|
You have gotten all the grants and scholarships you
can, but you still need money for your education.
It’s time to look at loans. But which is better –
federal loans or private loans?
Federal loans
If you need to take out a loan to help pay for your
education, you should always look at federal loans
first. The largest source of education loans around,
federal loans are long-term loans with low interest
rates designed for students who need money for their
educations. They have several benefits when compared
to other borrowing options, including
- Lower interest rates
- Options to postpone payments
- Longer repayment terms
- Easier credit requirements
Eligibility for some of these loans, such as the
Federal Perkins Loan and the Subsidized Federal
Stafford Loan, are needs-based, while others are
not. You will need to complete a FAFSA to apply for
these loans.
The most common federal student loans are listed
below:
Federal Perkins Loan
The Federal Perkins Loan is a low-interest loan
available to students who have exceptional financial
need, based on the information provided on their
FAFSA. Undergraduates can borrow up to $4,000 per
year, while graduate students can borrow up to
$6,000 per year.
Federal Stafford Loan
The Federal Stafford Loan is available to
undergraduates and graduate students. Loan amounts
depend on a student’s year in school and whether
they are financially dependent or independent. Your
college’s financial aid office determines your
eligibility.
Stafford loans can be subsidized or unsubsidized.
Financial need determines which type a student is
eligible for. Subsidized loans are based on
financial need. The government pays the interest
while the student is in school, in deferment, and in
their grace period.
Unsubsidized loans are available to all students,
regardless of income. The student is responsible for
all interest.
Federal PLUS Loan
The Federal PLUS Loan (Parent Loan for Undergraduate
Students) is a low-interest education loan for
parents. Each year, parents can borrow up to the
cost of attendance, minus other financial aid
received (scholarships, grants, student loans,
etc.).
The PLUS loan is not based on financial need.
Qualified applicants must pass a credit check.
Private loans
Private loans are designed to supplement federal
loan programs and are available from schools, banks,
and education loan organizations. They are usually
used to cover education costs that cannot be met by
federal aid.
Terms for these loans vary according to the lender
and your credit history. Keep these things in mind
as you consider taking out a private loan:
- Private loans have credit requirements, and you
may need a co-signer
- The lender determines the interest rates and fees,
which may be affected by your credit score
- Private loans may not offer deferment options
- Private loan programs may offer borrower benefits,
such as interest rate discounts or rebates
No matter what type of loan you take out, be
conservative and borrow wisely! All loans have to be
repaid, whether federal or private.
This article is distributed by NextStudent. At
NextStudent, we believe that getting an education is
the best investment you can make, and we're
dedicated to helping you pursue your education
dreams by making college funding as easy as
possible. We invite you to learn more about Federal
Student Loans or Private Student Loans at http://www.NextStudent.com
.
About the author:
My goal is to help every student succeed - education
is one of the most important things a person can
have, so I have made it my personal mission to help
every student pay for their education. Aside from
that, I am just a pretty average girl from SD.
Circulated by
Article
Emporium
Recommended
Loan Resources:
Guaranteed Bad Credit Financing -
YoureApproved.org has been created to help those who
have bad credit find the credit they deserve.
Personal loans, business loans, credit cards and
mortgages are all within your reach no matter how
bad your credit situation is - even with
bankruptcy!
Credit Axis - A one-stop
resources for Bad Credit Loans, Credit Repair,
Filing Bankruptcy, Government Grants, and Government
Auctions. They are committed to helping you to get
your credit back on track, OR get loans or cash that
you need.
Access Loan & Credit Data program
- Design to help anyone - even those with bad credit
to get up to $15,000 loan within 30 days! With money
back guarantee if you cannot get your loan.
Debt Free In 3 - Thousands use this
secret to gain 100% debt freedom and
live the “good life.” You can too! In
fact, this secret practically guarantees
you will become debt free in as little
as 3-5 years no matter your income.
Best
part: You can start shrinking your debt
for FREE if you choose to!
Ultimate Debt Guide -
Reveal How You Can
Get Out Of Debt FAST Without Filing
Bankruptcy -- Using Several Little Known
But Highly Effective Techniques Which
Are Guaranteed To Work No Matter How
Much You Currently Owe!
Collection Agency Self-defense
- A former debt collector reveals his idiot-proof,
down-to-earth and easy to read system that stops
debt collectors from harassing you - even without
a lawyer or bankruptcy! Include topics on how to
negotiate with your creditors for the best repayment
plans.
|
|
