All You Need To Understand Regarding Student Loans | Articles ...

Student loans are available to anyone who requires aid to pay for their education. A scholarship or a grant will be far more beneficial if you can get it as it is not necessary to repay the amount. You have to repay your loan, with interest.

There are three main categories of available finance. These are student, parent and private. In the student category the main ones are Stafford and Perkins. The Stafford package is either subsidized or unsubsidized. If you obtain a subsidized amount, the government will pay the interest while you are still attending school. With an unsubsidized amount, you will pay all the interest. It is possible for you to defer the payment of this interest until after graduation. When you choose deferment, the interest will be added to the capital amount, thus increasing the cost. The standard repayment term is 10 years. Repayment commences six months after graduation.

The Perkins program is available to those who have exceptional financial needs. In this case, the school is the lender. This is a subsidized loan hence the interest will be paid by the government. This is applicable during the in-school period and the 9-month grace period.

Parents can apply for the PLUS package. This will help to cover those costs that are not paid for by the individual financial aid program. The parents who make application will be fully responsible for repayment of this amount.

In the event that the federal packages are not sufficient to cover all the expenses, the option to apply for a private loan is there. The downside to this is that these loans will cost more than the federal programs. Interest charged on private finance is usually variable. In view of this, you should shop around for the best interest deal.

If you find yourself with several student loans, you could opt for a consolidation program. This will allow you to transfer the amounts from the different advances into one package. It will create simplification of payments and possibly offer you a lower interest rate.

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Source: http://articlesentertainment.com/reference-education/all-you-need-to-understand-regarding-student-loans

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