school loans, college loans, federal student loan consolidation, college loan consolidation, private student loans, college credit debt
Parent loans? Retirement funds? Savings? You want to help your child pay for college – what’s the best way?
There are many options for you to help your child pay for college, from payment plans to parent student loans. Which is best for you?
Option Advantages Disadvantages Good Idea?
* Cheaper than borrowing money
* A great way to pay for college if you were able to save money and raise kids!
Credit Cards or cash advance
* Most expensive choice you can make
* Interest charges typically compounded monthly.
* Your growing balance can become extremely difficult to pay off and can damage your credit
401(k) withdrawal Or Pension Fund withdrawal
* You are borrowing from yourself
* Withdrawals are taxed
* You lose valuable compounding – the key to growing your retirement money
* Can severely reduce the amount of money you have at retirement
* With your help, your child can find ways to borrow for college – who will lend you money to retire?
* Small impact on the monthly budget
* Equity may not be available in this economy
* Closing costs are high
* Risk foreclosure to pay for college. What happens if a financial emergency comes up and you can't afford the payments? You lose your house!
PLUS Loan (Parent student loans)
* Can borrow up to the full cost of your child’s attendance
* For new parent loans, no payments due until after your child graduates or drops below half-time enrollment
* Fixed interest rate of 8.5%
* Parent loans are always in your name, not your child's
* You are responsible for paying back the loan, not your child
* Must complete the FAFSA to apply
* Credit check required, although more lenient than typical consumer loans
* For old parent loans, payments due six months after final disbursement (in the spring of a traditional academic year)1
* 3% origination fee set by the U.S. government
* Up to a 1% Federal Default Fee, may be assessed by the guarantor
* Student must be under the age of 24, unmarried, an undergraduate and financially dependent
Co-sign or co-borrow a private loan
* Easy, fast, convenient
* Instant preapprovals - Apply now
* No payments due until after your child graduates or drops below half-time enrollment
* Can borrow up to the full cost of your child’s attendance
* Apply to have your name removed from the loan after 24 months of consecutive, on-time payments
* Interest rates are variable based on credit, so rates and fees may be better for a PLUS Loan
Ready for a private loan?
If you are ready for a private student loan, try College Loan Corporation's CLC® Premier Loan:
Our award-winning service saves you time and hassles
* Prequalify in minutes – apply now!
* Help from experts available
* 90% of calls answered by experts in less than 30 seconds – no phone mazes, long waits on hold, or entering of data through the phone
* One Call Promise® eliminates phone tag and resolves matters quickly
* Borrow up to your child's full cost of attendance, minus any other financial aid that they received
Our ethical lending practices save you money
* CLC is the winner of the Better Business Bureau's 2006 Torch Award for Marketplace Ethics
* No payments until six months after graduation or dropping below half-time enrollment
* Interest rates as low as prime2
* Origination fees as low as 0%2
* Two interest rate benefits that can save you hundreds over the life of your loan!3
o 0.50% interest rate reduction if you choose to make interest payments while in school
o 0.25% additional interest rate reduction for enrolling in automatic payments through ACH once your payments begin
* We capitalize interest only upon entering repayment. This limited capitalization helps reduce the amount of money your child will owe when they finish school.
* Late Payment Flexibility – CLC does not consider a student's payment late unless it is received more than 15 days after the due date – easy on your credit!
* Flexible Repayment Terms – CLC extends the length of time your child can pay back a loan based on the amount of money that they borrow. This helps keep loan payments affordable while giving your child the flexibility to pay more if they can afford it.
* Payment forbearance options available to assist with temporary repayment difficulties
* We've helped over 800,000 families find student and parent college loans!
1/ These are new terms that may not be in effect for older loans.
2/ Specific terms and conditions apply. Interest Rates and Annual Percentage Rates (APRs), and benefits are effective as of the date of publishing and are subject to change at any time without notice. CLC reserves the right to modify or discontinue loan benefits, lending policies and requirements at any time without notice. Rates and fees are determined by, and commensurate with, an evaluation of the borrower's/co-borrower's creditworthiness. Loan amounts are determined by (1) evaluating the borrower's/co-borrower's creditworthiness and (2) school certification of the required loan amount: the lesser amount takes precedence. Applicants are encouraged to utilize a qualified co-borrower to receive better loan terms.
3/ All loan payments, as applicable, must be made on time to be eligible for these benefits. To receive the interest rate reduction for automatic payments, the borrower must enroll in automatic payments through ACH and remain current. Borrowers who cancel ACH can re-enroll at any time and return to the benefit as long as all loan payments have been made on time. The 0.50% interest rate reduction for borrowers who choose to make interest payments while in school or grace remains in effect as long as the borrower makes all interest payments within 60 days of billing. If no payment is made within 60 days of billing, the 0.50% interest rate reduction is lost. We reserve the right to modify, extend or discontinue these benefits at any time without notice. Borrower benefits will terminate in the event of default or failure to meet qualification criteria. Additional terms and conditions apply; please contact us for details.
Labels: Parent Loans