The Credit Score Information Site

Types of student loans

It is important for students to familiarize themselves with the various types of student loans. By doing so, they will not be limited to a certain choice and therefore they can study which one will work best for their needs.

 

1. Federal Student Loans

These are loan programs being provided by the government to the million of students. These types of student loan offer very low interest rates compared to the other student loans. These types are often chosen by students for they can adjust to them very well.

 

Federal Stafford Student Loan

• This can be awarded to students whose financial needs will be approved by the federal government.
• This is the most popular and said to be the most convenient type of student loan.
• Can be borrowed through a lender.
• Students can attain this from the government, credit union, or bank.
• Students must at least be enrolled half-time.
• Students are required to pay this back after they have left the school for a period of six months.
• The interest rate is about 6.8 %.

 

Further Reading: See below for more information on Student Loans

Student Loans: Introduction
Applying For A Student Loan
Managing Student Loan Debt
Student Loans And Your Credit Score