| Students who look for financial aid during | | | | Stafford loan option: |
| studies either go for federal student loans | | | | |
| or private student loans. Federal student | | | | It is the most common federal student loan, |
| loans are offered by the US government, which | | | | which can be applied for by anyone. They |
| can be availed directly through banks, | | | | offer fixed interest rates and are in the |
| student loan lenders, school, or from Federal | | | | form of subsidized federal student loans and |
| Family Education Loan program otherwise known | | | | unsubsidized federal student loans. When the |
| as FFELP. Federal loans are offered with | | | | student avails the subsidized federal student |
| very low interest rates, longer repayment | | | | loan, the government pays the interest when |
| periods, and various kinds of repayment | | | | the student is studying, but in the case of |
| options with easy credit requirements than | | | | unsubsidized federal student loan, the |
| the private loans. In case of federal | | | | student has to the pay the interest but can |
| subsidized student loan, the interest is paid | | | | defer making any such payments until he |
| by the government to the financial | | | | completes his graduation. |
| institution when the student has been | | | | |
| studying and also during the grace period. A | | | | PLUS loan option: |
| federal loan may not be enough to cover all | | | | |
| the expenses of the student and in that case, | | | | It is otherwise known as the parent loan for |
| the student might have to take a private | | | | undergraduate students. It is given to the |
| student loan to supplement his needs. It has | | | | parents of undergraduate students who are |
| to be remembered that, certain fees are | | | | dependent and have enrolled at least half |
| deducted from the federal student loan | | | | time. This loan option requires the |
| amount, which means the student will not get | | | | applicant to be free from any adverse credit |
| the full loan amount applied for and should | | | | experiences like the bankruptcy, default etc |
| only take the actual amount into account | | | | on their credit record. These loans are |
| while preparing the budget. | | | | offered at a fixed interest rate that is |
| | | | higher than the Stafford loan rate and also |
| There are different kinds of federal direct | | | | the repayment starts when the student is |
| student loans from different institutions. | | | | studying in the school. |
| Hence, it is advised to take the guidance of | | | | |
| the parents or from other financial aiding | | | | To get a federal student loan, the student |
| sources to decide on the type of federal | | | | should complete the FAFSA (free application |
| direct student loan to suit the student the | | | | for federal student aid) and submit the same. |
| best. | | | | |
| | | | Tips to make the process easier: |
| Perkins loan option: | | | | |
| | | | Before filling up the FAFSA form, the student |
| This loan can be availed by needy | | | | has to be very organized and should have |
| undergraduates and graduates, which is | | | | gathered all the necessary information to |
| availed by them at a fixed lower interest | | | | fill the form. It is very important to apply |
| rate of five percent. The funds are | | | | much earlier than the closing date for the |
| dispersed by the school, making it very | | | | application, to avoid any last minute trouble |
| easier to get the amount as soon as the | | | | or avalanche. While filling up the form, one |
| student gets enrolled, rather than waiting | | | | needs to be very patient and should allocate |
| half time to be eligible in the case of other | | | | enough time. It takes an hour to complete |
| federal loans. | | | | the application normally. |
| | | | |