Feb
16
1. Federal Staffor loans – This should generally be the first option you should consider when search for student loans. This type of loan is guaranteed by the federal government so you don’t need a guaranter for this. The government pays the interest rate on the loan while you are studying. This is easily the most popular loan option.
2.Parent Plus loans – This is a federal loan program that allows parents to borrow money in their own name to pay for their children’s college education. This is the second most popular loan option.
3.Private Student Loans – Private student loans are loans that are issued by private financial institutions and are not guaranteed by the government. This type of loans is harder to obtain than the federal loans. This is generally obtained by people who have received federal loans and require additional funding. Generally the student applies for the loans and uses the parent as a guaranter/cosigner
4. Perkins Loan – This is a limited federal loan program for students from low income families. You’ll need to apply early to stand a chance of receiving perkins loan.
5.Credit Cards - As hard to believe as this is, over about 30% of students or parents use credit cards to pay for parts of their loans. This is an option that you should not consider and should only be used when there is no other option.As hard to believe as this is, over about 30% of students or parents use credit cards to pay for parts of their loans. This is an option that you should not consider and should only be used when there is no other option.Remember to consolidate your student loans when you graduate to make monthly payments more manageable for you.
Remember to consolidate your student loans when you graduate to make monthly payments more manageable for you.