| It is even more disappointing for a student with bad or | | | | The Federal Perkins Loan |
| poor credit, who is trying to make a good start in life | | | | This is a more benign student loan, but with stricter |
| with a university or college education. As we shall see, | | | | eligibility requirements. The interest rate is fixed at 5% |
| not all is lost from the very beginning. | | | | and there are no closing fees. In addition to these |
| Special Design | | | | conditions, the grace period is longer. |
| There are specially designed loans for students with | | | | Not Eligible |
| poor credit or no ratings at all and whose parents | | | | In the event of not being eligible for these |
| have a poor credit rating as well. Private institutions as | | | | government-backed student loans, there are private |
| well as the government grant college loans to students | | | | lending institutions that grant loans to students who do |
| with bad credit. These loans are designed to favor | | | | not qualify for the federal loans. However, the interest |
| further education for these students, by having good | | | | rates are higher, since there is no federal guarantee |
| loan conditions, long payback terms and a greater | | | | and the amounts granted are higher, supposedly as a |
| flexibility. | | | | condition to make the loan worth while for the lender. |
| Student Loans Granted By The Government | | | | Some Students Have To Add Loans |
| These are generally made available through the | | | | In some cases, the amount of the loan is not enough |
| college, but they are backed or guaranteed by the | | | | to cover the cost of college and other necessary |
| government. There are two types of government loan: | | | | college-life expenses. In these cases, they have to |
| The Federal Stafford Loan and the Federal Perkins | | | | take a loan from a private lender, in addition to the |
| Loan, with some differences between them which we | | | | Federal Loan. |
| shall see below. | | | | However, if desired and available, there are private |
| Both have certain features in common, like federal | | | | loans with enough allowance to cover all expenses, |
| guarantee, eligibility based mainly on high school | | | | which are subsidized. A sensible suggestion is to look |
| performance and a grace period, which gives the | | | | out for these before you resort to any other private |
| student time to finish studies and start repayment. The | | | | lender. |
| grant of these loans has basic requirements such as | | | | They Are Still Student Loans |
| the real need for a loan and determined high school | | | | Private lenders, although they grant loans for a profit, |
| grades as a minimum condition. | | | | establish interest rates that are lower than the |
| The Federal Stafford Loan | | | | standard personal loan and the repayment conditions |
| As all loans, it is constructed on a determined payback | | | | are a lot more flexible. Nevertheless, in order to be |
| term, closing fees and a certain interest. Interest rates | | | | considered at the time of financial hardships, it is |
| fluctuate between 6.5% and a maximum of 8.25% and | | | | always convenient to be ahead of the situation and |
| the payback terms start at a 10-year period and have | | | | state your case before the payment is past due. |
| an extended period of up to 25 years. | | | | |