Education Loan
EDUCATION LOAN RATES COULD DROP NEW COMMITTEE CHAIRMAN TO SUCCEED `BUCK' MCKEON      
As the Democratic takeover of the House sidelines Santa Clarita's Republican Rep. Howard P. ``Buck'' McKeon, changes are expected in how the committee he chairs handles student loans. Democrat Rep. George Miller, who's expected to replace McKeon as chairman of the House Committee on Education and the Workforce, wants to halve the interest rate charged on loans to needy students. He also wants to increase the number of ``direct'' loans that the government makes to students. The president's budget office found those kinds of loans cost the government less than federally backed loans from private lenders.
 
Fitch Rates Chase Education Loan Trust Student Loan-Backed Notes      
The ratings are based on the transaction's credit enhancement, which reflects the high credit quality of the Federal Family Education Loan Program (FFELP) consolidation student loan collateral and the transaction's legal and financial structure. The expected ratings reflect the ability of the trust to pay note principal at maturity and timely interest as reflected in the cash flow stress scenarios.
 
Rates for continuing education loans      
This repayment example assumes a variable interest rate for the Student Loan Network Continuing Education Loan equal to the LIBOR Index plus a margin of 3.75%. The interest rate used in this example and in effect as of 12/01/2007 is 8.46%. The interest rate margin ranges, depending on the credit-worthiness of the borrower and co-signer, if any, from 3.75% to 8.00% (APRs range from 8.98% to 14.18%). The LIBOR Index equals the one-month LIBOR published in the "Money Rates" section of the Wall Street Journal on the first business day of the preceding calendar month. LIBOR means the London Interbank Offered Rate. The interest rate and APR will increase during the life of the loan if the LIBOR Index increases. PNC Bank, N.A., Member FDIC and Equal Opportunity Lender is the lender for the Student Loan Network Continuing Education Loan. The loan terms described are for the 2007-2008 academic year and are subject to change.
 
Some ways of funding education without a loan      
Grants and scholarships from charitable institutions: Trusts and charitable institutions funded by corporates, religious organisations etc offer scholarships and grants to exceptional students in select areas of education and research, or because they belong to a certain religion.
 
Special education loan packages from banks      
Many banks have special education loan schemes for meritorious and needy students. Some banks have tie-ups with educational institutes to offer comprehensive student loan packages to save students the procedural hassles in getting the loan sanctioned.
 
Education loans and tax benefits      
Tax benefits are not available in respect of interest paid on a loan taken for any course. The course has to be for full-time studies (no part-time courses covered) for any graduate or post graduate course in engineering, medicine, management, or for post graduate course in applied sciences or pure sciences including mathematics and statistics.
 
Disbursement and repayment      
The fee for all years is normally disbursed to the college/institute directly by the bank. While applying for a loan, the bank will verify the tenure of the course and determine its total cost as applicable at that point of time. Every year, you are required to submit a form to the bank which gives the details of the money required, after which the bank directly disburses the loan to the college/ institute.
 
Interest rates, processing charges and margins of education loans      
The interest rate is one of the most important deciding factors when students approach a bank for an education loan. The interest rate also determines the overall cost of your student loan.
 
Documents you need to submit      
Different banks have different document requirements for granting education loans. But here are some of the documents you will typically have to submit along with your loan application:
 
Before you apply: Does your course qualify for a loan?      
Are you eligible for an education loan? How much loan can you get? What expenses does the loan cover? Do you have to provide collateral for the loan? Here are some important things you need to know before you apply for a loan.
 
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