Information About Student Loans
Many students try to have student loans to support their college education although they have little or no financial resources. If they don’t know any information about the basic procedure ahead, they will find it difficult to apply for a student loan. A guide about the standard application procedure will benefit students who plan to apply for student loan.
Tips About Student Loan Application
Make the loan application procedure clear and understand various loan types and their features.
The first thing students should do is to have a general and basic understanding of this application process. It’s important and necessary for you to compare these student loans, including PLUS loans, Stafford loans and private loans. As you may qualify for more than one loan, you should choose the mot suitable one according to your needs and actual conditions. A financial aid or guidance consultant will give necessary assistance.
Fill up the FAFSA form
Any college student who decides to apply for student loans should fill the Free Application for Federal Student Aid (FAFSA) firstly before they choose one. After handing in your own income tax returns or your parents’, or both, you will be told what kind and how much of federal loans you can get. To complete the FAFSA form is the major prerequisite for college students to apply for and borrow a loan.
Complete the Entrance Counseling and hand in application and follow up
All the students applying for a loan are required to attend the Entrance Counseling. They will be told their rights and responsibilities which they will have after their applications get approved successfully. After you choose one and apply for it, it doesn’t mean that you have finished all your work. You should watch closely on your loan, before, during and after your schooling.
There’re two main types of student loans nowadays offered to each college student, which are federal or private loans.
Federal loans which students are able to apply for can be categorized into two types, unsubsidized and subsidized Stafford loans. The former has an interest rate of 4.5% while the interest rate of the latter reaches up to 7.9%. From Federal Direct Loan Program carried out by the federal government, they are available.
Federal student loans afford several advantages:
1. During the entire life of the loans, the interest rate is fixed and will never change.
2. Federal loans offer long repayment periods and relatively flexible repayment options. If a student can’t pay his loan on time, federal student loan will offer options of reduced payments or a deferment on payments.
3. Income-based repayment will allow students to choose monthly payments which match their low incomes.
4. If students consolidate their federal loans and make monthly payments on time, they will be able to have some of their debts forgiven.
5. Federal student loans won’t charge you any extra fee if you repay your loan early.
Federal student loans don’t cover all the requirements of college students. At this time, private student loans act as complement to federal ones. What should be paid more attention is that you should borrow money as much as possible through federal student loans before you consider private student loans.
Finance Your Education with Student Loans
Cannot afford your tuition fees and other education costs after high school? That’s where a student loan can help. As a form of financial aid, student loans fall into two major categories, federal and private student loans. Typically, guidelines for student loans vary from state to state. To help you to be smart on a student loan, here we prepare some simple tips for your reference.
• Explore all possible sources of free federal assistance. All student loans need to be repaid after the grace period. Whether you’re taking out a New Mexico student loan or Iowa student loan or student loan in other states, you must pay back the loan completely within the predetermined time. But unlike student loans, grants and scholarships do not have to be paid back. They are the so-called free money.
• Choose between federal student loans and state loan programs. Generally, federal student loans carry lower interest rates. However many states also have their own student loan programs to supplement federal student loans. Let’s say, if you’re looking for an Alaska student loan, choose from several loan programs, like Alaska Advantage Loan Program and Alaska Supplemental Education Loan.
• Comparison shopping is very important if you have to take a private student loan. If the funds you take through federal and state loan programs cannot cover all your education costs, private student loans would be the only solution. These loans are made through financial situations and private banks. For example, if you’re planning to apply for a private Oklahoma student loan, consider featured lenders, like Sallie Mae and Wells Fargo.
It is a much awaited thing in your life for entering the gate of the college that you are pursuing for a long time. When it comes to thinking about college, what comes to your mind if you consider all forms of your financial support? Is it reasonable for you to fill the gap between your college fees and your scholarships or grants?
Many students try to have student loans to support their college education although they have little or no financial resources. And the situation is even more complicated if your have a bad credit rating. There’re several tips you should pay more attention when you search for financial aid.