US government has many types of loans for the students. The types of such loans are distinguished on the basis of amount, types of education, institutes, and payment contracts.
Government loans are usually flexible as far as the repayment structure is concerned. But to obtain any such loan from the government, one needs to show adequate proof of the educational institution and the certificates of the student. Not just any type of education or student is offered these loans. There are certain parameters on the basis of which the loans are provided.
Types of loans
Some of the most common types of loans offered by the government are as follows:
1. Federal education loans:
If you require extra money for your tuition fees, school books, and living in hostels, then US government has a convenient arrangement for you. US federal loans have been formulated with such student requirements in mind. These grants and loans are offered to students at all levels of study. They are cost-effective and beneficial throughout their career. These loans are offered by the federal governments to the students. These loans have to be paid backed with interest once the student has completed his/her graduation.
It has been estimated by the National Center for Education Statistics, that about 50% of the students in the US opt for student loans to pay fees for their schools and colleges. There are several intuitions that take advantage of the financial requirements of the students and charge high-interest rates. In such cases, it is always better to stick to the student’s loan as they are always safe and can be obtained without any harassment. These loans are considered to be the best choice for students.
2. Signature student loan:
If one can rank the loans on the basis of the benefits offered, then it has to be stated that the Signature loans stand just after the federal loans in terms of the quality offered. These loans are easily available and do not take much time in getting these approved. All the education costs can be covered with the help of these loans. You will require a co-signer for your signature loans.
There are several organizations and agencies that conduct student’s loan programs. Student loans are best if you are opting for a higher education in any private college. Private institutes also offer higher education to students but government or bodies do not prefer to grant loan for education in such institutes. At such a juncture, student’s loans are of great help. Adult education classes are loans that can help you to pay for your schools irrespective of your age. This is beneficial if you want to pursue higher education or undergraduate courses late in your career. Students often opt for continuing education loans if they want a more flexible loan designed specifically for you. Higher education loans benefit only those students who borrow larger sum.
Types of loans at a glance :
- Student’s loan
- Loan for higher education
- Continuing education loans
- Loan for adult students
Sources for higher education loans
- Banks and other financial institutions – Banks are one of the most reliable sources when it comes to bank loans. Banks lend loans on the basis of the credit history that you are having. This loan is similar to any other type of loans. If you are pursing a course in a non traditional institution, banks can help you with flexible loan amounts. If you don’t prefer to go for banks, there are several small financial institutions that help you in getting loans.
- The federal government – Perkins loans, Federal Stafford loans and PLUS loans help students afforded their education are some of the loans offered by the federal government. To find out whether you are eligible for this loan or not, you need to fill out FAFSA form online.
- Finance office of schools – There are some schools that offer loans to students. You can match the requirement of your loan with that offered by them and fins out for which loan you actually qualify.