Aid and Student Loans <??>

Are you one of those high school students who are in the market for Aids and student loans? There are two sources where you can get student loans. Your two sources are the Federal government and private lenders. Private lenders may not be your best option as their interest is higher than that of the government. In order for you to obtain federal student loans, the first thing you need to do is to file the Free Application for Federal Student Aid (FAFSA). In most cases FAFSA is required for all federal financial aid programs including student loans.

You need to know and understand that there are four major federal loan programs:

1.       Federal Stafford and Perkins Loan

2.       Federal PLUS Loan

3.       Federal Graduate PLUS Loan

4.       Federal Consolidation Loan

Private lenders offer private education loans which are also known as alternative education loan. This help bridge the gap between the actual cost of your education and the limited amount the federal government allows you to borrow from the federal programs. Private lenders do not require you to complete a qualifying application forms like FAFSA. Your eligibility to secure a private student loan largely depend on your credit ratings or credit score.

The main reasons why parents or families turn to private lenders is when the federal government loans is not enough to meet the required cost of education. Another reason is when they need some flexible repayment options. The drawback to this is that these private education loans have higher interest rates than what the federal government offers. Thus before embarking on a private student loan, try to exhaust all the possibilities to be eligible for a federal student loan.

Stafford Loans : This type of federal loans for students comes into two variations, namely; Federal Direct Student Loan Program (FDSLP) and the Federal Family Education Loan Program (FFELP).

FDSLP are loans that are provided directly by the US government to the students and their parents.

FFELP are loans provided by private lenders like savings and loan associations, banks, and credit unions. These loans are guaranteed against default by the federal government.

Federal PLUS Loans : It enables or allows the parents and legal guardians with good credit score to borrow up to the cost of education for any dependent undergraduate children. This loan will be in the parents name and not the student.

For more up to date and detailed rules and policies regarding federal education loans it is best to contact or log on the US Department Education site. More detailed information would be available to you.

For your education needs you have a lot of options if you really intend to pursue higher education. And higher education means better life ahead for you. A student loan is always within your reach.

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Here they are:

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