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.