Frequently Asked Questions 

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Have a question about a federal, private or consolidation student loans from TuitionBids.com? Find the answers here with a list of our most frequently asked questions.

Student Loans

Applying for a Student Loan


Repayment of Student Loans

 

Student Loan Frequently Asked Questions

Should I Apply for a Federal or Private Loan?

TuitionBids.com encourages prospective customers to maximize scholarships, grants and federal student loans (FFELP) such as Stafford or Perkins loans before applying for a private student loan.

Government student loans are guaranteed by the U.S. Department of Education. The government loan program is more commonly known as the FFELP (Federal Family Education Loan Program). Government or federal loans are not credit-based (with the exception of the PLUS loan). For these loans, interest rates are usually lower than private student loans, and they tend to offer modest annual loan limits. Students must fill out the FAFSA to qualify for these loans. Government loans alone may not cover the Total Cost of Education for your school and you may have to find other sources of funding such as a private student loan.

TuitionBids.com encourages prospective customers to apply for federal student loans before applying for a private student loan, as federal loans are often less expensive and offer the widest variety of repayment options. If you are unable to meet your Total Cost of Education based on these sources alone, you should research potential private lenders and choose the loan that best suits your needs. Remember to borrow only what you need!

Should I apply for a student loan using a co-signer?

A co-signer is a joint signer of a promissory note. Undergraduate students are strongly recommended to apply with a credit-worthy co-signer when seeking a student loan. This will increase your chances of approval and possibly improve the rate you receive. Some lenders require you to apply with a co-signer regardless of your income or credit rating.

Most lenders will require a borrower to have a strong credit score (good to excellent) in addition to other criteria such as no negative credit history (missed payments), debt-to-income ratio (amount of debt vs. your current income) and even proof of current employment and income.

So, if you are a student without sufficient personal income or credit history you'll almost certainly need to apply with a credit-worthy co-signer.

Subsidized and unsubsidized loans, what's the difference?

With a subsidized loan, the interest that accrues is paid by the Federal Government while the borrower is in school at least half-time and during grace and deferment periods. With an unsubsidized loan, the interest is paid by the borrower, rather than the government.

Can I qualify for a private student loan even if I don't qualify for federal financial aid?

Yes. Your eligibility for a private student loan is based on your credit (or your co-borrower's credit, if applicable).

How is a loan capitalized?

If a borrower elects to defer payments while in school, the interest accrued while in deferment is added to the loan balance. This is known as interest capitalization. It increases both the principal balance and the monthly payment amounts.

Can I apply for a private student loan even if I didn't complete the Free Application for Federal Student Aid (FAFSA)?

Yes. The FAFSA needs to be completed in order to receive federal student loans. Private student loans are credit-based and do not require a completed FAFSA.

Is there a maximum loan amount?

Federal student loans have loan caps and cumulative caps over the course of your education that are regulated by the Federal Government. With private student loans, the maximum amount you can borrow each school term is the total cost of your education (including tuition, fees, and any education-related expense) minus any federal financial aid you receive. However, there is no limit on the total amount you can borrow over the course of your education.

What if I transfer schools? Will my student loans be transferred automatically?

No, your present school won't transfer your student loans automatically. So if you're thinking about transferring, talk with your lender and the financial aid officer at both your current school and your new school right away. It's also a good idea to check with your new school to find out what additional student aid programs are available and how you can qualify for them.

Can I consolidate my student loans?

Yes. A Consolidation Loan lets you combine several student loans into one. Depending on the term you choose, when you consolidate and what type of payment method you set up, you could reduce your monthly payments and also get an interest rate discount. However you choose to do it, a Consolidation Loan will save you time and effort by turning several loans into one.
Learn more about a Consolidation Loan.

How is the interest calculated on my private student loan?

Private student loan rates and fees are determined based on the borrower's credit history at the time of application and the repayment option chosen. Variable interest rates are subject to change quarterly based on the fluctuation of published interest rates.

Does TuitionBids.com add any fees associated with my student loan?

None whatsoever.

How much will my monthly payments be?

Your monthly payment amount will depend on how much you borrow and which repayment option you select.

Is a down payment necessary?

No. If approved for a private student loan, you will simply be responsible for making your monthly payments.

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Applying for a Student Loan Frequently Asked Questions

Do you have an online loan application?

Yes, we have several online applications for select student loan products.

What education loans can I apply for online?

TuitionBids.com. is proud to offer both federal and private student loans.

What do I need to do before applying online?

For a Federal Student Loan you must:

For a Private Student Loan:

Do I need to advise my financial aid administrator if I apply for a Private Student Loan?

No. After a bank approves your credit, they will contact your school to certify your eligibility for the loan.

What happens after I apply online?

When you apply online, TuitionBids.com instantly filters your information and notifies up to 6 lenders who match your loan needs. At that point the bidding begins. May The Best Bank Win.

Can I go online to check the status of my application after I submit it?

No, not at this time. You will however be contacted by up to 6 lenders who will provide status for you every step of the way. Please contact us quickly and one of our Student Loan Specialists can help you.

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Student Loan Repayment Frequently Asked Questions

What should I know to help me repay my student loans?

First, borrow sensibly and conservatively. Second, remain credit worthy. If at some point you exhaust your federal student loans, you may need to use private supplemental loans to meet your cost of attending college. Many of those loans are credit-based. A good student loan repayment record can help you.

Can I get a refund if I don’t complete the school term?

Whether or not you complete your term, your student loan is still due. However, the Federal Government requires every school to have a refund policy. Before you enroll, you should know your school's criteria for a refund and if the refund covers ¾ tuition, fees and room and board. If you're eligible for a refund, your school sends your refund to the holder of your loan, who applies it to reduce your outstanding loan balance.

What can I do if I encounter an economic hardship that interferes with my ability to repay my loan?

When faced with problems repaying your loan, it's your responsibility to contact the lender, holder or servicer of your loan immediately. There are several options available to help you. Two of the most common ones are a deferment and a forbearance.

A deferment is your legal right to suspend loan payments without cost or penalty, if you meet certain criteria. The interest on an unsubsidized loan will accrue unless you pay it when billed.

A forbearance may let you postpone or reduce your payments for a specific length of time, if you are willing, but temporarily unable to meet your repayment obligation. You are still responsible for any unpaid interest that accrues during the forbearance period.

What is the best way to avoid problems in repayment phase?

You should know the name and contact information of your lender, holder or servicer so that you will be able to stay in touch should you have a problem. Know your rights and responsibilities as a borrower. When you take out a loan you also take out an obligation to repay the debt. If you have a problem repaying your loan, you have the right to discuss options such as deferment or forbearance to help you meet your obligation.

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