--------------------------------------------------------------- Summary
Student loans are frequently used by many
to help pay for an education. There are many
types of student or education loans out there,
and variations of each. "Education loans"
can include student loans, parent loans, private
education loans or consolidation loans. There
are also alternatives to taking loans to finance
your education, such as grants and scholarships.
Types
of Student Loans
Student loans are offered by govenment funded
organizations such as Sallie Mae, as well
as private lenders/banks (Bank of America,
Wells Fargo, etc). Often your college or university
can help direct you to the organizations you
on how to apply for your student loans.
Federal government education loans include
such programs as the Perkins Loan and the
Stafford Loan. Here are major types of student
loans:
Perkins Loans.
The Perkins loan is a low-interest loan
for both undergraduate and graduate students
with exceptional financial need. The school
is the lender and the loan is made mostly
with government funds with a portion contributed
by the school. The loan is thus repaid to
the school.
PLUS Loans.
PLUS stands for "Parent Loans for Undergraduate
Students." These are loans for parents
or legal guardians of a dependent student
enrolled at least half-time in an eligible
program. The borrowing parent owes interest
on the loan as soon as the loan is made.
Repayment of the loan begins when the final
loan disbursement is issued.
Stafford Loans.
Federal educational loans for undergraduate
and graduate students. The interest for
these loans are either subsidized or unsubsidized,
and is a variable rate, determined by the
Federal government.
Financial Aid Resources
Qualifying for government based grants or
college/university "work-study"
programs (part-time employment for students)
usually requires students to verify their
financial position. There are two sites you'll
likely be directed to by your university of
an academic counselor:
Free
Application for Federal Student Aid (FAFSA).
You must submit the Free Application for
Federal Student Aid (FAFSA) if you want
to apply for federal and state financial
aid. There is no charge for submitting this
form. The FAFSA is also required by all
state and many school student assistance
programs. Visit the Website or call FAFSA
at 1-800-4-FED-AID.
College
Scholarship Service (CSS). This is called
the "CSS PROFILE" and is required
by many private colleges and universities
to determine your eligibility for non-government
financial aid, such as the CSS' own grants,
loans and scholarships. This does involve
a small fee.
