Student Educational Loans — Information for Parents

We'll guide you through it, one step at a time.

Investing in your child’s education is one of the biggest financial decisions you can make. Tuition costs have increased more than 35 percent in the last ten years, and continue to rise at an average of 6 to 7 percent each year. For many families, the college application period is stressful and filled with anxiety. Whether you’ve saved for college or you’re starting fresh, we help find loans that work for and with you.

The bottom line:

There are two types of loan packages—Government sponsored and non-government sponsored. The most popular loan package of the government sponsored programs is offered through the Federal Family Education Loan Program (FFELP). These loans are generally awarded by a private company like StuFund and are based on family income and student need. Because the FFELP loans are subsidized by the government they have very attractive terms and low interest rates. To apply you and your child must complete the Free Application for Federal Student Aid (FAFSA) form and supply detailed information about your family’s financial situation. This information is forwarded to your child’s school and is used to determine eligibility for government sponsored loans as well as other need-based financial aid such as grants, scholarships and work study programs.

Features of the Government Sponsored Loans:

• Need based loans used for tuition, fees, books, and certain living expenses
• Subsidized interest rate and fees
• Maximum loan amounts usually below total education costs
• Must complete the FAFSA form to apply for federal loans as well as need-based grants, scholarships, and work-study programs.
• Strict application deadlines

For many students, however, government sponsored loans won’t cover the total cost of education. The difference can generally be made up by non-government loans provided by private lenders like StuFund. The interest rates on non-government loans are competitive and the repayment terms are flexible. If you have good credit, you’ll be able to secure a lower interest rate and lower monthly payments for your child as a co-signer on the loan. Your child can request as much as he or she will need, get instant pre-approval on-line or over the phone. There are no application deadlines for you to meet and you can even apply mid-semester if funds are needed. The FAFSA form is not required to apply for non-government loans, but we encourage families to apply for the government sponsored loans first because of their lower cost.

Features of the Non-government Sponsored Loans:

• Loans approved based on credit, not need
• Loan proceeds can be used for all educational expenses, including discretionary living expenses
• No application deadlines
• Flexible repayment options
• Competitive interest rates and terms