Top 10 Federal Student Loan FAQs
Where is the Best Place to Get a Student Loan?
Should I Wait to Consolidate My Student Loans
Do I Need to Have Good Credit to Get Student Loans?
What is the best strategy for paying off a student loan with high interest?
I Have No Money to Continue My Education, is there Anyone to Help Me?
Can International Students get Student Loans in the United States?
In today’s world, a college education is all but necessary in getting a quality job and earning a respectable salary. Unfortunately, paying for a college education without financial assistance is very difficult, if not completely impossible for most people. That’s why student loans are so vital and why a possible student loan drought could be disastrous in the United States. While a student loan crisis may not ever occur, many students will struggle paying for their education even with financial aid. Every year thousands of students receive federal financial aid, but not enough to cover the rising costs of a college education. It can be quite a predicament for some students, but you may have options in supplementing your federal aid.
Federal PLUS Loan for Parents - Are your parents willing to lend a hand in paying for your education? They can do so through the Federal PLUS Loan program, as long as you are a dependent undergraduate student that is enrolled at least half time. Typically your parents can only borrow what is needed to bridge the gap between your federal student loan and your education costs.
Federal Perkins Loans - These types of federal loans are meant for students that have “exceptional” financial need. You must be enrolled at least half time and be making satisfactory academic progress. Federal Perkins Loans generally carry a loan interest rate at 5%.
Federal Work-Study Program - A Federal Work-Study Program is different from the other options because it doesn’t really involve a loan. Rather you actually work part-time for your school or another approved job of public interest to pay for your education expenses. Many times, it involves participating in a community service or work related to your studies.
Private Student Loans - Perhaps the least desirable option for most people, private student loans work like any other loan, except they are given out by private companies as opposed to the government. Private student loans vary from lender to lender, but you most will probably charge a higher interest rate than federal loans. The interest rate and whether or not you’re approved usually depends on your credit score.
