December 2, 2021

Guide To College Student Loans

At a young age, most students tend to get confused when it comes to picking the best college student loans. Fortunately, it is possible for them to consult a guide to college student loans and get all the help to ensure that you understand what loans are available and how to get the best one. These guides will explain things such as interest rates and loan maximum amounts as well as will help you by providing links to sites where you can apply for these loans.

College Student Loans

The Federal Stafford Loan is one of the best loans for students and is available to those who plan on entering college at undergraduate and even graduate level. This loan is widely used by most college students and it also offers many benefits including low interest rates. As long as you complete the FAFSA on a yearly basis you can receive this loan and in addition to FAFSA you must also attend a college that is accredited. You must also be studying at least for part time in order to receive this loan.

There are two types of Federal Stafford loans: subsidized and non subsidized. You can qualify for the subsidized loan if your financial situation makes you eligible. If you get the subsidized loan it would mean that the government will be paying for the interest on the loan but only as long as you remain enrolled in college.

A Federal Stafford loan maximum amount will vary according to your grades and also according to your student status while studying in the school. For freshmen, the limit for this particular loan is five and a half thousand dollars.

For sophomores, the limit is six thousand five hundred dollars. Juniors, seniors and fifth year undergraduates will receive seven and a half thousand dollars. Graduate students can receive twenty thousand five hundred dollars and for certain graduate level medical professions, the loan maximum will be forty thousand five hundred dollars.

The interest rate on a Federal Stafford Loan will be 4.5 percent for the subsidized loan for the year 2010 to 2011. It will be 6.8 percent for an unsubsidized Graduate Stafford Loan. The best way to apply for this loan through the government is by checking out their website.

A Federal Perkins Loan will be given according to the students needs and will also be given to students that are able to show a certain financial aid situation. This loan is quite similar to the Stafford loan but the interest rate on this loan will be five percent and you will also need to qualify for these loans.

A Federal PLUS Loan is available for parents of students who are studying in college. This loan will be given to the parents of students that are studying in college. Parents can receive loan money up to the total cost of attendance from which amount the financial aid obtained will be subtracted. The interest rate on this loan works out to about 7.9 percent and in addition the parent must also pay a four percent origination fee.

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