Best Loans for the Student

By: David H. Urmann


A Student loan is an aid for students that have difficulty in paying their tuition fees. It is also intended for intelligent students that cannot afford high tuition fees. Schools normally participate in many types of student loan programs. There are many kinds of student loans that are recently added to the usual student loans. This would include government loans, direct loans as well as the FFEL loan program.

Under the FFEL loan program, your fund loan will be coming from a certain bank, or other banks that are also a participant in this type of funding loan. This direct loan financing program of banks usually comes straight from the national government’s funds. Thus, the students who can apply for a loan also depend on their year level in their school.

Aside from this, the loan will also depend on whether the student has a sponsor or not. Students can borrow or loan for finances beyond their sponsor’s loan amount. The school will also evaluate the result and update the student about their loan eligibility.

Listed below are types of Student Loans:

• Stafford Loans (Direct loans and FFEL}: the Direct Loan or William Ford Federal and the FFEL or Federal Family Education loan programs are generally called the Stafford Loan. This is for the parents and students. The students need to sign some legal documents, a list of conditions and they also need to write a promissory note.

Students that are enrolled under the Stafford loan are strictly recommended to finish their two years or full academic years of education. Moreover, the Stafford loan has an interest rate. The interest rate of a Stafford loan is 7.59 percent and will not exceed any further.
Freshman students who are enrolled in this Stafford loan program may borrow up to $3,900 dollars for their academic year. Once these first year students complete their freshmen level, he or she will be entitled with a $4,900 dollars loan value.

On the other hand, sophomore students may acquire a Stafford loan for approximately $5,500 dollars. Once the sophomores finish their educational level, they will be entitled to apply for a loan of up to $7,400 dollars.

Thus, once the students receive a professional degree or if they have graduated from college, they can loan as much as $20,500 dollars every year.

The students who graduate due to the Stafford loan program will then have seven months of a so-called “refinement period” before they start the re-payment process. Throughout the period of re-payment, the students need to accept the corresponding re-payment information.

• Plus Loans: The Plus loan is a type of loan program for undergraduate students. Students who wish to avail of this type of loan should be enrolled for more than one year in their corresponding schools. The Plus loan is also available for parents. This will be throughout the enrollment period.

The students or parents should have a suitable credit history before they can participate in this type of financing. The parents should also complete the Direct Plus loan promissory note and application. Parents are also generally required to submit credit checks.
For parents that did not pass the vital “credit check”, they can still get the loan if they are able to present a credit check from a friend or a relative who has a good standing. Hence, the Plus loan program has a limit of up to $3,000 dollars only. This is on a per loan basis.
Furthermore, the Plus loans program has an interest rate that is fixed. The interest rates of the Plus Loan range from 6.90 up to 8.58 percent. Thus, normally, the re-payment method for this loan is only within 58 days after the loan is totally disbursed. After which, the student needs to start re-paying both the interest and principal amount. This is usually once the student is in the school.

• ECU Student Loan Program: The ECU loan program is intended for domestic students. ECU loan for students require financial support from any group or agency within a broader area. The ECU student loan offers the student approximately $250 US dollars and $1100 US dollars.

In order to qualify for the ECU student Loan, the student needs to finish at least two teaching stages of studying. Plus, this would be the case up to their course completion. Furthermore, they need to attend at least three semesters of their course.

Thus, in this type of loan program, the students are given up to one year to re-pay their loan. These ECU student loans actually give the students all they need during the course of the schooling like school supplies and University Textbooks.

• NSLSC Student Loan: The NSLSC student loan is a federal government loan for students that do not have any means of financial support for their studies. NSLSC grants a maximum period of 10 years for the re-payment of the loan. Thus, the funds of the NSLSC student loans come from the income of professional laborers or workers. This would include lawyers and professionals from the medicine category such as dentists and doctors.