When it comes to getting a college education, most people can agree that the cost can be very surprising. Even the most inexpensive universities in the country can grow within four or five years creating crippling debts for those who are not qualified to get some better scholarship programs.The problem lies in the fact that the parents of most college students make too much money to qualify for the free financial assistance needed on the basis and very few are eligible for the limited number of scholarships available to students on merit. Even among those who qualify for competition and fierce and there is no guarantee. Include student loans. There are different types of student loans and unfortunately with the rising costs associated with college attendance and the growing need for a bachelor's degree to succeed in this country, it is increasingly difficult to pay the price associated with higher education.
There are three types of loans that students usually find. They include federal student loans, federal plus loans, and private student loans. Each type of loan has unique advantages and disadvantages to the loan. Below I will give you a little information about each type of loan and who they can use.
Student loans There are three types of student loans: subsidized, unsubsidized, and Perkins loans.
The Perkins loan is only available to students who exhibit outstanding financial needs. This loan is available at 5% interest rate and is available to graduate and undergraduate students. The Perkins loan is extended through the university you attend and will be paid to the university unlike other student loan types, which are repaid on the loan agent.
Subsidized student loans are loans where interest is deferred until graduation or you cease to be a qualifying student. What this means is that while you are responsible for paying off the loan at the time of graduation, the interest on this loan is not earned until you begin repayment 6 months after graduation or you stop being a half-time university student. You must qualify based on your income to get a subsidized student loan. While the requirement requirement for this loan is not as heavy as it takes to get Perkins loan, you still have to qualify.
Unsubsidized student loans do not require a qualification based on need. You must be a student and enroll at least half the time to receive unsupported student loans. But the good news for those who do not qualify based on the need for other student loan options is that this type of loan is available to all eligible students regardless of need. However, the interest on these loans accumulates immediately, which means they can actually grow as time goes by.
PLUS Loans are loans issued by parents of students who need funds to cover the cost of education. The maximum amount that can be borrowed is the attendance fee minus the financial aid award that the student has received. Repayment of this loan begins 60 days after the loan is dissolved and the repayment period can be up to 10 years.
To cover the costs involved in education that go beyond and beyond what the government recognizes as an acceptable tuition fee, you may choose to follow the private student loan path rather than relying only on federal financial assistance for your student loan source. These loans require that you qualify to receive them based on your credit rather than your needs and should be used solely for educational purposes. With this special loan, you really need to make sure you read all the good prints because different companies offer different conditions and benefits. You should really take the time and compare prices and options before taking out a private student loan and this should be done only as a last resort.
Student loans for many people can be a difference in attending lectures and getting the education you expect and can not afford the high fees that are appropriate for higher education. For this reason you should treat them with respect and not take it lightly.
