How to Shop for Private College Loans

When shopping for private college loans, while it's tempting to choose one based on interest rates alone, it's best to compare them using the Annual Percentage Rate (APR). Unlike basic interest rates, which may not represent the true cost of the loan, the APR takes into account all associated loan costs such as finance charges and loan fees (except penalty charges such as late payment fees). The formula used for calculating the APR also takes into account deferment periods and repayment terms. Each of these factors can have a significant impact on the cost of a loan. The APR adjusts for each of these items, illustrating the true cost of borrowing for your education over the entire life of the loan.Additionally, since most lenders don't tell you what your actual interest rate will be until...

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How College Loan Interest Rates are Established

Private college loans have variable interest rates based on either the Prime or LIBOR (London Interbank Offered Rate) index. What does this mean?First, the interest rates on these loans fluctuate – rise or fall – in line with their relative index, Prime or LIBOR. As rates change, your monthly college loan payment will increase or decrease accordingly. To understand the frequency at which your interest rate is adjusted (i.e., monthly or quarterly), review your loan documents.Secondly, it's important to understand that the Prime or LIBOR rate is not all that matters. Don't focus solely on the index because the interest rate you will pay on your college loan is the value of the index plus a margin. For example:LIBOR (%) + Margin (%) = Interest Rate (%)Since private college loans are credit-based,...

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How College Loan Interest Rates are Calculated

The amount of interest charged on college loans is calculated as simple daily interest. Simply put, the outstanding principal balance is multiplied by the interest rate and divided by 365 days to calculate one day's interest amount. So, if you have a $10,000 loan, with a 7.00% interest rate, the formula would be $10,000 x 0.07/365 and the amount of interest that accumulates for one day would be $1....

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College Loan Interest Rates

Shopping for a private college loan can seem daunting. Chances are you want to find the most competitive loan out there but you feel overwhelmed by the financial jargon. This is normal and you can rest assured that Citi is here to help you by providing you the information you need to evaluate your optio...

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Private College Loans

Private college loans are a good way to provide you with the extra help you need to afford school when you've exhausted all low-cost funding options, including all financial aid and savings. Private college loans are designed to cover up to the full cost of your education, including unexpected costs such as additional tuition, fees, books, housing, and other costs not covered by your financial aid package or federal loa...

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Giving other people access

Giving other people access to your student finance account Sometimesyou might find it useful to let another person - for example, a parent or someone from your college - manage your student finance account or make enquiries on your behalf. Find out how this works and what you need to do.Different levels of accessStudent Finance England and the Student Loans Company are bound by the Data Protection Act, meaning that they can’t discuss details of your account with anyone else unless you give your permission.If you want someone else to have access to your account, you can give permission on one of two levels. You can either:•allow them to get information about your account, by providing 'consent to share'•allow them to make changes to your account, by giving them 'power of attorney'Allowing someone...

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Your student finance account

Your student finance account: passwords and Customer Reference NumbersTo access your secure student finance account, you’ll need your Customer Reference Number, password and secret answer. Signing in using these details means you’ll only see data that’s relevant to you – and that your personal details are protected. Make sure you keep all your login details in a place you can find them.Getting in touch with Student Finance EnglandWhen you apply for student finance, you’ll be issued with:•a Customer Reference Number (formerly known as an 'ART ID')•a password and secret answerYou’ll need these details when you log in to your online student finance account or contact Student Finance England over the phone.Keep your email details up to dateStudent Finance England will send new passwords and secret...

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Education and learning

Submitting evidence to support a student finance applicationWhen you apply for student finance, you’ll also need to send in some evidence – for example, to prove your identity. Depending on the type of finance you apply for, you and your parent(s) or partner may also need to submit some other evidence. Find out what to provide, why, and how to submit it below.Why you have to submit evidenceYour application can’t be processed until you (and your parents or partner) send in all the evidence you’re asked forProving your identityIf you’re applying for student finance for the first time, you’ll need to submit evidence of your identity. Student Finance England uses this evidence to check whether you’re eligible for finance – and to make sure that loans and grants only go to genuine applicants.Proving...

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how and when to apply

The quickest and easiest way to apply for finance if you’re studying full time is online. To apply online you need to set up a student finance account, complete your application online and send in any supporting evidence.Full-time students: apply for student financeFull-time students can apply for student loans, grants and bursaries by completing an application form online for the 2010/11 academic year.If you can’t apply online contact Student Finance England who’ll provide you with a paper application form.Students will be able to apply online for 2011/12 in early 2011.Register, login and apply online for student financeContact Student Finance EnglandFull-time applications: what you need to doStudent finance service updatesGet the latest information on student finance servicesService updatesRegister...

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How much will university

How much will university or college cost? Tuition fees and other expensesYou’ll need to consider tuition fees, accommodation and living costs when you go to university or college. There’s financial support available to help you with these costs.How much will your university or college course cost?Your main costs will be tuition fees, accommodation and living expenses.Costs will vary depending on where you study, so it’s worth doing some research on how much you’ll need to cover them - and on the help you’ll get through the government’s student finance package. Check with your university or college for more advice on living costs.Tuition feesFull-time coursesIf you’re a new student (or a continuing student who started your course in or after September 2006) the maximum tuition fees you’ll be...

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How Student Finance

How Student Finance England works out if you’re eligibleThe information on these pages doesn’t cover all circumstances, but it offers a general guide to the rules that are likely to apply if you normally live in England, are going to a UK university or college, and:•you're studying for a higher education qualification - such as an ‘undergraduate’ degree, or•you want to ‘top up’ a lower-level higher education qualificationEligibility is based on two checks: one on personal eligibility and one on course and institution eligibility. These checks are carried out by Student Finance England when you apply - or by your local authority, if you started in the 2008/09 academic year or earlier.Personal eligibilityStudent Finance England (or your local authority) will look at your immigration status or...

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Are you eligible

To qualify for financial help from the government, both you and your course need to meet some conditions – based on where you live, the type of course you’re doing and some other factors.Your eligibility will be assessed when you apply - but if you’re a full-time student starting in 2010/11 or 2011/12, you can enter your details into the Student Finance Calculator for an idea of whether you’re likely to quali...

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Eligibility for student finance

Student finance isn’t available to everyone - there are some conditions you need to meet. If you’re from England and studying in the UK this page provides a general guide to whether you’re likely to quali...

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Student Finance Calculator

If you are from England and are thinking of going to college or university in academic year 2010/11 or 2011/12, this calculator will provide you with an estimate of the financial support you could receive.The calculator gives an indication of what might be available for student loans and grants; as well as scholarships and bursaries from your place of study. The estimate is based on the information you give, so the more detail you can provide the more accurate the estimate will be.Note that the estimate you receive is not an offer of support and does not guarantee your eligibility to receive student finance. When you apply for finance, you will need to provide supporting evidence to help us make an accurate assessment. Student Finance England will tell you what evidence to send when you...

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