College Student Loan

College student loan financing is allocated by the millions to students who need help realizing their higher education dreams. There are many ways to find college student loans to help you pay the staggering price of a college education.

The three primary sources of college student loan funding are: private student loan lenders, institutional student loan services such as your local community college or university and state and federal college student loan programs.

Federal College Student Loan Programs should be your first choice because they offer the best terms and the most relaxed repayment policies. There are five different types of Federal College student loan programs available to assist you.

The Federal Perkins Student Loan is the most sought after since they allow a low interest rate of just 5% and give you a full 9 months after graduation to begin repaying your student loan. The Perkins student loan is reserved for students with severe financial difficulties and is granted on a first come, first served basis. The federal government only guarantees each school a certain amount of Perkins loan money each year, so you need to visit the website immediately and start getting your paperwork filled out and turned in before the deadlines.

The Federal Stafford College Student Loan is the most common federal student loan, this program assisted more than 6 million families last year. The advantage of Stafford college student loans is that their interest rate is lower than what students or parents could get through a private student loan lender. Stafford college student loans are available to students enrolled in an eligible program at least half-time and carry a variable interest rate that is adjusted once per year.

There are two types of Stafford College Student Loans -- Direct and FFEL. Direct Stafford student loans are made through the William D. Ford Federal Direct Loan (Direct Loan) program, while FFEL Stafford student loans are made by the Federal Family Education Loan (FFEL) program. The terms and conditions are much the same, but in the Direct Student Loan program, the money comes directly from the U.S. government. If your school does not participate in the Direct Loan program, the money is lent to you from a bank, credit union or other lender that participates in the FFEL program.

A Stafford College Student Loan may either be subsidized or nonsubsidized. Subsidized loans are based on financial need, and the federal government pays interest on the loans while the student is in school. Students pick up the payments on loan interest and principal six months after they graduate.

Students who don't show financial need, according to the Department of Education's guidelines, but still need money for school, may qualify for an unsubsidized Stafford College Student Loan. This type of loan doesn't offer the interest grace period. The borrower is responsible for interest charges beginning the date the loan is disbursed. Students are allowed 6 months after graduation before repayment begins and are allowed to can take from 10 to 30 years to pay off their Stafford College Student Loans.

The Federal Parent Loan for Undergraduate Students or PLUS College Student Loan Program is a available to parents of college students. Parents are allowed to borrow the full cost of their child’s education, minus any financial aid received. These government-sponsored loans have a variable interest rate that is capped at 9 percent.

Families who wish to obtain a PLUS college student loan must pass a credit check to qualify and the student must meet certain eligibility requirements. Visit this link for details: www.studentaid.ed.gov

The Federal Grad PLUS College Student Loan Program is a new option available to graduate and professional students to borrow up to the total cost of their education, for books, supplies and living expenses, as well as direct costs like tuition, room and board. New college student loan PLUS members have a fixed interest rate of 8.5% and the repayment plans are deferred for 60 days after graduation.

Although many families prefer not to borrow money at all, it's important to remember that federal loans tend to have lower interest rates and more flexible repayment policies than other types of loans. Families who need to borrow money for college should be sure to exhaust all federal loan options before turning to private lenders.

State College Student Loan Services have recently been giving student loans directly to students and families rather than to their state’s universities. State aid programs take many forms and award student loan aid based upon need for the most part, but also have merit based student loans available.

Some states offer interest free college student loans. Sure, you have to pay them back, but as long as you do so within a stated amount of time, you won't be paying more than you used. You can check www.finaid.org for you states current college student loan offerings and guidelines.

To apply for most state loans, grant and scholarship programs, look no further than that trusty Free Application for Federal Student Aid (FAFSA) form. The U.S. Department of Education forwards the information on FAFSA applications to the state student assistance agency in any state where the student is applying. And don't miss those deadlines, or the state aid may be gone.

Private Student Loans or Alternative Student Loans as they are sometimes referred to are provided by banks and independent loan companies. Each provider determines its own loan terms and eligibility requirements. You should only use private college student loans as supplemental funding after you have exhausted all other sources of financial student aid. A good rule of thumb is to look for private loans that offer in-school payment deferment, high credit approval rates and flexible repayment options.

Sallie Mae College Student Loans is the nation's leading provider of student loans and have many options available to help you find just the right student loans and private student loans to meet your education financing needs.

They have three types of private college student loans for undergraduates, the Signature Private Student loan, the Tuition Answer College Student Loan and the Community College Loan. All of which have generous lending terms.

A Citibank Student Loan is called the CitiAssist Loan, an alternative loan designed to assist undergraduate and graduate students afford tuition costs. They have easy online applications and guarantee a credit response in 3 minutes or less. They also defer payments till graduation and have great college student loan interest rates.

Great Lakes Student Loan is an excellent resource for students to learn and calculate student loan consolidation. They offer private college student loan options and varied borrowing limits. note what is a direct student loan?

College Student Loan

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College Student Loan

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