Loans and Lenders for Granite State College Students
Low-Cost Federal and Private New Hampshire Loan Programs
New Hampshire Higher Education Assistance Foundation (NHHEAF) is the premier state agency for granite state college finance. The NHHEAF is comprised of a number of state agencies, including the Higher Education Loan Corporation and Granite State Management.
The NHHEAF provides students with access to information on college savings plans, federal loans, alternative loans and consolidation loans. Need information on the New Hampshire state university system? NHHEAF has links to the all the in-state college and university resources you need.
Tax-Exempt Bonds Translate into Savings
Like all state funded educational agencies, the NHHEAF can make low-cost, affordable loans available to state students and sometimes those who are from out of state and attending a New Hampshire college. The Federal Family Education Loan Program (FFELP) includes the Stafford Loans, Perkins Loans, and PLUS Loans.
State governments purposely free up tax-exempt education bonds that are then used by guaranty agencies like NHHEAF. These dollars are not taxed by the federal government, which translates into huge savings that are passed along to the state borrowers. Low interest rates, possible discounted loan fees and other rate cuts are useful incentives for those borrowers who make payments on-time and through automatic bank account deductions.
New Hampshire Alternative Loans
When federal loans are not enough, which is nearly all the time, students must find auxiliary means by which to meet the outstanding balance of their college education. For many an alternative or private supplemental loan is the only way to go. Yes, New Hampshire offers state-funded scholarships and grants, but not everyone qualifies for big-time scholarship dollars.
Search for private student loans through reputable lenders. Compare rates and terms carefully and only borrow what you absolutely need to pay for education.
Applying for Student Loans
Before you can receive any federal funds you must complete and file the FAFSA. But guess what? Most private loan programs, scholarships and grants also have a FAFSA pre-requisite.
Stafford Loans require no credit check, but parents and grads that borrow PLUS loans are subject to a credit check and all private loans are credit-based, as well. Students over 18 with good credit may apply on their own. If you have no credit or you have bad credit, make sure you find a co-borrower, otherwise known as a co-signer, to provide the solid credit backing you need. Under most circumstances “good credit” includes an assessment of debt-to-income ratio.
Repayment Terms
You are not required to make any payments on most loans until 6 months after you graduate. Alternative or private loan programs may require monthly interest payments. The six-month grace period allows you time to get a job and a stable lifestyle. Depending on the payment plan you have negotiated, you may be able to take up to 25 years to repay.
New Hampshire Student Consolidation Loan Options
If you know that when your loan repayments kick in that you will already risk defaulting, you should consider consolidation loans. In the case that you carry multiple federal loans you may qualify for the Federal Loan Consolidation program. This only applies to federal student loans, but it allows you to make one low monthly payment and extend your repayment term.
Borrowers already holding NHLeaf Loans, you might consider the Leaf Consolidation Loan should payments become unwieldy. If you apply with a co-borrower your interest rate could be cut considerably and the better both your credit records are, the better your overall interest rate. These loans may extend repayment periods up to 25 years for those who have borrowed maximum loan amounts.
Be wise and consolidate. There are no good reasons to default on your student loans when today’s consolidation loans are as convenient and commonplace as your regular student loans.
