Student Loans – A Simple Guide
by: Lucy Bartlett
There are various
resources to find money for a college education. Student scholarships,
student loans, and grants are available to get a college education.
After going through the merits and demerits, the best option may be
Student loans are
different from a student scholarship since they have to be repaid.
Student loan schemes are available in two different types. One is a
subsidized loan and another is an unsubsidized loan. The interest for
the subsidized loan is taken care of by the Federal Government in USA
and in other countries the finance ministry provides some sort of
assistance, whereas the unsubsidized loans carry a normal percentage of
interest. Eligibility for a subsidized loan can be found out by filling
in the relevant details online
The students and the
parents can become tense at the time of planning how the expenses of a
college education will be met.
To finance a college
education, a programme called FFELP (Federal family education loan
programme) provides the most flexible and affordable student loan
options. Using the loan finder web service a student can find all the
required information for applying for a federal loan online.
Additional finances not
covered by the federal programme such as education related expenses,
overseas study, and housing can be procured through a private student
educational loan. When compared to credit cards, these programmes carry
a marginally lower interest rate and have very easy payback terms.
Many of the student
loan agencies - both government and private - have online submission and
processing facilities hence the loans are accepted after a review within
a week or sooner. The repayment of the Federal student loan can start
six months after the graduation of the applicant.
Student loans can be
used not only to pay the fees but also for lab fees, dues for
associations and housing. A student can still avail an educational loan
even though the tuition is covered by a grant.
A student who is
eighteen years or above in age, can apply for a student loan. Most of
the student loan is deferred for repayment until the student completes
the education or leaves the school.
Private loans for
students are not given without a co-signer or a credit report. Credit
unions give student loans if a vehicle or a boat is provided as
During the cumulative
credit period, a student has the option of paying or not paying the
interest part of the loan. It will become easier if periodical payment
is made to cover the interest. If this is done, the capital repayment
after completing the studies becomes easier for a student.
Student loans are to be
repaid in ten years. Nevertheless, longer repayment facilities are
provided to large student educational loans.
This article was
posted on August 28, 2006