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ALTERNATIVE LOAN COMPARISON WORK

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ALTERNATIVE LOAN COMPARISON WORK Powered By Docstoc
					                                Alternative Loan Comparison WORKSHEET
Alternative Loans generally have higher interest rates than fixed-rate Federal Stafford, Federal Perkins, Federal Parent PLUS and Federal Graduate
       PLUS Loans and should be considered only when all other eligibility has been exhausted. Interest begins to accrue at disbursement.
                                You may choose any lender. Use this worksheet to compare lenders and loans.
                          See the bank or credit union of your choice for more information on private education loans.

 LENDER/LOAN:                                                                      FEDERAL PLUS LOAN                        Lender:              Lender:

 APPLICATION:          How do I Apply?                                      Apply through the Financial Aid Office
                                 Loan Maximum: Estimated Cost of Attendance minus all other aid, including scholarships, work-study and all other loans.

 INTEREST RATE         Is the interest rate VARIABLE or FIXED?                              FIXED
 TERMS:                How often does the variable rate change?                       NEVER CHANGES
 As of 1/2010:
 Prime Rate =          What interest rate index determines my rate?    Federal legislation determines federal loan rate
 3.25%,
 3-month LIBOR =       Is there an interest rate cap?                                        7.9%
 0.25%,
 One-month LIBOR                                                      No, but if denied a loan, an endorser may help you
 rate = 0.23%          Will a co-signer reduce my interest rate?
                                                                                             qualify.

 MY INTEREST                                                                            7.9% Fixed
                       What will my current interest rate be?
 RATE:                                                                May be reduced to 7.65% if enrolled in auto-debit.

 LOAN FEES:            What are the loan fees?                                   2.5% (includes 1.5% rebate)

                       When do I start making payments?                 Payment delayed while enrolled. Interest is
 REPAYMENT:            Can payments be delayed until I graduate?           capitalized when repayment begins.

 IMPORTANT: Some Are there any repayment benefits?                        Eligible for federal loan consolidation,
 lenders require you                                                    deferments, forbearances, income-based
 to make payments Is there an interest-rate reduction if I sign up     repayment, loan forgiveness programs, and
 while in school.                                                                loan cancellation benefits
                     for auto-debit?
                                                                        0.25% Interest Rate reduction with auto-debit

 ELIGIBILITY:                                                           Must file the FAFSA and be credit eligible. Not
                       What are the credit requirements?                based on credit score. Credit eligibility is more
 Some lenders have                                                             lenient than most private lenders.
 stricter credit
 requirements than     Do I need to be enrolled at least half-time?          At least ½-time enrollment required.
 others and will
 base your interest
 rate on your credit   Do I qualify as a non-US citizen ?                Must be a US citizen or eligible non-citizen.
 rating or program
 of study.

                       OFFICE OF STUDENT FINANCIAL AID
                       Welcome Center • 42 West Warren Ave.• P.O. Box 02340 • Detroit, MI 48202 • (313) 577-3378 • Fax - (313) 577-6648 • www.finaid.wayne.edu

				
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posted:3/25/2011
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