With the cost of education being on higher side, it is not easy for students to meet growing fund needs through own pocket. Student loan has, therefore, become inevitable to pursue collage studies.
There are many opportunities for collage going people in taking out a loan. First of all they must explore the Federal Stafford loans. These are government-secured only for undergraduate and graduate studies. One of the key advantages is that these are affordable loans as interest rate is very low. Furthermore, there is no need of collateral and a credit check to borrow the required money. So, these are easier loans one can get. Another advantage is that you will not be making any payments towards the loans until you finish your collage studies.
The Federal loans are categorized in subsidized and unsubsidized loans. Only financially week applicants qualify for the subsidized loans and the government makes the interest payments. On the other hand, the student pays the interest on unsubsidized loans and it is available irrespective of the students' or their parents' financial position.
As far as the loan amount is concerned, you can borrow up to $2625 in the first year and the amount goes up each year and reaches to $5500 in third and fourth year of the collage. You can borrow additional amounts in case you are an independent student.
You have the option of taking out private student loans as well. These are offered in secured or unsecured options. An unsecured loan comes without collateral and smaller amount can be borrowed at higher rate of interest. Its repayment duration ranges up to 15 years. The secured loan requires your property as collateral. You can borrow greater amounts at low rate of interest, without worrying about your credit history much. The repayment duration ranges up to 25 years.
Make a good search on internet and compare different student loans offers for your requirements and circumstances. go through terms-conditions of the private lenders for a suitable deal.
