When planning to attend college one of the major concerns is how you will pay for it. There are many options available.
Here are some of the types of student loans that may be available to you.
Student Loan #1- Federal Stafford Loans
A Federal Stafford loan has a fixed-rate and low interest. This type of loan is available to students that attend schools that participate in the federal financial aid system. These are the most commonly used types of loans. You are not required to make payments on this type of loan while you are enrolled in school at least half time.
To qualify for a Federal Stafford Loan you must be a U.S. citizen or national, U.S. permanent resident, or eligible non-citizen. You must be enrolled or plan to enroll in school at least half time and you must be accepted or attend a school that participates in the Federal Family Education Loan Program. For more information on a Federal Stafford Loan you can go here.
Student Loan #2- Federal Perkins Loan
This type of loan is paid directly to your school that you are attending and the school then determines which students have the greatest need for this loan. The school then either pays a check directly to you or they apply the credit to your school dues. This is also a low interest loan, but is for students with exceptional needs.
To qualify for a Federal Perkins Loan you must be a U.S. citizen, U.S. permanent resident, or eligible non-citizen. You must also have satisfactory academics progress. For more information on the Federal Perkins Loan you can go here.
Student Loan #3- Federal Parent PLUS Loan
A Federal Parent PLUS loan is a loan for parents of undergraduate, dependent students. A credit check is required for this type of loan. You can borrow the full amount of your child’s education less any other aid that is received. This type of loan is not required to be paid until six months after the child has graduated. For more information on a Federal Parent PLUS Loan you can go here.
Student Loan #4- Federal Graduate PLUS Loan
This is a type of loan that can help you pay for graduate school. You may borrow up to the full cost of the graduate education less any other aid that is received. This loan also does not have to be repaid until six months after graduation. For more information on a Federal Graduate PLUS loan you can go here.
Student Loan #5- Private Student Loans
You can also apply for private student loans. One option available is the Sallie Mae Smart Option Student Loan. This type of loan requires that you make interest only payments while you are in school to avoid capitalized interest. You can also have a cosigner that might help you receive a lower interest rate.
These are five types of student loans that are available for you to choose from when trying to pay for your college education. Remember to look at all of your options to ensure that you go with the best fit for you. You can also visit your school’s financial aid office for assistance in the process.