Where Can I Find Information About School Loans?
I'm a parent looking to get student loans for my child. Where can I find more information about student loans?
I am looking for student loans which will provide funds that will enable my daughter not to lose scholarship money, and grants. Can you provide information on student loan programs?
There are two main categories of student loans: government student loans and private student loans. Generally, government loans (many are called Stafford Loans) will offer the best interest rates and terms. This is because the government loans are issued on a need basis up to the allowable maximum. Private Student Loans are issued based on credit thus carrying higher interest rates.
Parents of students should look carefully at PLUS loans, which are also government student loans. Again, the interest rate is likely to be better than the rate you can secure from a private lender for student loans, since the government takes much of the risk of default, thereby subsidizing your low rates.
There are several different loans types that a parent can look into obtaining for their child.
If you need to take out a loan to help pay for your education, you should always look at federal loans first. The largest source of education loans around, federal loans are long-term loans with low interest rates designed for students who need money for their educations. They have several benefits when compared to other borrowing options.
Federal Perkins Loan
The Federal Perkins Loan is a low-interest loan available to students who have exceptional financial need, based on the information provided on their FAFSA.
Federal Stafford Loan
The Federal Stafford Loan is available to undergraduates and graduate students. Loan amounts depend on a student's year in school and whether they are financially dependent or independent. Your college's financial aid office determines your eligibility.
Federal PLUS Loan
The Federal PLUS Loan (Parent Loan for Undergraduate Students) is a low-interest education loan for parents. Each year, parents can borrow up to the cost of attendance, minus other financial aid received (scholarships, grants, student loans, etc.).
Private loans are designed to supplement federal loan programs and are available from schools, banks, and education loan organizations. They are usually used to cover education costs that cannot be met by federal aid.
Another great resource for finding out about student loans would be to visit U.S. Department of Education.
I hope this information helps you Find. Learn & Save.