Student loans can be quite complex as they have many variables.
However, getting a student loan to fund your college education should not be too difficult even if you have bad credit rating; this is because most lenders (especially from the government) don't consider credit rating as a major factor for qualification.
They assume that most applicants will be going to college straight from high school, and will not have a credit rating yet.
Another reason is because student loans are treated as investment loans (you're investing in education for a better future).
There are many different types of student loans exist, it's good to have some knowledge about them before you're applying for one.
Basically, there are two sources of student loans; either from a government or private lenders.
Government student loans are usually preferable because they are subsidized and guaranteed by the U.
S.
government and have fixed interest rates that are usually lower than most private student loans.
To apply for a government student loan, you need to fill out the Free Application for Federal Student Aid (FAFSA).
This form will calculate your ability to pay for college and determines the tuition amount you need.
It basically evaluates your financial needs for such loan.
The four major types of government student loans are: 1.
Stafford loan.
This is the most popular type; it's funded and guaranteed by the federal government; it can be either subsidized or unsubsidized or a combination.
2.
Perkins loan.
This loan is the same as a Stafford loan but currently has lower fixed rate (5%).
You have to demonstrate financial need to be awarded this loan.
3.
Parent PLUS loan.
As its name suggests, this loan is given to parents for funding their child's college education.
The parent is the responsible party to pay back the loan.
This loan usually has larger amount than the other types of loans.
4.
Graduate PLUS Loan.
This loan is like the Parent PLUS loan, but is given to graduate students only.
If you are a full-time or half-time student attending a graduate program, you may be eligible for this type of loan.
All the loans above can be either subsidized or unsubsidized.
With a subsidized loan, the government pays the interest on the loan while the student is attending school.
With an unsubsidized loan the student is responsible for paying the interest.
For some people, student loans may be something they never have to deal with, but for those who are in financial need, a student loan can be one of the most important financial investments they ever make in their lifetime.
We all know that a college degree can make a big difference when it comes to employment or professional careers.
Most employers prefer to hire someone who has a college degree.
Also, a college degree could give you higher bargaining power when it comes to negotiating your salary package.
However, getting a student loan to fund your college education should not be too difficult even if you have bad credit rating; this is because most lenders (especially from the government) don't consider credit rating as a major factor for qualification.
They assume that most applicants will be going to college straight from high school, and will not have a credit rating yet.
Another reason is because student loans are treated as investment loans (you're investing in education for a better future).
There are many different types of student loans exist, it's good to have some knowledge about them before you're applying for one.
Basically, there are two sources of student loans; either from a government or private lenders.
Government student loans are usually preferable because they are subsidized and guaranteed by the U.
S.
government and have fixed interest rates that are usually lower than most private student loans.
To apply for a government student loan, you need to fill out the Free Application for Federal Student Aid (FAFSA).
This form will calculate your ability to pay for college and determines the tuition amount you need.
It basically evaluates your financial needs for such loan.
The four major types of government student loans are: 1.
Stafford loan.
This is the most popular type; it's funded and guaranteed by the federal government; it can be either subsidized or unsubsidized or a combination.
2.
Perkins loan.
This loan is the same as a Stafford loan but currently has lower fixed rate (5%).
You have to demonstrate financial need to be awarded this loan.
3.
Parent PLUS loan.
As its name suggests, this loan is given to parents for funding their child's college education.
The parent is the responsible party to pay back the loan.
This loan usually has larger amount than the other types of loans.
4.
Graduate PLUS Loan.
This loan is like the Parent PLUS loan, but is given to graduate students only.
If you are a full-time or half-time student attending a graduate program, you may be eligible for this type of loan.
All the loans above can be either subsidized or unsubsidized.
With a subsidized loan, the government pays the interest on the loan while the student is attending school.
With an unsubsidized loan the student is responsible for paying the interest.
For some people, student loans may be something they never have to deal with, but for those who are in financial need, a student loan can be one of the most important financial investments they ever make in their lifetime.
We all know that a college degree can make a big difference when it comes to employment or professional careers.
Most employers prefer to hire someone who has a college degree.
Also, a college degree could give you higher bargaining power when it comes to negotiating your salary package.
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