For most of the businesses, we start we need to register the same with the government. Naming the business is first step towards registration of the business. Business name is a platform we will use to transact with other members of the community. It is important as we open bank account, engage in transactions with other parties, receive and make payments etc. All these tasks need proper name of the business.

The Business Name

Personal names are generally used as legal names of business in case of sole proprietorship. But in some instants people use different name for their business. These are called DBA (Doing Business As) or fictitious names. Naming the business using such conventions means creating a business brand. This is the same trick as business incorporated as partnership firms or LLC (Limited Liability Company). For example we can name a super store as “Banana Super Store” instead of “John William”.

If the type of business is a partnership, the business is registered by the name under which the partnership firm is registered. If we are using a company or a corporation as our business platform to start our business, we have to register the name of our company or corporation registered with the government.

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There are two main sources for Federal Student loans one is Federal Direct Loan Program that comes from the U.S Department of Education and other is Federal Family Education Loan Program, which come from participation of FFEL lenders.

Both of above mentioned loan programs include the standard federal student loans: Stafford Loans, PLUS Loans and the Federal Consolidation loan.

Now question is that what is the difference between these two loan programs?

There is not a big difference between the Direct Loan program and the FFEL. About that your college or the university will let you know in which program it participates. Many colleges even participate in both, in which case you may choose.

How Students can Get Benefit from Direct Student Loans?

Federal loans borrowed through the Direct Loan Program or through FFEL are almost same there is only difference that you conduct all business directly with the federal government’s Direct Loan Servicing center.

Features of the Direct Loan Program

Direct Loan program include following features:

• Loan are directly originated and managed by U.S government
• Repayment terms are flexible
• It include Stafford Loans, PLUS Loans for parents and Grads and Consolidation Loans
• Low interest rates and fees
• You can manage you loans online

Requirement for Direct Federal Student Loans

Requirements for direct student loans are almost same as other federal student loans.

Here are the requirements that are needed for federal direct student loans:

• You must be a U.S citizen, eligible non-citizen or resident.
• You must be enrolled in a college or university half time or more.
• You must qualify the income bracket determined by the government and your school.
• You never been defaulted on a student loan before.

Applying for Direct Federal Loans

Applying for Direct Federal Loans its necessary to complete the FAFSA and file it by the earliest federal or state deadline. You must file the FAFSA before the deadline if you failed to file it then you will miss so many low-cost financial aid options. If you got any difficulty while filling up the application you can contact to your high school guidance counselor or college financial aid specialist immediately.

The award letters, which you will get from the colleges that you’ve been, accepted itemize the types of financial aid you’re offered. Your award letter will indicate whether you qualified for Federal Direct Stafford Loans or PLUS Loans.

Whether you choose a Direct Stafford Loan or PLUS Loan its necessary for you to complete a Master Promissory Note, that is a legally binding contract between yourself and the Department of Education, the lender to whom you will eventually make all your loan repayments.

Repayment of Direct Federal Loans

Direct Stafford Loans are also having 6 months grace period same like the FFELP Loans.

There are four payment plans for Direct Federal Loans:

1. Standard Payment Plan-fixed monthly payments for 10 years
2. Extended Payment Plan-fixed or graduated payments for 25 years; must have at least $30,000 in debt
3. Graduated Payment Plan-payments increase over life of loan; up to 10 years to pay
4. Income-contingent-payments are refigured annually considering your income

There is no perfect loan because every loan should have to be paid back but Stafford Loan comes pretty close to perfect. Stafford Loans are better, most common and almost every student qualifies for it.

Stafford Loans can be called near to perfect because of following features:

• Lowest Interest rate
• Almost every one qualify for it
• Undergraduate and graduate both may qualify
• While student is in school then government pays interest on subsidized Stafford loan
• Every year students qualify for higher annual limits
• For Stafford Loans no credit check is required
• Grace period of six months after graduation

Explanation of Stafford loan

Stafford Loans are the government guaranteed loans that you can borrow through the Federal Direct Student Loan program or through a lender that participates in the Federal Family Education Loan Program (FFELP). Federal Loans are designed to provide almost every American student some form of financial, low cost aid.

There are two types of Stafford Loans.

1. Subsidized Stafford Loan
2. Unsubsidized Stafford Loan Read the full story

Qualifying for grant is good but that doesn’t mean that grants will cover your entire tuition costs, books, dorm fees and the cost of living in general. That’s why loans are needed to counter those financial needs in college. This is the main reason also for which students are knee deep in debt when they graduate.

Federal student loans are the most affordable loans for students and the Perkins Loan is a major component in the federal student loan arsenal. Perkins Loans have plenty of benefits and features that make it an excellent loan for eligible students.

Perkins Loans are having following major features:

• Low cost and interest rate
• Need based
• Available through participating colleges and universities
• There is optional loan cancellation for eligible borrowers
• Available for eligible undergraduate and graduate students
• Grace period of 9 months
• No-Fee
• No credit check is required

Explanation of Federal Perkins Loan

The Perkins Loan program is a campus based financial aid and it’s available for both undergraduate and graduate eligible students. Annual Federal Perkins Loans are received by participating in colleges and universities. The schools determine which are the most financially deserving students for Perkins funds. Money is awarded on first come, first served basis so it’s necessary for students to accept as early as possible when they qualify for the Perkins Loans. Some of schools pad the Perkins loans with their own funds so that more students can qualify. Perkins Loans are fee-free with 9 months grace period unlike other federal loans, which are usually having 6 months grace period.

When you accept the Perkins Loan then you can borrow from any campus of your choice. This is a subsidized loan; means that government will the interest that accrues on your loan while you are in school and during the grace period. An undergraduate student is limited to $4,000 per year with a lifetime limit of $20,000; and for a graduate student limit is $6,000 a year and $40,000 lifetime limit.

Most of students qualify for a Stafford Loan and not all colleges and universities participate in the Perkins program, while in the grand scheme of things the Perkins Loan may be the lowest cost loan available.

Requirements for a Perkins Loan

The main requirement for qualifying for a Federal Perkins Loan is showing exceptional financial need. However aside from income brackets there are also few other requirements you need to know about. Such as:

• You must be enrolled in school at least half –time.
• You must be enrolled in that college or institution that participates in the program.
• You must be a U.S. citizen, a permanent resident or a non-citizen that is eligible.
• You won’t be having any defaulted history on an education loan in the past.
• You must be registered with the Selective Service.
• You must be having at least satisfactory grades.

Applying for a Perkins Loan

As for all federal aids its necessary to file FAFSA, same its necessary to file FAFSA in order to be considered for a Perkins Loan. After filing FAFSA government will determine your eligibility, you can request Perkins Loan assistance. When you will submit your FAFSA then you should receive your Student Aid Report (SAR) in the mail. Your Expected Family Contribution (EFC) is outlined in the SAR. The EFC is amount of money that you will pay out of your pocket or with loans for your tuition. After few weeks you will also receive award letters from the colleges to which you had applied detailing the types of financial aid you have qualified for, may be included with Perkins Loan. You must have to return the award letter indicating what financial aid you are accepting in order to receive any money.

If you will be approved for Perkins Loan funds then you must let your school know and the sooner the better; funds are limited and often disbursed on a first come, first served basis.

Repayment of the Perkins Loan

In the last few months of your college education your school provides you with loan repayment information related to Perkins Loan. You will be having 9 months grace period so that you can get settle and get a job before your repayment kicks in.

Loan Cancellation for Teachers

Students who go into public teaching jobs may qualify for Perkins Loan cancellation on whole or a part. If you are having plan to teach in a low income public school district, teaching special education students, teach in a shortage area, or teach a subject designated as a shortage (science, math, foreign language) then your Perkins Loan will be partially canceled for every year you served.