An Introduction to Federal College Loans

The most common type of student loans are federal college loans. The U.S. Department of Education offers a variety of financial programs to help students pay for their higher education. In addition to loans, the U.S. government also offers grants for students in need. Both grants and scholarships are basically free money because they don't have to be repaid. Federal education loans do require repayment and fall under one of three main categories.


Stafford Loans are given on the basis of monetary need and can be obtained from a credit union, bank or directly from the U.S. government. They are a very common type of loan for college students to obtain. Under the category of Stafford Loans are three different types of loans from which you can choose.

Subsidized Federal Stafford Loans are given on a long term basis to those in financial need. They feature a low amount of interest. The federal government pays the interest while the student completes their education and/or when they request payment deferral. Then there are Unsubsidized Stafford Loans, which are also long term but not given on the basis of financial need. This type of loan is low interest and recommended for students who don't qualify for other types of aid or need additional funds. Additional Unsubsidized Stafford Loans are the third type of Stafford Loan for independent students.

Another type of federal loan for students is the Federal Plus Loan. This type of loan is given to parents of college students who are half or full-time undergraduates. The price for school attendance and the credit rating of the applicant factor into whether or not this type of loan is awarded. Repayment of a Federal Plus Loan commonly starts within 90 days of graduation or disbursement of the funds.

The third type of government educational loan is the Federal Perkins Loan. These federal college loans are for students with a high level of need and have the lowest average interest rates. The amount of these loans is limited, so there may be other types of funding required for the student such as one of the other loans described above. Regardless of the loan you choose it is important to make your payments on time because your credit could be damaged if you don't. If you find yourself having difficulty with the payments you may be able to defer or consolidate them.



College Loans Grants

 

 



Scholarship Guide

 

College Consolidation Loans News:

 

Vermont Senators Leahy And Sanders Join Bill To Prevent July Interest Rate . - LoanSafe

Vermont Senators Leahy And Sanders Join Bill To Prevent July Interest Rate .
LoanSafe
In 2007 Congress passed the College Cost Reduction and Access Act, which reduced the fixed-interest rate on Stafford Loans from 6.8 percent to 3.4 percent, helping millions of American students better afford college education.
Vt senators fight to keep college costs in checkWCAX

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'Pay As You Earn': What students need to know
For families struggling to pay for college, 2012 won't be pretty. This year, interest rates on some federal loans will increase, tuition will go up, and it will become harder to qualify for a full Pell Grant. But there is also some good news...


Wonkbook: Robert Kagan, Obama's favorite Romney adviser
Robert Kagan is a prominent neoconservative who advised John McCain in the 2008 race and is advising Mitt Romney in 2012. But after publishing a cover story in the New Republic arguing against "the myth of American decline," he has found himself a new fan: President Obama. Read full article >>..


Paying back student loans without breaking the bank - KGET 17

Paying back student loans without breaking the bank
KGET 17
In his third State of the Union Address, President Obama warned colleges to put the brakes on rising tuition costs. "Higher education can't be a luxury it's an economic imperative that every family in America should be able to afford," the President .
Student loan interest rate scheduled to double in JulyMaroon
Student loan interest rate set to go upThe Detroit News
Cost Looms Large for Obama's Student Loan Interest Rate CutNew America Foundation (blog)

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DGAP-UK-Regulatory: Annual Report 2011, -18-
DJ DGAP-UK-Regulatory: Annual Report 2011, Ringkjoebing Landbobank A/S Ringkjoebing Landbobank A/S / Annual Financial Report 01.02.2012 08:33 Dissemination of a UK Regulatory Announcem...



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