Student Loan Types – Subsidized Vs Unsubsidized Stafford and PLUS

A student loan is usually a form of unsecured loan designed to assist students to pay for tuition, education, and related fees, including living expenses and books, and other related expenses after graduation. Unlike a personal loan, which has to be paid back with actual money coming out of your paycheck, a student loan can be paid back based on your credit history as well as a percentage of your expected income. The loan is given in return for certain monthly payments made by the student. Some forms of student loans are given by the government, while others come from private lenders. You must first research all available options to find out which one best meets your needs before you apply. Visit this site http://www.journeysaremydiary.com/2015/09/student-loan-woes.html

The federal government offers many student loans through their schools financial aid programs, but you may also be eligible for a federal grant. Many times these grants will cover the cost of tuition and other educational expenses, while other grants are available for individuals who are starting to earn their first dollars after graduating. You can find out more information on the availability of grants and scholarships by looking at the school’s financial aid website.

Some of the more common unsubsidized student loans are the Perkins loan, Federal PLUS, Direct Plus Student Loan, the FFEL loans, and Stafford loans. The Perkins loan is given by the federal government directly to the student, while the FFEL is given by a bank. Many people use these types of unsubsidized loans to start a business, but interest rates and minimum payments on unsubsidized Stafford and PLUS loans are comparable to those of subsidized Stafford and PLUS loans, so many choose to take out unsubsidized Stafford loans. The minimum payments and interest rates on unsubsidized Stafford loans are typically higher than those of subsidized Stafford and PLUS loans, so remember to weigh the cost of college with the payment expected once you have graduated from college.

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