Students loan federal
If you have started figuring out how you would finance the expenses of your college, then it would rather be a bit difficult. There are a number of student loan options to choose from that would again make it confusing. It is important that you research student loan over the internet in order to make a proper decision. However, when it comes to student loans there are two main categories that you can consider. These two are basically the private student loans and the federal student loans.
Federal student loans
Basically, any prospective student would start with a federal student loan. Federal student loans are actually backed by the government of the United States and they are available directly through your school or even through a student loan lender or bank or even through a Federal Family Education Loan Program. This loan would typically have a lower rate of interest with multiple repayment options and a longer repayment period that would make it much easier to finance your educational needs rather than to prefer a private dealer. In order to get a federal student loan, you should complete and submit the Free Application for Federal Student Aid FAFSA.
The federal student loan again comes in different forms that range from need based aid to loans that are targeted at parents.
A Stafford loan is one of the most common types of federal loan as it is not important to demonstrate financial needs and the loan is applicable to anyone. These loans basically carry a fixed rate of interest and are available in two forms - the subsidized and unsubsidized form According to the subsidized loan, the government would pay the interest while the student is in school, whereas in the unsubsidized loan the student would have to pay the interest but they can defer in making any payments until graduation. These loans however require the student to be enrolled at for half-time. The student can borrow nearly $2,625 to $5,500 depending on the studying year.
The Perkins loan is well know for offering a low and fixed interest rate which is nearly 5 percent for graduates and undergraduates who can demonstrate financial needs. The undergraduates can borrow nearly $4,000 based on the level of financial need whereas the graduate student can borrow nearly $6,000. Unlike other federal loans, the funds in this loan are dispersed from the school and the student should be enrolled for at least half-time to apply for the loan.
The PLUS or Parent Loan for Undergraduate Students is specially targeted at parents of dependent undergraduate student who are enrolled for nearly half-day. Although this loan does not have a full credit check of the loan, the applicant should not have any unfavorable credit experience on their record. The parents can borrow according to the cost of education of the student including any other need the student would come across. These loans however carry a fixed rate of interest which is a bit higher than the Stafford loans. The repayment of the loan would start even when the student is in school.