Monday, 12 October 2009

All about Student Loans

Today quality education comes with a price tag. Right from the school days, parents find it hard to meet the various educational costs. That’s why students in colleges prefer to take help of student loans to fund their education. In fact student loans are the most preferable options for many students pursuing higher studies in undergraduate, graduate, medical, law or research oriented courses.

Student loans basically take care of all the fees like tuition fees, dormitory fees, canteen fees, and library fees and in addition they are also used to buy computers, books and other educational materials. Of the three types of loans, federal student loans allow the students to obtain loans in comparatively lower interest rate. The interest rate can even be lower than the national interest rate can also be consolidated after the student graduates, thus allowing the student loan repayment plan a bit longer time. But there are several federal forms to be submitted while applying for loans.

But in private student loans, there are no federal forms to be filled. But students have to submit their credit histories. However, the interest rate here are a bit expensive than federal loans. In parents’ loans, parents apply to encompass any additional cost for their child's financial aid which is not covered under general student loans. The interest rate is fixed in such loans.

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