New York Student Loan Programs
Take Advantage of the Benefits
In New York State the Higher Education Services Corporation (HESC) is backed by the state government as the guaranty agency of choice. In other words, HESC financially “guarantees” the federal loans to a lender. HESC also offers borrowers and online student loan shoppers free auxiliary services such as huge stores of resources for college bound students and their parents, loan calculators and links to other resources.
Think about it, New York is one of the largest markets for student loans, as well as being one of the most technologically sound states. It makes sense that HESC would be able to boast of their advanced business acumen and ability to provide the most efficient and well-structured loan programs. According to HESC, they are the premier provider for New York’s TAP program and the leading entity to use an online Master Promissory Note, called the e-MPN. And there is no other state recognized guarantor competitor in New York.
Finding an FFELP Lender
HESC is able to lead you through the guaranty process. You can choose a lender right from their website. They recommend you explore the lenders’ FFELP packages because most make every attempt to extend the most affordable and low-cost Stafford and PLUS loans possible. But checking out each lender is really the only way to know exactly what you’ll be getting. This is a good way to explore ahead of time the various options available to you for alternative loans.
Securing an Alternative Loan
Federal loans are rarely enough to cover tuition, so when the till runs dry, so to speak, you must look at alternative loans. Alt, or supplemental loans are not as easy to secure as the federal loans. You will be required to submit to a credit check and not everyone qualifies. However, most lenders allow you to apply with a co-borrower and may even give you a better interest rate if both your credit reports are good.
In most cases your alternative loan will cover what the Stafford Loan did not, thankfully. And depending on the lender you may have a number of options for repayment terms, and consolidation, even earn credit toward your account and reduced interest rates for consistent timely payments or ACH payments.
Repaying and Consolidation
Many students have more than one student loan, sometimes multiple federal loans. The Federal Consolidation Loan is a part of the FFELP, so you have access to the loan option through your lender. In the case of your alternative loan lender, you may qualify for a nice private alternative consolidation loan. This will likely extend attractive benefits and competitive interest rates, along with other bargaining perks.
Benefits of Consolidation
Choosing to consolidate your loans, federal or private, is recognized today as a responsible and mature financial option. It means you are aware of your financial environment and are taking steps to make it better for now and for the future. You can go from a few monthly payments a month that stress out your checkbook to one low-cost monthly payment that actually allows you to add money to your savings account. The only drawback is the extended payment period.
Straight from the Horse’s Mouth
You might also consider asking the financial aid office at your college which lender or lenders they prefer to deal with. They will already have most likely developed a rapport and working relationship with lenders who in turn are ready to offer you a better deal than those they offer any other student.