Education loans are loan programs extended by a number of sources to students who wish to seek higher education but face financial constraints. These loans help students fund their cost of education for the duration of the course and the students payback the lender once they graduate along with a pre-decided interest payment. Education loans are offered by the government as well as a number of private lenders which include banks and financial intermediaries mostly.
How To Get An Education Loan?
Students can get education loans through submitting the Free Application for Federal Student Aid (FAFSA) to the financial aid office of their respective institute and/or submit the completed additional forms other private financial intermediaries might require from the applicant. Mostly, private lenders also require the submission of FAFSA only but with some supporting documents. Students are informed about the status of their loan application through their institute’s financial aid office only.
How Are Education Loans Helpful?
Education loans allow students to complete their education without having to worry about finances during the course of their education and once the applicant has completed his/her studies, they can easily find a suitable job and repay the amount borrowed. This saves the students quite some mental tension and physical exertion to earn that much money in order to pay for the fee while being enrolled in the program. Furthermore, students are allowed to defer their loan payments for a certain time span if they are unable to make a few repayments on time. Education loans allow a great level of flexibility to students in this case.
What Are The Different Types of Education Loans?
There are two basic types of education loans. These consist of private education loans and federal education loans. Federal student loans are the best choice for students since they offer the lowest interest rates and have lenient terms and conditions whereas private education loans require applicants to have good credit history and must also have a cosigner for sanctioning of loan.