Jeff Mictabor asked:


Hopefully by now your child has decided which college to attend this fall, and you are beginning to formulate your financial strategy for how you will fund the college experience. An excellent option is the PLUS Loan or Parent Loans for Undergraduate Students, recommended by NextStudent, a leading Phoenix-based education funding company.

As long as your child is enrolled in school at least half-time, this federally backed student loan allows parents to borrow funds to cover such things as tuition, housing and meals and even books and supplies, up to the total cost of the student’s education, minus any other aid.

In order to be eligible for the PLUS Loan, both students and their parents must complete the Free Application for Federal Student Aid (FAFSA). According to NextStudent, parents cannot be turned down for the PLUS Loan based on too high or too low an income, because the student loan is not based on financial need or how much money parents earn. However, parents can be turned down for an adverse credit history. Once the FAFSA is submitted and reviewed by the government, parents will receive a Student Aid Report, which will allow them to apply for the PLUS loan. Applying for a NextStudent PLUS Loan is simple and easy and may be done either over the phone in as few as five minutes, or it may be done online using E-Signature.

Availability after Tuition is Paid Makes PLUS Loans Convenient

A welcome feature of the PLUS Loan is that it is available even when parents already have paid for their child’s tuition and other related educational expenses. Although the maximum interest rate on the PLUS Loan is set by the federal government, NextStudent offers many opportunities for parents to save money through incentives.

For instance, when borrowers fund their PLUS Loan through NextStudent and pay via auto-debit, they will receive a .25 percent reduction on their interest rate. In addition, after making 12 consecutive on-time payments, borrowers will receive a 3 percent cash rebate on their remaining principal balance, and a 2 percent rate reduction after 48 consecutive on-time payments.

Grad PLUS Loans Offered by NextStudent

A similar federal student loan product called the Grad PLUS Loan is available for those individuals who decide to pursue graduate or further professional studies and enables students to fund their education themselves. Again, students may finance the entire cost of their graduate work (minus federal aid) and use the funds to pay for any associated costs such as supplies, books and other materials. While the Grad PLUS Loan Program’s maximum interest rates are set by the federal government, just like with the PLUS loan Program, NextStudent offers many money-saving competitive benefits for those pursuing postsecondary education. An additional incentive is that students have the option of postponing repayment until after graduation. Additionally, like PLUS Loan borrowers Grad PLUS borrowers may be eligible for a federal student loan consolidation.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans, and Student Loan Consolidation.

Jeff Mictabor asked:


College students all over the United States probably have just gotten into the swing of summer, whether that means finally perfecting their golf swing, getting that deep tan, or acing the most recent quiz in summer school. In the midst of these activities and especially at this time of year, it is important to regroup and begin planning financially for the new school year, according to NextStudent, a leading Phoenix-based education funding company.

NextStudent EFAs Help Students Understand Awards

The best place to start is to review all the correspondence students have received, especially their award letters. This is the document that lists such important information as the actual cost to attend school (includes tuition, fees, room and board), available need-based federal aid such as subsidized Stafford Student Loans, non-need-based aid such as unsubsidized Stafford Student Loans and Parent Loans for Undergraduate Students (PLUS Loans), and the remaining out-of-pocket funds required.

Unfortunately, many times the award letters from colleges are somewhat difficult to understand, which may lead to confusion when students attempt to put together a strategic plan for funding their college dream. However, when students or their parents contact NextStudent, they will receive personal attention from their Education Finance Advisor. EFAs help students understand the types and amounts of fnancial aid for which they qualify, answer any questions, and then work with students to develop a strategy that best fits students’ needs.

Students Qualify for a Variety of Federal Funds

Students and their parents have an array of federal financial aid options to consider, depending on the type of aid for which they qualify. Some students may qualify for need-based subsidized Stafford Student Loans, whereby the government covers any interest on the student loan while a student is in school, the grace period following graduation, and any period of deferment. Other students may qualify for a non-need-based unsubsidized Stafford Student Loan, where interest is charged to the borrower during this same time period.

Another common type of federal aid is Federal Parent Loans for Undergraduate Students, known as PLUS Loans. These credit-based options allow parents to borrow funds to cover the education costs of their dependent children who attend college at least half-time as undergraduate students. Parents may borrow up to the cost of attendance, minus any other financial aid.

Frequently, parents find that they pay more for their child’s education than they anticipated. NextStudent offers Private Student Loans to supplement federal student loan sources. Many parents prefer these unsecured credit-based student loans to borrowing against the equity in their homes or other options to cover the remaining out-of-pocket college costs. NextStudent offers generous borrowing limits, quick preapproval, deferred principal and interest on most student loans, and no prepayment penalties. Funds may be used for study abroad and distance-learning programs in addition to traditional schooling.

Financial Aid Myths Dispelled

One fairly common misconception is the belief that a student does not qualify for ANY federal aid. In fact, even a student who does not qualify for any SUBSIDIZED federal aid will almost certainly qualify for an UNSUBSIDIZED student loan. NextStudent Education Finance Advisors are equipped to help students and their parents understand just these types of issues so that they can put together a plan that best fits the needs of the borrower.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.

Jeff Mictabor asked:


Chances are, all the college graduation parties are long gone and the celebration of recent graduates’ noteworthy achievements is yesterday’s news. Along with the receipt of the college degree come bigger responsibilities, like getting a job, finding a source of ongoing monthly income, maturing into a responsible adult, and meeting financial obligations. In the midst of transitioning from the campus lifestyle of a college student to that of a working individual comes the repayment of college student loans.

According to NextStudent, a leading Phoenix-based education funding company, for many parents and their children who have seen their college dreams fulfilled, repaying student loans is not a popular topic largely because many are unaware of the repayment process and accompanying options.

Grace Period Gives ‘Buffer Zone’

For most student loans, before repayment begins there is a grace period, which varies depending upon the student loan type. Students who have taken out Stafford Loans have six months following graduation before they have to begin repayment. Those with Perkins Loans have a full nine months before they must make their first payment. The only exception is those parents or graduates who have taken out PLUS Loans (Parent Loans for Undergraduate Students) or Graduate PLUS Loans, who already should have started repayment, required only 60 days after fund disbursement.

Virtually anyone who qualifies may defer their student loans in six-month increments for up to a total of three or five years. Borrowers may qualify for deferment if they are experiencing economic hardship, unemployment, or certain other conditions. Borrowers must apply for each deferment period. Since interest accrues during deferment, with the exception of subsidized Stafford Loans, it is wise to defer student loans only when borrowers cannot afford to begin repayment at that time.

Consolidation Among Repayment Options

Student Loan Consolidation is an excellent way to roll all student loans into one easy-to-manage package. With student loan consolidation borrowers are required to make a single payment once a month, instead of having to juggle multiple student loans, payments, interest rates and repayment terms. Through student loan consolidation many borrowers reduce their student loan payments by up to 60 percent and eliminate the headaches and hassles of dealing with their student loan debt in one easy step.

When borrowers consolidate with NextStudent, they will receive some of the best benefits and terms in the industry, along with customer service that is tough to beat. All borrowers receive their own personally assigned Education Finance Advisor who will explain the student loan consolidation process, outline their best options, and address any questions they might have.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.