Sunday 1 May 2011

Types of Student Loans

Types of Student Loans:
There are several types of student loans.
The first and foremost duty for a student in this respect is to choose the right type of loan
for his Specific situation.
Basically, there are two types of loans.
(1)  Federal Loans
(2)  Private Loans

What are Federal Loans?
It is the loan that is provided by government for the students to help them finish a college degree. Federal Loans have a lot of benefits as compared with the private loans.The biggest advantage of Federal loans is the low interest rates. Federal Student Loans give the creditors to postpone their repayments later.
There are many types of loans offered to the students.
(1)   Federal subsidized loan
(2)   Federal Perkins
(3)   Federal Graduate PLUS Loans.
(4)   Federal Parent PLUS Loan
What are Private Loans?
It is the loan that is provided by private firms or financial companies for the students help. This type of loan has higher interest rates as compared with the Federal Loans. Different private financial companies offer this very type of loan, So it is depended on a student's research that which company impose him the suite conditions. There are some tips you must observe before obtaining the Student Private Loan. It will lead you towards a better way.
(1)    Have you studded your choices carefully before signing up with the company.
(2)    How is the company's interest rate?
(3)    Is the company with that your going to take loan, imposed any inappropriate fees?
(4)    How long will it take me to repay my loan?
(5)    How much interest will I be charged?
(6)    How is this calculated and why will the interest charged change if I change my repayments?
 

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