Not all student loans are suitable for any degree or professional course.
The loans are designed to suit the requirements of particular courses.
They are either trust funds, scholarships, or government granted loans to aid a student in pursuing further education.
In US, there are 3 basic types of loans given to students: 1.
Federal Stafford Loans - They are further divided into subsidized, unsubsidized, and additional unsubsidized Stafford loans.
2.
Federal Perkins Loans 3.
Federal Plus Loans Selection for these student loans depends on several factors.
You need to ask the information desk for proper guidelines.
Non acceptance from these facilities leaves door open for credits from private lenders, albeit at higher interest rates and stricter return policies! Here are some guidelines to choose one.
1.
If the loans are in the form of scholarships or awards, students need to apply for them independently, sit for tests and interviews.
2.
How much will the student loan cover? Some loans cover just the basic tuition fees.
Therefore, other expenses are to be paid by the student.
For financially backward families, these become a difficulty.
3.
Aim for those loans that cover basic expenses like college fees, tuition, book costs, boarding, and others.
Many universities have the option for students to work for few hours daily to earn the daily expense money.
If the basic expenses are taken care of by the loan, then the student has not much burden.
4.
What is the loan repayment plan? This has to be the most important consideration.
While private moneylenders expect students to begin repayment as soon as they finish the course, federal or government student loans give time of approximately 6 months to start the repayment plan.
5.
What is the interest rate? Take loans that guarantee less amount of interest.
Even better if you get unsubsidized federal loan as the government pays interest on your behalf while you study.
The loans are designed to suit the requirements of particular courses.
They are either trust funds, scholarships, or government granted loans to aid a student in pursuing further education.
In US, there are 3 basic types of loans given to students: 1.
Federal Stafford Loans - They are further divided into subsidized, unsubsidized, and additional unsubsidized Stafford loans.
2.
Federal Perkins Loans 3.
Federal Plus Loans Selection for these student loans depends on several factors.
You need to ask the information desk for proper guidelines.
Non acceptance from these facilities leaves door open for credits from private lenders, albeit at higher interest rates and stricter return policies! Here are some guidelines to choose one.
1.
If the loans are in the form of scholarships or awards, students need to apply for them independently, sit for tests and interviews.
2.
How much will the student loan cover? Some loans cover just the basic tuition fees.
Therefore, other expenses are to be paid by the student.
For financially backward families, these become a difficulty.
3.
Aim for those loans that cover basic expenses like college fees, tuition, book costs, boarding, and others.
Many universities have the option for students to work for few hours daily to earn the daily expense money.
If the basic expenses are taken care of by the loan, then the student has not much burden.
4.
What is the loan repayment plan? This has to be the most important consideration.
While private moneylenders expect students to begin repayment as soon as they finish the course, federal or government student loans give time of approximately 6 months to start the repayment plan.
5.
What is the interest rate? Take loans that guarantee less amount of interest.
Even better if you get unsubsidized federal loan as the government pays interest on your behalf while you study.
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