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Financial Aid - College Student Loans
Before you can even be considered or eligible for any type of college student loan, you have to first fill out the Free Application for Federal Student Aid (FAFSA) form. This form is essentially the first piece of information that is needed during the student loan borrowing process. If you go to your college's student financial aid office, they should be able to provide you with the FAFSA form and answer any questions you may have about filling it out. You can also obtain it online and submit all of your information through the Internet, which is a significantly quicker way to get through the process.
After you have submitted your FAFSA and it's been processed, you will then receive a SAR, or Student Aid Report. The purpose of this report is to show the amount of money you or your family is eligible for as well as the approximate amount of funds that will be contributed towards the cost of your tuition. Qualifying for grants or other types of private student funding is generally determined by your college. Once you know what you are and are not eligible for, you can determine how much you will need to borrow from student loan lenders.
Types of Students Loans You Can Consider:
- Federal Students Loans - Stafford and Perkins
- Graduate PLUS Loans
- Private Student Loans
- Consolidation Student Loans
Federal Stafford and Perkins Student Loans:
You have to assess your individual situation in order to determine the right choice. The Stafford and Perkins loans are two popular student loans that most college students find easy to qualify for. They are both available to graduate students who are attending college on a full or part-time basis. With these student loans you don't have to have an established credit history in order to be eligible. You will probably also appreciate the low interest rates that the Perkins student loan offers. The subsidized rates that the federal Stafford student loan offers can also be valuable for you.
Federal Graduate PLUS Loan:
The Federal Graduate PLUS Loan is a student loan borrowed to help pay for tuition and school related expenses at an eligible college or university. However, there are a couple important points to keep in mind with a GradPLUS loan. The student must be enrolled at least half time, repayment of the federal student loans begins only 60 days after taking it out, and you must pass a credit check in order to receive this loan.
Private Student Loans:
You also have the option to take out student loans through private sources of funding, such as a bank. Different types of student loans are provided based on your level of education. However, private student loans are more expensive than government loans, so only use private student loans if necessary.
Consolidation Student Loans:
Another option you also have is the Sallie Mae student loan. Sallie Mae is a financial institution that oversees Federal student loans. It is known for offering students a combination of college loan options that can meet their needs all in one place. Student loan consolidation is also worth considering as it allows you to group all of your loans into one single payment and also helps to eliminate higher interest rates.
