Student loan
Read each
point to find out more about Student loan - where to find them, how to apply,
and how to pay for them.
US
government loan
Perkins
federal loan are low interest loan offered by universities.
Stafford's federal loan are
available from banks, credit unions, non-profit Student loan providers, or
directly from the federal government at universities. The federal PLUS loan allow parents to borrow up to the
total cost of educating his / her child, minus any other financial assistance,
whether from a private bank, a not-for-profit lender or the federal government
.
Both types
of federal Stafford loan
The
subsidized Stafford loan are granted
according to the financial needs of the Student
. A key benefit of a subsidized loan is that the government pays the
interest while you study at least at half-time. Unsubsidized Stafford loan are not granted based on financial
need; however, you are responsible for paying all interest on the loan. To
reduce the total cost of the long-term loan, it's a good idea to start paying
those interest while you're still in school.
What is the
interest rate for federal loan?
Interest
rates on federal Student loan are set by the United States
Government. To make higher education possible for more people, the rates
offered are "below the market" - tend to have lower than non-federal
loan rates.
How can I
apply for a federal loan?
Visit www.Student aid.ed.gov for information on
federal Student assistance and a link to the aid application
called FAFSA. You can complete your FAFSA online and sign it electronically.
This is a quick and easy alternative to paper documents, and lets you know your
eligibility for helping Student s
faster. Keep in mind that the federal government is making changes to its Student loan programs. You should therefore check the
website for the latest information.
State loan and private loan
Many state
governments offer Student loan. Check with your state to see what it
offers. If you have already applied for federal loan and still need to borrow more money, you can agree a private Student loan, which is also known as an alternative Student loan. These are loan from financial institutions and are based on the credit of the
Student .
When do I
have to pay?
When you
sign a loan agreement or promissory note, you agree to pay the loan according
to a specified payment schedule. Some lenders may offer you more than one
option for the payment program or a grace period before having to make the
first payment. With a Perkins federal loan, you must start paying nine months
after graduation, drop out of school or study below halftime. With a Stafford
loan, you must start paying six months after graduation, drop out of school, or
study at half-time.
Can the
payment be postponed?
If you have
a temporary financial setback, some lenders may give you the option to defer
the repayment of the loan for a certain period (this is known as a carry
forward) or temporarily reduce the amount of the Student loan payment (called
-indulgence in the amount to pay ). Discuss these options with the lender.
Note: To
pay your Student loan comfortably, is that the monthly
payment is more than 10% of the net monthly income you expect to earn after
graduation.