Types of Student Loans

As a high school student to the next step you want to do is join the university. You need money to do what college education is expensive. If you are self employed or your parents are not able to help you so you have to think of student loans to help the university. Our federal government has developed a variety of financial packages to help students like us to leave university and get a good job.

There are two types of student loans available. federal loans and private loans. These loans help students pay for tuition, books and living expenses. The biggest advantage of these loans will again begin six months after completing your training and the interest rate is very low. Therefore, it is tempting for students to go to student loans. The federal student loans are the most popular Stafford loan, Perkins loans and Plus loans

Stafford loans, Stafford loans are given the German government for students wishing to study at least half-time in college (graduate and undergraduate courses). This is a very popular loan that is used by students in the case of solid loan with low interest rates. A student is allowed to borrow $ 20,000 per school year. Students can borrow this amount directly to the Ministry of Education by the school, they join in

Perkins loans, Federal Perkins loans are given to students who are in financial need to participate in higher education. The amount depends on individual needs and there is a standard formula that the following financial aid office to pay the amount directly to the institution where the student is enrolled. It is advisable to seek assistance from the federal government as soon as possible because it is on a first come, first served.

Plus Loan Plus loan is granted by Germany to parents who wish to educate their children to college. Parents who have good credit rating can apply for the Plus loan to help finance their son or daughter's college expenses. This money can be used for education, supplies, housing and so on. The procedure is the same as two other bonds. Here, the EFC (expected family contribution) is also examined, so that the financial aid office can enter the exact amount has been paid. In addition, the credit rating of the parent company for the tax return of assets and loans, if and how many children are studying at the university must take into consideration before deciding on the right loan.

Private loans - In addition to federal loans, no banks and private lenders who offer loans to students as well. The proof is the same and the procedure is the same. FAFSA must be completed and sent to the lender with your request. Some of the popular private student loans are Sallie Mae, student loans, Citi, Monticello, Chase loans to name a few. Private loans depend mainly on its solvency. A co-signer with good credit can get a private student loan. Although the fixed rate, be careful before borrowing.