Student Loans

Student loans are a viable way to get the money you need for your education. Student loans are different than grants and scholarships because they have to be repaid. Therefore it is to your advantage to try to secure other sources of funding for your education first including grants, scholarships, work study, and internships.

Some student loans are based on income and need while others aren't. There are student loans for undergraduate and graduate programs. You can obtain student loans from the Federal government or from a private lender. It is generally to your advantage to pursue a student loan through the Federal program instead of a private lender if you are eligible.

To find out if you are eligible for a Federal student loan as well as other forms of financial aid, you will need to complete the FAFSA. This is the Federal aid form and it is free to complete. You can get a manual form or complete it over the internet. The application asks you questions about your income, household composition, and educational enrollment. Based on this information, you will get a student aid report back, known as SAR. This will tell you all of the various financial aid you may be eligible for including student loans.

All student loans accrue interest. You can decide to pay the interest during your schooling or have the government pay it for you until you are done with your schooling. This is the difference between a subsidized and unsubsidized student loan. If you go with a private lender you will have to make monthly interest payments while you are still in school on the loan.

Your credit can affect your eligibility for a student loan. However, Federal student loans are more lenient when it comes to credit than a private lender. In some cases you will be required to have a co-signer to be eligible for either a Federal or private student loan. Only borrow the amount of money absolutely necessary to fund your education to help ensure you are able to repay the loans as specified.

While a Federal student loan gives you the best options, sometimes you won't be eligible depending on your income, the school you are attending, or if you are in default of another Federal student loan. Your academic performance may also be a factor. Take some time to research the various types of student loans and the requirements to ensure you get the funding you need for your education at the best possible rates.