Which Student Loan Is Right For You?

There are several different types of student loans available for those who need help paying for their college education. The majority of students do receive some form of financial aid. When choosing a student loan the first step is to sit down with a financial aid officer at your school and discuss your options. Many loans for college students are provided by the U.S. Department of Education. These are called federal loans and are fairly easy to obtain for most students. There are certain application criteria you must follow and different types of federal loans.

One of the most common federal loans is the Stafford Loan. These loans are awarded to students regardless of their financial situation. This type of loan is available for both undergraduate and graduate students. There are subsidized and unsubsidized Stafford loans, for which interest rates vary. There are also limits on how much students can borrow based on whether they are dependent or independent, and what year of college they are in. For example, dependent freshmen can borrow up to $3500 while independent freshmen are eligible for up to $7500.

Another type of federal loan is the Perkins Loan. This is a need-based loan for student who meet financial requirements. The limits on this type of loan are lower than others but there are benefits such as more repayment options, lower interest and deferments for those going through financial hardship. The cap on a Perkins loan for undergraduates is $4000 per year and $20,000 total. For both Stafford and Perkins loans, a form called a FAFSA must be completed as part of the application process.

Another type of student loan is the federal PLUS loan, which can be used after all other student loan sources have been applied. These loans are not based on need, but rather financial and credit worthiness. There are no limits as to how much you can borrow with a PLUS loan. In addition to federal student loans, there are private loans that can be applied for as well. And, there are federal grants that do not need to be repaid, as well as scholarships that students can apply for. If you want to attend college but don't think you can afford it, you will find that with so many different financial aid options available there will be something to meet your needs and allow you to complete your education.






 

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Financial Aid News:

 

6 Common Misconceptions About Financial Aid
So, you've gotten into college (congrats!), filled out your FAFSA (great!) and are now staring at a financial aid award letter, wondering what to do next (uh-oh). As the May 1 deadline to accept financial aid offers approaches, TIME Moneyland spoke to Mark Kantrowitz, publisher of FinAid.org and Fastweb.com, to thwart many of the common misconceptions families have when it comes to financing a ...


The Fuzzy Math in Financial Aid Offers
Students are confused by assistance that's really debt..


Congressman talks about student loans, Chinese dissident - Newnan Times-Herald

Newnan Times-Herald
Congressman talks about student loans, Chinese dissident
Newnan Times-Herald
Lynn Westmoreland explained his vote on a controversial student loan interest bill and commented on the plight of Chinese dissident Chen Guangcheng. Westmoreland said he voted against a measure to keep interest rates on first-year student loans at 3.4 .

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Student loans 101: The interest rate uproar - Boston.com

USA TODAY
Student loans 101: The interest rate uproar
Boston.com
NEW YORKEURLawmakers on both sides of the aisle agree: It would be a mistake to let interest rates on student loans double in July. Especially if they're going to be blamed for it in an election year. Student loans have become a political football in .
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Why the Student Loan Interest Rate Debate MattersHuffington Post
Most student loans unaffected by upcoming increase in ratesUSA TODAY
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Financial aid officials concerned by proposed rate hikes
A hike in federal student loan interest rates could be particularly damaging for non-traditional students attending Iowas community colleges, financial aid officials said today. The U.S...


Student loans 101: The interest rate uproar - Indianapolis Star

Christian Science Monitor
Student loans 101: The interest rate uproar
Indianapolis Star
To make his case about student loans to young voters, President Barack Obama even made an appearance recently on Jimmy Fallon's EURLate NightEUR show on NBC. / Associated Press Associated Press NEW YORK EUR Lawmakers on both sides of the aisle agree: It .
Big interest on student loansNew York Post
White House: A hike on student loan interest rates would affect 7.4M borrowersReporterNews.com
Student loans are a great deal - for the governmentMinneapolis Star Tribune
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Students face big financial aid changes in 2012
This year, college students face new rules in the financial aid arena. Those applying for grant aid and federal student loans in 2012 will be affected by several changes in the college finance system. ...


Today's letters: Student loans - BlueRidgeNow.com

Today's letters: Student loans
BlueRidgeNow.com
To the editor: Republican leaders complain that legislation to keep college student loan rates low will not be paid for in the federal budget. Where were these fiscal watchdogs when the budget careened out of control during the Iraq War?

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