ACS Student Loans

By on May 6, 2013
ACS Loans

Education is the tool we most need in order to be a step closer to our personal goals and dreams in life. Finishing college used to be an opportunity for all to enjoy, but in recent decades it has morphed into a privilege that only a small portion of the population can truly afford. Students and their respective families nowadays are not in good financial conditions that finishing college seems to be altogether impossible.

Fortunately there are options that can help college-bound students get the funds they need. Scholarships for academic excellence and grants for low-income students are available to those who are eligible and pass the qualification process. But if your current predicament does not match what are commonly required from scholarship and grant applicants, there are student loans that offer financial assistance so you can still pursue college education.

Unlike the financial aid that comes from grants and scholarships, those obtained from a student loan must be repaid after graduation or once the borrower find some source of income to start the repayment process. Student loans serve the purpose of supplementing cash to students that are then used for educational expenses- such as tuition fees, books, and accommodations cost among others. The cash amount to be repaid is with interest, which means students are required to pay more than the total amount of the loan they applied for.

Types of Student Loans

Essentially, there are five types of student loans:

  • 1. Federal District Stafford Loans
  • The primary lender of stafford loans is the US Department of Education. Loans are afforded to students who mostly need financial aid- those which belong to low-income families. Stafford loans are further subdivided into subsidized and unsubsidized wherein borrowers who qualify for the former pay a lower interest at 3.4% while 6% for those under unsubsidized loans.

  • 2. Federal Direct Parent PLUS
  • Parents are the main borrowers of this type of student loan. Again, the primary lender is the US Department of Education. The interest rate applied onto this type of student loan is at 7% that which is substantially bigger when compared alongside other types of student loans.

  • 3. Federal Direct Grad PLUS
  • This type of student loan is formulated for grad students in mind. The processing, evaluation, and approval processed are facilitated and administered by the US Department of Education and are still subject for approval by the same office. The interest rate that is to be added once repayment kicks in at 7.9%.

  • 4. State Student Loans
  • As the name implies, state loans are backed by the states for their resident college students. Of course, different states feature their own sets of state loans and may be similar to one another, the primary lenders are of course the state office and the limited funding comes from local and state taxes or lottery funds as well. Interest rates vary from state to state.

  • 5. Private Student Loans
  • Student loans other than the federal, state, or local government as its primary lender fall under the category, private student loans. Banks, private organizations, credit unions, and professional associations commonly play the role of lender and provide student loans among those who can complete requirements and pass eligibility too.

ACS Student Loans

ACS student loans are a form of student financing administered by the private home loan company, Affiliated Computer Services Inc. ACS is a private company that is renowned for outsourcing technology and related business solutions. The company is growing in popularity among students in the United States as it offers quick and effective options for hassle-free application and flexible repayment terms. By utilizing their own technological innovations, ACS makes it possible to manage student loans in the easiest and most convenient manner possible. Colleges and universities even partner with ACS for the processing of their student loans as well. Since ACS centers on the development of systems, their mission is to help educational institutions in the processing of loan applications. In this way, colleges and universities can solely focus their time and money on what they do best- that which is to efficiently manage their respective school systems.

How do ACS Loans work?

An ACS loan is available in majority of colleges and universities that offer student loans. Most educational institutions in the country have successfully outsourced this activity to ACS. To date, there are over 9 million student loan transactions that have been completed with ACS. The process of submitting a request for a student loan is straightforward and easy:

  • Interested applicants are required to submit a FAFSA or Federal Student Aid application form
  • Once the free application form is filled up, it is then forwarded to the school  and the US Department of Education for processing
  • Once approved for a loan, the borrower will receive an eligibility letter stating the amount of the loan
  • The following documentation are to be submitted to ACS to start the loan application process
    • 1. Application for Federal Student Aid (FAFSA form)
    • 2. Student Aid Report which contain calculations of Expected Family Contribution along with FAFSA information
    • 3. Award Letter which outlines the terms of the loan and direct aid details that is willingly offered to the applicant

Who is Eligible for ACS Loans?

ACS Loans are offered to:

  • Students and parents
  • Universities and colleges
  • Financial institutions

Benefits of Using ACS Loans

There are a myriad of benefits when you apply for an ACS Loans. For one, the company provides access to information for borrowers and servicing solutions as well. Borrowers can easily access their student loan information through the World Wide Web thus making it convenient for them to create changes and pay for their respective loans as well. The online tools enable borrowers of student loans to easy log on to their account and perform the following activities online:

  • ExpressPay which enables borrowers to pay for their loans including Stafford Loans, Federal Family Education Student Loans, PLUS or Graduate PLUS loans, consolidation loans, and Supplemental Student Loans as well.
  • Enable borrowers to manage their own account such as verification of information, preview of loan balance, payment history, and preview of outstanding loan interest.
  • Provide borrowers the ability to request for student loan deferments, forbearance, and other repayment options.

In essence, ACS is not a direct lender of student loans but a partner in the processing and management of student loans for lenders. They merely provide servicing solutions so students can apply and manage their students loans easily and that financial institutions can concentrate their efforts on providing their expert services.

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