Common Types Of Student Loans

Financial institutions offer federal student loans that are guaranteed by the government. Stafford loans are the best of federal government student loans. Because a borrower’s credit is not used to determine eligibility, most people can get Stafford loans.

Eligibility for government federal student loans is determined by student status (current or prospective student who had filed a FAFSA), financial need as determined by your school, you’ll have to be a U.S. citizen, a U.S. national, a U.S permanent resident, or eligible non-citizen of the U.S. You also can not have any education loans in default.

Federally backed student loans are offered subsidized and unsubsidized. Student are able to get lower interest rates on subsidized student loans because the government subsidizes this type of loan. It’s possible to have one amount subsidized while the rest are unsubsidized.

Alternative loans should not be considered unless you have exhausted all of your Stafford student loans. It’s very unlikely that you will find a better rates than offered with Stafford loans. Stafford loans are the best loan option and are available for undergraduate and graduate students.

These loans are usually referred to as guaranteed student loans because anyone who doesn’t have an education loan in default is eligible to receive one. The interest rates on these student loan is very low with a current rate of about 6%.

Getting Student Loans with Bad Credit

You may not believe it but the majority of federal student loans are given without regard to credit history. Even people with poor credit can get Stafford loan. People with bad credit and severe financial trouble are also eligible for Perkins loans. If you don’t have education loans in default then it should be easy for you to get a student loan. These loans are often referred to as ‘no credit check student loans’. A credit check is necessary for alternative student loans.

Pell grants are another option for those with poor credit. Colleges and universities offer these to students they have decided are in need.

Direct Student Loan

A direct student loan comes straight from the U.S. Department of Education, who is the lender for Stafford loans. To qualify for a direct student loan, you have to attend a participating school, file a FAFSA, and make a master promissory note. Both graduate and undergraduate students are eligible for this program.

These are extraordinary because they don’t take into account credit history. Check out the official government site to quickly get an education loan without a cosigner.

International Student Loans

Private lenders handle the bulk of international student loans. At present, the federal government does not have a program for this. Because international students won’t be paying U.S taxes, the government has no incentive to offer them student loans. Still, those who seek out private lenders have many options.

To make their services more appealing, a number of private lenders offer grace periods on international student loans.

Related Posts:

• A Guide to Student Loans
• Types Of Private Student Loans
• Direct Student Loan
• Stafford Student Loans