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- Paying for College
Meet your Education Expenses without Stress!
The hefty education fees are managed with the support of various student loans, without which it is almost impossible for the students to continue their studies. There are many loans to assist in managing the educational expenses. All the student loans are not alike.
Each of the Federal Student loan programs was initiated to meet the specific requirements of the particular groups of students. It is crucial to know about each of the program to make a decision on the selection of the loan to fit your needs and also to make a plan on the education costs.
The two basic types of student loans are those that are supported by a public government program and those which the private lenders offer. The loans by the federal government are considered to be more advantageous to the students than the private loans. The Perkins Loan, the Stafford Loan and the PLUS loans are some of the common Federal program to be considered to manage the education costs.
The Perkins Loans are initiated with the purpose of helping the students who are in dire need for financial help.
Though the terms are much appealing, many students do not qualify for the Perkins Loan. These loans are supposed to help in undergraduate and graduate education. There is limit on borrowing but there is no origination fee in Perkins Loan.
The interest rate is very low and the government helps the borrower by paying the interest on the loan till the student completes his education.
Stafford Loan is the most common type of loan that is used by the students to pay for the college education. The government supports the students who are eligible for subsidized loan, by paying the interest till the students complete the education. The students who get unsubsidized loans need to pay their interests while still studying and of course can defer the payments until a short specified time after graduation. The amount of loan is as per the student’s standing. More details regarding the students’ loan amount and the interest rates can be availed by visiting the website StudentAid
The major difference between Perkins Loan and Stafford Loan is that the Stafford Loan can be availed irrespective of the financial status of the student. There is no credit check while approving Stafford Loans.
PLUS loans are offered through the educational institutions to the parents with good credit. The amount granted will be the difference between the educational expenses and the grants awarded. The students can get funds to cover the needs not met by the already granted financial support from other programs. The repayment starts after 60 days from the time the loan amount was disbursed. However, the PLUS loans require good credit and have origination fees associated. The interest rates are higher than other federal loans. Read here for more information.
The student loan programs of the federal government are easily accessible and generous without which it is really an overwhelming task to get good education. Apart from these federal loans, there are also loans such as 401K loans, Intra Family loans and so on to support in education expenses. However, the Stafford loans and Perkins loans are the best options that come without origination fees and lower interest rates and flexible repayment terms.
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