Student loans are a godsend for many students but they can be a curse for other students. The world of student loans is murky waters for the average person. Careful considerations must be given for the type of student loan, interest rates and method of repayment.
Types of Student Loans
For students who qualify, government-subsidized student loans are relatively easy to obtain because the risk to the lender is low. They are also advantageous to the borrower because the interest rates are low compared to commercial loans; in some cases, interest rates are as low as 3 percent.
Many government-subsidized student loans are tied closely to your eligibility for financial aid. Most students today have some kind of eligibility. Check with the financial aid office at your college about determining your eligibilities.
There are four basic kinds of low-interest, government backed student loans for education. They are:
-Stafford Subsidized Loans
-Stafford Unsubsidized Loans
-Parent Loans for Undergraduate Students (PLUS).
Perkins Loans are need-based student loans made directly by the school to undergraduate or...