By: Joseph Kenny
When it comes time for you to start college, you really do not want your bad credit to get in the way. The good news, too, is that it does not have to. You still have access to a number of loans - and at reasonable rates. Here is some information to tell you about what kind of student loans are available to you.
One thing that should help you to relax some is that a number of available college loans from the government do not even look at your credit rating. They tend to make the assumption that applicants are fresh out of high school and have not had any time to even think about their credit rating - let alone build a decent one. One of these is the Stafford loan, which allows anyone to apply.
The Stafford loans come in two different types - subsidized and unsubsidized. The subsidized version of this loan is based entirely on the need the student has for that year. If you get the loan, you must also apply each year that you need the benefits. One nice thing about this loan is that it pays your interest while you are in school. The unsubsidized version is available to any student - regardless of your need.
Another Federal loan that does not require good credit is the Perkins loan. This loan is made available to students through their entire college years. It can be provide amounts up to $4,000 per year, for a total of $20,000.
Both of these loan programs should be looked at before you look anywhere else. When it comes to interest, any Federal loan program will be lower than anywhere else. This means it will provide you with the most savings over the years that it will take to pay it back.
One school loan that could also help you to subsidize that education, even if you have bad credit, is an OSL loan. These private loans are more expensive than the Federal schools loans, but remain less expensive than your more standard traditional personal loans. They are not backed by the Government, but at the same time, will give a higher percentage toward your education goals than the Federal loans.
Another way to get a loan for your education, even though you have bad credit, is to get a PLUS program. This loan actually needs to be made by the parents of the student. Since the student is not actually applying, the basis of the interest rating will be on that of the parents and not on the bad credit of the student.
Other loans are available to those with bad credit. Some of these will apply to the special field of education, such as medical, etc., which can be obtained as personal loans. When it comes to getting any other kind of loan, other than Federal, be sure to do some comparing to see which one is the best. In many cases, it will be necessary to get loans from different sources in order to complete your education.
Sunday, July 29, 2007
Student Loan Advice And Information
By: Brad Stroh
Student Loans
For many students, the dream of getting a higher education just isnt possible without the financial aid of a student loan. Fortunately, there are many opportunities out there to apply for and receive a student loan. And even better, http://bills.com is here to give you all the knowledge you need to choose the best student loan for you.
Student loans generally come from two sources: the federal government and private financial institutions, such as banks. Both require repayment of the loan, but thats where the similarities end. Lets take a look at both federal and private student loans.
Federal student loans are sponsored by the government and account for the biggest chunk of education loans. There are three main federal loan programs: The Perkins Loan, The Stafford Loan, and The Parent Loan For Undergraduate Students, also known as PLUS.
The Perkins Loan is the most affordable student loan, with an interest rate of 5% and low fees. But its also the hardest to get because its only given to those who need it the most. And the loan limit, at $4000, is the lowest of all three federal student loans.
The Stafford Loan comes with a variable interest rate thats higher than the Perkins, but lower than the PLUS Loan, due to the cap at 8.25%. As with the Perkins Loan, this student loan does not hold credit worthiness against the applicant. The Stafford Loan also has a much higher loan limit and is offered to both graduate and undergraduate students.
Compared to the Perkins and Stafford Student Loans, which are borrowed in the students name, the PLUS Loan is completely different in that it is a loan for parents of dependent undergraduate students. A big advantage of this type of student loan is that it covers any remaining balance not covered by other forms of aid in essence the loan limit covers your entire educational expense.
Now that weve familiarized ourselves with the different types of federal student loans, lets identify the attributes of a private student loan. This is a loan from a financial institution that takes into account your creditworthiness, not your need for aid. Your credit is reviewed by lenders and if approved, you can get a substantial size student loan in minutes, sometimes up to $30,000. A downside to private student loans is that repayment terms typically cap at 15 years, compared to 30 years for a federal loan. Also, if you become disabled or deceased, your heirs are required to payoff your student loan, whereas in a federal loan, the loan is forgiven, making repayment unnecessary.
As you can see, you have several choices when it comes to student loans. Making sure you choose the best option is a matter of getting informed on these choices, and picking to student loan that best fits your needs.
Student Loans
For many students, the dream of getting a higher education just isnt possible without the financial aid of a student loan. Fortunately, there are many opportunities out there to apply for and receive a student loan. And even better, http://bills.com is here to give you all the knowledge you need to choose the best student loan for you.
Student loans generally come from two sources: the federal government and private financial institutions, such as banks. Both require repayment of the loan, but thats where the similarities end. Lets take a look at both federal and private student loans.
Federal student loans are sponsored by the government and account for the biggest chunk of education loans. There are three main federal loan programs: The Perkins Loan, The Stafford Loan, and The Parent Loan For Undergraduate Students, also known as PLUS.
The Perkins Loan is the most affordable student loan, with an interest rate of 5% and low fees. But its also the hardest to get because its only given to those who need it the most. And the loan limit, at $4000, is the lowest of all three federal student loans.
The Stafford Loan comes with a variable interest rate thats higher than the Perkins, but lower than the PLUS Loan, due to the cap at 8.25%. As with the Perkins Loan, this student loan does not hold credit worthiness against the applicant. The Stafford Loan also has a much higher loan limit and is offered to both graduate and undergraduate students.
Compared to the Perkins and Stafford Student Loans, which are borrowed in the students name, the PLUS Loan is completely different in that it is a loan for parents of dependent undergraduate students. A big advantage of this type of student loan is that it covers any remaining balance not covered by other forms of aid in essence the loan limit covers your entire educational expense.
Now that weve familiarized ourselves with the different types of federal student loans, lets identify the attributes of a private student loan. This is a loan from a financial institution that takes into account your creditworthiness, not your need for aid. Your credit is reviewed by lenders and if approved, you can get a substantial size student loan in minutes, sometimes up to $30,000. A downside to private student loans is that repayment terms typically cap at 15 years, compared to 30 years for a federal loan. Also, if you become disabled or deceased, your heirs are required to payoff your student loan, whereas in a federal loan, the loan is forgiven, making repayment unnecessary.
As you can see, you have several choices when it comes to student loans. Making sure you choose the best option is a matter of getting informed on these choices, and picking to student loan that best fits your needs.
Finding the Best Private Student Loan
By: Dave Fitzgerald
Students who do not meet federal requirements for financial need can use the route of a private student
loan. Apply for a private loan is free. The loan is based on the student's creditworthiness and not the
need for aid as does the federal loans.
Many lenders offer private student loans to students or their parents and the application process is
simple and free. The loan requirements are usually less stringent and the repayment options are
affordable for young professionals. A private student loan is a great way to finance the education of any
student that needs financial help.
Things You Should Know:
1. Student loans can be used not only to pay the fees but also for lab fees, dues for associations and
housing.
2. A student can have an educational loan even though the tuition is covered by a grant.
3. A student who is eighteen years or above in age, can apply for a student loan.
4. Most of the student loan is deferred for repayment until the student completes the education or leaves
the school.
Things You Need To Consider:
1. Private loans for students are not given without a co-signer or a credit report.
2. Credit unions give student loans if a vehicle or a boat is provided as collateral.
3. During the cumulative credit period, a student has the option of paying or not paying the interest part of
the loan. It should be noted that paying the interest on the loan while attending school will significantly
reduced the amount due when the student starts paying the loan after leaving the institution.
4. Student loans are to be repaid in ten years. Nevertheless, longer repayment facilities are provided to
large student educational loans.
It is not difficult to finding lenders, because most financial institutions offer some form of student loan.
Always take the time to investigate lenders in your immediate area and find out exactly what kind of loans
they offer. Compare the different interest rate and terms to get the best offer available.
Dave Fitzgerald is a freelance publisher living in Glendale, Arizona. He publishes articles and reports in
various ezines and provides information on student loans. For more information about loans and lenders
come visit http://www.DelveIntoStudentLoans.com
Article Source: ArticleHub
Students who do not meet federal requirements for financial need can use the route of a private student
loan. Apply for a private loan is free. The loan is based on the student's creditworthiness and not the
need for aid as does the federal loans.
Many lenders offer private student loans to students or their parents and the application process is
simple and free. The loan requirements are usually less stringent and the repayment options are
affordable for young professionals. A private student loan is a great way to finance the education of any
student that needs financial help.
Things You Should Know:
1. Student loans can be used not only to pay the fees but also for lab fees, dues for associations and
housing.
2. A student can have an educational loan even though the tuition is covered by a grant.
3. A student who is eighteen years or above in age, can apply for a student loan.
4. Most of the student loan is deferred for repayment until the student completes the education or leaves
the school.
Things You Need To Consider:
1. Private loans for students are not given without a co-signer or a credit report.
2. Credit unions give student loans if a vehicle or a boat is provided as collateral.
3. During the cumulative credit period, a student has the option of paying or not paying the interest part of
the loan. It should be noted that paying the interest on the loan while attending school will significantly
reduced the amount due when the student starts paying the loan after leaving the institution.
4. Student loans are to be repaid in ten years. Nevertheless, longer repayment facilities are provided to
large student educational loans.
It is not difficult to finding lenders, because most financial institutions offer some form of student loan.
Always take the time to investigate lenders in your immediate area and find out exactly what kind of loans
they offer. Compare the different interest rate and terms to get the best offer available.
Dave Fitzgerald is a freelance publisher living in Glendale, Arizona. He publishes articles and reports in
various ezines and provides information on student loans. For more information about loans and lenders
come visit http://www.DelveIntoStudentLoans.com
Article Source: ArticleHub
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