Student Loans, what you need to know

AC Lens

Student Loans, what you need to know

5 Stars Azores from $899

For millions of people, college is not an option without some sort of financial aid to help pay for the ever-growing, exorbitant cost. Financial aid comes in many forms, including merit and athletic scholarships – which generally do not need to be repaid – and student loans – which do have to be repaid.

There are many types of student loans, including private and federal. And within each group are more subgroups. Different loans are governed by different federal and/or state rules and regulations; and students are often eligible for one or many types of loans. There are also subsidized and unsubsidized loans.

Perkins and Stafford Loans are federal loans funded by the U.S. government that have favorable repayment terms and low interest rates. These loans are given directly to the student and are not dependent upon collateral or a credit check. Federal loans may also be consolidated after graduation.

PLUS loans are also federal loans, originally called Parent Loans for Undergraduate Students. These loans were developed to help parents fund or partially fund their children’s higher education. Currently, parents may obtain PLUS loans; and students seeking graduate degrees can obtain Grad PLUS loans.

In addition to federal student loans, there are many types of private student loans offered by banks and other financial institutions. Private loans generally do not come with the same low interest rates and favorable repayment options found in federal loans. Credit checks and collateral often accompany private loans.

Read this next:

Must Read

Harvard Online Education: What Have They Learned?

Harvard Business School launched HBX, its new online education initiative. Prior to HBX, the trend was for online courses to create a “lean ba...

SCHOOL'S OUT ! Online Degrees the New Alternative.

The online learning environment is continuously evolving, offering a fantastic opportunity to learn and grow. With increasing tuition costs, budget cuts and lim...

All the BEST credit cards, zero interest, rewards, cash back and more!

Although we all know about credit cards – and likely have multiple cards - what might be surprising is that there are a number of different types of credit ca...

10 Ways To Manage High Blood Pressure

High blood pressure is a common medical problem of the modern age. Today, eight out of ten people older than 60 suffer from high blood pleasure, nearly 40% of p...

Your Homeowners Insurance Premiums May Be Affected By Your Credit ScoreYour Homeowners Insurance Premiums May Be Affected By Your Credit Score

You probably know that the premiums for your homeowners insurance may increase when and if you file some sort of claim. But, what you may not know is that your ...

This Huge Company Is Harnessing Mindfulness In Its Employees

  While some businesses have gyms and cafeterias for their staff, cloud-based software company Salesforce is giving it employees the silent treatment. T...

Are Those In-Office Perks Really That Good?

Having your employer give you a rent subsidy instead of a pay raise may appear to be a pretty good deal on the surface, but it may not be the best thing for...

3 Big Budget Mistakes To Avoid

Budgeting is all well and good when you are trying to get your financial life into order, but many people just can't get the budget to stick. They fall vict...

5 Personal Success Books You Need To Read

[caption id="attachment_93" align="alignnone" width="1698"] Books HD[/caption] One of the easiest ways to succeed in any venture is to have a mentor you can ...

6 Reasons Why You Should Start A Savings Account Today

A recent survey showed that 40% of Americans do not have enough money squirreled away to see them through an emergency as small as an unexpected auto repair. ...

Tumblr Is Tumbling Yahoo’s Purchase Expectations Out The Door

Tumblr is proving not to be the cash cow Yahoo thought it was going to be , hinting it may write off the entire goodwill value it paid to purchase it. In...

Guy Spier Questions Value Financers

Aquamarine Fund founder and value investor Guy Spier, founder is questioning the value of and the number of financiers in the work force today, including hi...