With the rising education costs and tuition fees in the US, an increasingly large number of students are resorting to student loans. Both the parents and the students are going through a credit crunch due to which they have very less cash at their disposal that they can use to complete their higher education or earn a college degree. If you’re someone who wants to get educated on the various types of federal student loans available in the market, you must go through the concerns of this article. Check out some student loan options that you must consider when it comes to completing your higher education.
• Federal Pell Grant Program: If you’re an undergraduate student who is sincere about his studies but has not much money to complete his course, you must take help of the Federal Pell grants as the biggest benefit of this kind of program is that the amount need not be repaid. However, it is not that anyone and everyone can qualify for this kind of program as there are some qualification criteria for these grants. If you can show significant amount of financial need, only then can you get the grant under the Federal Pell Grant Program. The amount that you can receive as grant depends on the Expected Family Contribution (EFC), status, whether full-time or part-time and also the Cost of
• Federal Stafford loans: Students who use the Federal Stafford Loans can borrow a considerable amount of money regardless of the extent of financial need. Anyone who is a graduate or an undergraduate can borrow this amount. The terms and conditions and the interest rates on the loans will depend on whether or not the loans are unsubsidized or subsidized. Stafford Loan limits depend on whether the student is dependent on his parents.
• Federal Perkins Loans: These loans are also designed for those students who can demonstrate exceptional financial need and the interest rates, fees and the repayment options are all very generous. The total amount of loan that a student can borrow depends on the fact whether he is a graduate or an undergraduate. The interest rates on all Perkins Loans are 5% and are subsidized ones.
Therefore, if you’re going through a credit crunch and if you want to enlighten your future, you
must get help from the federal student loans. Choose the one that suits your needs and your