Federal Loans For College
Federal loans for college are a leading source of financial assistance in the United States. The government has developed many loan programs to help students earn college education. Educating today’s generation is essential for a better society tomorrow. Federal loans are growing popular day by day and have give hope to many individuals who wish to pursue higher education. There are a number of federal loans for college available to students. These have been listed below:
- Perkins loan
- Stafford loans (subsidized and unsubsidized)
- Parent PLUS loans
- Direct parent loans
These loans are non credit based and require no credit check. This means that the amount disbursed will be calculated on your basic current need rather than your ability to repay. They are aimed towards helping low income students acquire degree programs for a better career. Anyone who shows a financial need can apply for federal loans. You can apply for federal loans for college through a FAFSA application. This application collects all your financial data and history, the data is analyzed to determine how much financial assistance will be provided to you. Federal loans for college can be attained in amounts ranging from $2500 to $6500. The amount of other loans varies according the degree program and monetary need. Parent PLUS loans are specifically disbursed to parents who cannot pay for their child’s college. However, it is important for you to be eligible or federal loans for college, this means that you should be a US citizen, you should have a need for finance, and you want to earn college education.
Interest rates on these programs are very low. The federal government has made federal loans for college affordable by keeping the payments low as possible. Most federal loans for college offer a fixed rate of interest; this allows you to calculate your repayment period with more accuracy. Repayment plans on federal loans are designed to help students remain financially stable once they enter the professional field. Deferment options and forbearance programs have allowed students to manage loan payments in times of financial crisis.