succeed, the banks lend to their prime loans, and 1% above FDP for loans of more than Rs 4 pounds).
Some banks offer lower prices for women students, or by certain institutions. Andhra Bank, for example, loans to 10% of students choose institutions, while women enjoy a discount of 0.5%.
Students who sign of good financial discipline, get a further discount of 0.5%. Bank of Baroda also offers a 1% discount for women students under its three systems -- Vidya Baroda, Baroda Scholar and Baroda Gyan.
The best approach banks for these loans are public banks, as most private and foreign banks virtually ignore this segment. HDFC Bank does not offer study loans, while for ICICI Bank is not a priority when it comes to a study loans. HSBC is the only foreign bank that lays emphasis on its study loans; In addition, the Bank of scholarships for students wish to study in Britain.
So why private banks eschew this segment? A senior official at a private bank said that it is a highly regulated segment with guidelines forbid that the rejection of applications that opposed the lending habits of private and foreign banks. The other problem is that the institutes and universities are very often outside the geographical area private banks. Public sector banks are better able to serve these places.
Tax advantages
While banks are not too sure about the viability of these loans, borrowers are not complaining. After all, the repayment of the loan is a study deductible under section 80E of the Income Tax Act. The annual ceiling for the deduction is Rs 40,000 (principal and interest), but applies only to loans for higher education -- graduate or post-graduate studies, professional, and pure and applied science. The deduction is for a maximum period of 8 years from the date of redemption.
Ready Calculators
Do you want a loan for this course abroad or an MBA? Choose these basics before you go to a bank for funds.
Interest rate banks charge on loans 10.75% at Rs 11.75 pounds and 4% on loans over Rs 4 pounds. Some banks offer 0.5% discount for women.
Borders. The maximum loan amount is limited to Rs 7.5 pounds (Rs 750,000) for studies in India and Rs 15 pounds for studying abroad. The minimum loan amount is Rs 50,000.
Fees. There is no additional cost or processing fee and banks do not ask for any margin for loans up to Rs 4 pounds. For loans of more than 4 Rs succeed, borrowers should pay 5% of margin money for domestic loans and 15% margin money for foreign loans.
Processing time Depending on the bank, loan amount, and the paperwork will take a little bit from two days to one week for the loan application processed.
Repay. The repayment will begin one year after the course or period of six months after the student secures a job, whichever is earlier. The deadline for the repayment of the loan is usually five to seven years and could be linked to the increase in the borrower's salary.
Collateral. Loans up to 4 Rs sum require no collateral. For loans of Rs 7.5 succeed, the banks want collateral in the form of property, government securities, public sector bonds, units of UTI, NSC, KVP, LIC, gold, stocks / bonds, bank deposits in the name of the student / parent / legal guardian or any other third party with suitable margin.
Documentation. The bank will demand your ticket, schedule for the cost, copies of letters confirming scholarship, etc., copies of foreign exchange permit, if applicable, statement of bank account for the last six months of the borrower and income-tax assessment order not more than two years old, together with a brief statement of assets and liabilities of the borrower.
Technorati Profile
Default Study
College fees -- two words that can strike terror into the heart of every parent. And if their offspring decides that a professional, or opts for a Master's Degree, woe parental love. The minimum fee to a specialized high school is Rs 35,000 (the better calculate more), while an MBA cost about Rs 2 pounds (Rs 200,000); At a foreign university the same comes with a day of the Rs 15 pounds (Rs 1 , 5 million) or so.
Yes, this is a bad message, but this one is worse. Banks are no longer offering study loans with the open hand generosity of a few years ago, especially for students who plan to study abroad. The reason for this is that the default rate is rising in banks' education loan portfolios. According to a public sector bank official, the problem of default is worse in the case of overseas education, as the students change their address, without the bank.
Even students from prestigious engineering and management institutions default on their payments. And banks find it difficult, due to the development of jobs and the city to jump-jump. Kiran Rao, for example, a study loan of Rs 12 pounds (Rs 1.2 million) from a public sector bank in 2004 to complete her engineering from a college in Bangalore. Then landed a job with an MNC in the USA, where they may raking in dollars. But the bank has not heard from her in more than two years, and Rao has not bothered to pay back their education loans.
But because of their social responsibility and political pressure, banks can not simply stop the study loans. Instead, they have decided to move the loans, so that their NPAs in this segment are not too unmanageable.
What's new
The Indian Banks' Association (IBA) has set up a working group to find out how the study loans can be a profitable business. On the basis of their recommendations, the banks have their standards.
Most banks have now mandatory for the students to parents or a legal guardian to cooperate borrowers and therefore liable for the repayment. Rajan Ghogalkar, corporate head, Retail Banking, IDBI Bank, says: "Our study focuses on loans to the borrower parents. It is sanctioned only after the parents of stay. They are also the co-operation to facilitate the recovery borrowers. "This makes it even easier for banks to the students whereabouts.
The group has also suggested that banks disburse loans from branches close to the permanent residence of the student-borrower. This would help banks to credit in a cost-effective manner.
The risk
The IBA has also debate a Rs 250 Taka (Rs 2.5 billion) Credit Guarantee Fund on the basis of "Credit Guarantee Trust Scheme for small industries. This would cushion loan defaults, and will also serve as a group insurance.
It was suggested that half of the corpus be funded by the central government, while the rest could be shared by the banks and the borrowers. The student-borrower is a premium of say Rs 15/10 per Rs 1 pound (Rs 100000) borrowed, and the bank can claim the insurance, if the student defaults. The proposal is under consideration of the Reserve Bank of India and the Union Ministry of Finance.
Some banks already had insurance to cover such a loan. UTI Bank, for example, asks borrowers, a LIC, the 10% of the loan, while Andhra Bank offers insurance to protect the students and their parents.
Most foreign universities on the compulsory health insurance and have a waiver clause if the student has a comparable insurance in the parent company. On the whole, it's a good idea, insurance, as foreign policy generally relate only to medical care. They are also far more expensive -- the difference in costs can work on 35000 Case It takes about a day to the right insurance; The insurance request to the student visa and admission letter before it sells the appropriate coverage .
Loan Offer
As we said, the banks are still the study loans, despite the higher default. All products of the credit in this portfolio, the RBI approved model education loan program. The quantum and duration of the loan can be from bank to bank, and also depends on the educational institution. The loans typically cover the tuition fees, examination, library and hostel fees, travel expenses, books, equipment and uniforms, and sometimes even the cost of a two-wheeler.
Before joining the loan, banks study the viability of the borrower on the basis of personal interviews with the students, family's assets and annual income, the nature of the course and reputation of the institute.
The best deal
The problem with the study loans is that few banks offer a concessional. In general, banks 10.75% on loans below Rs 4 pounds (Rs 400,000), and 11.75% on loans over Rs 4 pounds. (For loans up to Rs 4 succeed, the banks lend to their prime loans, and 1% above FDP for loans of more than Rs 4 pounds).
Some banks offer lower prices for women students, or by certain institutions. Andhra Bank, for example, loans to 10% of students choose institutions, while women enjoy a discount of 0.5%.
Students who sign of good financial discipline, get a further discount of 0.5%. Bank of Baroda also offers a 1% discount for women students under its three systems -- Vidya Baroda, Baroda Scholar and Baroda Gyan.
The best approach banks for these loans are public banks, as most private and foreign banks virtually ignore this segment. HDFC Bank does not offer study loans, while for ICICI Bank is not a priority when it comes to a study loans. HSBC is the only foreign bank that lays emphasis on its study loans; In addition, the Bank of scholarships for students wish to study in Britain.
So why private banks eschew this segment? A senior official at a private bank said that it is a highly regulated segment with guidelines forbid that the rejection of applications that opposed the lending habits of private and foreign banks. The other problem is that the institutes and universities are very often outside the geographical area private banks. Public sector banks are better able to serve these places.
Tax advantages
While banks are not too sure about the viability of these loans, borrowers are not complaining. After all, the repayment of the loan is a study deductible under section 80E of the Income Tax Act. The annual ceiling for the deduction is Rs 40,000 (principal and interest), but applies only to loans for higher education -- graduate or post-graduate studies, professional, and pure and applied science. The deduction is for a maximum period of 8 years from the date of redemption.
Ready Calculators
Do you want a loan for this course abroad or an MBA? Choose these basics before you go to a bank for funds.
Interest rate banks charge on loans 10.75% at Rs 11.75 pounds and 4% on loans over Rs 4 pounds. Some banks offer 0.5% discount for women.
Borders. The maximum loan amount is limited to Rs 7.5 pounds (Rs 750,000) for studies in India and Rs 15 pounds for studying abroad. The minimum loan amount is Rs 50,000.
Fees. There is no additional cost or processing fee and banks do not ask for any margin for loans up to Rs 4 pounds. For loans of more than 4 Rs succeed, borrowers should pay 5% of margin money for domestic loans and 15% margin money for foreign loans.
Processing time Depending on the bank, loan amount, and the paperwork will take a little bit from two days to one week for the loan application processed.
Repay. The repayment will begin one year after the course or period of six months after the student secures a job, whichever is earlier. The deadline for the repayment of the loan is usually five to seven years and could be linked to the increase in the borrower's salary.
Collateral. Loans up to 4 Rs sum require no collateral. For loans of Rs 7.5 succeed, the banks want collateral in the form of property, government securities, public sector bonds, units of UTI, NSC, KVP, LIC, gold, stocks / bonds, bank deposits in the name of the student / parent / legal guardian or any other third party with suitable margin.
Documentation. The bank will demand your ticket, schedule for the cost, copies of letters confirming scholarship, etc., copies of foreign exchange permit, if applicable, statement of bank account for the last six months of the borrower and income-tax assessment order not more than two years old, together with a brief statement of assets and liabilities of the borrower.
Technorati Profile
Tuesday, September 18, 2007
Federal consolidation of the student loan
Federal consolidation of the student loan
The federal consolidation of the student loan is a program of refinanciación of the fixed tariff that combines all your existing federal loans of student in a new loan. The consolidation is a great tool in the long term to handle to your finances - supplying of the immediate relevación of the payment and advantages.
To reduce your monthly payment of the student loan until 53%
To simplify your finances - to make a payment per month
To improve your credit
Except the money today, when you need more
Aprender how the works of the consolidation in this particular class step by step!
So that they consolidated with us?
To obtain one-in-one service of customized client. Our advisors of the loan will educate to you in the advantages of the federal consolidation of the student loan and they will help you to determine if the consolidation is the right option. We will explain the process of the consolidation and the options of the reimbursement that are available for you.
Questions frequently done on the consolidation of the student loan.
Advantages of the federal consolidation of the student loan
One of the dominant advantages to consolidate your federal loans of the school is relevación of the payment. Aprender because this is the best one! Combining all your loans of student in a consolidated loan, you can extend to your term of reimbursement of the standard 10 years to up to 30 years, depending on the amount of your debts of the education. With one more a lower quota, you will have more money available to solve other alive costs, including payments of the car, costs of the cover, and race-related necessities. Because there are no pains for the excessive payment, you can make payments greater and reduce your term of reimbursement when it gets to be comprable.
The additional advantages include:
To reduce your type of interest 0,6% consolidating during your period of grace
No checks of the credit, honoraria, or loads of the use
Solicitar a free package and a use of the information!
Which are the options for the federal consolidation of the student loan?
The federal consolidation of the loan can include the federal consolidation of the loan of Stafford, PLUS the consolidation of the loan, the consolidation of the direct loan as well as the loans of Perkins, CURE the loans and all the federal loans of direct FFELP and taken the payment for your education. The deprived consolidation of the student loan is different - you will lose your federal advantages of the loan if you consolidated your federal loans in a deprived consolidation of the loan.
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