Low Income Student Loans
Low income student loans Low income student loans are designed to financially assist students who cannot afford higher education. It is important to understand what level of income determines the low income groups. According to latest statistics, families that make an annual income of $40,000 or lower fall into the low income group. Pursuing higher education and working for a better future is the right of every citizen, keeping this in mind, the federal government has developed a number of student loan packages for low income students.
Types of low income student loans
There are a few low income student loans offered by the government. These include the Perkins loan. Stafford loans, and parent PLUS LOANS. These loans are subsidized by the government, meaning that a portion of the loan is paid by the government on your behalf. Amounts disbursed vary according to the need of the student. The federal government has designed these loans to make it easy for students to pay for education and not be burdened by repayments.
Why should you opt for low income student loans?
The terms and conditions of these loans are highly favorable for low income families. Firstly it must be noted that almost anyone with insufficient financial income for educational purpose can apply for these low income student loans. There is no requirement of a cosigner and a credit check is not done for such loans. The application procedure is very simple and can be completed online as well. You must fill out a FAFSA application form and submit it before the deadline in order to be considered for the loan.
Another major reason why you should apply for low income student loans is that the interest rate on these loans is very low, it may range anywhere within 3% and 7%. The repayment schedules can be altered, deferred, and even cancelled if the student is in a severe financial crunch. The government does not go after the student if he/she defaults. Certain occupations such as teaching and nursing allow students to have their previous loans completely waived of through forgiveness programs. These are the reasons why low income student loans are becoming a great source of hope for underprivileged families.