Paying for School
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If you are contemplating a college education, both Federal and private student loans are available to fund your education. Whether you are an undergrad, graduate or the parent of a student, you can find the right loan for you and begin paying for school. Typically, Federal loan programs are the largest source of funding with the most favorable terms.
For undergraduates, Federal Stafford loans are available to U.S. citizens with financial need determined by your college or university. Your eligibility is determined by filing a FAFSA form, as well as at least half time enrollment in a participating school. Current Stafford loans have a fixed interest rate and do not require payment while still enrolled at least half-time. Stafford loans are available subsidized, where the government pays the interest while you are in school or in deferment, and unsubsidized, which allows the interest to capitalize and increases the loan total. Stafford loans have a fee and a grace period of six months.
If you have an extreme financial need, Federal Perkins loans offer a longer grace period and no fees, but are generally similar to Stafford Loans. Unlike Stafford loans, they require satisfactory academic progress. Perkins loans are a mixture of funds from the government and the participating school.
For graduate students, Federal and private funding packages can help you with the entire cost of a business, law, or medical education. Otherwise, graduate students can obtain Stafford loans much like undergraduates and Graduate PLUS loans that have a set 3% fee and 8.25% maximum interest rate. In most cases, graduate student loans are only available with satisfactory progression through an education program and continued enrollment.
Privately funded student loans are credit based and allow you to supplement your Federal loans. Usually, you would want to exhaust all of your Federal loan possibilities before seeking private loans. If you do not qualify for Federal loans because of lack of financial need, a private loan might be the best answer.
Parents are also eligible for Parent PLUS Federal loans to pay for undergraduate education for their children. These loans have a 60 month deferment period calculated from the final disbursement of the loan. Like Graduate PLUS loans, the interest paid is tax deductible. This loan does not have income or collateral requirements but does rely on good credit standing.
Once you are out of school and begin repayment, consolidation loans allow you to pool all of your loans into one place which saves payment hassles and often provides an interest or payment break. Both Federal and private consolidation loans might help you reduce your monthly payments. Regardless of your situation, there is a student loan that will help you achieve your educational goals.
If you are contemplating a college education, both Federal and private student loans are available to fund your education. Whether you are an undergrad, graduate or the parent of a student, you can find the right loan for you and begin paying for school. Typically, Federal loan programs are the largest source of funding with the most favorable terms.
For undergraduates, Federal Stafford loans are available to U.S. citizens with financial need determined by your college or university. Your eligibility is determined by filing a FAFSA form, as well as at least half time enrollment in a participating school. Current Stafford loans have a fixed interest rate and do not require payment while still enrolled at least half-time. Stafford loans are available subsidized, where the government pays the interest while you are in school or in deferment, and unsubsidized, which allows the interest to capitalize and increases the loan total. Stafford loans have a fee and a grace period of six months.
If you have an extreme financial need, Federal Perkins loans offer a longer grace period and no fees, but are generally similar to Stafford Loans. Unlike Stafford loans, they require satisfactory academic progress. Perkins loans are a mixture of funds from the government and the participating school.
For graduate students, Federal and private funding packages can help you with the entire cost of a business, law, or medical education. Otherwise, graduate students can obtain Stafford loans much like undergraduates and Graduate PLUS loans that have a set 3% fee and 8.25% maximum interest rate. In most cases, graduate student loans are only available with satisfactory progression through an education program and continued enrollment.
Privately funded student loans are credit based and allow you to supplement your Federal loans. Usually, you would want to exhaust all of your Federal loan possibilities before seeking private loans. If you do not qualify for Federal loans because of lack of financial need, a private loan might be the best answer.
Parents are also eligible for Parent PLUS Federal loans to pay for undergraduate education for their children. These loans have a 60 month deferment period calculated from the final disbursement of the loan. Like Graduate PLUS loans, the interest paid is tax deductible. This loan does not have income or collateral requirements but does rely on good credit standing.
Once you are out of school and begin repayment, consolidation loans allow you to pool all of your loans into one place which saves payment hassles and often provides an interest or payment break. Both Federal and private consolidation loans might help you reduce your monthly payments. Regardless of your situation, there is a student loan that will help you achieve your educational goals.