How much you will have to pay for your education is something that you should have been prepared for in advance. Tuition fees are expected to get higher and higher every time; thus, if you have allotted some amount for your education long before you get it, then you are in a better position now. However, if you failed to save money in the past for today’s use there are still other means for you to get the education you desire. For instance there are financial aids offered by the government and by private sectors. Student loan is one of the ways on how you can get the money you will need for education; however, before you jump into some application make sure you understand how it works.
If you are eyeing for a student loan here are the options that you have. One of the most common student loan is the Federal Stafford Loan. This particular loan is available for graduates and undergraduate students. Federal Stafford Loan can be categorized into two namely Unsubsidized Stafford Loans and Subsidized Stafford Loans. The former is, as the name suggests, for all students regardless of the need for financial support and with a fixed rate of 6.8 percent. The latter is available for students who were determined through FAFSA to be financially challenged. The interest for this particular loan is waived as long as the grantee is in school. After schooling, the grantee will need to repay the loans with a fixed interest of 5.6%.
Another option you have is the Federal PLUS (Parents Loan for Undergraduate Students). This student loan can actually cover the 100% of your educational expenses. However, the borrower will need to exhibit credit worthiness in order to get approved. The interest rate is also higher than the Stafford for this loan has a fixed rate ranging from 7.9 to 8.5%.
The Federal Perkins Loan is another type of student loan which is particularly offered to working students, or those whose families are categorized as low-income. The interest rate for this loan is 5%.
These are some of the student loans that you could choose from and there are also private student loans available. However since they are not supported by the government private education loan gives higher rate for their loan programs. Moreover there will be more factors that could influence your loan interest rate for instance your income and credit history.
