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Direct Student Loans – Student Loans For College

While many college students realized that scholarships and Student Grants are available for them, they usually find themselves in need of additional College Funding. Direct Student Loans are much like any other loans except that they are only given to college students to help pay for tuition fees and other education related expenses.

These Personal Student Loans often offer lower interest rates than conventional loans and there are a multitude of loans out there available for students to choose from. Loan choices these days are many and students are spoiled for choice.

So, how can college students find out which College Loans are best for them?

Federal Student Loan

Federal Loans are some of the best College Loans options available for students to consider. They come in two forms: subsidized and unsubsidized. The first does not acquire interest while the student is in school. The latter does accumulate interest during school years but students are not obligated to start repayments until after they graduate. Federal Student Loan is available to all students, regardless of their personal credit standing. Interest rates for such loans are very reasonable, and hence, affordable. Borrowers also have the flexibility to choose from the numerous repayment options available. The current interest rate for federal loans is about 5%. Repayment schedules can be based on income and in some cases, can even offer deferred payment options for borrowers until they have secured a permanent job.

Private College Loans

For students with strong credit rating, Private College Loans may be the best loan option. Such loans are only available to students with credit worthiness or those with cosigners ready to back them on their loan. A cosigner with strong credit standing can lend considerable weight to the borrower, often enough to help borrower secure better interest rate and better terms for the loan. As an added advantage, borrowers can also benefit from having a cosigner because your loan can help build your credit rating over time. On the basis of enhanced security for Student Loan Repayment, private lenders are more willing to approve Direct Student Loans to students that have responsible adults willing to cosign with them.

Guard Your Credit Rating

As a borrower, you need to be mindful of the fact that defaulting on a loan will not only affect your personal credit rating, it will also affect the rating of your cosigner. It is therefore crucial for you to act responsibly by repaying the loan on time to avoid bad credit ratings. The latter is a ‘lose-lose’ situation for both the borrower and the cosigner that could compromise the integrity of their future credit.

Exercising Care and Due Diligence

Prior to taking up College Loans by signing on the dotted line, the borrower ought to do a fair, thorough amount of study of all available Student Loan Information, including the rates and terms of the loans they are ready to sign, and reading of the fine prints.

Putting in the needed time and effort with careful research can help you find the best among various Direct Student Loans with good Student Loan Repayment options. Developing a financial budget will help you determine how much additional College Funding is necessary for your education. With careful financial planning and spending, you will be able to graduate without having a substantial debt hanging over your head.

Finding Financial Aid For College Without Drowning in Debt

A while ago it was possible to take some evening classes for a year or two, study hard and earn a degree while still managing to put food on the table. Not so much these days. With the ever deepening recession and the escalating costs involved in running a campus, many colleges have had to up their tuition fees considerably.

So what type of financial aid for college is available?

Your first step is to try and obtain a grant or scholarship where you will not be required to pay back the money after graduation. The main difference between scholarships and grants is that scholarships are usually given to students as a reward for outstanding academic school achievements and for a specific field of study. It also usually requires the student to commit to a period of time working for the organization providing the scholarship. Grants are less rigid in nature and can also be given to specific focus groups based on gender, race or particular fields of study such as music, dance, media, communication or professional development. Both scholarships and grants usually cover most expenses for the student including tuition fees, study materials, stationery and even residency.

The most familiar Federal college grants are the PELL and Federal supplemental educational grant (FSEOG). Grants are issued strictly based on the financial need of the student and families earning $20,000 or less per annum are usually considered for these grants. The EFC (Estimated Family Contribution) specified on your application form is especially important here so be completely honest in this regard. The grant amount awarded is then based on whether you will be a full or half-time student and on the time that you plan to engaged in scholastic programs.

A student loan is an alternative form of financial aid for college and if subsidized does not require you to repay the interest on the loan whilst studying. Subsidized loans are strictly based on the financial need of the student and generally has a repayment period of 10 years. Stafford & Perkins loans are loans provided by the Federal Government and do not require a background credit check or a cosigner. The loan limits are based on your year level at college and whether you are seen as being dependent or independent. The Perkins loans (all subsidized loans), although funded by the government, are issued at the college you will be attending.

Parent loans such as the PLUS loan (Parent Loan for Undergraduate Students) and FFELP (Federal Family Education Loan Program) are also government issued loans. Credit checks are done prior to the issuing of these loans and interest rates are normally better than those for personal loans.

If all else fails you can of course turn to personal loans through the banks and other institutional lenders. This should however be very much a last resort as interest rates will almost certainly be higher than those on other loans, repayment periods will be shorter and repayments will start while you are still studying. This means that you will be repaying your loan before you have graduated and have a salary coming in.