0
Paying for college is one of the most momentous expenses of your life. Some fortunate students have the financial means to pay for their college tuition out of their own pocket, and thus incur no debts to repay. However, most students have to rely on outside financial aid in order to attend college. There are public and private lenders, but the majority of students opt for public lending services, typically from the federal government. The government offers several loan varieties to help students meet their financial needs. They are Federal Stafford Loans, Perkins Loans, and Federal PLUS Loans.
Federal Stafford Loans
Stafford Loans are loans made to students that are intended to supplement personal and family resources. These loans work in conjunction with scholarships, grants and work-study programs. Almost all students are able to receive Stafford Loans regardless of creditworthiness. Stafford Loans are subsidized by the government or unsubsidized according to the student’s need. The interest on subsidized loans is paid by the government while the student is in school and for a set amount of time afterward. Interest on unsubsidized loans accrues while the student attends school, and must be paid back along with the principal.
Perkins Loans
Perkins Loans are very-low-interest (around 5%) loans for students that demonstrate exceptional financial need. With these loans, the school the student attends acts as the lender, while the loan itself is backed by the government. Perkins Loans are usually subsidized. The total amount of Perkins Loans is typically fairly low, around $4,000 per year or so. The amount has a maximum limit of $20,000 for four years of undergraduate tuition.
Federal PLUS Loans
The Federal PLUS Loan is a loan that parents can take out on behalf of dependent undergraduate students. It has a fixed unsubsidized interest rate of 8.5% per year. The yearly limit for PLUS loans equals the cost of attendance less any other financial aid. For example, if the total cost of attendance was $20,000 and the student receives $10,000 in financial aid, parents can borrow an additional $10,000 on behalf of the student.
Federal student loans are the most popular financial aid choice for students. Low interest rates and convenient terms of repayment allow students flexibility in choosing their future.
What else can I help you with?
Are private student loans more financially advantageous than student loans through the government?
Student loans through the government are better than private loans due to the fact that the government does not have as high of interest on the loans, and you get a longer time to pay them back.
How does one go about getting student finance loans?
Student finance loans are best acquired through the student government financial aid website. Fill out the necessary information and the government will determine how much is needed for school and link you with available loan options.
Are there any student loans available for a esthetician school?
There are loans available for that. For a list of loans and grants available you can visit www.grants.gov.
Are all student loans issued by the Federal Government?
No..there are also private student loans.
Why are student loans usually guaranteed by the government?
Banks don't have any collateral for student loans.
Where do you find student loans?
In the US, you can get student loans through the federal government by using FAFSA.
How can someone get student loans from the government?
Government Student Loans can be acquired from student loan websites such as StaffordLoan, WellsFargo, StudentGrants, PNC, StudentAid, and many more.
In what ways are private student loans different from government loans.?
Private student loans usually have higher interest rates and have to be paid in a specific time period. Government loans are more flexible.
What student loans are not eligible for forgiveness?
Private student loans are not eligible for forgiveness programs offered by the government.
Are Astrive Student Loans backed by the government?
Astrive loans are privately given loans. These loans are not backed by the government, since they are issued by a private company.
What type of student loans are available for graduate students?
== ==
Different Types of Student Loans?
There are plenty of types of student loans that are available to those looking to go to school to better their life. The most common type of student loans are loans that are borrowed from the government itself. These type of loans come in two varieties, subsidized and unsubsidized. These loans types are important to consider in that they have different meanings for how they must be paid back. The subsidized ones are given to those who are from lower income families. On these loans, the interest is paid by the government. On the unsubsidized ones, the individual must pay the interest on the loan that they are borrowing.
