Student Loans are providing students with the financial opportunity to invest in their academic future. Without this possibility, many students would be unable to attend a higher learning facility.
But you will need to make an informed decision when selecting a Federal, a PLUS, a Private, or an Alternative loan. So here we provide updated, in-depth information about all types of student loans so you’ll be able to make a well-balanced personal and financial choice.
There are quite a few different student loan types available for both parents and students to assist them to deal with the cost of higher education. Here is a (by far not complete) list of the available types of Student Loans:
Student loans are often needed if students want to obtain a college education. These days, a bachelor’s degree is already considered a sort of new high school diploma, and the degree doesn’t carry by far the weight it did just a decade ago. But indeed, even a bachelor’s degree will cost you a lot of money, and continuing college even beyond a bachelor’s degree is often ridiculously expensive.
Through very hard work, commitment, and persistence, quite a few students go on and become lawyers, doctors, artists, or other professionals when they’ve earned their college degrees, and many of these dreams wouldn’t have been possible if there weren’t any provisions like the student loans as we know them.
When they want to apply for a Federal student loan, prospective student borrowers are required to first a FAFSA, and by the time their applications are processed, their provided information will be used to determine if they are eligible to receive financial support. Besides the Federal FFELP loans, there are also FDSLP (Direct Loans) loans available. Some of the same student loans that are available through FFELP program are also offered in the FDSLP program, such as PLUS Loans, Stafford Loans, or Consolidation Loans. The Federal Perkins Loan program may also be available to specific students who are employed in a public service position.
On top of all the options available through the U.S. Federal government, you can also find many Private Student Loans, but please keep in mind that the benefits that are included in the Federal Loans Programs usually are greater than those associated with Private Student Loans.
Student Consolidation Loans
You may very well also be interested in a Student Consolidation Loan. Tens of thousands of college students are heavily burdened with the costs of their education loans. For those who are experiencing difficulties in meeting their financial obligations because of the high amount of debt, and who have no options left, taking out a Student Consolidation Loan could well be a very viable option.
Think about applying for a Student Consolidation Loan?
Just like with Federal Student Loans and Private Student Loans, you can find a number of options if you want to pursue a Student Consolidation Loan. Check out a few available Federal Student Consolidation Loans her:
• FFELP Consolidation Loan
• FDSLP Consolidation Loan
If you want to be eligible for a Student Consolidation Loan, you need to meet several criteria. For a FFELP student consolidation loan, students need to be in repayment of their defaulted loan(s), meaning three on-time payments. The majority of FFELP and FDSLP Loans can be consolidated if the student in default will agree to repay the new Student Consolidation Loans via so-called Income Contingent Repayment Plan. Be aware, though, that before you think about a Student Consolidation Loan, you need to consider what this will do to your credit score. Before you inquire about a Student Consolidation Loan, you could want to allow your defaulted loan to get Rehabilitation.
Rehabilitation means that a student will bring the defaulted student loan out of the default status before applying for a consolidated student loan. If a student will make regular and consistent repayments on that loan for a predetermined time frame (for FFELP and FDSLP Loans 9 on-time payments during 10 months), the default notification is removed from their credit history. The conditions and limitations for Rehabilitation are of course subjective to the lender’s terms and conditions.