In this issue:
- Introduction
- Featured Sponsor: Student Loan Consolidation
- Featured Article: How to calculate a monthly payment
- Scholarship Information
- Five Baseball Scholarships
- A Word from our Sponsors
- Privacy and Subscription Information
- Back Issues
- Sponsor this newsletter!
Welcome to the October 2004 issue of The Student Financial Aid News. October is the harvest month, the month of Halloween, the World Series (go Red Sox), and the spectacular displays of color as leaves fall from trees in and around the northern parts of the United States. This marks our 12th issue in our new online format! Happy 1 year birthday!
Have you visited FinancialAidNews.com? The Financial Aid News web site provides you with the back issues of Financial Aid News, so that if you missed an issue or your email address unexpectedly changed, you'll still get to read the articles you need. As always, please share The Financial Aid News with your friends, family, and colleagues, by simply forwarding this message, or letting them know to subscribe by visiting www.FinancialAidNews.com today!
Enjoy this month's newsletter!
The Financial Aid News
1250 Hancock Street, Suite 703N
Quincy, MA 02169
Featured Sponsor: Student Loan Consolidation
There has never been a better time to consolidate your federal student loans than now. Federal student loan rates are at their lowest in 39 years, but hurry - the rates won't stay low forever!
Those students who graduated less than 6 months ago are coming to the end of the grace period, which means that if you don't consolidate and lock in your rates now, your rates will go up 0.6% six months after graduation. 0.6% doesn't sound like much? A student with $75,000 in loans would pay an extra $33,828! Do you really want to throw away the equivalent of a new BMW? Don't wait, request a free information packet about consolidation right now!
Visit: http://www.StudentLoanConsolidator.com today to learn more, or request a free information packet!
Feature Article: How to Calculate a Monthly Payment
If you have federal student loans, you probably want to know what your monthly payments are, and how to save on them by consolidating. Calculating a monthly payment on a student loan is relatively easy, since student loans are simple interest calculations. Don't want to do the math? We have two calculators that can help:
- For students in school: Click here!
- For students who have graduated: Click here!
Here's the basic theory if you want to do the math yourself. You need to know in advance:
- How much you currently owe
- What periodic interest rate you have
- The term of the loan
#2 is where people get caught up - the periodic interest rate is based on the number of payment terms. For example, the average student loan uses a 3.375% APR - annual percentage rate. However, billing and interest are calculated monthly, so 3.375% APR translates into 0.28125% monthly percentage rate, which is what you use in the formula presented below.
You can copy and paste that formula directly into a spreadsheet like OpenOffice (free!) to see for yourself and play with the numbers. Incidentally, this formula will also work well with things like mortgages and home equity loans, car payments, and other fixed term loans. For credit cards and open lines of credit, visit StudentPlatinum.com to learn more about average daily balance calculations.
Your monthly payment = (rate + (rate/(((1+rate)^months)-1))) * principal
Let's say you're a student with $25,000 in federal student loans at 3.37%. Your rate would be .0028125, the principal would be 25000, and the number of months in a standard student loan is 120 (10 years).
$245.75 = (0.0028125 + (0.0028125/(((1+0.0028125)^120)-1)))* 25000
Consolidating your loan would then change the number of months from 120 to 240. Your monthly payment would change to $143.39. Consolidation would save you an additional $102.36 per month.
Figure out how much consolidation would save you by calculating with these periods:
- < $20,000 : 15 years (180 months)
- $20,000 - $40,000 : 20 years (240 months)
- $40,000 - $60,000 : 25 years (300 months)
- > $60,000 : 30 years (360 months)
Common student loan rates in monthly and annual percentage rates*:
- Stafford loans in grace: 2.77% APR, 0.23083% MPR
- Stafford loans in repayment: 3.37% APR, 0.28083% MPR
- Stafford loans older than 1998: 4.17% APR, 0.3475% MPR
- PLUS loans: 4.17% APR, 0.3475% MPR
- Perkins loans: 5% APR, 0.41667% MPR
Of course, if you don't want to actually do this kind of math, you should try our consolidation calculator, which does it for you! Nothing to sign up for, no personal information to give, just play with various scenarios and see how much you can save by consolidating. Try the calculator today!
*Rates are based on July 1, 2004 rates set by the US Department of Education
Scholarship season will start in earnest in January, but it's always a good idea to begin looking and building a list of scholarships as early as possible. The sooner you can submit an application, the better off you'll be, and the more likely your application will be considered.
Be sure to visit our archives for how to search for scholarships using Google, and sign up for our Premium Scholarship Search Service!
Visit: http://www.FinancialAidOfficer.com/scholarship_search/
As you know, the Student Loan Network is based out of Boston, Massachusetts, home of the Red Sox. In celebration of the Red Sox advancement to the ALCS, we present five baseball-related scholarships. Note that these scholarships require application by postal mail!
Kenneth R. Roth Jr. Scholarship
Scholarship For: Undergraduate
Amount Of Scholarship: Varies
Number Of Scholarships: 1
Scholarship Deadline: March 1
Majors: All
Applicant Must Be: Male; Enrolled At Francis Marion College; Involved In Baseball
For Application And More Information:
Financial Aid Director
Francis Marion College
Box F-7500
Florence, Sc 29501
Francis Marion College Dugout Scholarship
Scholarship For: Undergraduate
Amount Of Scholarship: $1000
Number Of Scholarships: 1
Scholarship Deadline: March 1
Majors: All
Applicant Must Be: Male; Involved In Baseball; Enrolled At Francis Marion College
For Application And More Information:
Financial Aid Director
Francis Marion College
Box F-7500
Florence, Sc 29501
John "Butch" Mcbride Scholarship-Baseball
Scholarship For: Undergraduate
Amount Of Scholarship: $500
Number Of Scholarships: 1
Scholarship Deadline: Unavailable
Majors: All
Applicant Must Be: Male; Involved In Baseball; Student At Edinboro University Of Pa
For Application And More Information:
Financial Aid Director
Edinboro University Of Pennsylvania
Edinboro, Pa 16444
Ashland College Sport Scholarship
Scholarship For: Undergraduate
Amount Of Scholarship: $2057
Number Of Scholarships: 271
Scholarship Deadline: August 1
Majors: All
Applicant Must Be: 2.0 Gpa Must Be Used At Ashland College
For Scholarship Application And More Info:
Director Of Financial Aid
Ashland University
Founders Hall Room 312
Ashland Oh 44805
Louis Butts Athletic Baseball Scholarship
Level Of Study: Undergraduate
Amount: Varies
Number Of Awards: 1
Deadlines: Not Available
Majors: All
Applicant Must Be: For Baseball; Male
For Application And More Info:
Financial Aid Director
Mckendree College
701 College Road
Lebanon Il 62254
And now a word from our sponsors...
Traveling Abroad?
Make sure you're covered with international travel medical insurance! InternationalStudentInsurance.com provides you with comprehensive coverage options, from short term policies for those vacations in the Caribbean to multi-year plans for students studying long term abroad.
Visit: http://www.InternationalStudentInsurance.com
Got Calling Card?
With rates inside the US of 5 cents per minute, and overseas rates starting at 5 cents per minute, a calling card is just the thing to have on hand for those times when you leave your cell phone in your car, house, apartment, or workplace. Never be without access!
Visit: http://www.internationalcallingcard.com today!
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