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There are two broad categories of college student loans: loans based on financial need and loans not based on financial need. College loans based on financial need are advantageous because they have better terms and tend to have lower or fixed interest rates, which are subsidized (the government pays your interest while you are in college and for six months after you graduate). Therefore, you will not accumulate as much debt with a need-based loan and it helps that they offer more flexible repayment plans. It's a good idea to feel out the Free Application for Federal Student Aid (FAFSA) when applying for student loans to make sure you are eligible for a need-based loan.
College Loans Based on Financial Need:
Federal Perkins Loan:
The Federal Perkins Loan is an institutional, campus-based loan that is administered directly by the financial aid office at each participating school. In this case, your school is the lender, even though the loan is made up of government funds. The Perkins Loan has a low interest rate, currently set at approximately 5%.
Subsidized FFEL Stafford Loan:
A FFEL Program Loan is one type of Stafford Loan. Funds from your Federal Family Education Loan (a.k.a. FFEL) Program Loan will come from a bank, credit union or other lender that participates in the program. You'll need to choose a lender if you obtain a FFEL Stafford Loan (today many lenders offer online loan applications). Schools that participate in the FFEL Program will usually have a list of preferred lenders. Because the loan is subsidized, the government pays the interest that accumulates on the loan while you are in school and during a six-month grace period after college.
Subsidized Direct Stafford Loans:
A Direct Loan (or the Federal Direct Student Loan Program) is another type of Stafford Loan and works similarly to the FFEL Program, only in this case the federal government is the direct lender. Similarly, the Subsidized Direct Stafford Loan means that the government will pay the interest while you are at school and for six months after college.
College Loans Not Based on Financial Need
Unsubsidized Stafford Loans (FFEL Programs and Direct Loans):
These loans basically work the same way as the subsidized Stafford Loans, except for one major difference: This time you have to pay the interest, although you can defer the payments until after graduation.
Federal PLUS Loans (FFEL Programs and Direct Loans):
This is a loan for parents, in which your parents take out a loan to pay for your schooling. PLUS Loans are available through the Federal Family Education Loan (FFEL) Program and the Direct Loan Program. The Direct Plus Loan comes directly from the U.S. Department of Education while the FFEL program works through a bank, a credit union or another lender that participates in the program. Generally, your parents can borrow up to the total cost of your attendance, minus any aid received. If the loan is approved (your parents must have an acceptable credit history), the money is sent directly to the school and repayment starts within 60 days after the final disbursement of the loan.
Private or alternative loans:
Private education loans are available to students, usually at higher interest rates than the federal loans described above. Colleges and universities may provide a list of private loan sources; you can check with banks or other financial institutions with which you have accounts to see if they apply. Although they are not necessarily considered college financial aid loans, for many families these loans are a key way to afford paying for college.
Wiki User
∙ 16y ago
Wiki User
∙ 14y agoThere are many types of loans students can apply for, but the simplest categories are the two: federal student loans and private loans. All loans funded by federal government are administered through the US Department of Education's Federal Student Aid programs.
Other types of student loans include:
# Federal student loans # Federal Stafford loans # Federal Perkins loans # Federal Parent PLUS loans # Federal Graduate PLUS loans # Sallie Mae Smart Option Student Loan # Continuing Education Loan # Career Training Loan # International student loans
Wiki User
∙ 14y agoThere are many types of student loans available to students of all ages, income levels and credit ratings. The first type of student loans available are awarded, guaranteed and regulated by the federal government. These loans include Stafford Loans, Perkins Loans and Plus Loans each of which have differing eligibility requirements, interest rates and award amounts available. Some financial institutions will offer private student loans, however they can be more difficult to qualify for and have higher interest rates than federal loans. In addition, some states may offer student loan programs.
Wiki User
∙ 10y agoThere are numerous types of loans available for college. It all depends on your FASFA and your elligibility. There are subsidized and unsubsidized loans available along with pell grants and scholarships.
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How can an International student get a student loan without a cosigner?
It is possible to get student loans without cosigner by an international student, as currently there are various types of loans available for this purpose. International student loans are capable of bearing all the educational expenses related with a student and with a long repayment period.
Where do you find student loans?
In the US, you can get student loans through the federal government by using FAFSA.
What should every student know about student loans from the US Dept. of Education?
Here's a link to a website that offers information on student loans from the US Department of Education, and if it's right for you or not. http://www.ed.gov/
If you owe student loans and are unemployed can they take your savings?
In the US, the answer is no.
Can you give me the link to the us dept. of education?
The website for the Us department of education for student loans is: www.direct.ed.gov There are also many other places to obtain student loans, or financial aid.
How long does one have to wait after legal marriage to a non-US citizen to be eligible for student loans?
I was a university student when I married my illegal immigrant husband. It made no change in my student loans at all.
What is the best way to get a consolidation loan if you have bad credit?
In the US, you can consolidate your loans even with bad credit if they are Federally Guaranteed student loans, like Stafford loans. If you want help with the consolidation of your student loans, click on the link below.
Where can I find information about student loans?
Information about student loans can be found at your college's website. Student loan information can also be obtained from the FASFA website which is where you apply for federal student loans.
Does home foreclosure effect ability to get student loan?
In the US, no your eligibility for student loans is not dependant on credit or income.
Is it possible to reconcolidate defaulted student loans?
In the US,it is certainly possible to consolidate your delinquent or defaulted student loans. Most lenders will not accept them, but a few will. If you need assistance with the consolidation of your loans, click on the link at the bottom of this text box.
What is a feature of most student loans?
They are backed by the US Government is a big one. They also tend to have a lower interest rate than conventional loans. Another factor is the ability to extend or defer payment, something that is often not available with a normal loan.
What loans can one get from the government in the US?
There are many loans one can get from the government in the United States of America. One can get student loans, small business loans, and federal direct loans from the government in the United States of America.
