Washington State Student Loans
Finance Your Way to a Degree
Washington State college bound students may explore low-cost federal loan options available through the Northwest Education Loan Association (NELA). This state-sanctioned agency is the official loan guarantor for the Federal Family Education Loan Program (FFELP). But for alternative loans you’ll have to look elsewhere, perhaps to the Washington Student Loan Finance Association, now simply known as the SLFA, a subsidiary of Sallie Mae. Here you’ll find low-interest affordable alternative loans specifically designed for Washington state students.
Washington First Alternative Loans
Washington students may apply for the Washington First family of loans provided by the Student Loan Finance Association. These loans are called Signature Student Loans and are low-cost alternative loans tailor-made for college students. Between federal funds and private loans lies this wide-open territory of state-sanctioned alternative loans that more students should be taking advantage of.
Applying
Undergraduate and graduate students attending college at least half time are eligible to apply for the Signature Loans. Of course students must already have their federal loans secured before applying for alternative loans. This way, applicants already know how much they may need to borrow to cover the outstanding balance of tuition. If you are considering applying on your own you will need to submit to a credit check. You must have a certain level of credit established as well as a low debt-to-credit ratio. SLFA does not require you to prove an income since you are not required to make payments on any part of the loan until after graduation.
Using a Co-borrower
What happens if you don’t qualify on your own merit? According to many financial aid experts, almost half of all college students must use a co-borrower in order to qualify for private, alternative loans. Your co-borrower may be a parent, relative or trusted friend. It’s very important that you both understand the terms of the loan before you sign on any dotted lines. If you default, your co-borrower becomes responsible for your irresponsibility, but there are ways to avoid that situation.
Repaying the Loan
If you’re like most undergrad and grad students you have more than one student loan and probably a good chunk of credit card debt mounting up. Like most loan servicing companies, SLFA loans don’t kick in until you’re at least 6 months post-graduation. While this grace period has become quite commonplace, it nevertheless, often still falls short of providing the amount of time a graduate needs to really get their financial feet underneath them.
Consolidation Loans
Consolidation loans are as typical as any other loan product. Before you default on student loans, you should explore your options for consolidating your loans into one monthly payment. When you consolidate, provided you have enough of a financial burden to qualify, you refinance your loans through your lender who literally pays them off and finances one new loan. Repayment periods are extended and interest is lowered to make it possible for you to cut payments exponentially each month. Lenders are in the business to help you succeed with loan repayment; so don’t feel bad about asking for financial advice or assistance.
