Student Loans - Finding a Student
Loan
By Ken Charnely
It is not all that difficult to find a student loan. However, if
you are just beginning in your college career, it could be a
stressful task. In order to get through the chore of finding a
student loan that best fits your financial and educational
situation, you will want to follow these few basic tips.
When
it comes to student loans, there are two basic types, private
and federal. Private loans are given to students, but are
generally based upon your credit report and credit score. These
types of student loans, are not regulated or issued by the
government, therefore, they tend to carry higher rates of
interest. The government issues federal student loans. A lender
will lend you the money, with the promise from the federal
government that it will be paid back. These types of student
loans typically carry much lower rates of interest, when
compared to private loans.
When it comes to interest rates, there are two basic types
unsubsidized and subsidized. With a subsidized student loan, the
loan will not be charged any type of interest. If the loan is
charged interest, it is paid by another party. This continues to
be the case, while the student is currently attending school.
With an unsubsidized loan, the loan will be charged interest
during the entire course of your school career. If the interest
is left unpaid, it is then added to the principle amount of the
loan. This tends to increase the amount you need to pay, as well
as the time it will take you to pay off the loan.
When it comes to a federal loan, the student is require to
fill out a form called FAFSA. This is important and must be done
right away. Most schools offer a financial aid office and they
will carry these forms. There are other types of loans that
include college loan solutions, ACT education loans, study
abroad loans, international student loans, Stafford loans, or
PLUS loans.