When you are headed to college you have a lot of decisions to make. You will need to shape out which school you want, apply for as many scholarships as you can, and of procedure find alternative college funding just in case the scholarships don't pan out. When you are seeing for student loans you will need to make definite you are getting the best deal out there. The federal student loan or Stafford loan is a government loan. This type of loan has the lowest interest rates and the best reimbursement options. You see most loans will wait for the reimbursement until after you have graduated college. generally with a federal student loan you will wait at least two to six months before the loan enters reimbursement after graduation. You will also have the selection of consolidating all of your federal student loans into one cost with a fixed interest rate.
Most college loans are going to have a high interest rate around 8 to 10%, with the federal student loan you are seeing at 2 to 4% maybe 5% as the market changes a little. It will depend on what the banks are doing at the moment and where they need to recoup money. however the federal student loan wants the up coming students that are college age to go on to higher education. That is one of the most prominent items in congress today- how to make higher education more available. So the federal student loans will all the time keep the interest rate lower than other college loans.
Federal student Loan
You also have the selection with a federal student loan of obtaining a parent loan or Plus loan. This loan is called the Parent Loan for Undergraduate Students. It will also have the lower interest rates and it will be taken out in the parents name rather than the student. With federal student loans the student normally takes out the loan with their parents' as cosigners. The Plus loan is dissimilar both in the way it is obtained and the reimbursement status. The Plus loan is normally given out in two parts according to the college semesters. The tuition is paid first before the student will see any of the loans. Then the student can secure what is leftover to help pay for books. With a plus loan the student never gets more money than the tuition and cost of books. After 60 days the parents will then have to start repaying the loan. So in most cases the federal student loan is more helpful to the students in interest rates and reimbursement only. The federal student loan will not be a very large amount. Again it will be for books and tuition, perhaps housing as well.
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