Educational institutions also need to disburse funds to students as refunds for tuition reimbursement. Sometimes, refunds get gummed up as checks must be issued, taking time and costing the school money.

Electronic Funds

One company, Higher One, has been offering a payment system for colleges and universities, streamlining the electronic payment option to students. Since 2000, Higher One has dominated the market, but will soon be joined by student loan lender Sallie Mae whose own program launches this June reports “The Chronicle for Higher Education.”

That program, the “Sallie Mae No-Fee Student Checking account with Debit MasterCard,” is designed to disburse student refunds and financial aid on the same day the transaction is authorized. Students will be able to gain access to their funds immediately, avoiding the usual two or three day lag they may typically experience with their banks.

Sallie Mae Bank

Explaining the new program is Kelly Christiano, who leads the Campus Solutions and Savings businesses at Sallie Mae, “Sallie Mae has been helping colleges and universities focus on educating students rather than processing payments for more than a decade. Our state-of-the-art technology and 40 years of experience enables us to be the lowest cost provider in the market helping schools improve efficiency and saving students money.”

Sallie Mae has an advantage in that its Sallie Mae Bank, FDIC-insured at that, can give students fee-free access to more than 35,000 ATMs nationwide. That’s an advantage students want and need.

Administrative Relief

Like Higher One, the Sallie Mae program outsources a program once handled by universities themselves. Neither company publishes what its service costs schools, but given that its own staffing needs can be reduced or curtailed, one source of administrative headache is removed.

Higher One has a similar banking arrangement with The Bankcorp Bank, another FDIC-insured financial institution. Higher One administers its Debit MasterCard through its own operation.

Sources: Sallie Mae, Higher One and the Chronicle of Higher Education

Gallup Conducted Survey

Think you can't afford college? Think again! A recent Sallie Mae survey reveals that most Americans are coping just fine.

Sallie Mae’s How America Pays for College survey, which was conducted by Gallup on behalf of the student lending company, reveals some important finds including: 51% of families receive grants or scholarship funds to help cover college costs. In addition, 25% funded their education via federal loans, 12% through private education loans, while 5% used credit cards to pay for expenses.

The study was conducted this past March/April, as Gallup contacted 1604 college students and parents of undergraduates. 91% of those surveyed indicated that they deeply valued higher education, agreeing with the statement that college leads to a higher quality of life. This positive response comes despite difficulties paying for college during a stiff economic downturn when many people might reevaluate the importance of higher education.

Prioritizing College Funding

“Clearly there is no single way to pay for a college education, however, we are encouraged that the data confirms families follow the ‘1-2-3 approach’ that Sallie Mae has recommended for years: first, savings, scholarship and grants; second, federal student loans; and third, private education loans,” said Albert L. Lord, vice chairman & CEO. “Experience has taught us that when we counsel people to borrow wisely, students benefit from lower defaults.”

SayStudent.com offers a number of tools which can help families get a better grasp on how much college will cost and how to pay for it including the following:

Budgeting Worksheet – To help families to establish a college spending plan.

Cost Comparison – Compare costs between different colleges.

Spending Sheet – Determine where your college money goes.

Student Aid Worksheet – Helps you to keep track of your aid while in school.

In addition, SayStudent.com offers a number of student loan calculators to find the best loan deal available, if needed.

Adv. — Are you considering a career training or continuing education loan? If so, visit your Sallie Mae lender for more information or call them directly at 866-530-9523.

Now that it is August, colleges and universities across the country are gearing up for the upcoming academic year. As early as next week, freshmen students will begin showing up on some campuses, followed almost immediately by upperclassmen. Come Labor Day or a few days later, most colleges will be in session with students settled into dorms or off campus housing.

Getting from here (home) to there (college) can seem a bit daunting especially with students needing lug much of their earthly goods with them. In times past, students brought just enough stuff with them for the semester, but 21^st century college students now bring all of that and so much more.

To help you get ready for leaving home, we’ve compiled a list of resources you may want to tap in order to expedite the process. Please click on the appropriate list for more information and download sheets and charts that will help you stay organized.

Sallie Mae – The largest student loan lender may be able to help you out if you’re still needing to close the financial gap. Federal and private student loan opportunities available.

Moving Checklist – Keeping track of everything is much easier to do thanks to this handy and free off to college moving checklist.

Income Ideas – When you get to college, will you have enough money to live on? If not, then you’ll need to produce income; this web page gives you some ideas.

College Spending Sheets – Do you need to track your money flow? If so, college spending sheets can help you manage your money, enabling you to have enough funds on hand for the entire semester.

SayCampusLife will be offering additional tips and advice over the next few weeks as you get prepared to head off to college. In the meantime, please peruse these resources to help make this coming academic year the best one yet!

Unlike college programs which can take years to complete, training school classes can last as little as a few months while providing students with the training and certification needed to branch out to a new area. This means if someone wants to go to beauty school, they’ll need to eventually meet state licensing requirements in order to practice their trade.

The Cost Of Attending Training Schools

Different from colleges and universities, most student loan programs do not apply to schools which emphasize career training or continuing education. While costs per class may be lower than what State U. charges, retraining can set students back by hundreds if not thousands of dollars. Unless students have the funds on hand, then they’ll be forced to look elsewhere for assistance – enter career training or continuing education loans.

So-called “career training” or “continuing education loans” aren’t part of the traditional government and private student loan plan. Instead, both types of loans are treated as “consumer loans” the same types of loans that you would get if you wanted to borrow money to finance a new car, pay for your kid’s braces, or purchase new lawn equipment. This also means that it is up to the lender to establish the parameters of the loan which will typically require that borrowers be US citizens and have good credit.

How Much Can You Borrow?

But what if you don’t have good credit or if you don’t have any credit? In these cases, the lender may require a co-signer for your loan and/or charge a higher interest rate for monies borrowed. In addition, you may only be able to borrow the amount of money you owe for tuition less financial aid. This means that books, supplies and related expenses may or may not be covered. Most lenders will require at least interest only payments while you’re in school, making standard repayments when your education has concluded.

So should you take out a career training loan? That’s hard to say – if it brings you to a new career in the shortest amount of time, then this type of loan might be worthwhile for you. If this type of loan causes you to take on a deep amount of debt with little prospect for a new job, then you already know what that answer is.

Adv. — Are you considering a career training or continuing education loan? If so, visit your Sallie Mae lender for more information or call them directly at 866-530-9523.

There are two types of Federal Stafford Loans – subsidized and unsubsidized. Subsidized loans are needs based and interest does not accrue while students are still in school or during the sixth month deferment period after completing their education. In addition, if an authorized deferment is taken, interest is not accrued during that period either.

For unsubsidized student loans, interest accrues while the student is still in school, although payments do not begin until six months after they finish their education.

In order to qualify for a Federal Stafford Loan applicants must do the following as per the federal government:

• You must have submitted a FAFSA to be eligible for a Stafford loan. FAFSA is the “Federal Application For Student Aid” form.

• For subsidized Stafford loans, you must have financial need as determined by your school.

• You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.

• You must be enrolled or plan to enroll at least half time. If you receive a Stafford loan and don’t maintain your halftime status or if you quit your studies, then you’ll need to begin making payments on your loan six months later.

• You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program. Not all schools participate; check with your Bursar office to learn if they do.

• You must not be in default on any education loan or owe a refund on an education grant.

With a Federal Stafford Loan there is no set deadline for applying however students should note that their school could have deadlines imposed of their own. If you are approved for a loan, money will be sent directly to your school in two installments covering the fall and spring semesters. Funds can be used to pay for tuition, books, room and board, and other education related expenses.

Of course, there are other things you need to learn about a Federal Stafford Loan before you apply. Visit the Federal Stafford Loan site or Sallie Mae for information about these types of loans.

College is expensive, but you can find competitive loans to help pay for your education by comparing federal and private lending options.

Adv. — Are you considering a federal parent PLUS loan? If so, visit your Sallie Mae lender for more information or call them directly at 866-530-9523.

Loans For College

Student loans, including federal and private, are options worth exploring in order to cover college costs. But for some families, saddling their offspring with debt is what they don’t want to do, preferring to have the parents take on the debt themselves. After all, if you’re getting started in a new career, excessive debt can weigh you down.

Home equity loans, equity lines of credit and federal PLUS parent loans are some options available to borrowers, the latter which is the subject of this article. So-called “Parent PLUS” loans are not student loans. Instead, Parent PLUS loans are made between the parent(s) and the lender. Any student obligation to repay this type of loan is a family matter; borrowers who qualify for these types of loans are obligated to pay the loan back to the lender.

Dependent Children Only

Parent PLUS loans are open to parents of financially dependent children who are pursuing an undergraduate education. If your adult child is living independently of you, then you won’t be able to qualify for a Parent PLUS loan. This is a critical point worth noting if your son or daughter cannot be declared as a dependent on your federal tax return.

Parent PLUS loans are open to US citizens or nationals, to US permanent residents and in some cases to eligible non-citizens. Your lender can help you determine your eligibility before you apply. And, of course, like any type of consumer loan you must be deemed creditworthy in order to secure financing.

Federal Fees Apply

Borrowers may take out a loan for the full cost of their child’s education minus other aid money received. The federal government will charge an origination fee of 3% with a default fee of up to 1% charged. Repayment begins within sixty days of loan disbursement but lenders will often allow for the postponement of repayment to a later date, as late as six months after completing college; students must be enrolled at least half time during the loan period.

The interest rate for parent PLUS loans is currently fixed at 8.5%. This rate is higher than what some borrowers can get with a home equity loan, therefore it is important for you to explore your options if choosing this type of loan. However, unlike a loan against your home where monthly payments are due almost immediately, you can defer repayment on a federal parent PLUS loan for several years.

Whatever type of loan you are considering, please make certain that you understand what is required of you as a borrower. A federal parent PLUS loan isn’t for everyone, but it can be the right choice for some families.

Adv. — Are you considering a federal parent PLUS loan? If so, visit your Sallie Mae lender for more information or call them directly at 866-530-9523.

See Also — Sallie Mae And Your Student Loan

Nickname For SLM Corporation

Sallie Mae is the nickname for SLM Corporation, a publicly traded organization founded in 1972. Sallie Mae is the largest college student loan company, a business who issues federal backed loans.

Started out as a government sponsored enterprise or GSE, Sallie Mae later began privatizing efforts which led to its federal charter being terminated in 2004, officially severing its ties to the federal government. On an employee level, Sallie Mae regularly wins top corporate citizen awards and is a leader in college philanthropy and has been recognized for its business ethics. The company operates Upromise, the college savings plan and is the owner of CollegeAnswers.com, a portal for college planning.

Competitive Loan Terms Available

Sallie Mae operates what they call their innovative “Smart Option Sallie Mae Loan” which is designed to help students save money over the life of the loan, encourage responsible payment habits, reward good credit and features shorter repayment terms. While in school, students make interest-only payments with full payments kicking in after the six month school separation period has been completed.

Students must attend an eligible community college, four- or five-year college or university, or eligible graduate program at least half time. In some circumstances, the Smart Option Student Loan is available to less-than-half-time students. Minimum loan amounts begin at $1000; with low disbursement fees. No repayment fees are assessed.

Sallie Mae Provides A Way

Students who choose Sallie Mae loans usually do so after exhausting all other financing options. This is a good thing because the remaining funds needed for college can usually be obtained through Sallie Mae if approval is given.

As we draw closer to start of the academic year, SayCampusLife.com will continue to focus on borrowing options for students. We realize that this year may be especially challenging for some families, thus we’ll do our part to help keep you informed.

Oh, by the way, if you want to apply for a Sallie Mae loan just click on this link and you’ll be taken to the company’s application page. Or you can call Sallie Mae directly at 866-530-9523.

See Also – Private Student Loans Changing Under Sallie Mae

Defaulting Student Loan Rates

In yesterday’s issue of The Wall Street Journal, Student Loans: Default Rates Are Soaring, page D1, the newspaper noted that defaults on loans has been rising sharply with much of that blame assigned to the bad economy. Some lenders are reporting that defaults are up as much as 50% over recent years, underscoring just how difficult the problem has become.

If you’re unable to pay back your loans, take heart: there are some options that you can explore which can give you temporary relief. As the WSJ article noted your options include:

• Forbearance. This allows borrowers to put payments on hold, though they are on the hook for the interest that accrues.

• Interest-only payments. Borrowers can defer other payments until a later date.

• Increase the borrowing period. Allows borrowers to lower their monthly payments.

If you are running into problems making payments, you should contact your lender as soon as possible. Do not make the mistake of putting off or avoiding the problem; the sooner you address what is going on the better.

Student Loan Forgiveness

While some borrowers may be looking at having their student loans forgiven, the likelihood that a lender will permit that is virtually non-existent. However, if you decide to take certain career paths, you could find that all or part of your loans can be forgiven. Specifically, if you

• Perform certain volunteer work;
• Enter military service;
• Teach or practice medicine in certain types of communities; or,
• Meet other criteria specified by the forgiveness program…

…then you may be eligible for student loan forgiveness. Don’t assume that your loans will be forgiven; talk with your employer to learn what policies are in place.

Adv. — Are you looking to launch your new career this year? SayMyCareer.com has everything you need to get started! Career Assessments, Finding Your Career, Building Your Career, Job Search, Get Educated, and much more. Free and easy to use — check us out today!

Established in 1972, SLM Corp. began to privatize its operation in 1997, reaching full independence from the federal government in 2004. Today, the company helps more than ten million students and borrowers, servicing well over 100 billion dollars in loans.

Consumer Warning Network Speaks Out

A consumer watchdog group, Consumer Warning Network, has been taking Sallie Mae to task for outsourcing thousands of jobs overseas. Currently employing more than 12,000 people, Sallie Mae has been sending jobs to India and the Philippines even as it receives the benefit of federal support in the form of subsidized loans.

Thanks to consumer pressure, Sallie Mae has reversed course and plans now to bring as many as two thousand jobs to the United States. According to the Consumer Warning Network, the company’s change of heart came about as it seeks a federal contract worth at least $200 million a year. Given the current economic and political climate, it is unlikely that companies with offshore operations could win the work, given the “challenging” personnel and system security requirements, said Chris Greene, a spokesman for the U.S. Department of Education in response to questions from the Consumer Warning Network.

Additional Student Loans Will Need Stateside Servicing

President Obama recently proposed fundamental changes to the education system that would increase the number and volume of federal student loans that need servicing. The servicing will likely be done by the private sector, said Mike Whisler, the administrator overseeing the new education contract.

Despite record unemployment in the United States, Sallie Mae, the country’s largest student lender, routes payments, complaints and applications for these loans as well as their sensitive personal and financial information to processing centers in Bangalore and Pune, India. It also directs loan questions to Baguio in the Philippines.

Adv. — Is your family experiencing a financial shortfall this academic year? Scholarships, grants, 529 money, and part time work may not be enough. Learn about private student loans by visiting SayStudent.com, your portal for college financial assistance. We have free tools for your download and updated information about current college financing requirements.

This new loan arrangement, which will begin on March 23rd, is designed to help borrowers reduce their overall loan interest, but the move will also make it more difficult for some students to qualify for a loan, especially when financial aid options are limited.

Repaying Student Loans While Still In College

Sallie Mae’s move flies in the face of what students usually expect when borrowing money to pay for college. Instead of deferring making payments until after they graduate, students will have to begin making interest only payments while they are still taking classes. According to Sallie Mae, the move will actually help students save on interest expenses, while also shortening the loan repayment terms from five to fifteen years. Up to now, Sallie Mae private student loans could be repaid between fifteen and thirty years.

Students who have been scrambling for funding to aid with college are likely to find Sallie Mae’s moves to be unsettling. Private student loans already carry higher rates than harder to get federal loans, therefore the shorter repayment times will mean that borrowers will have to pay higher amounts each month for their loan payments. That move will put private lending out of reach for more students, perhaps making it impossible for some to attend college.

Fewer Loans Thanks To Tougher Lending Requirements

As recently as last year, college students flocked to private student loans, finding them much easier to get than federal Stafford loans. However, when credit markets tightened, private lenders left the business in droves while the remaining lenders strengthened their lending requirements.

Students who need funds may want to consider Parent PLUS loans which have been changed to allow parents to begin making payments after their children finished school. Previously, that loan option required payments to begin within sixty days of the loan’s issue. In addition, applying for college scholarships can help lower costs too.

See also: Setting up a college budget

Source: Sallie Mae