What does department of education loans mean?

I am soon expecting to join college, and I will not be able to pay all my tuition fees, accommodation and other expenses associated with student’s life. Therefore, I need help with many aspects associated with study financial aids. First, I need help with understanding the meaning of department of education loans and cornerstone student loans. I also want to know how to access low interest student loans that can sustain me throughout my academic journey. Finally, I will be glad if anyone can provide me with useful information regarding the term “consolidate federal student loans.”

Rodney Fox

in Student Loans

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Kathy Robinson on June 18, 2018

So many students face challenges when it comes to paying their tuition and accommodation expenses.   There are many student financial aids that can enable students to comfortably pursue their studies. They include grants, scholarships, and loans. These aids are usually available to hundreds of thousands of bright students across the United States and beyond.   Student loans are the most prevalent types of financial assistance that are available to almost every college student. Study loans can either be awarded by the federal government, local governments or private organizations.

 Education department loans are the study loans in which the lender is the United States Department of education as opposed to banks or any other financial institutions. It is a direct federal loan program that assists parents and students pay for post-high school educational expenses. After the passage education and healthcare reconciliation act in 2010, this direct loan program which commonly known as FDSLP or FDLP became the only one loan program that was backed by the US government. Consequently, this move eliminated guaranteed loans which were the study loans given to students by private agencies but under the government supervision. These loans were discarded because many people thought that they profited independent student loan firms at the expense of common taxpayers. It was also perceived that the loan contributed very little in minimizing costs for college students.

The only low-interest student loan is the federal student loan which is offered by the government to every student who qualifies to enroll in a college.  When you apply for this loan, you will not be expected to begin repaying your student loan until you complete college. In some cases, when you drop out of school or change your student’s enrollment status, you will receive a notification to start making your repayments.

Most undergraduate students who experience financial difficulties will most definitely qualify for federally subsidized loans where the interest is paid by the government when you’re in school or pursuing a school-based program. The interest on federal education loans is fixed and very low when compared to the one charged by private lenders. In most cases, you will not require a cosigner to access government loans. The interest on these loans can sometimes be subject to tax deduction.

Consolidation of federal student loans refers to a situation whereby, if you have federal student loans through different loans servicers, you can use simply them through having a single loan with only one monthly bill. Usually, consolidation lowers your monthly repayment through extending your repayment period of even up to 30 years.

Cornerstone is a federal loan servicer which has been approved by the United States Education Department. This organization has been offering study loans to many students for over 35 years, offering exceptional customer service to student borrowers across the nation. Therefore, the term “cornerstone student loan” basically refers to the loans extended to students by the Cornerstone Community federal credit organization. This loan can help cover all the higher education costs including accommodation, tuition, computers, books as well as other personal bills. It is important to note that this is a purely private student loan that is accompanied by several other packages that include financial literacy which can help the student develop good credit habits. 

Craig Stewart4 months ago

The above answer regarding Cornerstone and department of education loans is very true, and I agree with every single piece of information in it. Cornerstone community also offers other loans that include vehicle loans, personal loans, mortgage loans and home equity credits. The organization commits to ranging of key principles concerning the financial services that they provide. Primarily, they value and maintain high integrity through keeping their client's information safe.  Furthermore, they are highly focused when it comes to customer service as seen in their approach of customer-fit formula. The loan repayment avenues include coupons, automatic transfers from your cornerstone saving/checking account, free online banking service(OASIS), free telephone banking(CURTIS) and online payment from non-Cornerstone accounts.

The Department of Education usually advises students to apply for direct loan consolidation program through visiting the site: studentloans.gov. The application may be done online or by manually filling the application forms and then sending them to the consolidation loan department. 


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