Refinance Student Loans

Best Ways To refinance student loans. Ideas of student loan consolidation.

Stafford and Perkins Loans – Types of Federal Student Loans

Due to the increasing fees of the higher education’s many students rely on federal government loans to complete their studies. Due to the low interest rates, easy repayment options and no requirements of collateral or credit checks these loans are hugely popular among students. Federal Stanford and federal Perkins Loans are some of the federal government secured student loans. Before approaching to apply for these loans, you as an applicant should have optimum knowledge about Stanford and Perkin Loans.

Stanford Loans

This is one of the major types of student loans provided by federal governments and has two major variations. One is Federal Family Education Loan Program (FFELP) under which loans are provided by private lenders like banks, credit unions as well saving and loan association carrying a guarantee against default by Federal government. The other variation is Federal Direct Student Loan Program (FDSLP) often termed as direct loans, offered through direct lending schools, and directly provided by US government to students and their parents.

The concept behind Stafford loans are either subsidized meaning government paying the interest rate until the student is pursuing education or Unsubsidized where student has to incur the interest although the repayment starts after completion of the studies. For Subsidized loans, you need to prove your financial need and clear certain terms and conditions regarding family AGI. However, an unsubsidized loan is a criterion where every applicant student is termed eligible.

Repayment of the Stafford loans starts six months after the student completes his studies or drops below half-time enrollment. Usually the term provided for the repayment of Stafford loans is 10 years leaving an appeal to obtain alternate repayment option by consolidating the loan. Make sure you get a detailed insight about the annual and aggregate Stafford loan limits before applying for this type of student loans.

Every student who wants to acquire Stafford loans for their education needs to submit completed Free Application for Federal Student Aid (FAFS).

Perkins Loans

For students having exceptional financial need to compete their undergraduate and graduate studies Perkins Loans are distributed with school acting as a lender. Being Campus based loan program, Federal government provides very limited amount of finance for these kinds of student loans. So far, this is one of the best ventures of student loans undertaken by the federal government and beneficial for the students.

Federal government pays interest of Perkins Loans when students are learning in school including a grace period of nine months. Repayment being easy having 10 years period with interest rate as low as 5% without any default fees surely Perkins loans is one of the most availed financial aid by students during their under graduation schools.

However, there are certain limits for the amount to be sanctioned for each student when it comes to Perkins loans, and particular school’s financial aid department decides the amount to be sanctioned for each needy student. One benefit Perkins Loans has over the Stafford loans is better cancellation provisions. Under Perkins loans, each student is liable to receive maximum of $ 5,500 for undergraduate studies and $ 8,000 for graduate studies.

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