Which Student Loan is Right for You?

There are several different types of student loans available for those who need help paying for their college education. The majority of students do receive some form of financial aid. When choosing a student loan the first step is to sit down with a financial aid detective at your school and discuss your options. Many loans for college students are provided by the U.S. Department of Education. These are called federal loans and are honestly simple to obtain for most students. There are certain application criteria you must follow and different types of federal loans.

One of the most common federal loans is the Stafford Loan. These loans are awarded to students regardless of their financial situation. This type of loan is available for both undergraduate and graduate students. There are subsidized and unsubsidized Stafford loans, for which interest rates vary. There are also limits on how much students can borrow based on whether they are dependent or independent, and what year of college they are in. For example, dependent freshmen can borrow up to $3500 even as independent freshmen are eligible for up to $7500.

Another type of federal loan is the Perkins Loan. This is a need-based loan for student who meet financial requirements. The limits on this type of loan are lower than others but there are benefits such as more repayment options, lower interest and deferments for those going through financial hardship. The cap on a Perkins loan for undergraduates is $4000 per year and $20,000 total. For both Stafford and Perkins loans, a form called a FAFSA must be concluded as part of the application process.

Another type of student loan is the federal PLUS loan, which can be used after all other student loan sources have been applied. These loans are not based on need, but rather financial and credit worthiness. There are no limits as to how much you can borrow with a PLUS loan. In addition to federal student loans, there are private loans that can be applied for as well. And, there are federal grants that do not need to be repaid, as well as scholarships that students can apply for. If you want to attend college but don’t reckon you can meet the expense of it, you will find that with so many different financial aid options available there will be something to meet your needs and allow you to complete your education.






 

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W.Va. senators vote to keep lower student loan rates - Charleston Gazette

W.Va. senators vote to keep lower student loan rates
Charleston Gazette
"Loading them up with even more debt when they are trying to get a higher education is not the way to do it." Manchin said he opposes doubling interest rates on student loans because it would make it more difficult for West Virginians and all Americans .
Rockefeller, Manchin ask USPS to hold off on closuresState Journal

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Student loans, strategic planning and your family - Midland Daily News

InsideARM
Student loans, strategic planning and your family
Midland Daily News
By Dr. Timoth G. Nash and Dr. Keith A. Pretty As of April 30, 2012, total student loan debt is almost $1 trillion. The Federal Reserve System estimates seasonally revolving credit is $799 billion of which credit card debt is 98 percent.
Student Loan DilemmaCorn and Soybean Digest (blog)
National Consumer Law Center Paints Bleak Picture of Student Loan CollectionsInsideARM

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Debate on student loan debt doesn't go far enough - The Hill (blog)

Vermont Public Radio
Debate on student loan debt doesn't go far enough
The Hill (blog)
Yet, despite the public outcry, only one member initially stepped up to put his name and reputation on the line in order to draw attention to the ever-growing crisis of student loan debt. Rep. Clarke has taken on the role of Champion for the educated .
Amid student loan tussles, more seek "forgiveness"Reuters
Welch Speaking Out About Student Loan DebtVermont Public Radio
New College Grads: Just Say No to More Debt!Forbes
CBS News -WTVR
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Student-loan debt collection criticized in report - San Francisco Chronicle

Business Insider
Student-loan debt collection criticized in report
San Francisco Chronicle
The US Education Department must step up its oversight of private student-loan debt collectors, improving the tracking of borrower complaints and changing its commission system to reward customer service, a report found. Contractors hired by the .
Sallie Mae Competes with Feds for Fixed-Rate Student LoanBusinessWeek
Sallie Mae's New Fixed-Rate Student Loan Option Should Freak Congress OutBusiness Insider
Student Loans and Political MoansLocal Talk News
NextStudent (blog)
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Amid student loan tussles, more seek "forgiveness"
WASHINGTON (Reuters) - Elbot Carman, a 25-year-old aspiring graphic designer, made so little money after earning his master's degree last year that the U.S. government now says he can hold off making payments on his school loans. Carman owes $140,000 in a mix of government and private student loans. Last year he earned $12,000. "That was so low that they are not requiring me to make a payment ...


Holt, college leaders plea to keep interest rates low for federal school loans
Barring congressional action, the interest rate on subsidized Stafford loans issued after July 1 will increase from 3.4 percent to 6.8 percent as a condition of the 2007 legislation that lowered the rate to its current level. The increase would add approximately $1,000 to the debt burden of the average student, according to Obama administration...


 

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