What are the different types of college loans?
Many students require financial assistance to participate in college, but not everyone qualifies for scholarships and grants. Fortunately, there are many types of college loans with the possibilities for each student. Some university loans are based on financial need, some are government loans available to all, others require good credit history and can be obtained through private loans and some are available specifically for university students. The most common types of loans are:
Stafford Loans
Stafford loans are either federal family education (FFEL) or William D. Ford Federal Direct Loans. University loans in the Stafford family are for students. Direct loans are financed by the government and the FFEL is financed by banks and other private creditors. The choice of FFEL or direct is at school, not to the student. However, both programs are virtually identical in terms of availability of competence and partTky, but the conditions of repayment may differ.
Stafford loans are offered after the student completes a free application for federal student assistance (FAFSA). The information is transmitted to each selected school, then the school connects the financial assistance package, which includes the type and amount of loans to which the student has. These loans are either subsidized or logged in, depending on the financial need. If the loan is subsidized, the federal government pays interest, while the student is registered at least half the time for university or is delay or delay.
plus loans
Plus loans are also direct loans or fefl, but they can be borrowed by parents of dependent students. Debtors must have an acceptable credit history. Applications for Direct Plus loans are provided by the School Office for Financial Aid. FEFL PLUS loans are also distributed by the School Office for Financial Helpo In private creditors. Plus loans are always unlimited. Although plus loans were historically known as "maternal" loans, they are now also available for postgraduate and professional students with the same way as maternal loans.
federal loan perkins
Perkins federal loans are available at some, but not all universities. The capacity is based on financial need and each individual school determines how the funds should be assigned. Perkins loans can be provided to university and postgraduate students. There is no requirement for credit history and loans are paid directly to college.
private creditor loans
If government loans for college are not enough to pay full school costs, private loans are available. There is a request for a loan history, but most of the rental programs allow the co -founder if the student does not qualify. For students who are interested in professional programs that do not receive the same types of assistance traditional universities, private university loans can invent the difference and allow the student to continue the program of their choice.