You are now earning money and you are spending it on things that you want. You can now travel, buy clothes, pay for a car, and you may be even able to afford a house already. Studying and school really pay off.
If you want to make your studies even more worth the while, then you should not be wasting money paying more for your loans than necessary - it's time to plan accordingly to get the best deals.
Special Deals For Consolidation
There are several ways to manage your post scholastic loans and getting good student loan consolidation rates is one of them. So, what's special about are these special consolidation rates anyway?
If you are familiar with student loans then you need to grasp the fact that you can combine loans into one - and at a better rate too. The art of combining loans into one is called consolidation.
The rates that are the result of this combination are called loan consolidation rates and they are usually better than you can get in the open market.
If you want to get rates then you have to be on good terms with your loan company and/or college. Because when you consolidate your loans with lower student loan consolidation rates, you are going to pay less each month.
Now, that's a great idea!
Ask Around For Insider Deals
If you have not gathered any student loan consolidation rates information lately, then you must do your research. Because there are special arrangements, usually for the first six months after you graduate, time is of the essence.
You have to be proactive when looking for the best deals. If you do not look for the most competitive student loan consolidation rates then you are going to be wasting more and more money.
Ask others in a similar boat who might have done some of the research. Check with your current lenders and if you have several, see if you can play each of them against each other - you might get the deal of the decade!
Where Else Can You Look For A Great Deal
Where are the places to look for student loan consolidation rates? If you want first hand experience in learning about good consolidation student loan deals, then you should visit your local financial institutions right away.
Get in touch with someone that is familiar with these types of loans or someone that is familiar with consolidation of some sort.
If you are one of the lucky enough to work in a bank or something similar, then there may well be deals within that organization you can get preferentially, just for those in your situation, but make sure that you get a move on as the deal will take time to complete.
Before you know it your time with existing loans will be up and your rates may well spiral. Do not let this happen to you. Life's too short to be worrying about this too much, so, you should be acting fast. It's a challenging financial market we have today and rates get withdrawn quickly.
If you want the best deals in so far as the consolidation rates are today, then you have to make your arrangements as soon as you can.
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
Thursday, November 22, 2007
Tuesday, November 20, 2007
Student Loans - Great Rates After Leaving College
There are a lot of student loans available in the market today. If you want a student loan for any course, from becoming a lawyer to training for nursing, there's a loan out there for you.
Today, the excuse of not having enough money is not really acceptable when it comes to studying. There are so many opportunities for decent loans out there, you must be able to find something that suits you perfectly.
Student Loans At The End Of School
Then at the end of your course, what happens when you have completed your studies and you need to pay off your student loan? You need to make new arrangements to fix your ongoing credit needs.
Here, great student loan consolidation rates that will minimize the amount of money that you pay each month are available as long as you act soon after graduation.
What are student loan consolidation rates anyway? If you are familiar with loans then you should understand that when you consolidate two loans together, you may be able to get a lower overall rate.
If you get student loan consolidation rates that are lower than what they were previously, then you can save a lot of money.
Who Should You Approach For Student Loans?
Who should you approach for help with your loan requirements? The people that are very knowledgeable on this topic are, of course, the lenders themselves. If you want to get good student loan deals then you should ask these lenders or creditors.
Once you have your degree, take time to sort out your ongoing lending, because the rates that you were given as an undergrad will need to be sorted out quite soon after you leave school - that's the way it works - or the lending rate will go way up.
You should not allow these loans to eat up into your personal income, with those higher rates, because money is money and you have to value it properly.
You have made your way through school and you are now earning decent money.
Finding Help With Student Loans Consolidation
If you want to save on costs then you should apply for some sort of student loans consolidation right away. If you think that these consolidation deals are complicated, then simply ask a creditor or a banker for advice. You will certainly end up saving so much money in the long run.
Do not allow these opportunities to pass you by, because money is something that just does not grow on trees.
If you want to make one of the best decisions in your life then you might have to look at the student loan consolidation rates that are available today.
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
Today, the excuse of not having enough money is not really acceptable when it comes to studying. There are so many opportunities for decent loans out there, you must be able to find something that suits you perfectly.
Student Loans At The End Of School
Then at the end of your course, what happens when you have completed your studies and you need to pay off your student loan? You need to make new arrangements to fix your ongoing credit needs.
Here, great student loan consolidation rates that will minimize the amount of money that you pay each month are available as long as you act soon after graduation.
What are student loan consolidation rates anyway? If you are familiar with loans then you should understand that when you consolidate two loans together, you may be able to get a lower overall rate.
If you get student loan consolidation rates that are lower than what they were previously, then you can save a lot of money.
Who Should You Approach For Student Loans?
Who should you approach for help with your loan requirements? The people that are very knowledgeable on this topic are, of course, the lenders themselves. If you want to get good student loan deals then you should ask these lenders or creditors.
Once you have your degree, take time to sort out your ongoing lending, because the rates that you were given as an undergrad will need to be sorted out quite soon after you leave school - that's the way it works - or the lending rate will go way up.
You should not allow these loans to eat up into your personal income, with those higher rates, because money is money and you have to value it properly.
You have made your way through school and you are now earning decent money.
Finding Help With Student Loans Consolidation
If you want to save on costs then you should apply for some sort of student loans consolidation right away. If you think that these consolidation deals are complicated, then simply ask a creditor or a banker for advice. You will certainly end up saving so much money in the long run.
Do not allow these opportunities to pass you by, because money is something that just does not grow on trees.
If you want to make one of the best decisions in your life then you might have to look at the student loan consolidation rates that are available today.
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
Wednesday, November 14, 2007
Are There Student Loans For Those With Bad Credit ?
You may have bad credit because you have taken out too many loans, not paid your bills promptly or have been a victim of identity theft. While bad credit can make it harder to get the best loan rates, or even any credit at all, today's bad credit education loans allow you help for you education.
As bad credit education loans typically have different application and eligibility standards, this helps make it easier for even those with an imperfect credit history to get the best education and loans possible for you.
Bad credit student loans come as a rescue and provide the required amount needed to repay your debts and/or obtain the money you need to attend college. These loans can be used also for consolidating various student debts.
These loans can be availed for many purposes like tuition fees, hostel charges, computer expenses, etc. There are basically two types of bad credit student loans. These loans are secured and unsecured bad credit student loans.
In secured bad credit student loans, the borrower needs to deposit collateral against the loan amount applied. Whereas in an unsecured type the borrower is free from keeping any security. The interest rate changes on the unsecured loans further increasing due to the non-presence of collateral as compared to secured ones.
Students get lower interest rates in spite of having a bad credit history, at least the best possible from any lender in your situation. Additionally, the students get a second chance to rebuild their credit ratings. Regular repayment assures an increased higher credit score.
There are different kinds of bad credit student loans granted by the federal government. And these loans can be granted to help students through their college career. The repayments have to be made to the college you would be attending.
These loans are available from private lenders such as banks and credit unions also. Try using online databases, your school's financial aid office, and phone calls to private lenders and compare as many education loans as you can.
You will find that even with bad credit the interest rate and terms you are quoted on education loans vary widely. Even though you will not get the best rates, you can always consolidate later. The best way around all of this is to ask your parents for help.
After you have found the lowest rate on a loan you can, if your parents have a good credit history, ask them to co-sign with you. This means that your parents are partly responsible for your loan.
And this will make the lender more secure with the loaning of money to you and can improve the interest rate you were quoted.
Court helps people to learn about college student loans. You can read more of his work by visiting: http://whalehookloans.com.
As bad credit education loans typically have different application and eligibility standards, this helps make it easier for even those with an imperfect credit history to get the best education and loans possible for you.
Bad credit student loans come as a rescue and provide the required amount needed to repay your debts and/or obtain the money you need to attend college. These loans can be used also for consolidating various student debts.
These loans can be availed for many purposes like tuition fees, hostel charges, computer expenses, etc. There are basically two types of bad credit student loans. These loans are secured and unsecured bad credit student loans.
In secured bad credit student loans, the borrower needs to deposit collateral against the loan amount applied. Whereas in an unsecured type the borrower is free from keeping any security. The interest rate changes on the unsecured loans further increasing due to the non-presence of collateral as compared to secured ones.
Students get lower interest rates in spite of having a bad credit history, at least the best possible from any lender in your situation. Additionally, the students get a second chance to rebuild their credit ratings. Regular repayment assures an increased higher credit score.
There are different kinds of bad credit student loans granted by the federal government. And these loans can be granted to help students through their college career. The repayments have to be made to the college you would be attending.
These loans are available from private lenders such as banks and credit unions also. Try using online databases, your school's financial aid office, and phone calls to private lenders and compare as many education loans as you can.
You will find that even with bad credit the interest rate and terms you are quoted on education loans vary widely. Even though you will not get the best rates, you can always consolidate later. The best way around all of this is to ask your parents for help.
After you have found the lowest rate on a loan you can, if your parents have a good credit history, ask them to co-sign with you. This means that your parents are partly responsible for your loan.
And this will make the lender more secure with the loaning of money to you and can improve the interest rate you were quoted.
Court helps people to learn about college student loans. You can read more of his work by visiting: http://whalehookloans.com.
Saturday, November 10, 2007
Alternative Student Loans - For When Funding Is Difficult
Such loans can fill a funding "gap." Often such a "gap" is created when a student is awarded a Stafford or Perkins loan, and then realizes that the amount in the loan does not fully cover all of the student's expenses.
The Lenders of Alternative Student Loans
Most lenders have put their loan applications online. Those applications are for secured loans. The lenders thus seek some "security" when providing a student with loan money.
Students can easily download an application for one of the many loans available. Once downloaded, the application can be filled out and sent to the prospective lender. One word of warning: Students should study the details of any loans before submitting any application.
The lenders of the private, alternative student loans hope to profit from their ability and their willingness to loan money to college students. As a result, they often attach stiff fees to the loan.
Those fees are sometimes paid at the time of the loan application. In other instances, lenders have added those fees to the interest rate for the student loan.
Comparing Different Alternative Student Loans
Students who want to compare the offering of the various lenders might feel like they are comparing "apples and oranges."
Students might wonder how a high fee and lower interest compares to a low fee and a higher interest rate. Students should remember this: a 3% fee is equal to a 1% rise in the interest rate. When keeping those facts in mind, students can better compare the various types of student loan.
Students might also consider how quickly they can obtain the loan. The Act private loans are fast, and they do no require the completion of a FAFSA. Still, students should take note of the fact that awarding of the Act private loans is based on the applicant's credit.
Different lenders have different repayment options. The student in need of a loan should study those options. An ideal lender is willing to defer payment until after the student has graduated.
Some lenders, such as Astrive, give student loan recipients an opportunity to refinance any of their loans.
The Best Time to Go After Alternative Student Loans
Unlike a lot of student financing, the money for the alternative student loans is sent directly to the student, not the institution that he or she is attending.
Students are not encouraged to look at an alternative student loan as a "first choice," when searching for a way to pay for a college education.
Not infrequently, a student with a Stafford Loan will "max out" on that loan while still in school. If he or she hopes to continue and finish his or her education, then that student needs to look at the alternative to the loan they first thought of.
The same student might also want to consider getting a PLUS loan.
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
The Lenders of Alternative Student Loans
Most lenders have put their loan applications online. Those applications are for secured loans. The lenders thus seek some "security" when providing a student with loan money.
Students can easily download an application for one of the many loans available. Once downloaded, the application can be filled out and sent to the prospective lender. One word of warning: Students should study the details of any loans before submitting any application.
The lenders of the private, alternative student loans hope to profit from their ability and their willingness to loan money to college students. As a result, they often attach stiff fees to the loan.
Those fees are sometimes paid at the time of the loan application. In other instances, lenders have added those fees to the interest rate for the student loan.
Comparing Different Alternative Student Loans
Students who want to compare the offering of the various lenders might feel like they are comparing "apples and oranges."
Students might wonder how a high fee and lower interest compares to a low fee and a higher interest rate. Students should remember this: a 3% fee is equal to a 1% rise in the interest rate. When keeping those facts in mind, students can better compare the various types of student loan.
Students might also consider how quickly they can obtain the loan. The Act private loans are fast, and they do no require the completion of a FAFSA. Still, students should take note of the fact that awarding of the Act private loans is based on the applicant's credit.
Different lenders have different repayment options. The student in need of a loan should study those options. An ideal lender is willing to defer payment until after the student has graduated.
Some lenders, such as Astrive, give student loan recipients an opportunity to refinance any of their loans.
The Best Time to Go After Alternative Student Loans
Unlike a lot of student financing, the money for the alternative student loans is sent directly to the student, not the institution that he or she is attending.
Students are not encouraged to look at an alternative student loan as a "first choice," when searching for a way to pay for a college education.
Not infrequently, a student with a Stafford Loan will "max out" on that loan while still in school. If he or she hopes to continue and finish his or her education, then that student needs to look at the alternative to the loan they first thought of.
The same student might also want to consider getting a PLUS loan.
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
Tuesday, November 06, 2007
Student Loans Will Fund Your College Career
Unfortunately, not every would-be student can afford to go, just like that. That's why there is a huge market in student loans and why they can make the difference when it comes to enjoying the opportunities in offer.
It is really a sad situation that some individuals find themselves in when finances get in the way of bettering themselves. Fortunately these days, student loans are becoming more and more available. Through these loans, everyone who might not have been able to go to school before, because of the lack of financial support, can now go!
And if you remember to take note that student loans have interest rates that are lower than other loans available out there, the opportunity becomes much more attractive.
Moreover, there are now a lot of student loan consolidation programs that makes obtaining loans and paying for them afterwards much easier for students.
Some Facts about Student Loan Consolidation
So what exactly is meant when you decide to consolidate your student loan programs? Well, what happens is that you (the student) will have a difficult time paying back all these loans because there are just too many of them, without a bit of financial restructuring, shall we say!
This is where student loan consolidation lenders come in. When you consolidate, you put together the variety of student loans you have accumulated during your college years, into just one loan only.
Although you might find that the rate can rise, you will only have one loan to think about, which is easier to manage - and student loan consolidation rates are actually not that high. So the whole thing becomes much more manageable
Basically if you have a number of loans, you also have to deal with several lenders too. So when you consolidate, you will find one lender willing to resolve the whole consolidation process for you, by loaning you an amount to pay off those other lenders so that you only have to pay to your new lender. Much neater!
Student loan debt consolidation is more or less similar to mortgage refinancing. Federal loans are some of the loans you can consolidate, with their own consolidation programs such as FFELP (SLS, PLUS, and Stafford), Health Professional Student Loans, FISL, NSL, Perkins, Direct Loans, Guaranteed Student Loans, and HEAL.
There are also several lenders out there who offer private student loan consolidation.
How to Go About It
There are many ways that students can consolidate the many loans they have. One way to consolidate is through the use of home equity and there are many advantages in this approach.
Non-tax-deductible as well as bad debts can now be turned around for the better. So, once you do consolidate, you will be rid of the numerous monthly payment obligations and can just concentrate on one.
Paying your debts would now become easier and way better than using credit cards, which might have started you on a slippery slope to further uncontrolled debt.
Always remember though that after consolidating your student loans, you must therefore watch out for accruing more debt. A good rule of thumb is not to go out and borrow from more lenders afterwards.
That's what you've been trying to sort out! Use the amount that you have consolidated wisely. Pay off first those loans that have high interest rates.
If you take note of all these ideas, your problem will become solved. So be wise in choosing how you consolidate and what you do afterwards.
Go for it!
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
It is really a sad situation that some individuals find themselves in when finances get in the way of bettering themselves. Fortunately these days, student loans are becoming more and more available. Through these loans, everyone who might not have been able to go to school before, because of the lack of financial support, can now go!
And if you remember to take note that student loans have interest rates that are lower than other loans available out there, the opportunity becomes much more attractive.
Moreover, there are now a lot of student loan consolidation programs that makes obtaining loans and paying for them afterwards much easier for students.
Some Facts about Student Loan Consolidation
So what exactly is meant when you decide to consolidate your student loan programs? Well, what happens is that you (the student) will have a difficult time paying back all these loans because there are just too many of them, without a bit of financial restructuring, shall we say!
This is where student loan consolidation lenders come in. When you consolidate, you put together the variety of student loans you have accumulated during your college years, into just one loan only.
Although you might find that the rate can rise, you will only have one loan to think about, which is easier to manage - and student loan consolidation rates are actually not that high. So the whole thing becomes much more manageable
Basically if you have a number of loans, you also have to deal with several lenders too. So when you consolidate, you will find one lender willing to resolve the whole consolidation process for you, by loaning you an amount to pay off those other lenders so that you only have to pay to your new lender. Much neater!
Student loan debt consolidation is more or less similar to mortgage refinancing. Federal loans are some of the loans you can consolidate, with their own consolidation programs such as FFELP (SLS, PLUS, and Stafford), Health Professional Student Loans, FISL, NSL, Perkins, Direct Loans, Guaranteed Student Loans, and HEAL.
There are also several lenders out there who offer private student loan consolidation.
How to Go About It
There are many ways that students can consolidate the many loans they have. One way to consolidate is through the use of home equity and there are many advantages in this approach.
Non-tax-deductible as well as bad debts can now be turned around for the better. So, once you do consolidate, you will be rid of the numerous monthly payment obligations and can just concentrate on one.
Paying your debts would now become easier and way better than using credit cards, which might have started you on a slippery slope to further uncontrolled debt.
Always remember though that after consolidating your student loans, you must therefore watch out for accruing more debt. A good rule of thumb is not to go out and borrow from more lenders afterwards.
That's what you've been trying to sort out! Use the amount that you have consolidated wisely. Pay off first those loans that have high interest rates.
If you take note of all these ideas, your problem will become solved. So be wise in choosing how you consolidate and what you do afterwards.
Go for it!
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
Sunday, November 04, 2007
What Do I Do if I Earn Too Much to Qualify for Student Loans?
All too frequently, parents or students believe that they have no choice but to pay every cent of tuition and fees, room and board, books, and all other college-related expenses, without financial assistance from any source, if they have the money.
They have been told (erroneously), heard, or thought that they could not qualify for any aid because they make too much money. There are various aid opportunities available to students regardless of their income.
If you are not eligible for any need-based aid, there are other types available. There are thousands of scholarships from private organizations and through schools that are given based on factors such as what high school you graduated from.
Also, whether you are left handed, your major or program of study, your ethnic background, gender, and of course your scores on college entrance exams and high school or previous college GPA.
You can apply for scholarships through your school and also for private scholarships as well. Some scholarships require you to write an essay, some just want an application. You can search for these on-line, at the library, or through your financial aid adviser.
In addition to thousands of college funding consultants around the country who can guide you through the maze of financial aid options, there are also other ways to identify college bargains.
The site contains more than 4,000 unique and unknown college bargains, including often overlooked tuition breaks for academic merit, sibling discounts, first generation college student, and minority student scholarships.
Another way to fund your education is through student loans. Students of any economic background can take out unsubsidized loans. And parents can take a loan out to pay for their child's education in their own name, which is called a PLUS loan.
These loans are available to everyone and are based on creditworthiness. This is an excellent loan to consider. The interest rate in effect is 8.5 percent, which is much better than any private bank loan. It has a great repayment plan and is tax deductible.
Even if you think you make too much money, it is worth it to file the FAFSA (Free Application for Federal Student Aid) to see if you are eligible for non-need based aid. From here, additional information can be given to you to help you in your search.
The key for high-income families or students is identifying possible funding sources and solutions for higher education. Staying focused, persistent and educated about emerging opportunities can do this.
Court helps people to learn about federal student loans. You can read more of his work by visiting: http://whalehookloans.com
They have been told (erroneously), heard, or thought that they could not qualify for any aid because they make too much money. There are various aid opportunities available to students regardless of their income.
If you are not eligible for any need-based aid, there are other types available. There are thousands of scholarships from private organizations and through schools that are given based on factors such as what high school you graduated from.
Also, whether you are left handed, your major or program of study, your ethnic background, gender, and of course your scores on college entrance exams and high school or previous college GPA.
You can apply for scholarships through your school and also for private scholarships as well. Some scholarships require you to write an essay, some just want an application. You can search for these on-line, at the library, or through your financial aid adviser.
In addition to thousands of college funding consultants around the country who can guide you through the maze of financial aid options, there are also other ways to identify college bargains.
The site contains more than 4,000 unique and unknown college bargains, including often overlooked tuition breaks for academic merit, sibling discounts, first generation college student, and minority student scholarships.
Another way to fund your education is through student loans. Students of any economic background can take out unsubsidized loans. And parents can take a loan out to pay for their child's education in their own name, which is called a PLUS loan.
These loans are available to everyone and are based on creditworthiness. This is an excellent loan to consider. The interest rate in effect is 8.5 percent, which is much better than any private bank loan. It has a great repayment plan and is tax deductible.
Even if you think you make too much money, it is worth it to file the FAFSA (Free Application for Federal Student Aid) to see if you are eligible for non-need based aid. From here, additional information can be given to you to help you in your search.
The key for high-income families or students is identifying possible funding sources and solutions for higher education. Staying focused, persistent and educated about emerging opportunities can do this.
Court helps people to learn about federal student loans. You can read more of his work by visiting: http://whalehookloans.com
Thursday, November 01, 2007
Types of Student Loans
All prospective college students should be in the position to make an educated decision about how to finance their higher education. There are many different kinds of student loans available, and this may make the choice more difficult. But by becoming educated about the differences among the various loans, it will be easier to choose the best loan for you.
Private and Federal Student Loans
The most basic way to categorize student loans is by separating them into federal and private loans. Federal student loans are provided and supported by the federal government. Private banks may fund some federal student loans, but even in these cases the interest rate, fees, and maximum amount are set by the federal government.
Private loans are provided by private lending institutions. Private student loans usually have higher interest rates than federal student loans. Private loans also have a more stringent approval process and usually require a good credit rating and a minimum income level.
Types of Federal Student Loans
Federal loans can be further categorized.
Stafford Loans can be obtained by students to fund their college education and are based on financial need. Stafford loans can be subsidized or unsubsidized.
The government pays the interest accured on subsidized Stafford loans while the student is attending school. Subsidized Stafford loans are based on financial need.
Unsubsidized Stafford loans are not based on financial need. The student is expected to make interest payments while enrolled in college. These interest payments can be deferred, but if they are, the interest can be added back onto the principle of the loan and thereby increase to total amount of the loan.
PLUS Loans
PLUS is an acronym for Parent Loans for Undergraduate Students. These loans are obtained by a student's parents to pay for the cost of their child's college education. Because there is a credit underwriting process for PLUS loans, it is possible to be turned down for the loan if the parent does not qualify.
PLUS loans may be obtained by graduate students to pay for their own education.
Perkins Loans
Students in extreme financial need may be given a Perkins loan. There are 1,800 educational institutions participating in the program, and each is alloted a certain amount of money to award. The amount of funds received and the student who will receive the funds is determined by each college's financial aid department. There is only a limited amount of money available, so Perkins loans are usually low.
Student Loan Applications
To apply for a federal student loan, you must complete a Federal Application for Student Aid. Without this form you will not be able to receive any federal student loans regardless of your financial situation.
To obtain for a private student loan, you must apply directly with the lender you would like to borrow from.
Peter Kenny is a writer for Shop Smart Loans. Please visit us at http://www.shopsmartloans.com/debt-consolidation
Private and Federal Student Loans
The most basic way to categorize student loans is by separating them into federal and private loans. Federal student loans are provided and supported by the federal government. Private banks may fund some federal student loans, but even in these cases the interest rate, fees, and maximum amount are set by the federal government.
Private loans are provided by private lending institutions. Private student loans usually have higher interest rates than federal student loans. Private loans also have a more stringent approval process and usually require a good credit rating and a minimum income level.
Types of Federal Student Loans
Federal loans can be further categorized.
Stafford Loans can be obtained by students to fund their college education and are based on financial need. Stafford loans can be subsidized or unsubsidized.
The government pays the interest accured on subsidized Stafford loans while the student is attending school. Subsidized Stafford loans are based on financial need.
Unsubsidized Stafford loans are not based on financial need. The student is expected to make interest payments while enrolled in college. These interest payments can be deferred, but if they are, the interest can be added back onto the principle of the loan and thereby increase to total amount of the loan.
PLUS Loans
PLUS is an acronym for Parent Loans for Undergraduate Students. These loans are obtained by a student's parents to pay for the cost of their child's college education. Because there is a credit underwriting process for PLUS loans, it is possible to be turned down for the loan if the parent does not qualify.
PLUS loans may be obtained by graduate students to pay for their own education.
Perkins Loans
Students in extreme financial need may be given a Perkins loan. There are 1,800 educational institutions participating in the program, and each is alloted a certain amount of money to award. The amount of funds received and the student who will receive the funds is determined by each college's financial aid department. There is only a limited amount of money available, so Perkins loans are usually low.
Student Loan Applications
To apply for a federal student loan, you must complete a Federal Application for Student Aid. Without this form you will not be able to receive any federal student loans regardless of your financial situation.
To obtain for a private student loan, you must apply directly with the lender you would like to borrow from.
Peter Kenny is a writer for Shop Smart Loans. Please visit us at http://www.shopsmartloans.com/debt-consolidation
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