College-Bound Louisiana Students, Alternative and Government Loans
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Since the late 1980s, the Louisiana Education Loan Authority (LELA) has been a state-sanctioned agency established for the sole purpose of providing state students with the best possible opportunities for college funding. LELA functions first and foremost as the guaranty agency for the Federal Family Education Loans (FFELP). In fact LELA offers students an award-winning opportunity to finance FFELP loans through them in order to qualify for some of the best interest rate reductions in the country. Besides this stable of necessary loans, Louisiana students may also access information on alternative loans and career-specific loans like those for nurses and teachers.
Reducing Rates Makes Federal Loans More Attractive
Borrowers who choose to apply for the Federal Family Education Loans like the Stafford and PLUS through LELA’s SuperTop program, qualify to receive valuable interest rate cuts, along with the discounted loan fees. Borrowers who are able to pay on-time and set up their accounts to make automatic payments are those most likely to see a bottom line difference. Applicants may complete the FAFSA right on the LELA website.
Optional Alternative Loans for Louisiana Students
Louisiana students like all others often fall short of meeting the actual cost of college. Federal loans, scholarship and grant monies could be supplemented with private student loans. These types of loans are distinctly different from federal loans and therefore should be handled with respect. However, an alternative student loan used wisely can be a useful financial tool for leveraging educational costs.
Applying for Alternative Loans
When you apply for an alternative loan you are in credit territory. You will only qualify for a loan on your own if you already have credit and it’s in good shape, but the reality is that many students must secure a co-borrower. You may choose a parent, another relative or a good friend, but the important part is that they have good credit. In most cases the better your credit or your co-borrower’s, the better your interest rate on the loan.
**Best advice: Compare alternative loan lenders carefully and ask questions.
Louisiana Students: Repaying Your Loans
Graduates fresh out of college typically have a grace period of 6 months before their loan payments kick in for federal loans, but not usually so for private. Private or alternative loans may become due as soon as they are disbursed, but some lenders offer deferments.
Borrowers with multiple federal loans may opt to find a lender that offers the federal consolidation loan, a component of the FFELP. But not all lenders are able to carry this product. Alternative loans are similar—some lenders make private loan consolidation products a part of their regular loan arsenal.
Because so many lenders have suspended consolidation loans it’s best borrowers choose repayment plans carefully. Many lenders have added an extended repayment plan, which offers borrowers longer loan terms and therefore more affordable monthly payments.
Repaying Nursing and Teaching Loans
Nurses and teachers have special loans available in most states. LELA offers Help Teachers and Help Nurses loans. These products let qualified professionals apply for Stafford Loan interest waivers. Loans come packaged with zero interest.
For more information on Louisiana student loans visit the LELA website.
