Do you know there are Loans for Student? Going to college requires money for tuition fee and some other fee. Student looking for financial aids, the government provides grants and loan to student to help them through academic period financially.
This is a particular program designed by the government or a private sector to help student that can’t afford college expenses. The Federal Student Aid is one of the most popular programs where college student can loan money from.
Loans for Students
When applying for student loan, you need to understand factors, terms and conditions involved for the loan. The Federal Student Loans are loans college student receive from federal government.
Types of Loans for Students | Federal Student Loans
The U.S. Department of Education federal student loan program is the William D Ford Federal Loan Program. In this program, the lender is the United States Department of Education. Types of Direct Loans offer include:
Direct Subsidized Loans
This type of loan is offered to eligible undergraduate student that need financial support to cover expenses of education.
Direct Unsubsidized Loans
This loan is offered to qualified undergraduate, graduate, and professional students but the requirement for loans isn’t based on financial need.
Direct Plus Loans
This loan is offered to graduate or professional student and also parents of dependent undergraduate student. The money is sent by the federal government to help student cover educational expenses but not other financial aid. Eligibility for this loan is based on credit checks.
Direct Consolidation Loans
This is a full combination of all eligibility for federal student loans into a single loan.
How Much Money can I Borrow in Federal Student Loan?
There are factors that determines how much you can borrow in federal loans include level of education, whether undergraduate student, graduate, or professional student.
- Undergraduate student: the highest amount you can borrow per year is $5,500 to $12,500 and this implies to Direct Subsidized Loans and Direct Unsubsidized Loans.
- Graduate or Professional Student: the highest amount you can borrow is about $20,500 per year for Direct Unsubsidized federal student loans.
- Parent of dependent undergraduate student: applicants are entitled to Direct Plus Loan as a remainder of your child collect costs. The amount varies based on the school the student is attending.
It is advisable that you borrow exactly what your school offers to enable you request more loans when needed.
How Do I Get a Federal Student Loan?
To apply for a federal student loan, you need to complete and submit a Free Application for Federal Student Aid form. Based on information provided on your FAFSA form, you will be notified if you are eligible or not to receive a financial aid offer.
Also, you need to complete the entrance counseling and sign a master promissory note before you can receive a loan funds.
Best Private Student Loans 2021
Sometimes, the federal student loans might not be able to cover all your educational expenses. There are other private student loans program that offers you grant and work-study programs to assist you financially:
- College Ave
- Education Loan Finance
- Sallie Mae
- Ascent Funding
- Citizens Bank
You need to understand the terms and conditions and also the interest rate. Acquiring student loans from private sources usually come with a high-interest rate.