| When you need to find money to be able to go to | | | | small payments and then increases over the |
| college, you can find plenty of college student loans | | | | repayment period of 12-30 years. Finally, the Income |
| available. There are a number of different options and | | | | Sensitive choice calls for monthly payments based on |
| it may even be possible to get more than one of them. | | | | your income and fluctuates with it up to 30 years. |
| Here is a brief look at a number of college student | | | | Perkins Student Loans |
| loans waiting for you to apply. | | | | A Perkins Student Loan is different from a Stafford |
| Stafford Loans | | | | Loan, even though both are federal loans. The local |
| Federal college student loans are low interest loans | | | | colleges distribute the funds from Perkins Loans on a |
| from the government. Stafford loans are the most | | | | financial need basis. The Federal government |
| popular type. In most cases, Stafford student loans for | | | | distributes money to the schools, which are then |
| college have repayment plans that can be deferred | | | | awarded to students as needed. Funds are limited and |
| until after graduation. Two types of Federal Stafford | | | | no more money to the school will be given that year, |
| loans are available - subsidized and unsubsidized | | | | so early applications are very important. |
| Stafford loans. | | | | Undergraduate students can get a maximum of |
| The subsidized Stafford loan is based on your financial | | | | $20,000 for the 4 years, and Graduate students can |
| need. Most students receiving this Stafford loan (about | | | | receive up to $40,000 for their education. |
| 66%) are from homes where the Adjusted Gross | | | | PLUS Loans for Parents |
| Income is less than $50,000. For your freshman year, a | | | | After you have exhausted all of your other possibilities |
| student who is also a dependent can borrow up to | | | | for your college expenses, your parents may be able |
| $3,500, and about a thousand dollars a year more in | | | | to help you by getting a PLUS college student loan. |
| each of the following years. Although it does charge | | | | These loans, which are guaranteed by the |
| interest while you are in school, the government pays | | | | government, have fixed interest rates and you can get |
| for the interest until you graduate, or are going to | | | | all or part of your education's needs through it. Another |
| school less than half time. | | | | benefit of a PLUS loan is that a graduate student can |
| The unsubsidized Stafford loan is not based on your | | | | get one for his or her own education. |
| financial need, but neither is the interest paid for by the | | | | The government does not pay the interest on PLUS |
| government. While you are in college the interest is | | | | loans, as is true with the Stafford subsidized loans. |
| accumulating, but it is possible to avoid making | | | | Although the interest rate is set at 8.5%, the loan |
| payments. Until you graduate, or are in school less than | | | | charges interest at a rate of only 4% while the student |
| half time, the interest can be rolled over into the | | | | is still in school. If a parent is rejected for a PLUS |
| Stafford Loan. | | | | college student loan, then the student is most likely |
| Stafford college student loan applicants need to be | | | | eligible for an increased amount toward a Stafford |
| either a resident of the United States, or have been | | | | loan. |
| determined to be eligible for the loan. The college must | | | | Choose Your College Loans Carefully |
| also participate in the Federal Family Education Loan | | | | As you shop around for your college financing, it is |
| Program (FFELP). | | | | important to know that you may be able to get a |
| Graduate students applying for a Stafford loan can | | | | better deal somewhere else. The Federal government |
| now get up to $20,500 per year. The catch here, | | | | does set the maximum amount of interest for Federal |
| however, is that only $8,500 of that amount is | | | | school loans - but it does not set a minimum. This |
| subsidized. Medical students can borrow up to $40,500 | | | | means that you may be able to get the same loan for |
| with a maximum of $224,000. | | | | less interest. Interest can really make a large |
| Repayment of Stafford loans gives you four options | | | | difference of tens of thousands of dollars when it |
| to pay it back. Repayment does not need to begin until | | | | comes to having to pay interest over a 10-30 year |
| 6 months after graduation, or after you drop down to | | | | period. Ideally, find a lender that offers the lowest |
| less than half time in school. The Standard option is to | | | | interest, and learn about them, too, before you apply. In |
| make regular monthly payments for the next 10 years. | | | | some cases, it may also be possible to get a Stafford |
| The Extended choice enables you to make smaller | | | | subsidized loan and a Stafford unsubsidized college |
| payments over a 12-30 year period depending on how | | | | student loan. |
| much you owe. The Graduated plan starts out with | | | | |