New opportunities a better tomorrow—college is an investment in the future. In making this important step, many families and students rely on student loans to offset the rising costs of college. If you’re thinking about applying for a student loan, preparation is the key. Do your homework. Find out about interest rates and terms of payment. The more prepared you are, the sooner you can be debt free.
Types of student loans:
- Federal Education Loans are funded and/or guaranteed by the government or insured by the federal government. There are several types of federal loans including Federal Stafford Loans (subsidized and unsubsidized), Federal Perkins Loans and PLUS loans (Parent Loans for Undergraduate Students).
- Private Education Loans or Alternative Loans are non-federal loans funded by banks and lending institutions. However, it is very important to understand that when you accept a loan, you are entering into a binding agreement to repay all money borrowed. Therefore, make a good choice and find a loan that fits your needs.
Educational loans can be a useful resource for helping finance your education. To learn more about student loans, visit www.fasfa.com, www.collegeboard.com, www.finacialaid.com, and www.EducationConnection.com.