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How to Take Advantage of a Student Loan?

You are looking for the fastest way to get the best student loan? There are many loan programs that could match your specific needs. Here are some tips how to find the best student loan for you.

Steps
  • Learn about loan programs
  • Compare student loans
  • Find the right lender
  • Save time applying for loans: Apply online!

Financial aid for higher education encompasses terms like loans, scholarships and grants. Loans differ from scholarships and grants as they must be paid back. In the United States, there is a great variety of student loans. For instance, federal student loans are paid directly to students and if he drops below half time status, the account will go into 6 month grace period.

Generally speaking, there are two basic categories of loans available: government and private loans. The government loans for students, also called Stafford loans, should be the first stop for everyone who is looking for a loan. As for parents, they should consider government loans for parents, also called Plus loans. Sometimes private loans can be competitive with the government loans. They might be used to cover the education expenses such as tuition, books, computer or past due balances. Once you have finished going to college, student loan consolidation might help lower your payment amount and merge multiple payments into one.

How much can I get?

Students who borrow loans can use Federal Direct or Stafford loan programs. The Direct Loan differ from the Stafford Loan program in the institution lending the money. Under Direct Loan Program, students receive money directly from the federal government through the college’s financial aid office, whereas under the Stafford Program, they get money from the private lenders such as banks and credit unions. Each of them may be subsidized or unsubsidized. If the student needs it to, the loan can be subsidized, which means that the government pays the interest while he is still in college. For instance, needy students of university schools in nursing can benefit from the Nursing Student loan, which provides long-term, low-interest rate loans. Business school students are eligible for Stafford, private and alternative loans. The maximum amount of money a student can receive is related to the year in school. First year students can get up to $2,625, whereas the second year students Р$3,500, third and fourth year students Р$5,500. Graduate students can get up to $8,500.

What about the amount of a Parent Loan (Plus)? It varies according to the total budgeted cost of education minus any other financial aid received. The Plus loan duffer from the Direct Plus in the same way as the Direct and Stafford loans. As for the maximum amount that parents can borrow under either of these programs, it depends mainly on the cost of the college and the amount of financial aid that the student is given.

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