At the time of researching your student loan consolidation information options you need to investigate PLUS student loans, with the rising cost of education over the previous few decades, reliance on traditional Stafford loans has in many instances failed to cover most student expenses, the PLUS (Parent Loans for Undergraduate Students) loan plan was designed to close that gap.

Though the rate is higher than other loans the cap on borrowing is much more flexible and the loans are not need-based.

For the FFEL (Federal Family Education Loan) plan, in which private lenders fund the loan the rate is 8.5%, through the Direct loan program the U.S. Dept of Education funds the loan directly 7.9%, the difference of 0.6% is often very large over the lifetime of the average loan, in the initial year alone on a 10 year loan of $25,000.00 it amounts to virtually $2,050.00 as apposed to $1,920.00 that equals $130.00 in interest, for an exact calculation you ought to experiment with some sample strategies using a loan calculator such as the ones available on-line.

With PLUS loans parents are able to borrow up to the total amount of education minus any other financial aid money the student is awarded, though PLUS funds are not cheap they may make the difference when picking out which school to attend or whether to attend at all, however since PLUS loans aren’t need-based they do include a credit check, in this situation the student’s credit (with one exception discussed below) is not looked into, it’s the parents credit history which matters since they are the signers of the promissory note, they alone are responsible for the repayment of the loan.

In those rare instances where the credit history of the parent(s) makes them ineligible, a co-signer may participate in the loan, a relative or other party may agree to guarantee repayment and take on the legal responsibility as a co-borrower, with the recent problems in the sub-prime borrowing arena these cases are now reduce from the levels of the past, this hints that in borderline cases the requirement for a co-signer is more likely.

Apart from the changes in interest rates, another recent alteration to the plan is to now allow professional and graduate students to qualify for PLUS loans, similar interest rates and eligibility criteria apply, like other students they must be enrolled in an eligible institution and program no less than half-time, unlike most Stafford loan schemes, repayment of a PLUS loan begins immediately, generally within 60 days after the loan funds are disbursed, interest begins accumulating from the time the initially disbursement is made, both the main loan and interest are paid in regular monthly installments whilst the student is in school, re-payments are made to the private lender in the situation of FFEL (Federal Family Education Loan) loans and to a U.S. Dept of Education servicing center in the circumstance of Direct loans.

Be certain to calculate carefully all the costs linked with obtaining a PLUS loan and look on it as a loan of last resort as even a home equity loan, for example may easily be less expensive since the interest is tax-deductible, it is essential to keep this information at hand when looking at any student loan consolidation information.

Our article on Top 12 Weird Unknown Scholarships got an excellent reception among students and our regular visitors of the blog. Considering the interest shown by our readers and constant request of sequel I have finally thought of a presentation on more of weird unknown scholarships for you. Hope you would like the effort the way you appreciated the prelude:
1. The School Band and Orchestra Magazine Scholarship

This scholarship is offered to students who have written the best of essays. One of the recent essays which won the award was on the topic “How a Music Education Has made me a Better Student.” Are you good at music? If yes then do give a try!
2. Vegetarian Resource Group Scholarship

Are you a vegetarian? Do you believe in promoting vegetarianism? Well, then this scholarship is for you. You get paid by way of scholarships for your beliefs. A scholarship amount of about $10,000 is awarded to a student who has promoted vegetarianism either in their school or community.
3. David Letterman Telecommunications Scholarship

It is a scholarship awarded on the basis of outstanding creativity to students by Ball State University. The Telecommunication students are required to submit a variety presentation about their project. This scholarship does not require the students to hold a minimum GPA for participation. An award of $10,000 is granted to students sponsored by the university’s famous alumnus.
4. The Discover Card Tribute Award

It is one of the easy scholarships to be awarded. All you need to have is a GPA of 2.75, showcasing a leadership attitude within your community at the time of facing a serious challenge. The scholarship program offers close to 10 awards of $25,000 and 300 $2,500 awards every year. What are you waiting for?
5. Scholar Athlete Milk Mustache of the Year (SAMMY) Award

This award is offered to those who excel in leadership, community services, academics and sports and also sport a milk mustache. Milk does a lot of good both for your body and wallet isn’t it?
6. National Make It Yourself with Wool Competition

It is all about your favorite fabric ‘Wool’. If you have a flare for fashion and are good at designing woolen garments (100% or 60% blend) then it is high time that you participate in this competition.
7. The Tylenol Scholarship

Well, Tylenol not just relieves your headache but also your financial crisis in paying for your college education. Believe it or not, it is true. The Tylenol has distributed scholarships worth $250,000 to students across the nation.
8. The FBI Common Knowledge Challenge

Are you a person who loves collecting details about FBI? Well, then this challenge is for you. The FBI common knowledge challenge is about awarding a token gift of $250 to two high school students who will the quiz competition about FBI. I am sure you can make that.
9. The Calgon Take Me Away to College Contest

Open only for female applicants, this contest is open for students who need to answer two essay questions. Calgon, a body and bath products company offers $8,000 to students via this contest.
10. The Potato Industry Scholarship

If you are one who likes potatoes? Or even if you don’t, you can still apply for the Potato Industry Scholarship Program. An award of $2,000 is granted to two senior graduate students who are in the field of study related to potatoes.
11. The Fountainhead - The Ayn Rand Institute Contest

A scholarship reward of $10,000 is given to students who win the essay writing contest on The Fountainhead novel written by Ayn Rand. I wish I had such contest during my school days.
12. The American Welding Society Scholarships

This scholarship helps students who are interested in the craft of welding. This scholarship offers you the assistance needed to take up studies in welding, thermal spraying, brazing and soldering.
13. The Elks National Foundation Most Valuable Student Award

This scholarship is open to high school students, also to students who do not have a membership with elks. The scholarship amount varies between $1,000 to $15,000 offered to 500 students over a period of 4 years.
14. The Writers and Illustrators of the Future Contest

Scholarship offered to student authors in the field of science fiction. This scholarship is a blessing for Sci-Fi fans.
15. The American Association of Candy Technologists (AACT) Scholarship

A scholarship amount of $10,000 is offered to high school students interested in the confectionary technology.

With President Obama’s proposal to end the bank-based Federal Family Education Loan Program, there has been much speculation on what role would be left for banks in student loans, as well as which banks would be allowed to play that role. An announcement made yesterday by the Department of Education indicates that at least four banks will remain involved in federal student loans for the forseeable future.

The Department of Education has selected four companies to service loans made through the federal Direct Loans program. Sallie Mae, Nelnet, American Education Services/Pennsylvania Higher Education Assistance Agency, and Great Lakes Education Loan Services will all be awarded contracts of five to ten years to manage the increasing volume of student loans the federal government owns.

The servicers selected will be responsible for the student loans currently in the Direct Loans system, as well as loans the federal government has purchased as part of the federal rescue plan. If all federal student loans are moved into Direct Loans, these agencies will also service them. For now, what this means for student borrowers is that you may be dealing with different people if you have questions about your Stafford loans next year. However, if Congress eliminates FFEL, this news could become more significant.

Undergraduates can get financial aid in the form of grants and scholarships. In comparison to student loan, this is a much better option as when you get an approval for grants and scholarships, you do not need to repay it. In other words, you can concentrate fully on your studies without having to worry about any repayment.

Getting an Approval for Grants and Scholarships

Getting an approval for grants and scholarships is not that easy especially with so many students applying for it. You will only get an approval for grants and scholarships when you are ready to face challenges. Individuals who are mentally strong have a good chance of getting an approval. Even if your application is rejected three or four times, make sure that you don’t give up. To get a better idea of grants and scholarships, you can go for professional help.

College Money

By taking admission at college which is accredited by the US Department of Education, you will face no problem in getting an approval for financial aid. Colleges funded by US Department of Education have so much money to give to their students that competition is not so intense. To get information regarding colleges and universities funded by US Department of Education , it is quite vital that you read the prospectus of colleges carefully as that is where you are going to get all the information related to college. The significant thing about college money is that you do not need to worry about the interest rates and repayment schedule that is being set by the financial institution.

PLUS loan

You will only get an approval for PLUS loan when you take admission in a college which is recognized by the federal government. PLUS loan is backed by the full faith of the US government. You can PLUS loan through the Federal Family Education Loan Program and Federal Direct Student Loan Program.

FAFSA

Free Application for Federal Student Aid (FAFSA) can be termed as a form that should be filled by the undergraduates in order to get some sort of financial aid. These days, plenty of colleges and universities use information from the FAFSA for non-federal aid. To fill FAFSA form, you need to fill answers of various questions related to your finance.
In evaluating the Expected Family Contribution, federal government take a closer look at your family income and size. You do not need to answer any religion related queries in the Free Application for Federal Student Aid form.

Find below six top financial tips for new college graduates.

* For new college graduates, it is quite important that they shop around in the market and take quotes from at least ten lenders when taking student loan. There are some students that just accept the first loan offer. This is not the right way to go as your lack of knowledge may cost you plenty of money in the long run. By shopping around in the market, you will be able to make a much better decision in terms of selecting a loan package.
* To get loan at low interest rates and easy repayment schedule, new college graduates need to make sure that their credit rating is good. Improving credit rating takes time but if you are willing to put in your efforts, you will start availing benefits of it very early in the piece. To improve your credit rating, start paying all your dues on time and keep a keen eye on your monthly expenses. If possible, try to save some money on a monthly basis.
* If you have taken three or four student loans in order to complete your education then it is advisable that you go for a debt consolidation. With debt consolidation, your monthly installment and rate of interest is going to decrease appreciably. Another good thing about debt consolidation is that you only need to deal with one lender which is much easier to do rather than dealing three or four lenders on a monthly basis.
* With regard to student loan, you have two choices, private student loans and federal student loans. Getting an approval for Federal Student Loans is quite tough as so many students apply for it because of low interest rates and flexibility in terms of repayment schedule. If your federal student loan application is rejected, you should go for a private student loan. Although, you need to pay much higher interest rates in Private Student Loan but if your credit rating is good, you can get some discount from the lender.
* For new college graduates, it is quite important that they go for a loan package where they get a grace period facility. The best part about grace period facility is that during this period, there is no pressure on you in terms of repayment.
* Only take the services of a lender which is accredited by the Better Business Bureau. Instead of taking loan from a completely new lender, you should stick with your current lender.