A Guide to Government Student Loans

For college, university and even technical school students, government student loans should be the first course of action when it comes to obtaining financial aid. There are several types of federal loans available, the financial aid office at you school can teach you more about each loan, which ones you should apply for and how to apply. The first thing you’ll need to is complete and submit a FAFSA, which stands for Free Application for Federal Student Aid. It is likely your school will have paperwork they require as well.

The most common federal student loan is the Stafford loan. There are two types of this loan — subsidized and unsubsidized. Subsidized loans do not charge interest until the student leaves school and repayment starts. This type of Stafford loan is awarded to students with financial need. The interest that builds even as the student is in school is paid by the government. An unsubsidized loan is a loan for which the student must pay monthly interest even as they are still in school. In some cases, this interest can be deferred. The excellent news about the Stafford loan in either case is that the interest rates are considered quite low.

Another type of federal loan is the Perkins loan. This is a loan for students with financial need. These students will most likely get the Stafford loan, then the Perkins loan to pay more on their education costs. With a Perkins loan, the government gives the assets to the school. The school awards the loans to the students based on need and who applies first. Therefore, if you reckon you may qualify for the Perkins loan, apply with your school as early as possible before funding runs out. Once again, the financial aid detective at your educational institution can tell you everything you need to know about this and other loans.

Government student loans can be consolidated, but only once. This is called a federal consolidation loan. Many students choose this after graduation because they would rather pay one payment on one loan rather than manifold payments each month. And, monthly payment costs can be reduced because the consolidated loan can be stretched out. It is vital to do your research and make sure this is the right course of action before taking it because as previously mentioned this selection is only available once.






 

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School Loans News:

 

Student-loan debt-collection agencies garner criticism - Indianapolis Business Journal

Indianapolis Business Journal
Student-loan debt-collection agencies garner criticism
Indianapolis Business Journal
Joshua Mandelman made $454000 in a single year as a student-loan debt collector EUR” more than twice the pay of the US secretary of education. His boss, Richard Boyle, CEO of Educational Credit Management Corp., received $1.1 million in 2010, .
Collection agency cashes in on student loan defaultsmsnbc.com (blog)
Debt Collector on Student Loans Made $454K in a YearNewser
Struggling borrowers enriching Minn.-based student loan guarantorMinnesota Public Radio

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Grad School: Higher Degrees of Debt
As Congress searches for ways to alleviate the loan burden for undergrads, graduate students are sinking deeper into debt...


Forget Driver's Licenses: Student Loan Debt Is the New Teen Rite of Passage - Huffington Post

WTVR
Forget Driver's Licenses: Student Loan Debt Is the New Teen Rite of Passage
Huffington Post
Today, teens seem to have a new rite of initiation and passage that is more likely to clip their wings than offer them freedom: massive student loan debt. The New York Times is now reporting that an astonishing 94 percent of bachelor's degree students .
When College May Not Be Worth the Cost: Examining Student Loan DebtNew York Times (blog)
Student Loan Debt Crushing College DreamsBlack Star News
Alexander: Whole story on student loansThe Tennessean
CNNMoney -Fredericksburg.com -Asia Times Online
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Student loan debt 'an American issue' - Greenville News

Baltimore Sun
Student loan debt 'an American issue'
Greenville News
A medical student can graduate with $200000 of debt. As shocking as it may seem, in the US student loan debt tops $1 trillion, exceeding both credit card and car loan debt. Obviously, student debt has become a very big business in America.
Student loan bluesBaltimore Sun
It's Time to Solve the Student Loan CrisisABC News
Current generation likely to be hobbled by student loan debt burdenAustin American-Statesman
U.S. News & World Report -USA TODAY
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How to Finish College With No Debt
If you have yet to start college or are in school now, it's not too late. There are many things you can do to avoid the problems with school loans that many are experiencing...


Dealing with the student loan debt burden - Marketplace.org

Dealing with the student loan debt burden
Marketplace.org
by Chris Farrell Question: I am extremely in debt with my student loans. At Age 25, I am wondering about the best way to resolve this debt. I currently have a part-time job and make less than $600 a month. How do I go about refinancing with such little .

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Graphic: Student debt at Michigan Universities
130,000-plus Michigan residents are trying to repay school loans, and 10,711 are in default. - 1:53 am..


 

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