Category: Paying for College

SunTrust Student Loan Review

By: SimpleTuition | Published: March 7, 2018

Written by: Sarah Li Cain

SunTrust is one of the country’s largest student loan lenders, partnering with other loan servicing firms, such as inTuition and Cognition Financial, to provide billions of dollars in education loans. SunTrust is a private lender — while the vast majority of student loans come from the federal government, private student loans make up a significant and growing portion of the country’s nearly $1.5 trillion of outstanding education debt.

Before taking out private loans, it’s always a good idea to see if you can max out federal student loan options first. That’s because federal loans don’t have credit minimums for student borrowers, and they offer benefits that private loans don’t, such as income-driven repayment plans and loan forgiveness programs. Private loans may also have higher rates compared with federal loan options.

If you do decide you need private student loans, take some time to compare loan options among lenders. Look at rates, of course, but also see if the lender offers other benefits, like the ability to release a co-signer and a variety of repayment terms. You’ll also want to check if there are flexible payment options to ensure you’ll be in a sound financial position when you start paying back your loans.

The following review focuses on SunTrust, a private student loan lender.

What is SunTrust?
SunTrust student loans in a nutshell
How SunTrust compares with other lenders
What it takes to qualify with SunTrust
Does SunTrust offer student loan refinancing?
Who is SunTrust best for?
The online platform
The fine print
What to expect during the application process

What is SunTrust?

SunTrust is an Atlanta-based bank that offers financial products for consumers and businesses. It was founded in 1891 and has an extensive network of branches and ATM across the mid-Atlantic and Southeast.

SunTrust student loans in a nutshell

SunTrust offers a few options for undergraduate and graduate students with a variety of loan terms. Compared with other private student loan providers, SunTrust offers some of the best rates. On top of that, SunTrust offers a few opportunities to reduce your costs, including a 1% principal reduction reward for those who graduate from a qualifying school. This is a standout feature most lenders don’t offer.

	SunTrust Custom Choice Loan®	SunTrust Graduate Business Loan	Union Federal® Private Student Loan Funded by SunTrust
Who can apply	Undergraduate and graduate students	Graduate level business students	Undergraduate and graduate students
Fixed APR range	5.35% – 14.05%	5.35% – 9.88%	5.35% – 14.05%
Variable APR range	3.88% – 12.88%	3.88% – 8.88%	3.88% – 12.88%
Loan terms offered	7, 10 or 15 years	7 or 10 years	7, 10 or 15 years
Fees	none	none	none
Loan amount	$1,001 – $65,000 annually   Aggregate limit up to $150,000	$1,001 –  $95,000 annually   Aggregate limit up to $175,000	$1,001 –  $65,000 annually   Aggregate limit up to $150,000
Repayment plans	Can choose full deferment, partial interest, interest only or immediate repayment while in school	Can choose full deferment, partial interest, interest only or immediate repayment while in school	Can choose full deferment, partial interest, interest only or immediate repayment while in school
Cosigner release	Can apply with cosigner and request a release after 36 or 48 on-time payments, depending on the agreed terms	Can apply with cosigner and request a release after 36 or 48 on-time payments, depending on the agreed terms	Can apply with cosigner and request a release after 36 on-time payments
Savings opportunities	Rate reduction of 0.25% for automatic debit payments, and an extra 0.25% for ones made from SunTrust accounts (1% reduction of principal upon graduation)	Rate reduction of 0.25% for automatic debit payments, and an extra 0.25% for ones made from SunTrust accounts (1% reduction of principal upon graduation)	Rate reduction of 0.25% for automatic debit payments, and an extra 0.25% for ones made from SunTrust accounts Automatic 0.25% rate reduction for on-time payments (1% reduction of principal upon graduation)

As of 07/02/2018

How SunTrust compares with other lenders

SunTrust is considered one of the top private student lenders in terms of rates, fees and terms. There are no application and origination fees as well as no prepayment penalties, helping you save money on your loans. Their repayment terms and eligibility requirements are comparable to other lenders’. However, one potential disadvantage is that SunTrust requires a longer period of time before it allows you to release a co-signer.

Compared with other major lenders, SunTrust has some of the lowest available APRs. It offers financial perks, such as rate reductions much like its competitors, but it stands out in that SunTrust offers a reduction on your principal debt once you graduate. Their minimum loan amounts are comparable or lower than their competitors’, though in some states, the minimum is higher.

Advantages of SunTrust student loans

Rate discounts: SunTrust, like some of its competitors, offers rate reductions for automatic payments. If you sign up for autopay with a non-SunTrust account, you get a 0.25% interest rate discount, and an additional 0.25% if you link up a SunTrust Account. If you have a Union Federal® Private Student Loan, you get an automatic 0.25% reduction on your interest rate if you make your first 36 consecutive payments on time.

Graduation reward: You may be eligible for a 1% reduction on the loan principal when you graduate with a bachelor’s degree or higher. This reduces the amount you owe and is based on the net disbursed loan amount — how much you received when you first took out your loan. You’ll need to request the reward once you can provide proof of graduation. Documents include your final transcript or a copy of your diploma. Add this reward with the autopay discount, and you could save significantly.

Range of loan terms: Choose from seven, 10 or 15 years, which is on par with or better than comparable lenders.

Low rates: Both SunTrust’s fixed and variable rates are some of the lowest out there, more so with the autopay discount.

Choice of repayment plans: SunTrust offers a wide range of plans, from fully deferring your payments to paying $25 partial payments while in school, as well as making full or interest-only payments.

Disadvantages of SunTrust student loans

Co-signer release requirements: Borrowers need to make 36 or 48 consecutive full payments before being able to release a co-signer. This is a longer period compared with other top lenders that only require 12 to 24 payments.

Fewer loan options: While there are options for graduate and undergraduates, other competitors offers more options for graduate loans, such as ones specifically for medical and law degrees.

Fewer borrower protections compared with federal loans: SunTrust doesn’t offer as much borrower protections as federal loans. Yes, borrowers who experience hardships may be eligible to defer loans or receive forbearance, but you don’t get things like income-driven repayment or loan forgiveness programs.

Not available nationwide: You can’t take out a SunTrust student loan if you reside in Iowa or Wisconsin. Also, the minimum loan amounts differ in Alaska, Colorado, New Mexico, Oklahoma, Rhode Island and South Carolina.

What it takes to qualify with SunTrust

	Custom Choice Loan®	SunTrust Graduate Business Loan	Union Federal® Private Student Loan Funded by SunTrust
Citizenship requirement	U.S. citizen or permanent resident*	U.S. citizen or permanent resident*	U.S. citizen, permanent resident* or international student**
Enrollment requirement	At least half-time enrollment at a Title IV eligible institution in a degree-granting program. Most four-year public and private colleges and universities qualify, but you can check before you apply.	At least half-time enrollment in a degree-seeking program as a graduate-level business student at a Title IV eligible school. You can see if your school qualifies when you start the application.	At least half-time enrollment in a degree-seeking program at a Title IV eligible school. You can check if your school qualifies when you start the application.
Income requirement	Students must have proof of positive income if they apply without a cosigner. For cosigned applicants, the cosigner must have proof of positive income, but the student does not.	Students do not have to have proof of positive income if applying without a cosigner. In cosigned applications, the cosigner must have proof of positive income, but there is no income requirement for the student.	Student-only applicants must have proof of positive income. For cosigned applications, the cosigner must have proof of positive income, but the student does not.
Credit requirement	Generally, you need good credit to qualify for the best loan terms. Students without a substantial credit history may need a cosigner.	Generally, you need good credit to qualify for the best loan terms. Students without a substantial credit history may need a cosigner.	Good credit and no history of student loan defaults or bankruptcies

As of 03/06/2018

*Not available to permanent residents of Iowa or Wisconsin.

**International students must apply with an eligible co-signer who is a U.S. citizen or permanent resident

Does SunTrust offer student loan refinancing?

SunTrust offers in-school refinancing, which combines an existing loan with additional money for the next semester into a new one. Students can only refinance private student loans and any private consolidation loans used specifically for qualified post secondary education expenses. These expenses can include books, housing and transportation. You can’t refinance loans that are in a past due status, ones where you’re not the primary borrower, loans made by an educational institution or any federal loans.

The refinance process is simple: If you qualify and are approved, you’ll need to provide requested information, such as your existing loan provider, current account information, a payoff statement dated within the last 30 days, current interest rate and the amount you want to borrow. Once the application process is complete, the outstanding balance on the existing loan will be paid off. That amount will be included in your new SunTrust student loan.

The main advantage of refinancing with SunTrust is that you’d get all of the mentioned benefits above when taking out a private student loan with them. If SunTrust offers a lower rate than that your current private student loan provider, it may make sense to do a refinance. As well, if you wanted to release your co-signer, refinancing can give you the opportunity to do so, especially if your current lender doesn’t have that option.

However, there is the possibility that you can’t refinance the entire loan amount. In that case, you’ll need to pay the outstanding balance with your previous lender, as SunTrust will only send the payoff amount you’re approved for. You could find yourself with multiple loans, instead of one like you originally thought.

The amount you’ll be approved for with a SunTrust refinance depends on which loan product you choose. However, to qualify for a loan, you’ll need to be a student enrolled at least half-time at an approved school, or as a graduate level business student at an eligible school for the Graduate Business loan. You’ll also need to be meet the adult age in your state of residence, or 17 if you’re applying with a co-signer who is. However, if you reside in Iowa or Wisconsin, you can’t apply for any of SunTrust’s student loans.

You also need to be U.S. citizen or permanent resident to qualify. International students can apply for the Union Federal loan with a co-signer who is a citizen or resident. If you’re applying with a co-signer, he or she will need to have positive income.

Who is SunTrust best for?

SunTrust is best for borrowers who are looking for ways to save on a loan. It’s also good for those who have gotten all the federal aid they can but still need additional funds to cover their education costs. SunTrust offers some of the lowest rates among private student loan lenders. It’s also somewhat comparable to federal loan rates, provided you or your co-signer have great credit. For existing customers, going with SunTrust for student loans makes sense as they’ll be able to maximize the discounts offered.

Even though SunTrust has some of the best student loan offerings out there, there are other great options as well. You may be able to get a more competitive rate and better flexibility with another company, depending on your credit score and financial situation. No matter what, it’s always a good idea to research other places to see what you’re eligible for. By doing so, you’ll be able to choose the best offer for you.

Some lenders may be able to prequalify you with a soft credit pull, meaning it won’t impact your credit score. If not, try to complete multiple applications within a short period of time (anywhere from 14 to 45 days) as some credit scoring formulas will count them as a single inquiry. In doing so, it won’t have much impact on your credit score.

Taking a closer look at the online platform

SunTrust’s website is easy to navigate and provides easy access to information borrowers need to know, such as rates, fees and the application process. With each loan option, SunTrust has a dedicated webpage with a menu on the right-hand side that makes it easy to find what you need, including a frequently asked questions page.

If you’re unsure of which loan to apply for, SunTrust provides a chart outlining the key differences between their products. SunTrust even provides an application checklist so you can prepare all necessary documents to ensure a smooth application process. You can only apply for a loan online, and the application form provides straightforward instructions.

The fine print

SunTrust’s fine print is fairly straightforward and answers most questions you may have about applying for student loans. You can easily compare their student loan products and how much you may qualify for. However, there isn’t specific information about the types of credit scores needed to qualify.

Aside from that, here are a few details you’ll want to keep in mind:

• If you apply for a loan the month before, during or after your graduation date, you can only choose the immediate repayment option
• You may not be able to release a co-signer if your loan is in a forbearance status
• If you choose to defer your loans, the total initial deferment period can’t be more than 66 months from the date of the first disbursement, including the grace period.
• If you choose the immediate repayment option, the first payment is due within 30-60 days after the last disbursement date.
• If you choose the partial payment option, the $25 per month option is only available to those who borrow at least $5,000.

What to expect during the application process

When applying for a student loan through SunTrust, go to their website and choose the loan you want. Unfortunately, SunTrust will do a hard credit pull, as it doesn’t have an option to pre-qualify with a soft pull.

Once you head over to the online application form, the first page of each application will ask you to provide your school’s name and location, whether you’re applying for a graduate or undergraduate loan (with the exception of the Graduate Business loan), the type of program, state of residence, graduation date, cost of attendance and how much you want to borrow.

You’ll then be led to the next page where you’ll provide personal information about you and your co-signer, if applicable. This information includes date of birth, Social Security number, citizenship status, address and residency status. You’ll also need to provide a reference and one for your co-signer if you have one. Once you create an account, you can then submit your application, which could take as little as 10 minutes. SunTrust will review your information and either reject or approve it in as little as 30 seconds.

If your loan has passed the initial credit check, you’ll be presented with loan options, such as the interest rate type, deferring loan payments, repayment plans and terms. If you’re refinancing private student loans, you’ll get a chance to indicate that. SunTrust will also ask you to submit required documents like proof of identification, payoff documentation (for refinancing) and proof of income.

Afterward, you’ll be sent a loan packet that outlines terms of the loan based on a preliminary amount. You can look over the approval disclosure, credit agreement and the application self-certification form. You’ll also need to provide school certification, proving that you’re enrolled at least half time. Once SunTrust receives that all required documentation, you’ll receive a final disclosure and you have three days to cancel or rescind the loan. If you accept the loan, SunTrust will disburse the funds to the school or your previous lender if refinancing.

Category: Paying for College

Sallie Mae Student Loans Review

By: SimpleTuition | Published: February 21, 2018

Written By: Louis DeNicola

There’s a good chance you’ve heard of Sallie Mae if you’re thinking about taking out student loans. Today, Sallie Mae offers private student loans to students, parents and sponsors (such as a family member or friend) of students. Private student loans could be a good option if you’re planning on borrowing money for your education, or another student’s education.

Then, federal student loans could be a good first choice if you’re borrowing money as they may offer more forgiveness programs and repayment plans than private student loans. Federal loans may also offer a lower interest rate than private student loans, as they have a fixed rate no matter your credit or income.

Once you’ve tapped out your savings, scholarships, grants and federal financial aid, a private student loan, such as the ones that Sallie Mae offer, could fill a gap in your funding.

TABLE OF CONTENTS

What is Sallie Mae?
Types of student loans Sallie Mae offers
What borrower is Sallie Mae best for?
Taking a closer look at the online platform
The fine print
What to expect during the application process

What is Sallie Mae?

Sallie Mae could be one of the most recognizable names in the student loan industry. Congress created the company in 1972 and named it the Student Loan Marketing Association. At the time, it was a government-sponsored enterprise (GSE) and also had the nickname Sallie Mae, similar to Fannie Mae in the mortgage industry. Due to new federal laws in the 1990s, it was restructured and hasn’t been a GSE since 2004.

Its role in the student loan space has also changed over the years. Sallie Mae has originated federally guaranteed loans through the now-defunct Federal Family Education Loan Program (FFELP), serviced federal student loans and originated and serviced private student loans.

In 2014, Sallie Mae spun off its student loan management, servicing and collection business as Navient, a new, publicly traded corporation. Navient services federal and private student loans, runs debt collection companies and helps businesses find ways to increase their revenue. Sallie Mae, also a publicly traded corporation, now offers a variety of private student loans, services the loans it originates and offers banking products to consumers. It also runs Upromise, which lets people earn cash back when they shop online or eat out. You can use your earnings to fund a college-savings account, pay off a student loan or receive a check and spend it on other expenses.

Types of student loans Sallie Mae offers

Sallie Mae has 11 private student loan programs, which target different groups: parents or sponsors of students; students who are in grade school; students who are in an undergraduate, graduate or certificate program; students who are pursuing a degree, professional training or a trade certification; and, lastly, health profession and law school students or graduates.

Here’s a brief explanation of each Sallie Mae student loan program:

1. K-12. An option for financing a child’s private school education.
2. Parent. A parent loan may be an option for a creditworthy adult (you don’t necessarily need to be the parent) who wants to help fund a student’s undergraduate, graduate or certificate program at a degree-granting school.
3. Career training. For students who are taking professional or trade certification courses at a non-degree-granting school.
4. Undergraduate. Sallie Mae’s Smart Option Student Loan® for Undergraduate Students is for students who are pursuing an associate’s or bachelor’s degree.
5. Graduate. Sallie Mae’s Smart Option Student Loan® for Graduate Students is for students who are pursuing a master’s, doctorate or law degree.
6. MBA. For students who are pursuing a Masters of Business Administration (MBA) degree.
7. Health professions graduate. A graduate degree loan for select types of health professional degrees, including nursing, physical therapy, psychology, pharmacy, dental assistant or hygienist and chiropractic.
8. Dental and medical school. A graduate degree loan for select types of dental and medical school, including dentistry, allopathic and osteopathic medicine, podiatry, radiology, sports medicine and veterinary medicine.
9. Medical residency and relocation. For medical, podiatry and veterinary students to help cover the cost of board examinations, traveling for interviews and relocating for a residency program.
10. Dental residency and relocation. For dental students to help cover the cost of board examinations, traveling for interviews and relocating for a residency program.
11. Bar study. For law school students who graduated in the last 12 months, or are in their final year of school, to help cover the cost of review courses, registration and living expenses while studying for the bar exam.

How Sallie Mae compares with other lenders

SimpleTuition ranked Sallie Mae as one of the top five private student lenders for undergraduate student loans based on factors such as the loan’s interest rate, fees, discounts, co-signer release option and repayment terms and plans. And Sallie Mae distinguishes itself from some other private student loan companies with its wide range of student loan products and services.

Sallie Mae’s career training, undergraduate and graduate loans are all part of its Smart Option Student Loan® product line, and the same benefits may apply to these loans. The MBA, dental or medical school or graduate health profession student loans also tend to have similar terms as the Smart Option Student Loan®.

However, there may be some specific advantages or drawbacks depending on the loan you take out. The K-12 loan has a 3% disbursement fee for example; and the parent loan doesn’t offer a co-signer release option.

It’s generally a good idea to compare lenders and loan offerings before taking out any type of student loan. The following advantages and drawbacks could help you compare Sallie Mae with other lenders. But read the fine print on the loan you’re considering as they may not apply to every type of student loan that Sallie Mae offers.

Advantages of Sallie Mae Student Loans

A variety of repayment plans. Most of Sallie Mae’s student loans let you pick from several repayment plans, such as deferring your payments or making $25-a-month payments while you’re in school and during a grace period after you leave school. Most borrowers who take out one of the Smart Option Student Loans® opt for a repayment plan that starts while they’re in school. Doing so could help you graduate with less debt and save you money on interest over the lifetime of your loan.

The Smart Option Student Loan®, as well as the MBA, dental or medical school or graduate health profession loan options may be eligible for a graduated repayment plan. You need to apply during the six months before or 12 months after you start making full principal and interest payments. If you do, you may be able to make interest-only payments for up to a year after you leave school or your grace period ends. Although a graduated repayment plan can increase your overall costs, it may be a good option if you want to lower your monthly loan payments while looking for work.

Although they may not offer as many repayment plans, with the medical and dental residency loans you can apply to make interest-only payments for the first two or four years.

You can apply to release a co-signer. Having a creditworthy co-signer may help you qualify for a private student loan and — even if you would have qualified without one — possibly get a lower rate on your loan. Your co-signer takes on responsibility for repaying the loan if you don’t make payments.

In some cases, you may be able to keep the same loan terms and release your co-signer from his or her obligation. Sallie Mae lets you apply for a co-signer release after you make 12 principal and interest payments. You’ll also need to qualify to take on the loan on your own, which could include a credit check, proof of income and meeting other requirements.

Death and disability discharge. In a worst-case scenario, a student or former student could die or become permanently disabled before a loan is paid off. Some student loan companies may try to continue to collect debt from a co-signer. Sallie Mae waives the loan’s current balance if the student dies or becomes permanently and totally disabled.

Cost-of-attendance loan limit. Some student loan lenders set an aggregate limit on how much you can borrow with federal and private student loans. Aside from the residency loans and bar loan, Sallie Mae may offer to lend you the total amount you need based on your school’s certified cost of attendance.

Forbearance and deferment options. If you have trouble affording your student loan payments, you can reach out to your loan servicer to possibly put your loans into forbearance. Forbearance is a temporary period when you don’t need to make payments. Sallie Mae may let you put a loan in forbearance for a three-month period, and for a total of 12 months over the loan’s lifetime.

You may also be able to defer payments for 12-month periods (up to 60 months total) if you return to school or start an approved internship, residency or fellowship program. Interest continues to accrue during forbearance and deferment, which could increase your overall cost of repaying the loan.

Additional perks for borrowers. If you take out a Smart Option Student Loan®, or a Sallie Mae loan for an MBA, dental or medical school or a graduate health profession, you’ll receive a Study Smarter^SM benefit. You can choose from free four months of Chegg study, 120 minutes of live online tutoring with Chegg Tutors or combine the two and get two months of Chegg Study and 60 minutes of tutoring.

Additionally, all the student loan products offer borrowers and their co-signers free quarterly access to one of their FICO® credit scores.

Drawbacks of Sallie Mae Student Loans

They only have one interest-rate discount option. Some private student loan lenders let you receive up to a 0.50% interest rate discount if you sign up for autopay from a bank account with that lender. Or, if you have an eligible loan or bank product when you take out your student loan. Lenders may also offer additional rewards or reductions when you graduate or if you maintain a good GPA. Sallie Mae offers a 0.25% interest rate reduction with autopay but doesn’t offer any additional discount or rewards opportunities.

You can’t pick loan terms. Although Sallie Mae offers five- to 15-year loan terms on many of its student loan products, the lender will assign you a loan term if you’re approved for a loan. Other lenders may offer varying terms and let you choose which term, and corresponding interest rate and monthly payment you want if you’re approved for a loan.

No soft credit check pre-approval. With some private student lenders, you can fill out and submit a pre-qualification application with a soft credit inquiry, the kind that doesn’t hurt your credit score. You’ll be able to see if you can get preapproved for a loan and receive approximate loan terms. Sallie Mae requires you agree to a hard credit inquiry, which may hurt your score, if you want to see if you qualify for a loan and review your loan terms.

A history of unsatisfactory service. Sallie Mae and Navient have been defendants in multiple lawsuits that alleged the companies used unfair lending practices, offered expensive loans to students knowing the borrowers would likely default, led borrowers who had trouble making payments toward options that were more expensive than necessary and engaged in deceptive collection practices. Although the lawsuits may be related to events and practices that occurred before Sallie Mae spun off its federal and private loan servicing business into Navient, borrowers should be aware of the allegations.

What type of borrower is Sallie Mae best for?

Whether you’re taking out a loan for a certificate program, bachelor’s degree or veterinary school, comparing loan terms, benefits and drawbacks can help you find a loan that fits your situation.

Because many of its loans don’t have an aggregate loan limit, borrowers who have already exhausted their federal student loan options, or those who are pursuing a graduate or professional degree and have undergraduate student loans could consider Sallie Mae. Even with the residency and bar study loans, Sallie Mae offers a higher loan limit than some competing lenders.

Also, although Sallie Mae isn’t the only lender that offers a co-signer release option, other lenders may require you make more than 12 full interest and principal payments before applying. So, if you’re going to apply with a co-signer and think you may want to release the co-signer later, Sallie Mae could be a good fit.

Taking a closer look at the online platform

Sallie Mae’s website is easy to navigate, and we didn’t have any trouble finding basic information about each of the student loan products. There are also pages with general information on managing private student loans, ways to pay for graduate school and other student- or borrowing-related topics. And some of the articles are accompanied by videos that help explain concepts or expand on the idea covered in the article.

The website looks pretty sleek, but surprisingly, the design doesn’t carry over to the application page. However, this isn’t a big con as the application is still easy to understand and follow.

The fine print

In general, we found that Sallie Mae did a good job disclosing fine print items on its Smart Option Student Loans®, parent, MBA, dental or medical school and graduate health profession loans. You can review details, such as the interest rate cap on variable-rate loans and late payment fees, in the loan disclosure forms.

However, there aren’t loan disclosure forms available on that page for K-12, residency or bar loans. As a result, we weren’t able to easily find some fine-print items, such as the interest rate cap, late payment fees and returned check fees. (Those were confirmed by a Sallie Mae representative.)

Some information was disclosed, but still unclear. For example, the page for the Smart Option Student Loan® for undergraduate students doesn’t list the possible loan terms. The number of years you take to repay your loan can affect your monthly payment and interest rate. Other lenders will prominently list their loan term offers, which may include five, seven, 10 and 15-year options.

To find the loan terms for Sallie Mae’s Smart Option Student Loan® for undergraduate students, we had to navigate from the loan’s landing page to a comparison page that shows the differences between that type of loan and a federal Parent PLUS loan. There, you can see that the repayment term is five to 15 years, but it’s still unclear if the borrower gets to choose a loan term in that range. Only after reaching out to a representative from Sallie Mae did we learn that Sallie Mae assigns the borrower loan terms.

What to expect during the application process

All the student loans use a similar OpenNet application. While the exact questions can vary depending on the type of loan you’re applying for and your situation, the following can give you an approximation of what to expect. It’s based on sample applications we began for an undergraduate, parent and medical residency loans without a co-signer.

If you have a co-signer, you may need his or her name, email address, phone number, date of birth, citizenship status, Social Security number and address.

Basic information

General information. To start, you’ll have to fill in the general information about the student or the borrow (for K-12 and parent loans). This includes:

• Your name, email address and phone number.
• Your date of birth, citizenship status and Social Security number.
• Your relationship to the student, for K-12 and parent loans.

Address. Once you complete the basic information step, you’ll have to enter your permanent address, and a mailing address if it’s different than your permanent address. If you’ve lived at your current address for less than a year, you may also have to share your previous address.

Student and school information. If you’re applying for a K-12 or parent loan, you’ll also need to share the student’s name, date of birth, citizenship status and Social Security number.

Next, fill in information about the school, including the school’s name, the degree/certificate program, the major or specialty, enrollment status, grade level, GPA, the academic period the loan will cover and the anticipated month and year of graduation or completion.

Loan application

Loan amount. Fill in the student’s cost of attendance (the website can help estimate this based on your school) and estimated financial assistance. The application will then automatically calculate your loan amount as the difference between the two. However, you can request a smaller amount if you want.

If you’re applying for a residency loan, you can request a loan amount that’s below the maximum limit. And, you can choose to have the loan disbursed via two payments (the disbursement amount doesn’t need to be evenly split between the disbursements).

Employment info. Indicate your employment status: full-time, part-time, retired, self-employed or not employed. If you are working, you’ll also need to enter the employer’s name, your occupation, your work phone number, how many years you’ve worked there and your gross annual income.

Financial info. List additional income, such as investments, disability or Social Security, as well as additional household income from another person if you want it to be considered.

Next, you’ll list the assets you have in checking, savings, CD and money market accounts.

Finally, indicate whether you rent or own your home, or other and your monthly payment amount. Student applicants can also choose dormitory or living with parents and won’t have to list a monthly payment.

Personal contacts. Student borrowers need to list two adult contacts, such as a relative or parent, who aren’t a co-signer on the loan. You’ll need the person’s name and phone number, and indicate your relationship with the adult.

Submit application. You’ll then be asked to indicate whether you want to apply on your own or add a co-signer. If you choose to continue, you’ll have to agree to an electronic delivery consent form, can then review a copy of the applicable loan disclosure form and see Sallie Mae’s privacy policy.

Once you review the forms, you can choose to submit an application. Or, there’s another chance to add a co-signer before submission. Once you click submit, Sallie Mae may pull your credit and contact your school.

Finalize the loan

After you submit your application, Sallie Mae will review your information and credit (and a co-signer’s if you added one) and send you an official loan offer if you’re approved. In some cases, you may need to send copies of documents to verify your information.

If you decide to accept the loan terms, you can choose the interest-rate type and repayment plan, and electronically sign the loan document. Sallie Mae could then ask your school to verify your enrollment and eligibility for the requested loan amount. The money will either be sent to the school, or in the case of residency and bar study loans, the money is sent directly to you.

Depending on the repayment plan you chose, you may need to start making payments after your loan is disbursed. If the money is being sent to your school, the loan may not be disbursed until about 30 days before the enrollment period for the term starts, which could be months after you applied for the loan.

 

Category: Paying for College

Wells Fargo Student Loans Review

By: SimpleTuition | Published: January 22, 2018

By: Louis DeNicola 

Wells Fargo is one of the largest banks in the U.S. and a leader in the private student lending space.

As higher education costs continue to rise, student loan borrowing has become a fact of life for millions of college students.

But before we get into Wells Fargo’s private student loan offerings, here’s a quick note about borrowing private student loans: you should always max out your federal student aid first, which includes federal student loans, grants, and work-study programs, before turning to private student loans.

That’s because federal student aid may come with lower interest rates and more borrower protections than private student loans.

Read More: Top Private Student Loan Companies

An essential first step to securing federal aid is filling out and submitting a Free Application for Federal Student Aid (FAFSA), which is a requirement for federal student aid, and for some scholarships.

The same federal student loan terms are offered to every eligible student, regardless of his or her credit, income, employment or outstanding debts. By contrast, your private student rates can vary based on these factors and which lender you choose. Federal student loans may also offer repayment plans and forgiveness programs that aren’t available with private student loans.

However, if you have a gap between what your education costs and what you can afford with your savings, federal aid and income, then private student loans might help.

In this review, we’ll focus on Wells Fargo’s private student loan offerings.

Table of contents

What is Wells Fargo
Wells Fargo student loans in a nutshell
What it takes to qualify with Wells Fargo
How Wells Fargo compares to other lenders
Refinancing student loans through Wells Fargo
What borrower is Wells Fargo best for?
Taking a closer look at the online platform
The fine print
What to expect during the application process

What is Wells Fargo?

Wells Fargo is one of the largest banks in the United States. It was founded over 160 years ago, and today offers a variety of financial products, including bank accounts, mortgages and student loans.

According to Wells Fargo’s quarterly fact sheet from the second quarter of 2017, it’s the top provider of private student loans among banks, and the second largest among all its competitors. It has nearly $12.2 billion in outstanding private student loans. And it continues to offer new loans to a variety of students, and loan consolidation to graduates.

Types of student loans Wells Fargo offers

Wells Fargo has eight private student loan programs. Five of those programs aim to help students pay for educational expenses, two programs help cover post-graduation expenses for health professionals or law students and the final program allows borrowers to consolidate their student loans.

Here’s a brief overview of all eight Wells Fargo student loan programs:

1. Career and community college. For students attending two-year schools, career-training programs and non-traditional schools.
2. Undergraduate. For students who are pursuing an undergraduate degree.
3. Parent. An option for creditworthy adults (doesn’t necessarily have to be the student’s parent) to borrow money that they can use to help pay for their student’s educational expenses.
4. Graduate. For students who are seeking a graduate degree, such as a master’s, Ph.D., MBA or law degree.
5. Health professions. A graduate degree loan for students who are in school to become a health professional. The loan may cover a variety of programs, including allopathic, osteopathic, physician assistant, pharmacy, veterinary medicine and more.
6. Post-medical school loan. For health profession students who need help paying for living expenses, exam costs or review courses while studying for medical boards and clinical exams. The loan can also help pay for expenses related to residency or internship interviews and relocation costs.
7. Bar exam. Recent law school graduates and students in their final year of a law program can borrow money to help pay for registration, review courses and living expenses while studying for the bar.
8. Consolidation loan. If you’ve taken out private student loans, you may be able to refinance them with a new Wells Fargo Private Consolidation^SM loan.

Wells Fargo student loans in a nutshell

 

	Career and community college	Undergraduate	Parent	Graduate
Fixed APR Range*	7.46 to 12.65%	5.94 to 11.26%	6.49 to 12.99%	6.84 to 11.67%
Variable APR Range*^	6.35 to 12.05%	4.57 to 10.51%	5.74 to 12.24%	5.64 to 11.07%
Loan terms offered	12 years	15 years	15 years	15 years
Fees	No application, origination, prepayment or returned check fees. But there is a $28 late charge.	No application, origination, prepayment or returned check fees. But there is a $28 late charge.	No application, origination, prepayment or returned check fees. But there is a $28 late charge.	No application, origination, prepayment or returned check fees. But there is a $28 late charge.
Loan amount	$1,000 to $20,000	$1,000 to $120,000	$1,000 to $25,000 per school year, and $100,000 overall	$1,000 to $180,000 for law and business school loans, up to $120,000 for other fields of study
Repayment plans	Full deferment	Full deferment	Immediate repayment, or make interest-only payments for up to 48 months	Full deferment
Deferment period	Full deferment while in school and for six months after graduation or leaving school	Full deferment while in school and for six months after graduation or leaving school	No full deferment option	Full deferment while in school and for six months after graduation or leaving school
Co-signer option/release	Can apply with co-signer, and request to release a co-signer after 24 to 48 consecutive, full payments	Can apply with co-signer, and request to release a co-signer after 24 to 48 consecutive, full payments	Can apply with co-signer, and request to release a co-signer after 24 to 48 consecutive, full payment	Can apply with co-signer, and request to release a co-signer after 24 to 48 consecutive, full payments
Savings opportunities	0.25% autopay discount   0.25% interest rate reduction for prior Wells Fargo student loan customers and Wells Fargo checking account holders; or, 0.50% discount for Portfolio by Wells Fargo customers	0.25% autopay discount   0.25% interest rate reduction for prior Wells Fargo student loan customers and Wells Fargo checking account holders; or, 0.50% discount for Portfolio by Wells Fargo customers	0.25% autopay discount   0.25% interest rate reduction for prior Wells Fargo student loan customers and Wells Fargo checking account holders; or, 0.50% discount for Portfolio by Wells Fargo customers	0.25% autopay discount   0.25% interest rate reduction for prior Wells Fargo student loan customers and Wells Fargo checking account holders; or, 0.50% discount for Portfolio by Wells Fargo customers

 

	MedCAP® Alternative Loan	MedCAP-XTRA®  Loan	Bar Exam Loan
Fixed APR Range*	6.66 to 10.18%	9.53 to 9.76%	10.66 to 10.89%
Variable APR Range*^	5.06 to 9.54%	9.07 to 9.30%	10.44 to 10.66%
Loan terms offered	15 to 20 years	Seven year	Seven years
Fees	No application, origination, prepayment or returned check fees. But there is a $28 late charge.	No application, origination, prepayment or returned check fees. But there is a $28 late charge.	No application, origination, prepayment or returned check fees. But there is a $28 late charge.
Loan amount	$1,000 to $120,000, $180,000 or $250,000 depending on your discipline	$1,000 to $5,000, $12,500 or $15,000 depending on your program.   Aggregate limit up to $180,000 or $250,000 depending on your discipline	$1,000 to $12,000
Repayment plans	Full deferment	Full deferment	Full deferment
Deferment period	Full deferment while in school and for six months after graduation or leaving school, or 36 months for allopathic and osteopathic medical students	Full deferment while in school and for six months after graduation or leaving school, or 36 months for allopathic and osteopathic medical students	Full deferment while in school and for six months after graduation or leaving school
Co-signer option/release	Can apply with co-signer, and request to release a co-signer after 24 to 48 consecutive, full payments	Not offered	Not offered
Savings opportunities	0.25% autopay discount   0.25% interest rate reduction for prior Wells Fargo student loan customers and Wells Fargo checking account holders; or, 0.50% discount for Portfolio by Wells Fargo customers	0.25% autopay discount   0.25% interest rate reduction for prior Wells Fargo student loan customers and Wells Fargo checking account holders; or, 0.50% discount for Portfolio by Wells Fargo customers	0.25% autopay discount   0.25% interest rate reduction for prior Wells Fargo student loan customers and Wells Fargo checking account holders; or, 0.50% discount for Portfolio by Wells Fargo customers

*Rates as of 7/2/2018. The low rate includes APR discounts, the high rate does not

^Variable-rate loans are capped at 18% APR.

What it takes to qualify with Wells Fargo:

 

	Career and community college	Undergraduate	Parent	Graduate	MedCAP® Alternative Loan	MedCAP-XTRA®  Loan	Bar Exam Loan
Credit score	No minimum credit score requirement	No minimum credit score requirement	No minimum credit score requirement	No minimum credit score requirement	No minimum credit score requirement	No minimum credit score requirement	No minimum credit score requirement
Age requirement	The borrower must be the age of majority (often 18) or older at the time of the application, or have an eligible co-signer.	The borrower must be the age of majority (often 18) or older at the time of the application, or have an eligible co-signer.	The borrower must be the age of majority (often 18) or older at the time of the application, or have an eligible co-signer.	The borrower must be the age of majority (often 18) or older at the time of the application, or have an eligible co-signer.	The borrower must be the age of majority (often 18) or older at the time of the application, or have an eligible co-signer.	The borrower must be the age of majority (often 18) or older at the time of the application.	The borrower must be the age of majority (often 18) or older at the time of the application.
School/state eligibility	Available in every state.   Check school eligibility by starting an application and searching for the school’s name.	Available in every state.   Check school eligibility by starting an application and searching for the school’s name.	Available in every state.   Check school eligibility by starting an application and searching for the school’s name.	Available in every state.   Check school eligibility by starting an application and searching for the school’s name.	Available in every state.   Check school eligibility by starting an application and searching for the school’s name.	Available in every state.   Check school eligibility by starting an application and searching for the school’s name.	Available in every state.   Check school eligibility by starting an application and searching for the school’s name.

How Wells Fargo compares to other lenders

It’s always a good idea to compare lenders before taking out a loan, as each lender or loan option may have its pros and cons. Wells Fargo stands apart from some of the competition with its variety of loans for students pursuing different types of degrees.

The career and community college loan, in particular, stands out, as other lenders may offer the same loan to undergraduates pursuing an Associate’s or Bachelor’s degree, or may only offer loans to students who are in a Bachelor’s degree program.

Unfortunately, Wells Fargo doesn’t offer a lot of options with loan terms or repayment plans within each loan type. Even so, it’s worth considering Wells Fargo. Just keeps these advantages and drawbacks in mind as you proceed.

Compare student loan lenders

Advantages of Wells Fargo Student Loans

Two potential discounts. As with its private student loans, Wells Fargo offers borrowers two potential interest rate discounts. You can get a 0.25% interest rate discount for signing up for autopay.

If you or your co-signer are an existing Wells Fargo student loan or consumer checking customer before submitting an application, you can get a 0.25% interest rate reduction on your consolidation loan. If you or a co-signer have a Portfolio by Wells Fargo account, you can alternatively get a 0.50% interest rate reduction.

Co-signer release. If you apply for refinancing with a co-signer, you can apply to release the co-signer after making 24 consecutive full payments (after 48 payments if you missed the first payment on your consolidation loan).

Deferment and forbearance options. Wells Fargo offers a variety of loan deferment, forbearance and hardship options that can help keep you from defaulting on your loans. For example, you may be able to postpone payments for up to three years if you volunteer with a public service organization. Your loan payments could also be deferred following a natural disaster, and you can apply for temporary repayment relief if you lose your job or have to deal with unexpected medical bills.

Death and disability discharge. If the primary borrower dies or becomes permanently and totally disabled, Wells Fargo will forgive the remaining loan balance. This can help a co-signer, who would otherwise have to repay the debt, and the borrower’s beneficiaries.

A dedicated representative. Wells Fargo assigns a student loan specialist to borrowers, meaning you can call or email the same person if you have questions or problems in the future.

Drawbacks of Wells Fargo Student Loans

Few loan term options. Aside from the consolidation loan and MedCAP Alternative Loan, each of Wells Fargo’s student loans only offers one loan term option, ranging from 12 to 20 years. Borrowers can benefit from having choices. A shorter term could save you money, while a longer term could lower your monthly payments.

No soft credit check pre-approval. Some lenders let you see approximate loan terms with a soft credit check, which doesn’t hurt your credit score. Wells Fargo uses some basic information to let you know if you’ll qualify for a student loan, but doesn’t show you loan offers until after a hard credit check.

A checkered past. Wells Fargo has dealt with several scandals recently, and its student loan division isn’t above the fray. In 2016, the Consumer Financial Protection Bureau (CFPB) forced Wells Fargo to pay over $4 million in fines and student aid relief. The CFPB allegations include claims that Wells Fargo failed to provide important payment information to borrowers, charged borrowers illegal fees and didn’t correct mistakes in borrowers’ credit reports.

Refinancing student loans through Wells Fargo

Wells Fargo offers student loan refinancing in addition to its student loans. When you refinance student loans, you take out a new student loan and use the money to pay off your existing loans. Wells Fargo manages the consolidation process and will make the payments to your current lenders.

Your new loan’s interest rate can depend on the lender, your credit and your current income and debts. As a result, refinancing your loans could result in you getting a lower interest rate on your student loans, and save you money. Consolidating loans can also make it easier to manage the repayment process, as you won’t have to keep track of as many loans.

Wells Fargo Consolidation Loan in a nutshell

 

	Fixed APR Range**	Variable APR Range**^	Loan terms offered	Loan amount	Co-signer option/release	Savings opportunities
Consolidation Loan	5.24 to 9.49%	4.49 to 9.24%*	15 or 20 years	$5,000 to $250,000	Can apply with co-signer, and request to release a co-signer after 24 to 48 consecutive, full payments	0.25% autopay discount   0.25% interest rate reduction for prior Wells Fargo student loan customers and Wells Fargo checking account holders; or, 0.50% discount for Portfolio by Wells Fargo customers

Advantages

The primary advantages of a Wells Fargo consolidation loan are the same positive features that it offers on its other student loans: two potential discounts, a co-signer release option and death or disability discharge.

As with the other student loans, there also aren’t any application, origination or prepayment fees.

Disadvantages

Can’t refinance federal student loans. Some student loan refinancing companies let you refinance federal and student loans together. Refinancing federal student loans isn’t always a good idea, but it can be beneficial for some borrowers. Unfortunately, Wells Fargo doesn’t give you this option and you can’t include federal loans in a Wells Fargo Consolidation Loan.

Only two loan terms. Wells Fargo offers variable- and fixed-rate consolidation loans, but you can only choose between 15- and 20-year terms. Other lenders offer shorter-terms, which may raise your interest rate but can also help you get a lower interest rate.

How to qualify

To qualify to consolidate your student loans with Wells Fargo, you:

• Must be a U.S. citizen, U.S. national or permanent resident.
• Be the age of majority or older at the time of application.
• Can’t include federal student loans.
• Have at least $5,000 in student loans, and each loan must have a balance of at least $1,000.
• You can’t have more than $250,000 in education-related debt, or request to consolidate more than $120,000.
• Must meet Wells Fargo’s credit, employment and debt-to-income requirements.
• When added, co-signers must also meet the credit and citizenship requirements.

What Borrower is Wells Fargo best for?

A Wells Fargo student loan could be a good fit for someone who’s already looking for a loan with a term that matches its offering and can’t find a lower rate elsewhere. If you’re also likely going to need, or want, a co-signer, Wells Fargo co-signer release opportunity also makes it an appealing lender, although other lenders offer a similar service.

The career and community college loan could also be appealing to students who are pursuing an associate’s degree, technical certification or returning to school for a career-training program. However, as with all types of student loans, look for and compare offers from other lenders.

Taking a closer look at the online platform

You can apply for a Wells Fargo student loan over the phone, online or via a mobile device. If you apply online, you can upload the required documentation and complete the process without having to go into a branch.

In general, each loan’s webpage is easy to browse and offers most of the information borrowers need to know to make an informed decision. The application process is also straightforward, with helpful instructions and clarification points.

One aspect that was a little disconcerting is that you need to share your Social Security number when you start the application. Wells Fargo says it needs the number to verify your identity and run your credit.

We proceeded, because we knew that Wells Fargo needs permission to run a credit check with a hard inquiry (which could hurt your credit score), and we hadn’t yet given our permission. However, it could be unclear to other applicants if Wells Fargo will do a hard inquiry check now, or later in the application process.

The fine print

Digging into a bit of the fine print, there are a few details you may want to keep in mind if you’re considering a Wells Fargo student loan.

Co-signer release requirements. You can apply to release a co-signer after making 24 consecutive scheduled full monthly payments if you made your first payment on time. But if your first payment is late, you’ll have to make 48 consecutive scheduled full monthly payments before applying.

In addition, the primary borrower has to be eligible to take on the loan based on his or her citizenship status, credit, employment and income.

Maximum loan amounts. Aside from the consolidation loan, Wells Fargo’s student loans have a minimum loan amount of $1,000. Your maximum loan amount may be your cost of attendance (including tuition, fees, rent, books and other necessary supplies) minus other financial aid. However, Wells Fargo also has aggregate loan limits for borrowers’ total education-related debt. Meaning, your loan limit could be lower if you already have federal or private student loans.

What to expect during the application process

The details in the steps below are for an undergraduate student loan application being filled out by the student, not a co-signer. But other loan types follow a similar process. In fact, the starting page is the same for every loan.

The loan process is broken into four parts: completing your application, submitting supporting documentation, signing the loan documents and receiving the funds.

However, before you get to the actual application, you’ll have to fill out some basic information to see if you’ll qualify for a student loan from Wells Fargo based on your school, grade level, field of study and citizenship status.

Before Starting Your Application

Select your loan type. Choose whether you need a loan for technical/trade/continuing, undergraduate, graduate or consolidation purposes.

School and student information. Select <student>, and find the school based on its state and name. If the school’s name doesn’t appear in the list when you start typing, Wells Fargo may not offer student loans for that school.

Now choose the grade level that the loan will help cover, your field of study and your citizenship status.

Your Student Loan

The next page will tell you if you qualify for that loan type at that school. If you don’t qualify, you may see a message suggesting a different loan type (such as a Wells Fargo Student Loan for Career and Community Colleges) with information about that other loan. Or, you may find that you don’t qualify for any Wells Fargo student loans and should contact your school’s financial aid office to discuss other options.

If you do qualify so far, you’ll find an overview of the loan type you’re applying for with information about the repayment process fees, interest rate ranges and loan limits. If you wish to continue, scroll to the bottom and click <Get Started>.

1. Getting Started

The first page shows the steps in the student loan process, lists information you’ll need to complete the application and asks for some basic personal information: your state of residency, name, Social Security number and date of birth. You’ll also have to agree to let Wells Fargo contact you by phone or email to continue the application process.

If you already have a Wells Fargo online account, you can log in and your information will automatically get added to the application.

2. The Student Loan Application

On the second page, you’ll cover the following:

Contact information. Including your phone number, email address, permanent home address and how long you’ve lived at that address.

Employment information. If you want to include verifiable income with your application, you’ll select yes and then choose an employment status.

Whether you’re employed or self-employed, you’ll be asked to share the company’s name, city, state, phone number and how long you worked there.

Retirees and unemployed individuals with other sources of income can choose an income type (or select other and indicate the income’s tax status).

You’ll also have to list your gross income, it’s frequency (monthly or annually), your residence status (rent, own, dorm, live with parents or other) and your monthly mortgage or rental payment amount.

Loan information. Fill out your anticipated graduation date, the academic period you need the loan to help cover and your degree. Also, estimate the total cost of attendance and financial aid for that term. You can then request a loan amount, as long as it meets the minimum loan amount requirement.

Additional individuals. If you want to add a co-signer, you list his or her name and email address. You can either fill out the application with the co-signer, or email instructions to him or her, or to yourself, for how the co-signer can complete the application later.

Confirm documents are readable. You’ll be asked to open a PDF and transcribe the number you see in it, to verify that you’re able to review documents from Wells Fargo.

Disclosures. The final step is to review the loan disclosure form. The PDF will list your APR ranges, fees, the interest rate cap on variable-rate loans and give examples of how your repayment plan could impact your overall cost of borrowing.

At this point, you’ll also have to give Wells Fargo permission to verify your information and pull your credit, which could hurt your credit score.

3. Review your loan, verify documents and sign the promissory note

Not wanting to proceed with the loan application process and potentially hurt our credit, we stopped our application at the previous step.

However, Wells Fargo does share what’s involved with the next steps. The entire process can take two to three weeks, and you can manage and track it with the yourLoanTracker app.

Once you submit your application and are approved, you may need to provide verification documents for the information you submitted earlier. These could include things like a pay stub or tax return as proof of income.

After Wells Fargo receives all the required verification, it will request several additional documents.

You, and a co-signer, must sign a consumer credit agreement. You must also sign a self-certification form, where you indicate your cost of attendance, estimated financial aid and the difference between the two. Wells Fargo could also contact your school to verify the financial information and to confirm that you’re enrolled.

Wells Fargo will then send you the official loan offer and Final Loan disclosure. Your offer is locked in for 30 days, giving you time to shop around for other student loan offers. If you accept the loan, Wells Fargo will send the money directly to your school.

Category: Paying for College

Real Ways to Lower College Costs

By: Kevin Walker | Published: June 13, 2017

College is expensive. We can’t change that. Still, there are ways to bring the cost down. Here are three real ways to lower your cost of college.

Make better borrowing choices

Don’t assume you don’t have control over your borrowing choices. Here are some ways to minimize college borrowing costs:

• Borrow less. In particular, you can accomplish this through working more. Talk to your financial aid office about work study. Even an extra $500 per school year in earnings instead of borrowing could save you $4,000 or more over the life of the loan.
• Borrow in the right order. Undergrads should borrow through the Perkins loan program (if available), then the direct federal loan program, and then private student loans. In that order. Max out each loan type before borrowing through the next. Grad students should borrow through the Perkins loan program first (if available; ask your school) and then investigate whether the next amount of borrowing should be through the Direct Graduate Student Loan (sometimes called “GradPLUS”) or through a private student loan. Rates on private student loans can be cheaper, although eligibility and repayment provisions tend to be more flexible on GradPLUS.
• Shop around. If you need to borrow through private student loan programs – either because you’ve maxed out availability of federal loans or because a private loan is a better alternative – make sure you shop around. There are many loan options on the market. Private student loans come in different structures (fixed rate, variable rate), have different repayment lengths and in-school deferment options. And of course, every lender offers different rates. Some lenders offer “borrower benefits,” essentially discounts for a variety of reasons. You need to compare your options carefully before committing.

Study abroad somewhere cheap

Studying abroad is a great, valuable experience. Often times, though, study abroad programs involve paying via your home institution – at full tuition rates, plus the cost of travel. If you’re willing to be intrepid – and able to negotiate full credit transfer with your own institution – you may be able to find an international university that will enroll you directly. The cost of doing so can be dramatically lower than the tuition you’re currently paying. The challenges are finding a school that lets you enroll directly and whose course credit will be full accepted by your institution. Make sure you confirm that second challenge with your home school’s registrar well before heading overseas.

Graduate sooner

We’ve all heard about the “five year plan,” where college students take five years to complete their undergraduate degree. But what about the “three year plan” or the “three and half year plan”? It’s doable. Depending on what your college offers or allows, you might be able to add a course for several semesters and/or take a summer course or two to get ahead. 25% or 12.5% less is a substantial discount off the full cost of attendance – and when you consider inflation, eliminating the final one or two semesters can skew the savings even higher.

It’s easy to be resigned to the idea that college is just expensive and there’s not much you can do about it. Truth is, you do have options to significantly reduce the cost.

Category: Paying for College

Budget your way to a more affordable education

By: admin | Published: September 4, 2013

Benjamin Franklin once said nothing is certain but death and taxes. We’d like to amend that list by adding a modern certainty: college costs will always go up. But that doesn’t mean getting an education results in going broke. Stay smart, spend less, and start budgeting. Here’s how:

1. Calculate your costs. There’s nothing worse for your financial future than not knowing how much money you have or how much money you’re spending. Avoid catastrophe by budgeting for the entire semester. Don’t only include the obvious expenses like tuition and textbooks. Include living expenses like food, utilities, cell phone bills, and transportation. And perhaps more importantly, know where your money is coming from before you need it. That’ll help you avoid borrowing money last minute at high interest rates.
2. Practice self-restraint. College is an expensive experience in large part due to the cost of staying entertained — going out to eat, drink, going to movies, concerts, buying video games, and a myriad of other distractions. Try having free fun instead. Start by checking out your college’s event schedule.
3. Shop for function, not status. Why buy new when you can buy refurbished or used? This is especially true for things like clothes, appliances, and furniture, and can even save you bundles on electronics.
4. Make lists and stick to them. Whether you’re going to the grocery store or the shopping mall, write down what you need ahead of time so you don’t end up buying everything you want. There’s a big difference between the two.
5. Borrow less. If you’re funding your education with student loans, remember the following mantra: every dollar you don’t spend is a dollar you don’t have to borrow. In light of that, only borrow for necessities like tuition and textbooks instead of borrowing money for extras like a new computer (when an old one will do) or a spring break vacation.