Are these better/worse then loans directly taken with the school/bank?
I'm not the paranoid type, but there seems to be a ton suddenly popping up and I wanted to weigh my options.
Answers:
If you have not already, you should look into Federal Student Loans, which have one of the lowest interest rates out there for Student Loans. This is because they are backed by the Federal Government and also come with Federal Benefits that Private Student Loans don't have.
Your Federal Student Loans can be used for travel expenses, books, food, school supplies, etc. The amount that you are approved for and you agree to borrow will be disbursed starting with your tuition costs for that semester, then moving to your room and board if you live on campus, then satisfying any other school fees you may have. Any left over funds will be sent to you, usually in the form of a check. You will be able to do whatever you wish with these funds.
You are eligible for Federal Student Loans as long as you are attending school at least halftime. If you are below halftime status as a student, you will not be eligible for Federal Student Loan help. Your status is determined by the school and the amount of credit hours you are taking during a given semester. For more information on the FFELP, please see the source below.
I tend to stay away from the ones you get from the schools themselves because their not universal or transferable. Private lenders and schools tend not be the best when it comes to funding education.
The government ones tend to be better because their secured, universal, and transferable and do not have to be paid off until you graduate. If you can, even better then a loan is a grant of some sort, those are great, they are free and never have to be paid off. When it comes to funding education let your tax dollars work for you rather then you working for them. Thats my philosophy, it is why we pay taxes.
Honestly, the best types of student loans to get a federal government loans and NOT private student loans. That's because federal loans have lower interest rates and are easier to get. Private loans require you to have good credit or a cosigner with good credit, so they're very hard to get on your own.
To get a federal loan you need to follow these steps:
1) Fill out the FAFSA. This will determine if you are eligible for financial aid. Go here:
http://www.fafsa.ed.gov/
2) Once you are eligible for aid, choose a government-based student loan. The best loan to get is a Federal Perkins Loan. These have low interest rates and the government will help you pay it back as long as you stay enrolled in school. You also don't need a cosigner or good credit for it. For more info go here:
http://www.studentfinancedomain.com/stud...
3) The next best loan to get is a Subsidized Stafford Loan. This has many of the same benefits as a Perkins Loan. Learn more here:
http://www.studentfinancedomain.com/stud...
If you want to try and avoid paying back student loans you can also try to get a grant or scholarship. These are basically free sources of money that you don't have to pay back. Here are some good sites to check out:
http://www.fedmoney.org/
http://apps.collegeboard.com/cbsearch_ss...
http://www.freegovmoney.net/
http://www.educationplanner.com/educatio...
http://www.studentawards.com/
http://www.college-scholarships.com/...
Good luck!
kalistburg yes and no, depends the school. I found interesting information about your answer, college loans, scholarships, college grants here. http://all-student-loan-consolidation.bl... Good luck!
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