Once you realize that low-cost student loans are the best financial plan, the emphasis becomes finding the right kind of loan for you. Here’s the key: two types of student loans exist: federal student loans and private student loans. Smart, savvy students choose Federal student loans first. Why? Because almost everyone can qualify for some low-cost aid.
Go Federal First
If you have to get a student loan, always try to get one from the federal government first. Government student loans have the lowest interest rates, the most lenient repayment plans and the most flexible terms. The government guarantees Federal loans and most government loans have no credit requirement. Depending upon your college you may be able to borrow federal student loans through the Direct Federal Loan program, in which case the Department of Education is the direct lender, or from a participating student loan lender in the Federal Family Education Loan Program (FFELP). Your school will advise you on which program it uses and some schools use both.
Types of Government Student Loans
Regardless of whether you borrow federal student loans through the Direct Loan program or the FFELP, the loans are as follows: Stafford Loans, PLUS Loans, Perkins Loans and the Federal Consolidation Loan.
Federal Stafford Loan
The Federal Stafford Loan comes in two varieties: subsidized Stafford Loans and unsubsidized. The subsidized Stafford Loan is reserved for students with the most need and the interest that accrues is paid by the federal government, it’s subsidized. Unsubsidized Stafford Loans are available to almost everyone, however you are responsible for payment of monthly interest while in school (some lenders allow you to defer the interest). Stafford Loans are the single most common type of student loan and feature some of the lowest interest rates going.
Federal Parent PLUS Loan
The Federal Parent PLUS Loan is a credit-based alternative loan designed specifically to provide affordable assistance to the parents of dependent college students. Parents can borrow up to the cost of their child’s education, minus other financial aid. Repayment of the PLUS Loan begins as soon as the loan is fully disbursed.
Federal Perkins Loan
The Federal Perkins Loan is awarded to students with exceptional financial need. The program is campus-based. The federal government metes out funds to campuses annually. The campus in turn awards students approved for the Perkins program on a first-come, first served basis. For this reason students are advised to apply to the campus early.
Federal Consolidation Loan Program
A standard component of the federal loan program is the Federal Consolidation Loan. Student graduates with one or more federal student loans may opt to combine all loans should repayment become a problem.
Applying for Government Student Loans
You must complete the Free Application for Federal Student Aid (FAFSA) in order to be considered for any federal aid, including grants and loans. In fact, the FAFSA is required for many types of aid programs, so don’t miss out.
February 13th, 2010 at 8:44 pm
да,но это еще и не все…
February 14th, 2010 at 1:58 am
Не знаю как вам, а мне нравится! Вот.