Full Version: What is A Stafford loan...
Is it the different from a Perkins, I need help understanding. I seem to have 2 that cropped up from 1983-84. I just finished paying off what I thought were my only loans, now this. Where are you Lyn?
Perkins are federally subsidized loans that are awarded and administered directly by the school whereas a Stafford loan will be administered by a lender like Sallie Mae or Direct Loans. Perkins payments are made directly to the school or in some cases a third party billing servicer.
What is a Federal Perkins Loan?
A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with financial need. Your school is your lender. The loan is made with government funds with a share contributed by the school. You must repay this loan to your school.
How much can I borrow?
Depending on when you apply, your level of need, and the funding level of the school, you can borrow up to
$4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000).
$6,000 for each year of graduate or professional study (the total amount you can borrow as a graduate/professional student is $40,000, including any Federal Perkins Loans you borrowed as an undergraduate).
Federal Stafford Loans
Federal Stafford Loans are the most common source of education loan funds and are available to both graduate and undergraduate students. There are two types: Subsidized and Unsubsidized. Read about your rights and responsibilities as a Stafford loan borrower and apply.
Subsidized
Subsidized Stafford loans are need-based. The federal government pays the interest on these loans while you are in school and during the grace period before repayment begins.
The terms and conditions of the program are explained below.
Eligibility
You must be a U.S. citizen or permanent resident; full- or half-time undergraduate or graduate student. A credit check is not required.
What is a Federal Perkins Loan?
A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with financial need. Your school is your lender. The loan is made with government funds with a share contributed by the school. You must repay this loan to your school.
How much can I borrow?
Depending on when you apply, your level of need, and the funding level of the school, you can borrow up to
$4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000).
$6,000 for each year of graduate or professional study (the total amount you can borrow as a graduate/professional student is $40,000, including any Federal Perkins Loans you borrowed as an undergraduate).
Federal Stafford Loans
Federal Stafford Loans are the most common source of education loan funds and are available to both graduate and undergraduate students. There are two types: Subsidized and Unsubsidized. Read about your rights and responsibilities as a Stafford loan borrower and apply.
Subsidized
Subsidized Stafford loans are need-based. The federal government pays the interest on these loans while you are in school and during the grace period before repayment begins.
The terms and conditions of the program are explained below.
Eligibility
You must be a U.S. citizen or permanent resident; full- or half-time undergraduate or graduate student. A credit check is not required.
I am still confused, I have been getting calls for years about my loans and until recently haven't been in position to handle them. DOE apparently took back my NDSL and filed judgemnts in 2004. I settled and paid them off. Now here is he rub, I was getting collection notices for 17,000- 22,000 for original balances of 4,300 over the years. When DOE took them back I owed far far less, the original balance $4,300 plus interest totalling about 6,000. Despite the fact that I got sued it definitly seemed to have worked in my favor not paying the blood sucking CA.
Now for the latest, I have talked to many collectors over the years with I suppose no knowlegde of which loans they were collecting on. I have had my tax returns taken for eons with no statement of where this money has gone. Has it been applied to a balance. How can I know. I thought I was finished and now I am back to square one. I really dont want to talk to another collector, but I already know what you're gonna say, but still any input is appreciated.
Now for the latest, I have talked to many collectors over the years with I suppose no knowlegde of which loans they were collecting on. I have had my tax returns taken for eons with no statement of where this money has gone. Has it been applied to a balance. How can I know. I thought I was finished and now I am back to square one. I really dont want to talk to another collector, but I already know what you're gonna say, but still any input is appreciated.
QUOTE(terpndebt @ Apr 26 2006, 10:29 PM) 
I am still confused, I have been getting calls for years about my loans and until recently haven't been in position to handle them. DOE apparently took back my NDSL and filed judgemnts in 2004. I settled and paid them off. Now here is he rub, I was getting collection notices for 17,000- 22,000 for original balances of 4,300 over the years. When DOE took them back I owed far far less, the original balance $4,300 plus interest totalling about 6,000. Despite the fact that I got sued it definitly seemed to have worked in my favor not paying the blood sucking CA.
Sounds like the $17-22k loans were staffords and not NDSL. There is no way that they are reduced that much upon subrogation by the feds.
Now for the latest, I have talked to many collectors over the years with I suppose no knowlegde of which loans they were collecting on.
A collector is assigned a loan by a specific guarntor. They will have no knowledge of other loans unless they can see them on a credit report or you tell them about it. Same goes for tax offsets. They can check the client loan payment history but it the offsets are not posted...welll you get the picture.
I have had my tax returns taken for eons with no statement of where this money has gone.
IRS sends out a notice of seizure after your tax return is taken. It states the name and contact information of the creditor.
Has it been applied to a balance. How can I know. I thought I was finished and now I am back to square one. I really dont want to talk to another collector, but I already know what you're gonna say, but still any input is appreciated.
You really dont have a choice...if the account is assigned to a CA, you have to go thru them. I would assume by now your staffords have been subrogated by the DOE. The collection fees are a standard 18.5%. Again it is better that you contact them and get this resolved before it hits the garnishment stage. We used to start getting employer info from the IRS in early May.
Sounds like the $17-22k loans were staffords and not NDSL. There is no way that they are reduced that much upon subrogation by the feds.
Now for the latest, I have talked to many collectors over the years with I suppose no knowlegde of which loans they were collecting on.
A collector is assigned a loan by a specific guarntor. They will have no knowledge of other loans unless they can see them on a credit report or you tell them about it. Same goes for tax offsets. They can check the client loan payment history but it the offsets are not posted...welll you get the picture.
I have had my tax returns taken for eons with no statement of where this money has gone.
IRS sends out a notice of seizure after your tax return is taken. It states the name and contact information of the creditor.
Has it been applied to a balance. How can I know. I thought I was finished and now I am back to square one. I really dont want to talk to another collector, but I already know what you're gonna say, but still any input is appreciated.
You really dont have a choice...if the account is assigned to a CA, you have to go thru them. I would assume by now your staffords have been subrogated by the DOE. The collection fees are a standard 18.5%. Again it is better that you contact them and get this resolved before it hits the garnishment stage. We used to start getting employer info from the IRS in early May.
Alright Lyn, if the garnishment notice says DOE how can you find out which account it was credited to? Considering there were 4 different listings.
QUOTE(terpndebt @ Apr 27 2006, 07:52 PM)
Alright Lyn, if the garnishment notice says DOE how can you find out which account it was credited to? Considering there were 4 different listings.
Call and ask???
If you have receive as 30 day garnishment notice you have to respond to it. You do not have time to DV. Simply call and ask them who originated the loan.
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