If you need assistance in paying for the cost of your education, you can opt to apply on a Student loan. This is a lower interest kind of loan compared to others. This is because mostly the government is the one who issues such kind of loan.
Student Loan is a kind of financial aid granted to student who wishes to continue their studies on a Higher Education Level but unfortunately, lack the means. The only difference of this kind of financial support among others such as scholarships and education grants is it has to be repaid within a certain period of time
There are three types of Student Loans (U.S Setting)
1. Student Loans directly arranged with the student involved
This type of loan is made straightforwardly to the student involved. Most students are entitled to such kind of loan. There are two kinds of this type of loan subsidized loan and unsubsidized loan.
Usually, payments for these kinds of loan have a refinement period of six months meaning payments are to be made six months after graduation. Today, the current maximum value to be borrowed by a freshman is $2,625 per year, by a sophomore student is $3,500 per year and by a junior or senior student is $5,500 per year.
2. Student loans directly arranged with the parents involved
With this type of loan, parents are given the opportunity to borrow a bigger amount to finance the education of their child. Though the loan has no grace period, the repayment procedure starts immediately. The parents involved are the ones who should be paying for this loan. The terms and conditions are usually explained in Parents Loans for Undergraduate Students or usually referred as PLUS.
3. Private Loans directly arranged with either the student or the parent
This type of loan offers a higher amount of credit boundary. Similarly, with students loans arranged directly with the student involved, this type of loan has also a grace period which is scheduled after graduation. These refinement periods usually ranges from six to twelve months.
Private Loaning Firms offers a higher interest rate compared to government loans. This loan usually comes in two kinds school channelled and direct to consumer. The school-channelled type of loan is authorized by the school. Direct to consumer type of loan on the other hand, are not officially endorsed by schools. The student provides proof of enrollment to the lending firm. Then, the firm will then give out the loan to the student.
Difficulty on paying monthly loan dues is preventable. Nonetheless, there is still a possibility that you’ll find yourself under such circumstance wherein you are having an impediment on paying your loan. Therefore, you possibly will need a loan postponement (deferment) or loan mercy (forbearance). Deferments and/or forbearances are all you need if you are having financial problems.
It is better to consult first your lender about certain information on how to deal with the rearrangement of your proposed repayment plan. You have to be sure that your proposed repayment plan will be beneficial to both parties and that you can assure them of paying the loan promptly.
Nevertheless, these lending firms will help you in determining the best way of repaying them that is convenient on your part without sacrificing their sake. Always remember to discuss whatever financial condition you are experiencing with your lender. This is to avoid further conflict between you and your lender.