The large availability of college loans for students allows pretty much everybody to find the optimal financing program for their situation and needs. However, you should not apply for private loans before you have exhausted all the free money sources. Based on your grades or sports performance in high school, you can get a scholarship or have access to grants offered by colleges and various non-profit organizations. Some students even find financial aid at their parents' work place or in trade unions. Therefore, college loans for students should not be your first resort.
Once you have managed to raise funds from various sources to pay for your college education, you should find out whether what you have covers the education expenses, and if not, how much you still need. If there is still a sum to be covered, you should look into federal college loans for students. First of all, file the Free Application for Federal Student Aid (FAFSA) to find out whether you qualify. Here are the major types of college loans for students provided by the federal government, either directly or outsourced.
-Perkins loans – they have the lowest interest rate (5%) of all and the payment only begins when the student graduates, without interest being charged during the school years. The Perkins loans are available only for students with very low income; they may not cover the full expenses of college education, but they are a good start. There are also forbearance and deferment advantages with federal loans.
-Subsidized Stafford loans have a slightly higher interest rate (6.8%). The student's income is not a criterion for eligibility. From this point of view, anybody may apply. The 'subsidized' feature of these college loans for students means that the interest does not accrue during school years. Subsidized loans only partly cover the costs of education.
-Unsubsidized Stafford loans resembled the subsidized version with the difference that the interest accrues during school years and is due for payment upon graduation, adding up to the existent debt.
-PLUS college loans for students could also be a good choice for some people and their families. They have a very advantageous interest rate, and they may cover a lot more of college expenses. PLUS programs have been mainly designed to allow for parents to help their children pay for education. The parent is the co-signer in such situations, with the mention that good credit history is a must under the circumstances.
Once you have managed to raise funds from various sources to pay for your college education, you should find out whether what you have covers the education expenses, and if not, how much you still need. If there is still a sum to be covered, you should look into federal college loans for students. First of all, file the Free Application for Federal Student Aid (FAFSA) to find out whether you qualify. Here are the major types of college loans for students provided by the federal government, either directly or outsourced.
-Perkins loans – they have the lowest interest rate (5%) of all and the payment only begins when the student graduates, without interest being charged during the school years. The Perkins loans are available only for students with very low income; they may not cover the full expenses of college education, but they are a good start. There are also forbearance and deferment advantages with federal loans.
-Subsidized Stafford loans have a slightly higher interest rate (6.8%). The student's income is not a criterion for eligibility. From this point of view, anybody may apply. The 'subsidized' feature of these college loans for students means that the interest does not accrue during school years. Subsidized loans only partly cover the costs of education.
-Unsubsidized Stafford loans resembled the subsidized version with the difference that the interest accrues during school years and is due for payment upon graduation, adding up to the existent debt.
-PLUS college loans for students could also be a good choice for some people and their families. They have a very advantageous interest rate, and they may cover a lot more of college expenses. PLUS programs have been mainly designed to allow for parents to help their children pay for education. The parent is the co-signer in such situations, with the mention that good credit history is a must under the circumstances.
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