Looking for a Student Loan? Things to Be Aware Of

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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