Student Loan Info

As a student I know how hard and confusing it can be when trying to get a student loan. That is why it is also very important that you have all the student loan info you need before you apply for a loan.

The first thing you should know before you apply for a student loan is what a student loan is. A student loan is a form of financial aid that you have to pay back and sometimes you have to pay interest on it. Grants or scholarships do not have to be repaid.

There are student loans for every kind of situation. Loans for parents, undergrads, grads, and training. There are many different types of student loans to choose from. The two most common student loans are federal loans and private loans.

A federal loan is a loan you are guaranteed by the government based on your financial need. The federal student loans come in three main categories: Stafford or Perkings loans (which are for students), PLUS loans (for parents), and Grad PLUS (for grads).

Private loans or personal student loans are loans offered to students to assist in payment for education. These loans are based on your credit, because they are funded by banks and private lending institutions. Private loans should only be used as a last resort. You should only try to get a private student loan after you have already gotten federal aid from other sources such as federal loans, grants, scholarships, and work study programs.

When you are ready to apply for your loan you should make sure that you know how much each loan is for. You should know exactly when your first payment is due and how much each payment has to be for. You also need to know how much interest will be applied to your loan. Read all papers very carefully before you sign anything.

This is just a summary of the two main categories of student loans you can get. You will want to learn everything you can about these loans. Before you apply for anything make sure you have all the student loan info you need about that specific product.