Government Student Loan The foundation of a good society is its educated people, but like everything else training comes with a heavy price tag these days. There has been a hike of almost 40% of the training fee for the past five years. A degree can cost around $ 40,000, an amount not affordable for all.What is the solution then? Students loans. Sounds familiar, but not many take the benefits it has to offer as it is seen as something very complicated, but thats entirely true. Just get the basics right the rest will follow.
Student loans are a way to realize your dream of getting into the college of your choice and the options are plenty. There are various government programs to help students pay for their education.
The U.S. Department of Education offers three different types of programs in the student loan category, namely Stafford and Federal Perkins loans for students and PLUS loans for parents of the students.
Stafford loan is divided into two categories: Subsidized and unsubsidized. Under subsidized loan the government takes care of the interest only principle amount to be paid by the student. This is ideal for families who fall below the low-income group. With unsubsidized loans student must pay both interest and principle amount, but has the option to defer payment until a certain time.
Federal Perkins loans are for those with special financial needs. The amount of the loan is fixed up to $ 40,000 a year with low interest rates. It is a campus-based loan.
PLUS loan is for parents of students to pay for their undergraduate dependent children. A good credit history is the criteria for it and you have to borrow money at a favorable rate. It covers only the cost to attend college sense other financial needs.
Criteria for Federal student loans are primarily based on the financial needs of the student for the purpose of training, but other factors also count. To be eligible for the program, which will work towards getting a degree or certificate, a U.S. Citizen or eligible non-citizen, a valid Social Security number and other factors which will be taken into account. The financial aid administrator officer at the college or career school determines a plan to take in order to qualify.
To search for a program the first step is to fill up the Free Application for Federal Student Aid, or FAFSA form as known. Upon receipt of the form the Ministry of Education sends back a Student Aid Report or SAR based on the information provided in the form. Government on the basis of the SAR will decide which program is eligible for.
Universities and colleges often use SAR for students need-based grants and scholarships are eligible, so it is important to fill FAFSA for anyone striving to get a college education.
Taking a student loan is an important decision and should be taken with care. All aspects of the program should be examined in order to avoid becoming a candidate in debt. The right program not only makes the realization of your school, but your career goals easily and smoothly.
Government Student Loan
