College Student Loans
College Student Loans – Simpler Financial Support for Students
College studies have become costlier than ever, and it can be felt especially in these times of economic crisis. Many students can’t afford to pay the increased college-related-expenses such as tuition cost, lab fees, books, room and board. In times where many people feel it’s hard to keep credit score high, fortunately there are college student loans to help those who can’t afford the costly expenses of college study, even some of them do not need credit check!
Excellent news is, the government provides college student loans at simpler terms in the form of Federal Student Loans. Federal Student Loans come with a fixed lower rate of interest (5%) and the student has a 9 month grace period before paying back the loan. One has to apply for Federal Student Aid to qualify for these college loans.
Here are several types of college student loans by the fed government that are best known for providing no cosigner student loans or student loans for terrible credit borrowers:
1. Stafford Loan
This aid takes into consideration that students entering college, fresh out of high school, won’t have an established credit rating. So, there won’t be any credit check or cosigner requirements for approval. This type of loan comes with a fixed interest rate and can either come in the form of a subsidized or unsubsidized loan. The difference is, on a subsidized Stafford loan, the government pays the interest while you’re in college and you pay the interest on an unsubsidized Stafford loan, but have the option to defer making any payments until your graduation. Stafford loans do require but, that you are enrolled at least half-time.
2. Perkins Loan
This type of loan is awarded on a need-basis. These loans too can be obtained as a poor credit student loan or as no cosigner student loans. The only credit-related requirement is that borrower has no prior defaults on governmental loans. This loan offers a fixed rate of 5% to undergraduate and graduate students who can prove financial need. Based on your individual level of need, undergraduates can borrow up to $4,000, while the graduate student loans can extend up to $6,000. The funds from a Perkins loan are dispersed directly from your university and eligibility is not contingent upon part-time status of enrollment.
3. PLUS Loan
The PLUS loan is specifically designed to help parents finance their children’s education. Lenders base approval on the parent’s credit rating and income. The PLUS or Parent Loan for Undergraduate Students is specifically aimed at parents of dependent undergraduate students who are enrolled in college at least half-time. A higher fixed interest rate is attached to this type of parent student loan than a Stafford loan and the repayment starts while you are still in school.
To sum it up, college student loans can be divided into two: subsidized and unsubsidized student loan. The subsidized college student loans has a bit higher interest rate and shorter grace period (6 months). On the other side, the unsubsidized college students’ loan does not give any grace period and start accumulating interest from the day of disbursing the college loan amount to the student. But it is simpler to qualify and be approved for an unsubsidized college student loans, and parents can borrow as much as they need. Keep in mind that to apply for the loan, the parents also should have a excellent credit score.
Aside from that, college student loans are also available for specific studies, or be sourced as private education loans from many banks and credit union. For example, medical students can get Health Professional Student Loans which are approved at low interest rate with a full year’s grace period. Seeing that there are many options for college student loans, as a student you should gain as much as information to pick the one that suits your needs. Pleased hunting!
Read also: Consolidate Student Loans and Private Student Loan Consolidation
Related Financial Planning Posts
Tags: college loans, College student loans, federal student aid, federal student loans, government loans, graduate student loans, no cosigner student loans, Parent Loan, Perkins Loan, plus loan, poor credit student loan, stafford loan, Student Loans, student loans for bad credit, subsidized college student loans, subsidized student loan, unsubsidized college student loans, unsubsidized student loanTags: college loans, College student loans, federal student aid, federal student loans, government loans, graduate student loans, no cosigner student loans, Parent Loan, Perkins Loan, plus loan, poor credit student loan, stafford loan, student loans for bad credit, subsidized college student loans, subsidized student loan, unsubsidized college student loans, unsubsidized student loan
[...] you known that there are many programs available to pay off both all and part of your college loan? In fact, student loan forgiveness is available. As these programs are not widely advertised, most [...]
[...] also: College Student Loans and Mobile Home FinancingRandom PostsHome Equity Loan Information, How to Avoid Terrible Home Equity [...]
[...] also: College Student Loans and Credit Card RatesRelated ArticleFinancial Plotting News, Refinancing MortgageRefinancing [...]