To obtain a student loan you must be aware of what your parent or guardians financial situation is.
Federal loans are recommended due to the fact that interest rates are capped by law. Student loans can be used towards university tuition, books, and living expenses. |
When applying for a student loan, you need to start by filling out a free application for federal student aid.
Filling out an application also allows you to get grants. |
Types of Student Loans
Subsidized Stafford Loans: undergraduate independent and dependent students who need financial assistance and are either US citizens or eligible non-US citizens can apply for this type of loan. The student can borrow up to a maximum of $23,000 and must begin to repay their loan 6 months after initially graduating, withdrawing, or dropping below half-time enrollment. Deferments can be requested, which means that the loan repayment will be postponed.
Perkins Loan: undergraduate independent and dependent students who need financial assistance and are either US citizens or eligible non-US citizens can apply for this type of loan. Undergraduates can borrow up to $5,500 per year and graduates can borrow up to $8,000 per year. The student must begin to repay their loan 9 months after initially graduating, withdrawing, or dropping below half-time enrollment. Postponement options include Perkins-specific deferments and forbearances. |
Unsubsidized Stafford Loans: strictly for dependent undergraduate students who are US citizens or eligible non-US citizens. This type of loan is not based on financial need, it is based upon the students needs (calculated by the US Department of Education). The student must begin to repay their loan 6 months after initially graduating, withdrawing, or dropping below half-time enrollment. Deferments or forbearance's can postpone the repayment term under certain circumstances.
Private Loans: The "borrower" or the borrowers parent can take out a private loan and these do not have to be funded by the federal government. Vary in terms of interest rates and payment structures. Length of repayment time also varies, however, there are not many deferment options with this loan. This type of loan is very important for a lot of students who do not qualify for other forms of financial aid. State Loans: State-funded programs provide state loans. The interest rates and benefits vary. A lot of the interest information rely on what state the student is in. To get more specific information based off of the location of the student and how much financial aid they need, the states office can be contacted and determine the specific facts. |