Posted on 03 January 2011
Tags: alarming level, Alternative Loans, borrow money, borrowers, college education, College fees, discretionary income, economical crisis, expenses, Federal Government, Federal government of the United States, federal loan program, federal loans, Federal Perkins Loan, financial needs, fixed interest rate, gold standard, government guarantee, government interest, government support, higher education, income, interest, interest on federal loans, loan type, Loans, loans agreement, low interest rate, maximum interest rate, Pell grant, Pell Grants, perkins loans, PLUS Loan, principal balance, Private, private lenders, private loans, Resources, school loans, Stafford, stafford loan, stafford loans, subsidized loans, Terms And Conditions, types of loan, Undergraduate education, undergraduate students, Unsubsidized Loans, unsubsidized Stafford loans
College education is extremely important and costly in this era of economical crisis. College fees have risen to an alarming level. As the governments support is no longer there, the impact of this rise is being felt more strongly. Students normally borrow money to continue their education or just quit from this field because of the absence of resources. It is truly a disaster. If anyhow, they manage to pay their expenses, they get themselves trapped in the eternal web of interest.
There are many types of loans available in the market and many students prefer to borrow such loans.
Types of loan
There are three basic types of loan, about which undergraduate students must know. Following are the details about such loans:
Federal Loans
They are directly given by the government mostly but they also include private and alternative loans from banks or other private lenders having no federal government guarantee. It has fixed interest rate. Therefore it is gold standard for borrowers, as it allows more latitude at the time of repayment. Which is, at times, calculated using the percentage of discretionary income, not the amount owed like,” STAFFORD LOANS” which are available regardless of financial needs. Government pays the interest on these “subsidized” loans for those who are actually needy, while the student studies in some college.
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Posted on 10 January 2010
Tags: co-signer, FAFSA, Federal Family Education Loan Program, federal student loans, FFELP, Financial Aid, fixed interest rate, Loans, Parent Loan for Undergraduate Students, perkins loans, PLUS, PLUS loans, private loans, private student loans, Pros and Cons of Private Students Loans, stafford loans, students loans, subsidized stafford loans, unsubsidized Stafford loans
Are you initiating the process of figuring out how you would pay for college? Financial aid is the best choice as it will help you in achieving your education dreams, but that is a complex process having a growing variety of student loan options from which you have to choose.
Assume that you’ve searched out all opportunities for scholarships and grants, not the next option in front of you is to research student loans.
General categories of Students Loans
There are two general categories of Students Loans
federal student loans and
private student loans.
Federal Students Loans
The best choice for students are federal student loans. These loans are backed by the U.S. government and they are available directly through your school or through banks and student loan lenders through the Federal Family Education Loan Program (FFELP).
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Posted on 13 October 2009
Tags: federal education loans, Financial Aid, financial literacy program, guarantor, nonprofit corporation, PLUS loans, private student loans, stafford loans, unsubsidized Stafford loans, USA Funds
USA Funds, which are the nation’s leading education loan guarantor, has reported that it guaranteed more than $20 billion in federal education loans in order to help students and parents to pay college expenses for the fiscal year ending Sept. 30. A 17% increase is represented by the figure in the dollar volume of loans that are guaranteed by USA Funds as compared with the previous fiscal year.
USA Funds provide Stafford loans and PLUS loans
These loans include the total of more than $17.7 billion in Stafford loans for students and $2.3 billion in PLUS loans to graduate students and to the parents of dependent undergraduate students.
Increase in volume of unsubsidized Stafford loans and PLUS loans
USA Funds saw a significant growth in its volume of two categories of student loans that are affected by recent legislative changes.
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