Friday, 18 September 2009

A Guide on Student Loans

With the education getting expensive, student loans are a much needed necessity today. These days many students do not have the means to fund either tuition fees, course materials or general living expenses and find themselves having to apply for student loans. Student Loans can be a real help in allowing you to study to improve your prospects in the marketplace and in this light can bring a positive contribution to your future.

Generally the government funds two types of student loans; The Federal direct student loan and the Federal family education loan. In direct student loan program, student can directly take a loan. But for Federal family education loan, although the federal government approves the loans, they are actually provided by private and public lenders such as banks, saving associations. Many credit companies also offer this loan through ACS or Affiliated computer Services.

If yours or your family’s income falls below a certain level, then you may qualify for a subsidized student loan. It’s a good option to apply for this loan as there can be a considerable saving. However, those who do not qualify for subsidized student loans prefer to opt for private student loans. The College Board extra credit loan is another student loan option. Theses are actually run by the colleges themselves and can be an expensive way of getting a student loan.

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