Your Student Loan Financial Obligation

The skyrocketing expenses of college tuitions have created a requirement to get a student loan these days. College students need to be able to pay tuition costs, as well as purchase books, food, gasoline, and pay for utilities such as cell phone bills, recreation expenses, - the list goes on. Various college loan types help students to be able to pay for their multiple college expenses. However, these loans must be repaid under certain stipulations.

Here are some types of student loans that have different requirements and time requirements for repayment:

Direct student loans are loans that must begin to repaid 6 to 9 months following the student having completed school courses. A direct student loan is issued through the college that the student is going to, which allows lower interest rates than guaranteed student loans.

Guaranteed student loans, also called Stafford Loans, have low interest rates. Students can try to get either a backed or unbacked student loan. With a backed loan, the government foots the bill for the interest for you during the time you attend school. Subsidized college loans are based on the student's financial need. Unsubsidized college loans charge interest while you are attending college. You must start paying on the principal after you have completed school. Both of these kinds of loans require that repayment begin 6 months after the student has completed their education.

Federal parent loans, also called PLUS loans, are student loans that are not dependent upon your income, but loan companies do look at personal credit history. Parents and guardians that have a dependent child who is in college at minimum part-time can apply for the PLUS loan. Interest rates for these loans are usually around 9% or less.

Literally any college will let you to use a direct student loan, guaranteed student loan or PLUS loan. It's essential to diligently study all possible options for financing ongoing education. Your future life is linked to your financing, and that lifeline is your college loan.


By Robin Silfies

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