Besides the financing of your education through federal or private scholarships and grants exists a further option to to get money for college. Usually grants and scholarships do not have to be payed back, student loans on the other hand will have to be payed back after you finish your education. Still this type of financing becomes more and more popular. Before you read any further you have to know that in order to apply you need to determine your credit score in order to apply for a loan. Before you can plan any further you shuld thus get a free credit report here. We have used this service before when we worked with students and found it to be the best and most trusted one by far. To get a quick comparison between different student loans use SimpleTuition. We have worked with them befor and they are very fast and reliable in finding exactly the loan that you need.
Federal vs. Private Student Loans
People who need help but did not get any college student grants have to start looking and select a fair student loan that secures their financial situation. The ammount of loans available is so huge that a single person alone will not be able to look through then all. To help you select the right loan we divide the loans into two categories. The situation with student loans is the same like with grants: There are federal and private student loans available.
If you do not qualify for a federal grant you still might be eligible for a loan. There are several federal loans avbailable that you can choose from.
Selected Federal Student Loans
The first one is the so called Perkins loan. This loan is offered to students that have critical finacial needs. Because this is a federal loan the intrest rates is very low and the grace period is very large.
Another federal loan is the Stafford loan. This loan is available for students with financial needs determind on the FAFSA form that is used to apply for federal grants like for example the Pell Grant. Although this is a federal loan it is offerd through a private lender. This loan is the most flexible federal loan as it offers a very long grace period after finishing you education, low intrest rates and no prepayment penalties like most other loans.
The PLUS loan program offers two differen financing options: The first one is available to the parents of undergraduate students and the other one is offerd for the students themselves. The hight of the loan is based on the families income and allows low income families to finance the entire education at a very low rate.
Selected Private Student Loans
The other category are the private loans. This are loans offerd by banks that fullfil the special needs of students. But all in all the banks want to make money with you so most of the time these loans dont have the great conditions that federal loans offer you. Most of the time you will need to know your credit score in order to apply. You can check your credit score for free here.
The amount of private loans is huge. The lenders will watch out for different things when offering a credit to you. Some will depend on your credit score and others will include you parents income. Like said before there are so many different loans available that we cant list them all.
One popular private student loan is the Signature Student Loan. This loan offers a relatively competitiv intrest rate that is based on you credit score. This can sometimes be critical becuase student mostly do not have a long credit history. It is possible that you can include for exampe your parents into the loan contract wihch increase your creditworthiness significantly.
If you are going to a technical school to become an engineer you may be eligible for the Career Training Loan by Sallie Mae. The intrest rate of this loan is based on your credit score even be used for non traditional education like online degrees etc. or even noneducational costs. It offers no prepayment penalty and has several different and very flexible repayment options. You can check your credit score here.
This was only a rough overview of several private and federal loans available. For a comprehensive search and good evaluation which loan fits you best please use SimpleTuition. We have worked with them before and they are very reliable and fast in delivering a loan taylored especially for you. Be sure to first try to get into the federal grant programs like for example the Federal Pell Grant program or scholarships that are designed for your educational path. If these things do not work out or the money you recieve is not enough you should try to apply for a federal student loan. Only if can not secure any college student grants you should start looking into financing of your education through a private student loan.