| The best thing to do is to get a Federal | | | | Undergraduate Students) are a low-interest |
| student loan. Federal loans are readily | | | | education loan for parents. |
| available to students. Private loans are | | | | |
| more expensive to pay back and are not | | | | Each year, parents can borrow up to the cost |
| recommended if they can be avoided. | | | | of attendance, minus other financial aid |
| | | | received such as scholarships, grants, |
| The reason Federal student loans are so | | | | student loans, etc. The PLUS loan is not |
| available is because graduates of college | | | | based on financial need. Applicants must pass |
| will usually make a lot more money than other | | | | a credit check. |
| people. This gives the lenders confidence | | | | |
| that their money will be repaid. | | | | Private loans are designed to supplement |
| | | | Federal loan programs and are available from |
| Some of the most positive aspects of Federal | | | | schools, banks, credit unions, and education |
| student loans are: lower interest rates, | | | | loan organizations. They are usually used to |
| options to postpone payments, longer | | | | cover education costs that cannot be met by |
| repayment terms and easier credit | | | | Federal aid. |
| requirements. Eligibility for some of these | | | | |
| loans is need based, while others are not. | | | | Terms for private loans very according to the |
| | | | lender and your credit history. Private loans |
| The most common Federal student loans are: | | | | have credit requirements and you many need a |
| Federal Perkins Loans are a low-interest loan | | | | co-signer. Private lenders have control of |
| available to students who have financial need | | | | the money they are loaning to you and may not |
| based on information from their FAFSA. | | | | offer deferment options. |
| Federal Stafford Loans are available to | | | | |
| undergraduate and graduate students. | | | | The lender determines the interest rates and |
| | | | fees according to your credit history. |
| The loan amounts depend on a student's year | | | | Private loan programs may offer the borrower |
| in school and whether they are financially | | | | benefits, such as interest rate discounts, |
| dependent or independent. These loans can be | | | | rebates and other incentives. |
| subsidized or unsubsidized. Financial need | | | | |
| determines which type a student is eligible | | | | One thing is for sure; all lenders want your |
| for. | | | | business because they make money that way. |
| | | | No matter what type of loan you take out, be |
| Unsubsidized loans are available to all | | | | conservative and borrow wisely. All loans |
| students, regardless of income. Next, the | | | | have to be repaid rather they are Federal or |
| Federal PLUS loans (Parent Loan for | | | | private loans. |