A Perkins student loan was a type of student college loan made to students with exceptional financial need, based upon the student's FAFSA financial aid application. Funds were provided by the federal government for these loans. The interest rate for Perkins loans is 5%, and payments begin 9 ...
Students who need to borrow should first do their research on the types of loans available, including federal and private. Information on federal student loans is available on the U.S. Department of Education's Federal Student Aid website. The most common sources of private student ...
Federal and private student loans are two options that students can use to pay for college when other forms of aid fall short. While federal loans are only available through the federal government, private student loans can come from other lenders, including large-name banks you may already be...
These loans are for students with demonstrated financial need. They accrue interest at a fairly low rate (as of January 2017, the interest rate is 3.76%). But “subsidized” means that the government—not you, the student—pays all the interest that accrues ...
Direct Subsidized Loans tend to have better terms for those with financial need.2Subsidized loans also are more forgiving when it comes to paying the interest rate on the loan. The government pays the interest rate on the loan while you’re in school at least half-time, for the first ...
In these cases, the government pays the interest on behalf of the student. Private lenders, however, often do not offer subsidized loans to students, meaning students are responsible for the full interest amount from the time the loan is disbursed. Next:Forbearance and deferment options 7/18 ...
Before applying for private student loans, you should consider the risks. Unlike federal Direct Subsidized Loans, these loans don’t offer the same protections as federal loans; the government won’t pay for your interest while you’re still in school. Once you graduate, you won’t have acces...
Private student loansare, as the name suggests, loans issued by privately owned companies, not the federal government. This usually means more options in rate, term and repayment plans, but they can also come witha harder qualification process. ...
Borrowers can pay off their federal student loans early without incurring any prepayment penalties. This allows graduates to save on interest costs if they can repay their loans sooner than expected. Student Loan for International Students The government offers federal loans for international students wh...
When it comes time to repay student loans, the government offers direct consolidation loans, which you can use to combine two or more federal education loans into a single loan with a fixed interest rate based on the average rate of the loans you are consolidating. You can't consolidate priv...