Find The Perfect Student Loan
Think picking the perfect college was hard? Try picking the perfect loan. Like schools themselves, student loans vary tremendously in terms of size, quality, and student requirements.
CHOOSING THE BEST STUDENT LOANS FOR YOU!
If you thought picking the perfect and right college was hard, try picking the perfect loan! College tuition costs are rising with every passing day and this is making more students take out loans for the purposes of paying for their education. A study done by the Institute for College Access & Success established that after graduating, about 69% of students had student loans debts in the amounts of $28,400 per every student. They also estimated that one in five schools had the amount at 10% higher! This basically makes it important for you to choose the best loan and only borrow what you need.
Federal Student Loans
It is imperative that you borrow from federal first and this is because these types of loans are less expensive. In addition to that, their repayment terms are better when compared to private student loans and also more available. The fact that their low interest rates are fixed makes them more desirable because they will not increase over time as long as the loan is active.
Types of Federal Student Loans include;
Federal Perkins loans
These are subsidized loans characterized by low interest rates. Students with significant financial need, usuallyqualify for this type of loan but be advised that not all schools offer them. This type of loan offers a grace period of about nine months after you leave school. After those nine months is when you will be required to start paying off the loan. Note that while you are in school, interest will not be charged at least half the time.
Direct subsidized loans or subsidized Stafford loans
Students who demonstrate financial needs are eligible for this type of loan. With this, nointerest is charged while the student is either in school or in deferment periods. Payments are required after graduating.
Direct unsubsidized loans or unsubsidized Stafford loans
This one is not based on financial need. Your school determines the amount you should borrow when they factor in attendance costs or financial aid. Interest is charged at all times and is added to the principal amount when in school or during deferment periods. Interest payments can be deferred until after graduation.
Direct PLUS loans
They are unsubsidized, credit-based loans for professional or graduates students called Grad PLUS loans. With this, interest loans are higher with no borrowing limit.
Private student loans
This should only be considered if federal educations loans are no longer an option or are insufficient. Using loan calculators to determine how much more you need is advised and if you lack credit, applying with a qualified co-signer basically speeds up the process.