The Best Loans For Students

7 min read

Federal Direct Student Loan (Direct Loan)

Federal direct loans are federal student loans provided directly to students through their school. These loans do not require repayment until after graduation; however, they may have origination fees or private loan rates attached to them.

Perkins Loan

A Perkins Loan is an education loan provided by the U.S. Department of Education. There are two types of Perkins Loans – those for undergraduate study only, and those for graduate study. Undergraduate loans are also known as Grad PLUS Loans. Graduate loans are also called Masters Plus Loans.

Stafford Loan

Stafford Loans are federal education loans offered by the United States government that are guaranteed by the US Department of Education’s Federal Family Education Loan Program. Stafford Loans usually accrue interest while enrolled at least half-time and continue to accrue interest after financial aid eligibility ends. Stafford Loans are available based on need, and parents may qualify if they themselves borrowed money under the FFELP program. Parents who borrow using their own funds must repay the loans regardless of whether their children attend college.

Parent Loans for Undergraduate Students (PLUS Loan)

Parent plus loans are federal loans given to parents whose children apply for and receive federal financial aid. Parents borrowing under PLUS Loans must pay back any loans taken out with the same lender.

Private Loans and Grants for Students

Private loans and grants are often less expensive than federal loans and grants. Private lenders offer competitive terms, low interest rates, and no origination fee. However, private loans have higher monthly payments than federal loans, and many private institutions allow for variable interest rate scheduling. Private lenders sometimes require collateral or security in order to provide financing, whereas federal loans cannot.

Sallie Mae

Sallie Mae is the largest provider of student loans in the United States. They offer both Stafford Loans and Parent PLUS Loans. Like most private lenders, Sallie Mae charges a origination fee and requires collateral. Repayment begins six months after you leave school.

Wells Fargo

Wells Fargo provides both Stafford Loans and Parent Plus Loans. Their parental PLUS Loans are designed specifically for undergraduate students attending public postsecondary schools and their parent PLUS Loans start at $500.00. Unlike most private lenders, Wells Fargo doesn’t charge an origination fee.

The Best Loans For Students

FAFSA Loan

A Federal Family Education Loan (FAFSA) loan is a federally guaranteed student loan that helps pay for undergraduate college expenses. You may qualify for a FAFSA loan if you meet certain requirements. Eligible students who attend school full-time at least half time may apply for financial aid once they have met the minimum eligibility criteria.

Direct Subsidized Student Loan

Direct subsidized loans offer federal government money directly to eligible borrowers to help cover the cost of their education. Direct Subsidized loans allow borrowers to borrow up to the full amount of their tuition and fees. Borrowers need not repay the interest while enrolled in school and do not need to begin paying back until after they graduate. The monthly payment amount is based on the borrower’s income. A portion of the loan will be forgiven after 20 years.

Stafford Unsubsidized Student Loan

Stafford unsubsidized loans offer federal government funding to eligible bachelor’s degree candidates. The repayment plan offers flexible options including graduated payments over six years. Interest accrues during the grace period, which ends upon graduation or leaving school without completing a program of study. Once the grace period expires, borrowers must start repaying the principal and interest. There is no forgiveness option available under this type of loan.

PLUS Loan

Plus loans offer additional funds to parents of dependent students. Parents are responsible for any defaulted payments unless the parent has signed a promissory note. Plus loans are only available to parents of undergraduates. Repayment begins immediately after the borrower completes his or her studies.

Parental PLUS Loan

Parents can use these loans to finance postsecondary educational costs for themselves or their children. These types of loans are often referred to as private PLUS loans because they are provided by private lenders. Private lenders charge higher interest rates than the federal government. Your parent’s credit history is used to determine how much he or she qualifies for.

Perkins Loan

Perkins loans are available for people who work in fields that require advanced training. The government provides loans to train individuals in high demand occupations. In order to receive federal assistance, a student must show proof of employment in a field where there are shortages of qualified workers. The loan limit is $23,000 with a maximum term of 10 years. The interest rate is fixed at 9%. If the borrower defaults on the loan, the entire amount becomes due.

VISA Credit Card

Credit cards are a great way to save money while still affording a purchase. Credit card companies offer cash back rewards programs or discounts on a variety of products and services. Many credit card issuers also provide fee waivers and reimbursements to help offset the cost of purchasing books, clothing, and personal items.

The Best Loans For Students

Student Loan – Definition

Student loans are an incredibly popular way to borrow money today! But what is student loan debt? Who’s responsible for paying it back? Should you get one at all? Today I go over Student loans in depth, including how much you should expect to pay. We take a look at some potential costs and tax advantages of getting a student loan, and talk about who generally pays off student loan debts.

While many graduates wait until after they graduate before deciding if and when to apply for a student loan, obtaining financing can actually help determine several career choices and plans.

If you’re finance expert, and have a strong understanding of student loan options, investing may be perfect career path. Let’s go over five different types of investments.

Here’s What You Need To Know About Student Loan Debt:

-What Is A Student Loan?

-How Much Can You Borrow?

-Should You Get A Federal Or Private Loan?

-Do Student Loans Come With Interest? If So, How Do You Pay Off Them?

-How Long Does It Take To Pay Back A Student Loan?

Student Loan Basics – Why Are Student Loans Important? —————————————————————————————-

The Best Loans For Students

Federal Government Loans (Direct Subsidized/Unsubsidized)

Subsidized Stafford loans offer lower rates than unsubsidized loans. You do not have to repay subsidized loans while employed full time, and payments begin after graduation or completion of a certain number of hours at your current job. Unsubsidized loans must be repaid regardless of employment status.

Perkins Loan

Perkins loans require no repayment until 30 years after you graduate. Your loan amount cannot exceed $10,000.00. The interest rate is fixed at 6.8% for undergraduate students and 8.25% for graduate students, and these rates may change over time. Repayment begins six months after leaving school and ends 60 years later. A student must be enrolled half-time and earn less than $50,000 per year to qualify.

Direct PLUS Loan

PLUS loans provide additional funds above and beyond those provided under federal and state programs; therefore, they allow students to borrow larger amounts of money than what the government would cover. The interest rate on PLUS loans is set by the U.S. Department of Education at 8.25%. Payments must start three months after graduating or entering repayment. For undergraduates, this means that payments start 12 months after graduation or entry into repayment. For graduate students, payments start 60 days after graduation or entry into repaying.

State Grants/Loans

State grants and loans vary greatly throughout the country. However, you should find out what you qualify for before applying. Many states have financial aid offices designed to help individuals apply for various types of funding.

Private Student Loans

Private student loans are often easier to obtain than other types of financing. Loans range from student loan consolidation to private student loans. Consolidating private student loans can save you money on interest rates by combining several smaller loans into one bigger loan.

Parental PLUS Loans

If you take out a PLUS loan, your parent(s) must co-sign the loan. If both parents sign the loan, the total amount borrowed is split evenly between them if the borrower is still attending college. Generally, parents who co-sign a PLUS loan get a break in their own interest rates.

Bankruptcy

Student loan debt can be discharged through bankruptcy. Most of the time, a debtor must file Chapter 13 to discharge his or her student loans. In order to successfully complete bankruptcy, a debtor must make five monthly payments to the court plus one payment to the lender. These payments must be added to the original principal balance of the loan.

The Best Loans For Students

Federal Student Loan

Federal student loans are funded under  IV, Subpart D of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.). A borrower’s eligibility for federal student loan funds hinges upon meeting certain criteria, including whether the borrower is enrolled at least half-time at an eligible educational institution while pursuing a degree or certificate program.

Bursar Loan

Bursar loans are offered by the Office of Financial Aid at some schools. Eligibility requirements vary, but generally require that the school have a bursar office and that the school offer financial aid to students. Schools may charge additional fees to cover their costs associated with administering loans; these amounts should not exceed what is charged to borrowers who do not receive a loan from the Office of Financial Aid. Bursar loans may carry less favorable interest rates than federally subsidized loans.

FFEL Loan

These loans are based on income received and are used to pay for college expenses. You may qualify if you meet specific guidelines. Contact a lender for details.

Direct Stafford Loan

This type of loan requires repayment over a period of time, after graduation. You’ll need good grades, good test scores, and/or a parent co-signing. Contact a lender for further information.

Parent PLUS Loan

The parent PLUS loan is designed for parents whose children attend postsecondary institutions. Your child must maintain satisfactory academic progress, complete 60% of the work for a bachelor’s degree or higher, or complete 30 credits toward a master’s degree. Visit your bank or credit union for more information.

Perkins Loan

Perkins loans are targeted towards low-income families or individuals who are attending postsecondary education. You may qualify if your family lacks sufficient funds to cover tuition, room and board, books, and other necessary expenses. Contact your financial aid officer for more information.

Sallie Mae Loan

You may qualify if you are attending an eligible educational institution, plan to attend full-time, and earn less than $60,000 a year. Visit your lender for more information.

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