Don’t Apply For a Student Loan Until You Read This

By | May 19, 2023

With so many students attending schools and colleges, fees are on the rise. Therefore, by the time you have finished school, you may be facing a huge debt. That is where government student loans can ease the burden. The government provides loans for students who cannot afford to pay for their education. This can enable a student to consolidate any unpaid loans into one new loan with one monthly payment. The amount and interest is low and is stretched out over a longer period of time. This time is termed the Moratorium. There are several loan options to choose. Here are some criteria as to who qualifies for a loan and who does not:

-6-Less than $22,010 – pays no fees

-7-Between $22,010 and 32,744 – receive some aid

-8-More then $32,000 – pays full fees

-9-Less than 15,580 – gets $1,000 yearly

-10-All students can apply for the maximum of $5,175 yearly

-11-Disabled and dependent students get extra help

-12-$3,000 can be borrowed by any new student without question of status

You need to have good credit in order to qualify for government student loans. However, even if you have bad credit, you can still obtain a loan but you may need a cosigner. The loan amount may not cover your expenses, and you may end up needing more. With college student loans, there are easier terms. The government provides them as Federal Student Loans. A Federal Student Loan comes with a fixed interest rate of 5% and there is no repayment for up to 9 months after graduation. The best part of government student loans is the fact that students don’t have to worry about money during their academic trek through school.

There are two types of student loans. There are the government student loans previously discussed and private student loans that are available through private lending institutions.

The private student loan is given based on the student or in some cases, parent’s credit history. This loan is available to graduates and undergraduates that are at least 18. The student needs a co-signer and the loan can be canceled in 90 days. The interest rates on this type of loan are higher. Just with any other loan, you should do your homework, research, and look around at different lenders. It is your future so make sure you get the best deal for your educational future.