| If you are considering entering college in the near | | | | student loans is the Perkins loan. It comes with a low |
| future you should be aware of the many different | | | | interest rate of only 5% and is awarded to both |
| types of government and federal student loans. While | | | | undergraduate and graduate students. There are no |
| many colleges do offer free student loan scholarships | | | | origination fees charged for this loan and it is paid back |
| and there are various types of need-based financial | | | | to the school because loan funds are issued directly |
| aid and grants available; loans still make up the major | | | | from the school to the student from monies provided |
| portion of funding for the cost of education for most | | | | by the government. Take a look at the following facts |
| college students. Private student loans are also | | | | regarding the Perkins Loan: |
| available; however the advantages of federal student | | | | - Need based loan; only those students with exception |
| loans usually far outweigh any benefits of private | | | | financial need will qualify |
| student loans; if you qualify to receive them. | | | | - Able to borrow up to $4,000 for each year of |
| Private college loans are credit based and may involve | | | | undergraduate study and $6,000 for each year of |
| a co-signer from the students parent. You must qualify | | | | graduate study. |
| to receive a private student loan even though the loan | | | | - Loan limits are $20,000 for two years of |
| program features are quite attractive. The National | | | | undergraduate study and $40,000 for graduate school. |
| Student Loan Center or the NSLC offers many | | | | FFELP (Federal Family Education Loan Program) |
| private low cost low rate college student loan | | | | This is also another common loan and features both |
| programs. The NSLC also offers private as well as | | | | subsidized and unsubsidized student loans. The |
| government student loans. An especially attractive | | | | difference between the two is that the government |
| student loan program offered by the NSLC, is the | | | | will pay for the interest of the student loan while the |
| NSLC PLUS loan program; which gives parents of | | | | student is in school and during the grace period of a |
| students the option to borrow up to 100% of their | | | | subsidized student loan while the student is responsible |
| child's cost of education. This is nice because the cost | | | | for the interest in an unsubsidized student loan. |
| of higher education institutions is blasting through the | | | | Additionally, students must display a financial need to |
| roof every year! Armed with this type of higher | | | | qualify for a subsidized student loan while the |
| education financing, a college student can fund | | | | unsubsidized student loan is non need based. |
| everthing from room and board to books and just | | | | Federal Parent Loan for Undergraduate Students |
| have to concentrate on studies. | | | | (PLUS) |
| Government and federal student loans allow college | | | | This type of student loan is available to parents and |
| loans without a cosigner. They are non credit based | | | | guardians of dependent undergraduate students. |
| student loans. Credit is not even looked at under | | | | Borrowers do not need to demonstrate financial need |
| federal college loan programs for students. Their will | | | | and may borrow up to the cost of attendance; minus |
| always be a student loan lien on the students credit | | | | any amount of financial aid that may be received. Loan |
| until the college loan is finally paid. | | | | funds are first applied to tuition and fees. This type of |
| Perkins Loan | | | | government and federal student loan has a variable |
| One of the most common government and federal | | | | interest rate. |