Student Loan Funds

November 3rd, 2020 by admin Leave a reply »

Most college students need money for school and will get it in ways of borrowing the money or taking out student loans. There are two main differences of funds we want to talk about here, free and not free!

The free money we’re referring to can get gotten as a grant or scholarship that never has to be repaid. The second form is a type of loan that has to be paid back, with interest. What you should concentrate on first are the federal loans because of the excellent benefits they have and flexibility in payment. A typical college student that that either graduates OR leaves school will spend ten or more years repaying their student debts. College is by far is one of your biggest investments that you will ever make. Notice I didn’t call it an expense because it’s definitely worth it and will help you get ahead in life.

There are many types of loans out there but I mainly want to talk about what’s available from the federal government first:

Federal Student Loans

These types of loans are obviously funded by the federal government and with that comes many options and benefits. This category includes the Stafford Loans, Perkins Loans, and the Federal Consolidation Loan.

Stafford Loans – comes in two forms, subsidized and unsubsidized. This is the most common used type of loan and just about everybody qualifies for some type of assistance through the Stafford Loan program.

Benefits of Federal Student Loans

Some of these benefits include lower interest rates, the fees are lower, and the payback policies are more lenient. Federal student loans are unlike private loans because they have flexible repayment terms that let you worry about passing college and paying for it after you have graduated. You have enough to worry about with those grueling professors!

Advertisement

Comments are closed.