Overview
Student
loans are devised by the government to help students who are seeking
financial help towards their tertiary education. Its premise is
simple, and one that has been in motion for decades since it is one
of the few low-interest lending options for degree seekers. It’s a
type of loan specifically designed to assists those who have
completion of higher education in mind as part of their long term
goals, but do not have the financial adequacy to support themselves.
Types
of Student Loans
Broadly
speaking, there are two types of student loans. You need to be aware
of them if you are considering getting one since both options offer
advantages and disadvantage. Its two types are federal and private
student loans. By how each is called alone should give you an idea of
their main difference. The first one is the type of student loan that
is directly loaned from the government. In the
US, here are its
examples:
•
Stafford
Loans
•
Perkins
Loans
•
Plus
loans
Above
are generally the first ones to mull over, because they have the
least interest rates compared to their private type counterpart.
However, when we talk about how much would be the limits and the
inclusions these two types are willing to finance, the latter usually
comes out on top. Student loans from private institutions such as
banks, often allows students to get aid with higher limits. These
private institutions also are not limited on the extent of aid they
could extend the student or the lender. Cost of living is a variable
that is not covered by the federal type of student loans. This one
factor is being used by private institutions as a bait to lure
students who aim to cover more factors in their pursuit of higher
education through loans.
Eligibility
for Student Loans
In
order to qualify for a student loan and to apply for one, you must
meet certain eligibility requirements. These requirements depend on
what country and institution you want to get your student aid from.
Here are some basic requirements:
•
Be
a citizen of the country where you want to study
•
Some
types would require you to be enrolled first in an eligible degree or
program
•
May
request you to maintain a level of satisfactory academic progression
•
Should
not be in default with any existing type of loans
•
Must
be qualified to be accepted in the degree you want to apply the
student loan for
•
May
require your parents to be co-signers
•
You
and sometimes your family should demonstrate financial need
Choosing
a Student Loan
One
does not need an adviser to determine which type of loan that best
suits you. All it takes is a certain amount of due diligence
pertaining to research and you should be well on your way to finding
the best student loan program for you. Things that should not be
missed and considered are the amount that you intend to borrow, the
interest and repayment terms you’d be comfortable with.
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