Best Student Loan Options

Best Student Loan Option

The importance of loans given to students for their studies cannot be ruled out. Such loans come in very handy in their quest of gaining knowledge. However a thorough homework must be done before applying for loans. Firstly, analyze the needs and never go for the amount that is greater than your requirement. Read the terms and conditions thoroughly. It should be only after carefully weighing pros and cons that one decide whether to go for loan. Once you have decided that you need loan for your studies you again have to make a very cautious decision as to which scheme would suit your need to maximum. As it is there are several type of loans available for the aspirants to choose from.

Federal Perkins Student Loans

This loan is awarded to students on the basis of their needs. It is for the colleges to decide whether the aspirant should be given the loan or not. They also determine the amount to be given. Since colleges have limited resources, they award such loans after thoroughly checking if the candidate deserves the loan. Loan limit for the undergraduate students ranges between $4000 to $20,000 per year. For graduate students it ranges between $6000 to $40,000 per year. Students do not require to pay interest while they are in school. The repayment of the loan starts nine months after leaving the school and can continue up to 10 years.

Federal Direct Subsidized Stafford/Foard Loans

The Subsidized Stafford Loan is available for graduate and undergraduate students. The interest on the loan is paid by the federal government as long as the student is in school. This loan is awarded as per the needs of the applicants therefore every applicant has to explain his financial requirement. Also all applicants might not be successful in getting the loan.

Direct Plus Loans

Parents or guardians of the dependents undergraduate can apply for this type of loan. Aspirants are not required to explain the financial needs and they might borrow up to the cost of attendance without any amount of financial aid that might be received. Loans are first applied to tution and fees. This type of government and federal loan has variable interest rate.