Low Interest Student Loans

For Healthy And Sound Education

By: - Loans - March 24, 2011
low interest student loans

The biggest investment that you or your parents make is the investment in your studies. However there are times when parents are not able to afford the expensive education that is available only at high-profile colleges. Sometimes any professional education can also be expensive and can be unaffordable by your parents. Therefore in order to continue with their studies many students go for low interest student loans which are Stafford Student Loans and Perkins Student Loan. Since these are federal loans which are offered by the government of America they have quite low interest rates and have various other facilities and benefits which are provided to the students if they are found eligible. Also there are some alternative student loans which a student can get if he is found eligible.

Stafford Student Loans

These loans are subsidized and have low rate of interest. The interest rate for these loans may fall anywhere between 8.2% – 9%. Because these loans are subsidized the amount for their interest is absorbed by the government of America till the time a student is in school and is and undergraduate. If a student is not found eligible for Stafford loans he can apply for any alternative student loans which are offered by the government and for which he might be eligible. Alternatively a student can also apply for unsubsidized Stafford which means the student has to pay the interest on his own, however in these cases the interest rates are kept minimal in order to make the studies affordable for a student.

Perkins Student Loans

These loans are also low interest student loans with the interest rate anywhere between 5% – 6%. These loans are better than Stafford loans as they provide lesser interest rate and have a few other benefits as well. These loans are also subsidized which means that the government will pay interest amount till the time a student remains undergraduate. The additional advantage Perkins loans have over Stafford loans is that Perkins loans do not compel a student to pay back the amount of the loan even before nine months after his graduation is over. However Perkins loans have their own eligibility criteria which a student needs to qualify before he may start enjoying the facilities of the loans. Even if a student is not qualified with Perkins loans he can apply for alternative loans which have, more or less, equally low interest rates.

Apart from above low interest student loans there are a few other alternative student loans which are offered by the government to aid the scholars. These loans include:

Parent Loan for Undergraduate Students: Also known as PLUS loan is offered by the government to the people who are parents of an undergraduate student and are not able to afford the cost of studies.

Graduate Student Loan

This is another type of student loan which is an alternative to any federal student and which gives a student financial aid at very low interest rates for post-graduation studies. These loans also have quite low interest rates which are easily affordable and repaid by the student. However to avail this loan a student needs to pass the eligibility criteria defined by the government.


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