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Student loan (Page 1 of 2)
DEFINITION
A loan is a debt, which entails the repartition of financial assets over time, between the lender and the borrower. The borrower receives an amount of money from the lender, which should be paid back to the lender. The cost of the service depends on interest on the debt. Student loan is a loan offered to students to assist in payment of professional education. It doesnt matter if you are graduate or undergraduate student. You can borrow money in all cases. Parents may also borrow to pay the cost of education for dependent undergraduate students. Maximum loan amounts depend on the student’s year in college. These loans usually carry lower interests than other loans and are usually offered by the government. Often they are supplemented by student grants which do not have to be repaid.
THE POINT
The cost of professional education rises every year that is why today, student loans are a fact of life. The key role belongs to the government as in any government sponsored program. While included in the term “financial aid” professional education loans differ from scholarships and grants in that they must be paid back. Student loans provide a variety of postponement options and extended repayment terms and do not require credit checks or collateral. The federal funds for education are limited and government and private lenders give the students flexibility in choosing the type of college that is right for them.
CATEGORIES OF STUDENT LOANS
There are different types of student loans that are available. They include:
Stafford Loans: Stafford Loans are issued by the federal government. They have a lower interest rate than other types of loans. There are either subsidized and/or unsubsidized Stafford Loans. When you take subsidized loan, the government pays your interest for you while you are studying. Subsidized loans are based on financial need. With unsubsidized loans, you will be charged interest while you are studying, but do not have to begin paying the loan until you graduate college. Unsubsidized loans are available without showing financial need. You must begin paying back these loans 6 months after you graduate.
Direct Student Loans (Perkins Loans): Perkins loans are given to students based on extreme financial need, and usually have very low interest rates. The interest rate is lower than a Stafford. Since the college already has been given its Perkins funds, it simply transfers the loan to your student account as a credit. You have to begin paying between 6 and 9 months after you graduate.
Subsidized Direct Loans: Direct loans are the same as a Stafford except that the federal government is the lender.
PLUS Loans: This is a parent loan, offered by the federal government that is unrelated to need. Generally, parents can borrow up to the total cost of education, minus any aid received. These loans are given regardless of your income, but lenders will consider your credit history. The interest is low on this type of loan and repayment usually begins within 60-90 days after full disbursement of the loan, or after the student graduates.
Bad Credit Student Loans- Get A Brighter Tomorrow
Are you a student with a bad credit? Do you need funds for higher studies? Is you poor credit past stopping you from asking for help? If you are caught in the same situation, then bad credit student loans may just be the answer to all your queries. With the help of this cash you would be able to fulfill your dream of studying in a reputed university.
Once you get this finance, you can do various things that you couldnt have afforded to do earlier. You can pay your admission fees, tuition fees, accommodation fees, traveling allowance, purchase books and much more. This financial aid would help you in getting rid of all your monetary restraints in an instant.
Bad credit student loans are ascertained according to the need and condition of the borrowers family. A student needs to settle the amount only after he completes his education and starts earning. The credit that one can fetch trough this aid ranges between £500 and £100,000. The money here comes at a comparatively lower rate of inertest. One can repay the amount in the suitable and convenient time duration of 1 to 25 years.
Often it happens that the tag of being a bad creditor put a student in tight spot which affects his economic status adversely. It becomes hard for him to meet his daily expenses. But here things are different. Imperfect situations like payment overdues, late payments, arrears, IVA, CCJs, insolvency etc are wouldnt pose any kind of threat. You would be able to obtain cash inspite of being a poor creditor and accomplish your dream.
As a student your time is precious so apply for the aid through the online method. Once your application is submitted, the lender starts the verification process. If things go fine, one gets an approval. The money is transferred into your account as soon as possible.
Moreover, you are also saved from the hassle of excessive paperwork. Neither the applicant is asked to fax unnecessary documents nor fill undue papers.