Apply for student loan

There are many students who find it difficult to sponsor their education. With the cost of education on rise it has really become difficult to meet the expenses. But with the help of some of the federal and private student loan programs it becomes possible for students to achieve their dreams.

Let us see what are the different options available and how can one apply for student loan.

Applying for the federal student loan

Applying for a Federal loan is easy. You are required to fill a form which is know as the Free Application for Federal Student Aid (FAFSA) While filling the form you would have to provide a lot of personal as well as family related information that is necessary and required by the department to consider your application for assessing the amount that you can request for. The information that you provide is thoroughly checked and scrutinized. This helps the department to assess the amount that the applicants family would be able to contribute towards the educational costs. Besides this also helps in assessing the total cost of education"> The difference between the two amounts would be the amount that the applicant can request for.

To be eligible for these loans there are certain requirements that the applicant needs to fulfill. In case you fail to meet any of the requirements then you can be declined of the loan.

Some of the most important requirements include:

You are required to be a U.S citizen

You should have a valid Social Security Number

You should be eligible for higher education

You should not have any default or bankruptcy on your credit report

The student loans are obtained readily from the federal department but one should keep in mind that the student loans are not given by the government but are sponsored by them. These loans have to be paid back in a specified duration of time. However the interest rates are comparatively low and the repayment term of the loan is longer than the private student loans.

Under the student work program the applicant is supposed to work for a government agency so that he can pay for his/ her education. The job is usually part-time and in case it is full time only a part of the salary gets cut.

Applying for private student loans

Besides the federal loans there are a number of people who look for private loans. These loans can be either secured or unsecured depending on the financial status of the parents. Usually people cash the equity on their house in order to meet the education expenses of their children. Getting private loans can be easy if the parents have a good credit report and provide a security for the loan. The interest rates on these loans vary from one lender to another. However if you have a good credit score and the value of your collateral is also much then you can negotiate with the lender for lower interest rate.

When you think of getting a loan for college there should be a few things that should be taken into consideration before you start your search. Some of these points are mentioned below.

The interest rates- the interest is the extra amount that you pay on the loan amount. This is paid for the lenders services and the interest is calculated on the total amount of the loan that is borrowed. People usually jump for loan offers with a lower interest rate but forget to look at the repayment terms. There are times when the loan with a higher interest rate also offers a good deal with good repayment terms.

The repayment terms- these terms, differ from one lender to another, just like the interest rates. These would include options like automatic withdrawal, or making payments using stubs, the time period that would be allowed for the payment of the loan. Good repayment terms even with a slightly higher interest rate would be the best deal that a person can get.

It is better if one applies and gets approved for a federal student loan. But the federal loans are limited and are not meant for everyone Hence it is advised that you should keep both the option for a private as well as federal student loan open so that if one does not work you can have a back up.

Where to apply for student loans?

Some of the lenders for student loans are mentioned below.

U.S Bank:

They offer federal as well as private student loans. Their loans are just the right ones that can meet your needs. You can contact them at U.S. Bancorp, U.S. Bancorp Center, 800 Nicollet Mall, Minneapolis, MN 55402 ; phone: 1-800-242-1200

Sallie Mae:

They are the leading providers for students loans. They provide all types of federal student loans and also private loans helping students in financing their education. You can contact them at Sallie Mae Servicing, P.O. Box 9500, Wilkes-Barre, PA 18773-9500; Toll free: (888) 2-SALliE (888-272-5543).

SLFG:

They offer private student loans at the best interest rates. You can contact them at SLFG
c/o TERI, P.O. Box 848108, Boston, MA 02284-8108; phone: 1-888-778-4709

Wells Fargo:

They offer undergraduate as well as graduate student loans. They offer private student loans to students as well as parents.