If you’re planning to enter college, or are already in the midst of undergraduate courses, and are looking at ways to access the necessary funds to keep that college graduation and diploma still in sight, then you must have started to consider taking out a student loan.
Among the broad types and distinct kinds of student loans, you may have learned or been told about an “AFSA student loan.” Actually, this is not quite as simple to explain and understand as other financial assistance packages or programs extended by the government or private companies to aspiring college students who lack personal or family funds to make these aspirations come true.
“AFSA student loan” is an almost archaic term which, in an internet search engine, will come up only with reference to occasions or experiences in a college graduate’s past student life. What this means is that there are no longer any “AFSA student loans,” if that’s been suggested to you, or something that you’re looking to apply for.
What used to be called an “AFSA student loan” actually refers to an educational loan serviced by the AFSA Data Corporation, which functioned as the loan servicer of the Academic Financial Services Association (AFSA).
AFSA has since been renamed the Affiliated Computer Services, Inc. (ACS), which today is considered one the largest student loan servicers in the United States, with a client base of more than 800 universities, colleges and financial institutions across the country.
Loan Servicer
But first things first If you’ve already begun to explore the world of student loans to find out how you can borrow funds from the government or from private sources to cover your tuition and other college expenses, then you need to know more than just the institutions or companies that are willing to lend money.
It helps as well to understand the role and function of a loan servicer, which is what AFSA – now known as ACS – is, and how it could impact your life now or in the future.
A company that functions as a loan servicer takes charge of all the administrative aspects related to the loan. Although its primary role is a loan collection, it has other important responsibilities as well. In the case of the Academic Financial Services Association or the Affiliated Computer Services, Inc. as a student loan servicer, these functions include screening of loan applications in order to match them with loan providers, accrediting schools in which these students are enrolled, disbursement of loan funds either directly to the students or parents or to their respective schools, keeping track of loans while the borrowers are still in college, processing deferments and forbearances on payments.
The loan servicer should also keep current records on the student loans and therefore, be able to handle all your inquiries and address all your issues as a borrower.
Most universities, colleges and schools around the country also link up with a student loan servicer because of the company’s expertise in loan management, and because it also makes it more convenient for students to access funds and easier for them to manage their payments, especially after they have graduated.
In short, while the loan may be referred to as an AFSA or ACS student loan, the company, as a loan servicer, is not the source of funds. Although the funds for your student loan may be provided by the government or a private institution like a bank or finance company, all aspects of the process related to the loan are handled by a loan servicer.
Finding you the Best Loan Provider
As a student in search of funds for college expenses, going to a student loan servicer such as the ACS may be your best bet in getting it – and with the least possible hassle. The company aims to link you up as a borrower, with the best possible loan provider, based on an assessment of your situation, your needs and your capability to manage and repay the loan.
Of course, as in any important process that you need to undergo to get to your objective, there are a number of qualifications or criteria you will need to will need to meet or fulfill, and procedures you need to accomplish.
The first step you need to hurdle when applying for an ACS student loan – or indeed, any other kind of loan that will provide you with college funds – is to complete a FAFSA form. This refers to the Free Application for Federal Student Aid, and needs to be accomplished yearly by aspiring and currently-enrolled college students. The FAFSA will determine whether and to what extent they are eligible for student financial assistance to complete their college education. This may be in the form of a direct scholarship grant or a loan from the government under any of several possible arrangements.
The FAFSA form is conveniently available online and may also be submitted online or sent by post. After submission and review by the pertinent government agency, the applicant will receive a Student Aid Report (SAR), which will indicate how much government financial assistance he or she is entitled to, in the form of scholarship grant, and how much he or she is eligible to receive in terms of a loan guaranteed by federal funds through the Department of Education.
This is why it is necessary for these forms to be completed and provided to the ACS for processing of your student loan. Based on the SAR and certification of your university or college as to actual college costs, it is then possible to see how much will be covered by grants and loans from the government, and how much more is needed from a private loan provider.
School and finance counselors have always advised, of course, that seeking financial assistance from the government to complete college studies should be your first option. Only to fill in the gap or what remains to be covered for college expenses, after government funds have been tapped, should a private student loan be considered and applied for.
Reasonable Schemes and Convenient Access
The AFSA or ACS student loan program promises not only to find you the best loan provider but come up with reasonable plans or schemes of loan payments. The process has also been made accessible through a website maintained by the company.
As a potential borrower, or even just as an interested visitor, you can browse through the site (www.acs-education.com) to get more information on the services provided by the company and the criteria or qualifications for eligibility for a loan. These are, of course, very broad norms as remember, as the company itself is not the lender of funds but merely a conduit of sorts and manager of the loan.
For those who already have existing loans, the website is also the means through which the students are able to keep track of their payments, make actual payments, send in queries and take up various issues. Among the information available to you, should you had an existing loan provided through AFSA or ACS, are such details as the principal amount of your loan, interest rate, payment records, balance of the loan, adjustments, etc. This way, you are able to monitor the status of your loan, make payments conveniently online and send communications regarding your loan.
Qualifications for a Student Loan
The important thing to remember when applying for a student loan from a non-government source for from other than federal funds is to study carefully the eligibility requirements, the loan packages or options and repayment schemes.
For an AFSA or ACS student loan, these qualifications will depend on the loan provider, but generally, you will be required to present the following:
- SAR based on FAFSA form submitted
- Certification from the educational institution you are enrolled in or which has already accepted you for enrolment for the immediately forthcoming school year.
- Documents to indicate or prove family income level.
- Employment of student, if any.
- A cosigner for the loan.
The loan may be applied for by the student himself or the parent of the student. Again, it is best to consider which may be more suitable for your circumstances. For a parent borrower, it may be easier to qualify for the loan as a parent would already have established credit-worthiness, which is essential for taking out a loan these days. A student, on the other hand, would almost always have to come with a cosigner for the loan, which in most instances would be his or her parent anyway.
Whichever option you go for, the ACS will provide you with clear details – and make sure it does, too – not only on the loan but on repayment of the loan. This means such things as whether you start payments while still in college or after graduation, whether you start with interest payments only or with the loan principal amount together with interest; penalties for late payments; restructuring of payments, etc.
The final decision on loan applications of course, lies not with the loan provider but with you, as the borrower. It’s you who can best decide – and thus be responsible for – the length you would go to stay in school and keep that college degree within your horizon.
No related posts.