1. Federal Stafford loans: This kind of federal student loan is the most used by the students and there are two kinds of which are subsidized and unsubsidized loans. In subsidized loans, this is based on the need of the student and the interest will not accrue while the student is still in school. The interest will only apply after six months upon graduating. On the other hand, the unsubsidized loan is the opposite and you need to pay the interest while still in school. If subsidized loan cannot meet your financial needs then you can go for the unsubsidized loan no matter what you family income is.
2. Federal Perkins loans: This most used federal student loan has a 5% low interest rate that is available for both graduate and undergraduate students. Though this can only be given to those who really needs it and in financial crisis. There are also several criteria that must be met to be able to have this kind of loan. The funds for this loan are obtained from the school funds and the federal loan. The loan will be given by the school to you usually through checks and sometimes it will be directly used for your school expenses.
3. Federal Parent PLUS loans: This federal student loan is granted to the parents of an dependent student and undergraduate. No matter what the financial status of the family, this loan can still be granted and without any collateral. But credit check is still conducted.

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In most schools, one personnel is usually designated as a financial officer but actually serves as a representative of the lending company.  This is to make sure that the process for lending agreed both by the lending company and the school is strictly followed.   Guidelines for college loans from federal government may also disqualify students enrolling in private colleges and universities.

In availing of a financial aid, always strive for the best deal.  You can always consult a financial aid counselor regarding your options and plans.  In graduate school, student loans may be the more viable option since the scholarships offered are fewer and may also cover just a small percentage of the entire cost that enrolling in graduate school will entail.

Settling for college loans rate are highly advisable.  Fluctuations of the loan rate may also be a good indication or a negative warning.  Consider restructuring the loan upon the increase of the loan rates.

Doing a side by side comparison would be possible if you select a fixed starting date and a fixed student loan rate.  Similar to comparing apples with apples, comparing one term to its equivalent should be guaranteed in looking for a student loan.  Before deciding, learning more about the different student loan companies is also highly recommended.

In availing of college loans, just borrow the exact amount that you need, no more and no less.  What was initially a small student loan can end up as a huge debt because of the compounded interest.

Taking advantage of a student loan to earn extra money to invest in any venture like the stock market is certainly a bad idea.  Aside from it doesn't guarantee an easy way to wealth, it is also guilty for violation of the student loan agreement.

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A private student loan is a more viable option since a federal student loan may not cover all the necessary expenses for your education.  Private student loans are also known as alternative loans and are not backed up with any government institution.  Student loans from private corporations are also independent from the financial status of your academic institution.

The student loans from the private corporations can also be availed by a parent or by a student.  The interest rates, payment and repayment arrangements also depend on the lender's preference.  But, a federal student loan, unlike the student loans from private corporations, offer several repayment options, including deferments, forbearance and income-sensitive repayment.  These options are not available in private student loans.

If you are not familiar with the process of availing of student loans, getting federal student loans would be more advisable.  Since these loans are supported by the government, you can quickly get information regarding these loans from schools, banks or student loan lenders.  The Federal Family Education Loan Program is also one avenue you can check.

Compared to those offered by private corporations, the repayment periods in federal student loans are longer.  The interest rates are also lower.  The credit requirements needed are also easier.

Potential approval is higher in applying for a federal Stafford loan.  But, preliminary approval is faster with private college loans, taking just 15 minutes.  Both types also offer competitive rates.

Applying for federal college loans is highly recommended prior to applying for other financial aids.  You can take advantage of private college loans to cover whatever is not covered by the federal college loans and other types of financial assistance.

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