Student Loans
Getting into college is no easy feat, but paying for it without the aid of student loans can prove even harder yet. Fortunately, there are a variety of student loans available to help make educational aspirations into realities. Of course, scholarships and grants are the preferred means for paying for school. When this type of assistance runs out and there's a gap between the amount owed and the amount you can afford, then applying for student loans is your next step.
The FAFSA
Each lender will have its own requirements and qualifications when
applying for student loans, but you are actually able to apply for many of
them at once by submitting a FAFSA (Free Application for Federal Student
Aid). This one form will be reviewed to determine whether you qualify for
federal grants, work-study jobs, and federal student loans. Many private
lenders will use your FAFSA to determine you eligibility for their
programs, too.
Federal Student Loans
Federal student loans come from the U.S. government and may or may not be
subsidized. Applying for these loans require you to fill out and submit a
FAFSA. If a student loan is subsidized, that means that it does not accrue
interest while you are in school, as long as you are attending at least
half time. A Stafford Loan is made to either an undergraduate or a graduate
student, while a PLUS loan is made to parents of an undergraduate student
or directly to graduate or professional students. These loans are not
subsidized. You may also qualify for a Perkins loan, which is available up
to $4,000 for undergraduates and $6,000 for graduate students.
Private Student Loans
Once you have determined what federal student loans you will receive, you
may want to consider looking into private student loans, as well. These are
offered by a number of lenders for a variety of reasons. Some of these
lenders will require you to have a good credit history, while others will
not be as concerned. For the first type, a co-signer may be able to help
you qualify. A lender offering private student loans may use your FAFSA, or
it may require a separate application.
Applying for student loans is an important step in financing your college career, and it shouldn't be undertaken lightly. Be sure that you fill out the appropriate paperwork, including your FAFSA, and that you pay attention to all of the lender's deadlines. Whether you are applying for federal or private student loans, do your research and be aware of your options.
