| Government student loans are a great way to pay for | | | | Loans if you are a dependent undergraduate and |
| higher education. Nowadays, it is imperative that you | | | | enrolled at least half-time. PLUS Loans use the same |
| have a college education if you want to get a decent | | | | funding as the loans mentioned earlier, meaning that |
| job with room for advancement. The bad news is that | | | | your parents must choose between Direct Loan |
| if you want an education, you are probably going to | | | | funding or FFEL funding. Your parents have to also |
| have to take out some student loans. You should get | | | | pass a credit check to get a PLUS loan. |
| to know get to know the different types of loans | | | | PLUS Loans have also recently been added for |
| before you jump in. | | | | graduate and professional degree students. Despite |
| Stafford Loans | | | | their name, these loans use your credit score instead |
| First, you have the Stafford Loan, which is divided into | | | | of your parents' to determine whether or not you are |
| the Federal Family Education Loan (FFEL) Program | | | | eligible to receive the loan. These loans use Direct |
| and the William D. Ford Federal Direct Loan (Direct | | | | Loan or FFEL funding just like the other loans, but they |
| Loan) Program. Though most schools usually | | | | have a tendency to have higher interest rates. |
| participate in one or the other of these programs, there | | | | FFEL Loans? |
| are exceptions. Both programs require you to be | | | | If you go with a FFEL loan in any form, one of the best |
| enrolled for at least half-time. The difference between | | | | things about it is that you can choose what financial |
| the two loans is that funds for the FFEL come from a | | | | institution you want to go through. Since the |
| bank or credit union while Direct Loan funds come | | | | government subsidizes these loans, it makes it a lot |
| directly from the government, hence the name. An | | | | easier to get a loan through these programs than if |
| added bonus with the FFEL program is that you can | | | | you just strode into a random bank and applied for a |
| choose which institution you want to use, as long as it | | | | loan. Your personal bank is the best place to start if |
| participates in the program. | | | | you want a FFEL loan because you and your bank |
| Perkins Loans | | | | both already have a financial relationship and know |
| Next you have the Perkins Loan. The Perkins Loan is | | | | one another. |
| a lot like the Stafford Loan except that you do not | | | | Conclusion |
| need to be enrolled for at least half-time and the funds | | | | All in all, if you are going to be enrolling in college soon, |
| come from the school you are attending. | | | | you should definitely give government student loans a |
| PLUS Loans | | | | look. These government programs are in place to help |
| Next there are the PLUS Loans. PLUS Loans are | | | | students such as you achieve your dream and |
| loans taken out by your parents to pay for your | | | | contribute to society. Government student loans help |
| college education. Your parents can only receive PLUS | | | | many students every semester. |