I guess my earlier lesson bears repeating.  You may select the lender of YOUR CHOICE when it comes to Federal loans at FFELP schools (provided your lender disburses federal loans of course).  The school will be held liable and subject to fines and other sanctions if they  block you or do not certify your loan.

Flex some muscle.  Don’t let the FAO tell you otherwise.

The law and regulations clearly prohibit institutions from refusing to certify a loan based on the borrowers choice of lender. Section 432(m)(1)(B)(ii) of the Higher Education Act of 1965, as amended (HEA). The Department’s regulations at 34 CFR 682.603(e) further provide that the limited authority under which a financial aid administrator may refuse to certify a Stafford or PLUS loan does not include the borrower’s selection of a particular lender or guaranty agency.

Furthermore, a school’s failure to comply with these requirements may result in the Department of Education imposing a fine or taking other administrative actions.

So if your FAO refuses to certify your loan based on the lender just quote the Higher Education Act of 1965. That will send chills down their quivering spine!

The simple fact is many lenders charge fees ranging from 1-2%. Fee’s are about the only thing these days which delineate one lender from another. The interest rates are fixed and can not be negotiated, but fee’s can fluctuate.

Here at staffordloan.com we work with Discover Student Loans on undergraduate Stafford loans and are happy to inform you that we waive the fees for you! There are zero fees! The application process is quick and easy. Just make sure to complete your FAFSA first!

To apply now (click here).

If you’re like me when I was 18 you may be thinking, “Whatever, 6%, 6.8%, or 10% I don’t really care. I’ll worry about the bill later.” And if that is the misguided logic you operate under than shame on you. I wish I could go back in time and kick my own fanny. I was a complete nitwit! Now clarity of thought and not naivety of youth serves as my ally. That said, the financial ramification of my poor decisions when I was younger still looms heavy over my head today. I want better for you.

Below is a cost comparative between student loans at 6.0% versus student loans at 6.8%. You may be surprised by the amount of money you save over a 10-year period.

As you can see that’s a $2,200 savings over the standard 10-year loan term assigned to federal loans with the lower 6% interest rate. That said most students don’t pay off their loans within 10 years. Many students choose to consolidate after school to lower their monthly payment. Consolidating extends your loan term which does minimize your monthly payment in the short run but you pay back more in the long run.

For example if you have $45,000 in loans you may extend your 10-year loan term to a 25-year term. The cost disparity in that case jumps from $2,200 to over $6,700! It doesn’t take much to get that ball rolling in the wrong direction.

The fact is you are in a better place today than you were one year ago at this time. Take advantage of the lower 6% interest rate! I am the best kind of hypocrite. I did everything wrong so you could everything right.

Apply now for a Stafford Loan and take advantage of the low rate!

If you’re a member of www.ScholarshipPoints.com you can use the code SAVSHOWME to earn 15 scholarship points.

As many of you have probably heard, countless nonprofits, major banks, and government agencies stopped offering federal loans, like the Stafford loan. With less lending sources available it doesn’t take a genius to figure out its more difficult and time consuming to get the funds you need these days. So where can you go to get your Federal Stafford Loan? Right here! Your search is over. Here at The Student Loan Network we’ve got you covered. Just click Stafford loan and complete your online application today. It’s fast and easy!

So that answers the first half of our equation, how I can show you the money, but how can I save it for you?

Some educated consumers ask me, “What are the fees on your Stafford loans,” to which I gleefully reply – we have none! Many lenders in the industry charge a 2% fee on Stafford loan applications (1% origination fee and a 1% guarantor fee). It is perfectly understandable too given these difficult times, but I’m pleased to inform you that we have waved the 2% fee for you. What that means is if you get approved for $5,500 than we send all $5,500 to the school on your behalf. Nothing comes off the top. That’s how we can “Save you the money!!!!”

So now I’ve showed you how to get the money for school and how you can save it. Hey Cuba, calm down over there. We’ve got everything under control.

Filing your FAFSA takes a relatively short amount of time for the benefits it delivers - file today if you haven’t already done so.

Stafford loan for $2625 from 2005 @ 6.62% variable

Stafford loan for $3500 from 2006 @ 6.62% variable

Stafford loan for $5500 from 2007 @ 6.8% fixed

Stafford loan for $5500 from 2008 @ 6.8% fixed

So on July 1, 2008, the loans at 6.62% will drop to 3.6%, but the loans at 6.8% will remain the same. If you consolidate the 4 together, the weighted average rate will be 5.75%…for the life of the loan. This model is only true for those in their grace period.

If all your Stafford loans are at 6.8%, you will not be affected by the rate drop whatsoever.

Variable rate Stafford loan disbursed prior to July 1, 2006, that is IN GRACE (IG) = 3.6%

Variable rate Stafford loan disbursed prior to July 1, 2006, that is IN REPAYMENT (RP) = 4.21%

Variable rate Parent plus loan disbursed prior to July 1, 2006 = 5.01%

* note that any Stafford and PLUS loan that were taken out before July 1, 2006, and has never been consolidated, will have these new rates

* note that with consolidation, these rates are rounded to the nearest 1/8% which would make them:

3.625% Stafford in grace

4.25% Stafford in repayment

5.125% Parent Plus

An acceptable drug rehabilitation program must include two random drug tests.

The program must also:

• Be qualified to receive funds from federal, state, or local governments

OR

• Be qualified to receive funds from a federal or state licensed insurance company

OR

• Be administered or recognized by a federal, state, or local government agency or court

OR

• Be administered or recognized by a federal or state licensed hospital, health clinic, or medical doctor

I also found that if this drug conviction (for selling or possessing) was 2 or more years ago, then a drug rehab program is NOT required, and you should still be able to get federal aid. If you have more than 1 drug conviction in the past 2 years, then your eligibility is suspended for longer. So basically, if you have more than 1 drug conviction in the past 2 years, you have to wait longer in order to be eligible for Federal aid. (it appears that each drug conviction you have = 1 year of lost eligibility). If you have 3 or more drug convictions in the past, then you are ineligible for Federal aid indefinitely.