Government Student Loans

Are you thinking about government student loans? These types of loans are government funded and repayable. Eligibility is determined with a test. If you are a full time student, the government helps with the interest on the loan. If you are an online student, you have a number of steps to follow. You need to be a U.S. citizen with a social insurance number. You must have a high school diploma and be enrolled as a student. Additionally you cannot have any drug convictions or owe the government any grant money. If you are male, you have to register for Selective Services.

If you do not qualify for government student loans, many banks will offer private student loans where you simply fill out an application. You can apply online at FASFA and fill in the form. If you are accepted, you will receive an award letter and a Master Promissory Note agreeing to the terms. Then you have to decide on which of the government student loans is right for you. Here are three to consider:

Federal Perkins Loan Program-this is the best with low interest rates and good terms

Stafford Direct Student Loans-most common and come in subsidized and non-subsidized

Stafford FFEL Loans- have private lending institutions such as banks, credit unions, savings and loans

Then if you feel you are still in need of money you can go to your aid office and apply for a (Plus Loan), Parent Loans for Undergraduate Students. In this case, the child’s parents would apply and wait for a response. It does not have to be difficult. There are student loan guides that can help. There are numerous college student loans and programs available from the government with payments after graduation. You need to decide which one is best for you. Unfortunately, government student loans are a part of higher education but remember that you will eventually have to pay off the loan even though you may have a grace period.