Oregon Student Loan Options

Find the Right Loan

The Beaver State: Oregon. Whether you’re a Ducks fan or a Beavers fan, you would agree on the same thing: you need help with planning and finding funding for college. Fortunately, there are a few organizations to help Oregonians in their search.

Low-Cost Student Loans for Oregonians

The government is a great source for financial aid. The once popular Stafford Loan program has been replaced by the Health Care and Education Reconciliation Act of 2010 with Federal Direct Student Loans. Through the William D. Ford Federal direct Loan Program, students are able to receive funding for their college education at a low –interest fixed-rate loan.

Applying is easy. All you have to do is fill out your Free Application for Federal Student Aid (FAFSA) a turn it in before the deadline. There are different deadlines for the federal government, state government, and the college. It is crucial that you make yourself aware of these before entering the next school year.

Oregon Alternative College Loans

Alternative loans are a great way to get that little bit of extra funding once all other sources of loans have been used up. Alternative loans are also known as “private student loans” because they are normally received through an independent, private lender. These loans are credit-based however. This means that a student with poor or no credit will have a hard time getting accepted. Usually, a co-signor- parent or other legal guardian- is required. They simply state that if you default on paying back your loan, they have the capital to cover what you can’t pay.

Applying for Student Loans

Applying for a loan from the government is easy. By filling out your FAFSA, you automatically apply for every one they offer. Getting an alternative loan is a little bit trickier. Most college students have poor or no credit, making it difficult to get one of these loans on their own. As previously stated, most agencies require a co-signor. By doing this you will find that you can gather almost any sort of loan. But be careful! Alternative loans typically have higher interest rates. This means you will be paying back more than you would with a loan from the government. As long as you use alternative loans as a last resort, you will be perfectly okay.

Paying Back Your Loans

Organizations don’t expect college graduates to get a job the day after they graduate. Because of this, there is a grace period for new graduates. The typical window before you have to start repaying your loans is six months. This allows graduates to get settled in a job and start earning some income before they have to repay their loans. After college you may find it difficult to keep track with which loans you have to pay back. Luckily, there are consolidation loan programs to assist you if you need it.

Before signing any sort of loan agreement, you will be asked about what kind of payment plan you want. There are standard, graduated, income-contingent, or extended plans. It is important to do research on which one fits you best. Choosing the right one will end up in you being able to pay back all of your loans completely and on time. Choosing the wrong one will leave you with a pile of debt and dramatically hurt your credit-worthiness.

There used to be private organizations that consolidated student loans, but because of recent legislation, the government is now the main source of loan consolidation. The Consolidation Loan program bundles all of your student loans into one, allowing you to make only one, low monthly payment. If the unthinkable happens, and you default on your loans, there are groups like the Educational Credit Management Corporation that can help you get back on track.