About Our Student Loans
There are only two different forms of education loans you will be able to apply for: government student loans and corporate student loans.
Government Student Loans-
There are two main types of government student loans. They are the Stafford Loan and the Parent Loan for Undergraduate Student (PLUS). There is also a Perkins Loan that is designed to provide money to need based students that are low on money. The Perkins loan is in danger of being eliminated in the current budget report so we won't go over it in great detail.
Stafford Loan- A Stafford loan is the most common type of federal student loan. It is available to all students who want to apply for a federal student loan. Stafford loans don't require a credit check, feature a fixed interest rate and can be either subsidized or unsubsidized:
Subsidized-With a subsidized loan the government will pay your interest rate but in return you have to pay the premium while you are still in school.
Unsubsidized-With an unsubsidized loan you won't make any payments while you are in school. Once you graduate, however, you will have to pay the interest a well as the principal.
PLUS- The PLUS is designed for parents of perspective college students. Since parents are applying for PLUS loans a credit check is required, although it is not an actual credit check. It is more of a check to make sure you, or you parents if you are the student, have not filed for bankruptcy in the past few years. The interest rate is usually fixed and higher then the Stafford Loan, repayment starts while the student is still in college.
Corporate Student Loans-
Corporate student loans are loans issued by banks or online lenders and they differ from Government Student Loans in a few ways. Corporate student loans are not federally regulated. You will be subject to a credit check when you apply for a private student loan and that will help determine what your interest rate will be. Corporate student loans can offer you more options then federal student loans. Government student loans are for a set amount so it is possible it will not cover the entire cost of your tuition. Even if the government student loan does cover the entire cost of your tuition you may still be strapped for cash paying for room and board, your computer and your books. A corporate
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