Wednesday, January 6, 2010

US Department of Education Loans

The US department of education loans provides financial services for people in need of it.
The Federal Family Education Loan Program (FFELP) is the largest federal source of financial aid for college education.
The FFELP was created by Congress in 1965 to deliver and administer guaranteed us department of education loans for students and their parents. The program has provided more than $416 billion in us department of education loans to more than 50 million people across the USA.

Some of the US department of education loans available include the PLUS loan for parents. This particular form of us department of education loans allows parents to borrow the total cost of their child�s undergraduate education.

Stafford us department of education loans supplies nearly $40 billion in aid for college students every year. These us department of education loans are given to students who demonstrate financial need.
The federal government pays the interest on these loans while the student is in school, making this an ideal choice for students who are earning little or no money themselves.

If a student gets one of the FFELP us department of education loans, the student and the school's financial aid office select a lender together. The lender is willing to make the loan despite the student's lack of employment because a guarantor stands behind the loan.
The guarantor may also help the school apply the proceeds to the student's tuition, fees and other expenses, and delivers the remaining balance to the student.

Six months after the student leaves school, repayment on the loan begins. FFELP borrowers can select from several flexible repayment options, including equal monthly installments, payments that gradually rise over the repayment term, payments linked to the borrower's current income, and extended repayment terms. Borrowers who face temporary financial problems may qualify to defer or reduce their loan payments for a designated period.

Most us department of education loans borrowers make their loan payments on time. If payments become two months or more overdue, the lender will contact the guarantor and they will attempt to prevent the borrower from defaulting on the loan.

US department of education loans are a fantastic way for students to receive money in their greatest time of need, without the worry of paying high interest rates until they gain employment.