Question 1

Am I Eligible to Refinance or Consolidate my Student Loans

Accepted Answer

Student loan refinancing and student loan consolidation are different methods of debt restructuring, and have different eligibility criteria. Private student loan refinance requires approval from a private student loan lender.

Question 2

How to Apply for a Federal Direct Stafford Student Loan?

Accepted Answer

You need to file the FAFSA (Free Application for Federal Student Aid) before you can take out federal student loans, including Direct Loans (sometimes called Stafford Loans) and Perkins Loans.

Question 3

Are Scholarships Taxable

Accepted Answer

Generally, scholarships are not taxable income. In some instances, scholarships can be considered taxable income. That makes this question somewhat tricky to answer.

Question 4

Are there Credit Cards if you Have No Credit

Accepted Answer

Indeed there are. A number of companies are willing to help you start building your credit through the use of a student credit card, even if you have no proven track record or robust credit score to date.

Question 5

Are There Options for Private Student Loan Forgiveness

Accepted Answer

Borrower benefits, like forgiveness, vary by lender. Before you obtain a private student loan, it is recommended you review the terms and conditions for each loan you are considering.

Question 6

Are Trade Schools Worth It

Accepted Answer

Trades schools are a great option if you are looking to get working in your field sooner. Trade schools can also cost less than a traditional 4-year college potentially saving you money in tuition.

Question 7

What is the average student loan debt?

Accepted Answer

The average student loan debt for a bachelors degree is $36,510 and the average student loan debt for a masters degree is $71,318

Question 8

What are the benefits of consolidating federal student loans?

Accepted Answer

Federal consolidation loans allow borrowers to combine several federal student loans into one loan to streamline loan repayment. The monthly payment amount may decrease because repayment can be spread over a longer time period.

Question 9

Can a Cosigner be Removed from a Student Loan

Accepted Answer

If you cosigned a student loan and now would like to be removed, you and the borrower of the loan have three options: a cosigner release, refinance or consolidate the loan, pay off the loan.

Question 10

Can I Consolidate my Loans with my Parent Loans

Accepted Answer

No. Students may not include their parent’s Parent PLUS Loans in their Direct Consolidation Loan. However, if you are looking for options to transfer your parent's PLUS Loans to your name, this can be accomplished through a private student loan refinance.

Question 11

Can I Consolidate Private Student Loans Through the Government

Accepted Answer

At this time, you cannot consolidate private student loans through the government. But it is possible to consolidate private student loans by refinancing multiple student loans into one new loan. Refinancing is done through a private lender.

Question 12

Can I Consolidate Student Loans with my Spouse

Accepted Answer

You will not be able to consolidate your federal student loans with your spouse through the federal consolidation program (they ended the spousal consolidation option several years ago). However, some private lenders do allow spouses to combine their student loans when they refinance. Check with your lender to see if this option is available to you.

Question 13

Can I Get a Student Loan for a Certificate Program

Accepted Answer

Yes, some private student loan lenders offer options for students who are seeking professional training and trade certificate programs.

Question 14

Can I Lower my Interest Rate after Consolidation

Accepted Answer

A Direct Consolidation Loan provides auto-debit interest rate discounts for making automatic monthly payments by direct debit from a bank account (ACH). The interest rate reduction will be 0.25%.

Question 15

Can I Pay Off a Credit Card with my Student Loan

Accepted Answer

The short answer is nope, you shouldn’t do this. Student loans are intended to cover educational related expenses such as tuition, fees, textbooks, housing.

Question 16

Can I Pay Student Loans with a Credit Card

Accepted Answer

If you are looking to repay your federal student loans with a credit card, the answer is simple, no. Federal student loan services will not accept credit card payments for federal student loans. If you are a private student loan borrower, your lender may allow you to pay your student loan with a credit card.

Question 17

Can I Postpone Payments on a Student Loan

Accepted Answer

Federal student loans, including Direct Consolidation Loans, offer borrower benefits such as deferment and forbearance. As long as you meet the criteria and have not used up all your time, you may be able to temporarily postpone payments on your loans.

Question 18

Can I Refinance my Student Loans

Accepted Answer

While you can refinance your federal student loans, keep in mind, if you do refinance your federal loans with a private lender, you will lose the federal benefits on those loans.

Question 19

Can I Refinance my Student Loans After Consolidation

Accepted Answer

In most cases, yes you can refinance your student loans after consolidation. If you previously refinanced your student loans through a private lender, you can refinance again with or without including any eligible new loans. It is advisable to go through the entire process again, from comparing lenders, to choosing a lender and applying. This will help ensure you get the interest rate and terms that are right for you.

Question 20

Can You Consolidate Student Loans From Different Lenders

Accepted Answer

Yes, you can consolidate (i.e., refinance) student loans from different lenders. When you apply to refinance your loans with a private student loan refinance lender, you can include all existing loans you may have, regardless of the lender.

Question 21

Can You Get A Scholarship While In College

Accepted Answer

Yes, you can get scholarship while in college. Most scholarships will not cover all the costs of education each year, so it’s good practice to regularly apply for scholarships you qualify for throughout your college years to help subsidized the cost the costs of school.

Question 22

Can You Pay for College with a Credit Card

Accepted Answer

Can you use a credit card to pay for college expenses? Just because you technically can does not necessarily mean you should. If you’re considering the pros and cons, here are some things to add to your evaluation.

Question 23

Can You Use Unofficial Transcripts for a Scholarship

Accepted Answer

It’s ultimately up to the scholarship provider. If you are applying for a  merit-based scholarship (i.e. grade-based) you may be required to provide an official transcript opposed to an unofficial transcript as decisions are made based upon the information, namely your GPA, as stated on your transcript

Question 24

What are the credit requirements for Grad PLUS loans?

Accepted Answer

The primary credit requirement of a Grad PLUS Loan is that the borrower must not have an adverse credit history.

Question 25

What's the difference between scholarships and grants?

Accepted Answer

Both scholarships and grants are forms of gift aid, which is money for college that does not need to be earned or repaid. Although people often use the terms scholarships and grants as synonyms or interchangeably, there are important differences.

Question 26

Are there any repayment discounts for private refinance loans?

Accepted Answer

Some lenders provide auto-debit discounts for making automatic monthly payments by direct debit from a bank account. Typical discounts include an interest rate reduction of 0.25% or 0.50%.

Question 27

DO AP Scores Matter in College Admissions

Accepted Answer

A high AP score of 4 or 5 will definitely look good on your transcript, as would any other high score, but there are other factors that college admissions officers may consider with more weight such as your high school GPA, standardized test scores (such as SAT or ACT) as well as your personal statement essay.

Question 28

Do Private Student Loans Build Credit

Accepted Answer

Whether or no private student loans build credit depends on you. If you make all of your payments on time, your credit may improve over time. Late and missed payments may damage your credit.

Question 29

Do Private Student Loans Offer Cosigner Release

Accepted Answer

Some lenders offer cosigner release as an option on their private refinance loans. Typically, these require 12, 24, 36, or 48 months of consecutive on-time payments by the primary borrower.

Question 30

Do Private Student Loans Require Good Credit

Accepted Answer

Good credit is preferred by all private student loan lenders. In general, private student loan lenders are looking for borrowers to have FICO® a credit score of at least 680, a decent debt-to-income ratio, and at least two years of work history.

Question 31

Do Valedictorians Get Full Scholarships

Accepted Answer

While valedictorians certainly have impressive academic achievements and may very well have many other stand-out qualities, this does not ensure they will receive a full scholarship.

Question 32

Do You Have to Pay Back the FAFSA®

Accepted Answer

The FAFSA application is used to determine a student’s eligibility for federal student aid, it’s free to complete and submit. Based on the information provided on the FAFSA, you may be offered a federal student loan, if accepted, you will have to repay the loan.

Question 33

Do You Have to Pay for Community College

Accepted Answer

Yes, you do have to pay for Community College, but it typically will cost less than a 4-year college. In-state residents get the best tuition rates, so it would be beneficial to attend a community college near where you live to take advantage of the in-state discount.

Question 34

Does a Private Refinance Loan Have to be Approved by my School

Accepted Answer

No. Private refinance loans are not school-certified since they refinance existing loan debt.

Question 35

Does Harvard Give Scholarships

Accepted Answer

Yes, Harvard does give scholarships. The scholarships offered to undergraduate students are based upon demonstrated financial need and will cover 100% of the need that is determined.

Question 36

Does Private Student Loan Refinancing Affect My Credit Rating

Accepted Answer

Refinancing can increase or decrease your credit score, or it may remain unchanged. Refinancing reduces the number of outstanding loans, but the total amount of loan indebtedness does not change. If refinancing reduces your monthly payment through a longer repayment term, it may improve your credit score.

Question 37

Does the Military Pay for College

Accepted Answer

Yes, the military does have programs that you can take advantage of to help pay for college. For qualified active-duty personnel, the Military Tuition Assistance program can pay up to 100% of your tuition.

Question 38

What is the Difference Between Federal and Private Student Loans

Accepted Answer

The main difference between a federal student loan vs a private is that federal student loans require you to complete the FAFSA and come with fixed interest rates.  Private loans may have fixed or variable rates and do not require the FAFSA.

Question 39

What should I do if I filed the FAFSA, but got no aid?

Accepted Answer

Some students will file the FAFSA, but won’t qualify for need-based student aid such as grants, scholarships that require financial need, and subsidized federal student loans. For example, more than half of undergraduate students who file the FAFSA don’t qualify for a Federal Pell Grant or other federal grants. But you do have options if you didn’t receive any need-based aid.

Question 40

How to Pay for Grad School

Accepted Answer

To qualify for federal, state, and college financial aid for graduate school, you have to submit the FAFSA (Free Application for Federal Student Aid). The FAFSA is required to receive federal and state grants and scholarships, as well as federal student loans, including Perkins Loans, Direct Unsubsidized Loans, and Grad PLUS Loans.

Question 41

How Do Credit Cards Work

Accepted Answer

In a nutshell, credit cards allow you to charge purchases so you don’t have to spend cash up front. In exchange for that convenience, the credit card issuer charges interest when you repay what you’ve charged on the card, if you don’t pay the balance in full as dictated by the billing statement.

Question 42

How Do I Apply for a New Credit Card

Accepted Answer

First, check your credit report and credit score. Go to https://www.annualcreditreport.com to get a free copy of your credit report, next decide why type of card you want, then start shopping.

Question 43

How Do I Apply for the FAFSA®

Accepted Answer

Most people apply for the FAFSA online at StudentAid.gov . While it might be easier to fill out on a computer, it can be also be filled out through the mobile app called myStudentAid, or by filling out the paper FAFSA application and mailing it in.

Question 44

How Do I Calculate APR on a Credit Card

Accepted Answer

This is an important concept to nail down. The APR, or annual percentage rate, is the cost of credit conveyed as an annual rate. But what you really need to understand is the daily periodic rate. Most credit card companies use a method called Daily Balance which means interest is compounded daily.

Question 45

How Do I Find a Private Student Loan Lender That Works With My School

Accepted Answer

One way to find a private lender that works with your school is to contact your school’s financial aid office, you can also enter your school on the home page of Edvisors.com to see a list of lenders that work with your school.

Question 46

How Do I Locate my Student Loans

Accepted Answer

It is always best to determine if you have federal or private student loans, and who services them before you start the refinance or consolidation process. To find your federal student loans log into your My Federal Student Aid account with the U.S. Department of Education. For private student loans request your free annual credit report at AnnualCreditReport.com.

Question 47

How Do I Refinance or Consolidate my Student Loans

Accepted Answer

To refinance your student loans, you need to find a lender that offers student loan refinancing. If you choose to combine your loans into a Direct Consolidation Loan, you will need to submit an application to StudentLoans.gov.

Question 48

How Do I Spot a Student Loan Scam

Accepted Answer

There are some distinct methods student loan scammers use: they ask you to pay up-front fees, they charge monthly fees which are not part of your loan repayment, they promise you immediate, or some sort of loan forgiveness and more.

Question 49

How Do I Start a College Essay

Accepted Answer

The best way to start an essay is with a brainstorming session. Consider the topic, whether the topic is you (your personal statement) or an essay on any other topic that was prompted in the application. Write down your thoughts freely, structure is not important, getting all your thoughts down is what matters most.

Question 50

How Do I Transfer a PLUS Loan to a Child

Accepted Answer

If you want your child to take over responsibility of repaying a Parent PLUS loan, your child has the option to refinance the loan into his or her name. Your child will need to meet the eligibility criteria of a student loan refinance lender. If your child is unable to meet the credit criteria of the lender, he or she will have the option to add a creditworthy cosigner.

Question 51

How Do I Write a College Admissions Essay

Accepted Answer

Writing a college admission essay is your way to show college admissions officers that you can write well, but more important than that, your essay is your chance to share something about yourself that isn’t identifiable through your transcripts, activities, or other test scores.

Question 52

How Do Lenders Calculate Student Loan Payments

Accepted Answer

Student loan payments are calculated based upon the terms of your loan. This will include your interest rate, the repayment term of your loan (i.e. the number of years you agreed to pay the loan back within) and the current outstanding balance on your loan.

Question 53

How do student loans work: what you need to know

Accepted Answer

Most college students will have to borrow one or more student loans before they graduate, because there aren’t enough government grants to cover all college costs. There are more than $100 billion in new student loans made each year and more than $1 trillion in student loan debt outstanding.

Question 54

How Do You Become a Member of a Credit Union

Accepted Answer

To become a member of a credit union you generally need to have some specified affiliation, such as be a member of a certain group, work for a certain employer or live in a specific geography.

Question 55

How Does College Work

Accepted Answer

College provides an education tailored help you enter and establish a career in a given field. Dependent upon what you are hoping to achieve, you can pursue a certificate or non-degree program,2-Year Associates degree,4- Year Bachelors degree or a Graduate degree (typically a Bachelors degree plus 2 or more years of specialized studies).

Question 56

How Does Cosigning a Student Loan Affect My Credit

Accepted Answer

If you decide to cosign a student refinance loan, you are equally responsible for that debt. The debt will show on your credit report, and lenders may consider the cosigned loan(s) while approving you for other types of credit.

Question 57

How Hard is it to Get a Full Ride Scholarship

Accepted Answer

Full ride scholarships are somewhat rare with less than 1% of college students receiving one. That’s not to say it’s too difficult to even try to win but those who diligently strive towards a full-ride scholarship will have a stronger chance of obtaining one than someone else simply hoping to be awarded one.

Question 58

How late can I apply for a student loan?

Accepted Answer

Students can apply for a federal student loan and parents for a Federal Parent PLUS loan up until the last day of classes or June 30 of the academic year, whichever comes first. However, the student must have already filed the Free Application for Federal Student Aid (FAFSA) and the college financial aid office must have received a valid output document, such as a Student Aid Report (SAR) or Institutional Student Information Record (ISIR).

Question 59

How Long Does it Take for the FAFSA® to Process

Accepted Answer

It will take 3-5 days to process the FAFSA for online applications submitted on StudentAid.gov or through the myStudentdAid mobile app. Paper applications can take 
7-10 days to process upon submission.

Question 60

How Long Does it Take to Get a Private Student Loan

Accepted Answer

The exact amount of time it takes to get a private student loan will vary by lender, school, and time of year. Generally, the process can take as little as two weeks and as long as two months.

Question 61

How Long Does it Take to Refinance or Consolidate my Student Loans

Accepted Answer

A private student loan refinance and a federal student loan consolidation will typically take 30 to 60 days. While you wait, you should continue to make your payments.

Question 62

How Long is a College Essay

Accepted Answer

College essays can be few as 200 words or as many as 800 words depending on the school’s individual requirements. Typical essays are between 250 and 600 words. Expect your personal statement essay to be at least 500 words while other prompted essays might only be 300 or so words.

Question 63

How Long is the Repayment Period

Accepted Answer

A private student loan refinance repayment terms vary by lender, and can be anywhere from 5 to 20 years. The Standard Direct Consolidation Loan repayment period is determined by your total education debt, which considers both federal and private student loan debt. In your application you can report the amount of your private student loans, even though you can't include the actual loans in your consolidation.

Question 64

How long does it take to repay a student loan?

Accepted Answer

The standard repayment term on a federal student loan is 10 years. The repayment term on private student loans vary from 5 years to 15 years.

Student Aid FAQ