Student Loan 101

It is very much important that each member of the family will provide quality education for their children. But not all these family has the ability to send their children to school especially in college. Having a college degree is a big help to start your better career to have a better job. But as go to college education it is always unavoidable not to borrow money.

Due to the rising cost of higher education, most of the students turn to a student loan to assist them in paying their college education. However, what is a student loan?

A student loan is used to pay off the related expenses for your education such as tuition fee, room etc. Many of this students loan is offered with a very low interest but in general, the students are required to pay back after they are done with their education.

Different kinds of students Loan

For people, a college education is very impossible to obtain if we are not borrowing money to pay for it. So, here are some student loans that come from differences in size and shape and as to the regulation as well.

Stafford student loan, federal loans are given directly to the student funded by the government. Stafford student loan comes in two types: subsidized loan and the unsubsidized loan. The subsidized loans government would pay your interest while you’re in school while the unsubsidized loan you are the one responsible for paying the interest with the most lower interest rate. Perkins student loan is the same as Stafford loan that is funded by the government and they are the one who pays for the interest but it is more desirable than Stafford loan because of its eligibility rules.

Plus, loans these can be available to both parents and graduate students. The federal government funds it but they have no maximum amounts, unlike other traditional students.

Private or Educational loans or the alternative education loan is just optional to parents and students to fully cover the cost of school.

Health Professions Students loan is intended for those who are in medicine like nursing.

Application for a student loan

In applying for a federal student loan, you must first complete and submit a Free Application for Federal Student Aid (FAFSA). They will base the result from FAFSA and your college career or career school will send you financial aid award letter which will include the federal student loan option that is available to you. But if you want to try to apply in private student loans or from a bank or private lender, spend the time to compare rates of interest to find what is best for your needs. You should also consider your cosigner because they will base your creditworthiness and your ability to pay. Ask also advice from parent or guardian.

Most of the students either you come from a higher or middle-income family you are eligible for this kind of student loan. Having this student’s loan is a big help to aid our needs when it comes to college Education.

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