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Worry free education without financial burden with federal loans

September 17,2011 by: admin

Applying for loans can be a tiresome job for every student before starting the university program. Federal government offers many loans to assist students who are willing to pursue their higher education. Although there are many requirements to apply for federal loans, they are fairly easy to obtain and have low interest rates when compared to private loans. There are many kinds of loans that the federal government offers to suit the varying needs of the students. Every loan must start by filling out a federal application, and submitting it to the education department before the deadlines.

Federal loans are designed to help students complete their studies without the burden of repayment during the course of their education. The most common types of federal government loans are Stafford loans, Perkins loans and direct loans.  Apart from this, there is federal PLUS loans that are offered for parents of the students who wish to continue their education. Stafford loans are a part of federal family education loans, and can be obtained at any financial institution. Of the student submits the financial loan application supplying the proofs of financial conditions, then the government pays for the interest of the loan until the student graduates from college. The principal amount is deferred when the student is pursuing the education. Stafford loans can be applied for, only when the student registers for at least half-time or part time education and must show academic progress by securing satisfactory grades.

Federal loans that are given directly by the department of education are known as direct loans, and the funds are disposed directly to the students requiring financial assistance. It can take the form of either Stafford loan, or Perkins loan, and even federal PLUS loans when parents are applying. Perkins loans are given only to the most deserving students on a first come first serve basis. To apply for the Perkins loans, one must complete the application form and submit the proof of financial conditions well before the set deadlines. Perkins loans have very low interest rates, and many other advantages like deferred payments for students who excel in academics. To apply for Perkins loans the student must be enrolled at least half time, and must be eligible nonresident or citizen of USA. The funds may be made available to the student directly from the university through Perkins loans.

Apart from Stafford and Perkins, there are federal loans for parents who wish to support the education of their wards. Federal PLUS loans are designed for parents who have dependent students who want to enroll to undergraduate studies. Federal PLUS needs the parents to have a good credit history, and to submit a completed application form before the deadlines. If the student of the parent applying already has federal Stafford of Perkins loans, the total amount that the parents are allowed to borrow will be education cost of one year minus the student loan amount that the ward already has. Federal government loans are easy to pay back and are very flexible unlike private money lenders. Applying on time is very essential to have a worry free education.


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