Different Types of Student Loans


Dealing with tuition fees, bills, and other expenses is one of the most difficult aspects of college and graduate school. This is why the government, educational institutions, and companies offer financial aid of different types to students. This article will cover some of the different types of student loans that can help you cope with the financial aspect of schooling.

Federal loans

The government offers three types of student loans. First are Stafford loans, which can be obtained from a financial institution such as a bank or credit union, or directly from the government. Stafford loans can be either subsidized or unsubsidized, depending on the financial need. Another type of federal loan is the federal Perkins loan. The Perkins loan is aimed at providing financial aid for students in extreme need, offering low interest rates. The third type of student loan is the federal Plus loan. These are offered to help parents whose children are entering into college. Plus loans are given based on the credit history of the parents.

Other forms of student loans

Private lenders also offer a number of financial aid options. Student loans often have lower interest rates than other types of loans. Oftentimes, though, the interest rates offered by private lenders are higher than those of federal loans. If you are currently employed, you may want to ask your company if they have any financial aid programs to help you out in school. Some companies offer to shoulder a percentage of the tuition fees for employees who want to expand their education and training in their field of work.

A reminder on student loans

Regardless of the type of financial aid you decide to apply for, be sure to read all of the information and details stipulated in the contracts and terms of agreement. Take note of important figures, such as the loan limitations and interest rates. Finally, try to get the contact information of those who can help you should financial aid issues arise.

Photo Credit : Omar Omar

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